Capital Infra Trust has received a rating reaffirmation from CRISIL Ratings Limited, maintaining its strong credit profile in the infrastructure investment trust sector. The rating agency has reaffirmed the 'CRISIL AAA/Stable' rating on the trust's non-convertible debentures and corporate credit rating, reflecting the robust operational performance of its road asset portfolio.

Rating Reaffirmation Details

CRISIL has reaffirmed ratings on multiple instruments while also withdrawing ratings on certain NCDs following partial redemption:

CRISIL has withdrawn its rating on NCDs aggregating ₹480.63 crore following confirmation of partial redemption from the debenture trustee. The outstanding external debt at trust level stands at ₹1919.37 crore, while combined debt at acquired SPVs totals ₹1641.45 crore.

Portfolio Expansion and Financial Management

Capital Infra Trust completed the acquisition of 100% shareholding in three hybrid annuity model special purpose vehicles owned by sponsor Gawar Construction Ltd in December 2025. This expansion brings the InvIT's total portfolio to 12 HAM assets, all operational with track records of receiving at least two annuities from the National Highways Authority of India.

The acquisition was strategically funded through:

• Qualified Institutional Placement of ₹1,250 crore
• Debt financing of approximately ₹1,150 crore
• Preferential issue of ₹345 crore to sponsor GCL in November 2025

The trust utilized proceeds from the preferential issue, combined with internal accruals of ₹75 crore, to prepay external NCD debt of ₹420 crore. This strategic debt management reduced leverage to 45.6% as of November 14, 2025, from 55.0% in June 2025.

Strong Operational Foundation

The InvIT operates a geographically diversified portfolio spanning nine states, with no single HAM asset contributing more than 25% to total income. The balance concession period for all assets ranges from 10 to 13.5 years, providing long-term cash flow visibility.

Key operational highlights include:

• All assets have NHAI as counterparty, reducing counterparty risk
• Average payment delay of less than one month from NHAI
• Seven out of nine projects receive payments without material deductions
• Fixed-price Project Management Agreement with GCL for entire concession period

Financial Metrics and Debt Protection

The trust maintains comfortable debt protection metrics following recent financial restructuring:

The debt structure includes cash trap provisions if DSCR falls below 1.15 times, along with put and call options providing additional liquidity management flexibility. The trust benefits from cash flow pooling across all projects under the InvIT structure, supporting consolidated debt servicing capabilities.

Rating Strengths and Risk Factors

CRISIL's rating reflects several key strengths including the healthy operational track record of assets with geographic diversification, strong counterparty in NHAI, and fixed-price long-term maintenance agreements with experienced sponsor GCL. The rating agency notes the trust's superior liquidity position supported by steady annuity receipts and structural protections.

However, the rating also considers susceptibility to volatility in operational costs and interest rates, along with potential refinancing risks from put and call option provisions. CRISIL expects these risks to be mitigated by strong DSCR levels and the remaining concession life of approximately 13 years across the portfolio.

Capital Infra Trust has announced its board's approval for additional borrowings of Rs 667.36 crores from Union Bank of India, specifically designated for the redemption of Non-Convertible Debentures Series II (NCD II). The decision represents a significant financial restructuring move by the infrastructure investment trust.

Board Approval and Regulatory Compliance

The Board of Directors of Gawar Investment Manager Private Limited, serving as the Investment Manager to Capital Infra Trust, approved the additional borrowings through a circular resolution passed on January 30, 2026. The approval was granted in compliance with Regulation 23(6)(b) of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, and other applicable SEBI InvIT Regulations.

The Trust has formally notified both the National Stock Exchange of India Limited and BSE Limited about this development, maintaining transparency with regulatory authorities and stakeholders.

Financial Structure and Borrowing Details

The proposed borrowing arrangement forms part of a comprehensive financial strategy by the Trust:

The Rs 667.36 crores borrowing, combined with the previously approved term loan of Rs 482.64 crores for refinancing ROFO Assets (approved on January 28, 2026), aggregates to the total sanctioned amount of Rs 1,150 crores from Union Bank of India.

Purpose and Utilization

The Trust has specified that the proposed borrowings will be utilized solely for refinancing existing borrowings. The primary objective is the redemption of Non-Convertible Debentures Series II, which forms part of the Trust's debt restructuring strategy.

The borrowing is subject to receipt of requisite approvals, if required, indicating that certain regulatory or internal approvals may still be pending for the complete execution of this financial arrangement.

Previous Communications

This announcement follows previous intimations dated October 08, 2025, and January 29, 2026, suggesting an ongoing process of financial restructuring and stakeholder communication by the Trust. The systematic approach to regulatory compliance demonstrates the Trust's commitment to maintaining transparency in its financial operations.

Regulatory Framework

The borrowing approval operates under the framework of SEBI InvIT Regulations, specifically Regulation 23(6)(b), read with Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2025/102 dated July 11, 2025. The Trust also complies with the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, ensuring adherence to all applicable regulatory requirements.