IndiGrid Infrastructure Trust (IndiGrid) has reported a stable performance for the first quarter of fiscal year 2026, maintaining its distribution per unit (DPU) guidance of INR16 for the year despite facing some operational challenges.

Financial Highlights

IndiGrid reported a flat revenue growth of 0.6% year-on-year, reaching INR839.80 crore for the quarter ended June 30, 2025. However, the company's EBITDA declined by 8% to INR704.00 crore, primarily due to a generator-related issue at a solar thermal asset in Rajasthan and a one-time investment management fee of INR12.00 crore related to recent acquisitions.

Despite the challenges, IndiGrid maintained its quarterly distribution per unit at INR4.00, representing a 6.7% increase compared to the same period last year. This distribution is in line with the company's annual guidance of INR16.00 per unit.

Operational Performance

The company's weighted average quarterly transmission availability stood at 99.04%, while solar CUF was at 17.7%. The lower solar CUF was attributed to the generator-related issue at the Godawari Green Power Project in Rajasthan, which has since been resolved.

Collections for the quarter were robust, with transmission assets at 93% and solar assets at 111%. The receivable days for transmission assets improved to 41 days from 51 days in the previous quarter.

Recent Acquisitions and Growth

IndiGrid acquired two significant assets during the quarter:

1. ReNew Surya Aayan Private Limited (RSAPL) - a 300-megawatt solar project
2. Koppal-Narendra Transmission Limited - a 276 circuit kilometer transmission project

These acquisitions, valued at a total enterprise value of approximately INR2,108.00 crore, are expected to contribute significantly to IndiGrid's asset under management (AUM) and EBITDA.

Future Outlook

IndiGrid's sponsored entity, EnerGrid, won its first battery energy storage project with a capacity of 187.5 megawatt / 750-megawatt hour. This project, featuring a 4-hour storage cycle, marks IndiGrid's entry into the energy storage sector, aligning with India's energy transition goals.

The company's net debt to AUM ratio stood at 61.2%, providing headroom for future acquisitions of approximately INR6,500.00 crore without equity dilution.

Management Commentary

Harsh Shah, Managing Director of IndiGrid, commented on the results, stating, "We are doing our best to ensure stable, predictable returns. We see the outlook for this sector and our business improving massively due to the significant investments in the sector. With favorable cost of capital and numerous opportunities on the horizon, we anticipate good times ahead for IndiGrid unitholders."

IndiGrid continues to focus on growing its portfolio while maintaining stable operations to ensure predictable distributions. The company remains committed to its DPU guidance of INR16.00 for FY26, balancing growth with consistent returns for its investors.

IndiGrid Infrastructure Trust , a leading infrastructure investment trust in India, has announced plans to issue Series AH Non-Convertible Debt Securities worth INR 1,900 crores. This issuance is part of previously approved borrowings totaling up to INR 10,800 crores by its Investment Manager.

Borrowing Approvals

The Board of Directors of IndiGrid Investment Managers Limited, the Investment Manager of IndiGrid, had previously approved substantial borrowings in two separate meetings:

1. On January 23: Approved borrowings of up to INR 7,600 crores
2. On March 21: Approved additional borrowings of up to INR 3,200 crores

These approvals set the stage for a total borrowing capacity of INR 10,800 crores.

Details of the Proposed Issue

The latest announcement reveals that IndiGrid plans to utilize a portion of this approved borrowing capacity. Key details of the proposed issue include:

• Series: AH Non-Convertible Debt Securities
• Amount: INR 1,900 crores (INR 1,900,00,00,000)

Regulatory Compliance

IndiGrid has duly informed the stock exchanges BSE and NSE about this proposed debt securities issue. This disclosure is in compliance with regulatory requirements.

Market Impact

The issuance of these debt securities could have significant implications for IndiGrid's financial structure and future growth plans. Investors and market analysts will likely be keen to understand how these funds will be utilized to enhance the trust's infrastructure portfolio or optimize its capital structure.

As IndiGrid moves forward with this substantial debt issuance, stakeholders will be watching closely for any further details on the terms of the securities and the specific projects or initiatives that may benefit from this influx of capital.

The company has not provided any additional information regarding the interest rates, maturity period, or specific use of the funds raised through this issue. Investors are advised to keep an eye on further announcements from IndiGrid for more details on this debt securities issuance.