anzen india energy yield plus trust reported a net asset value (NAV) of ₹131.40 per unit for the quarter ended June 30, 2026, marking a stable valuation benchmark for its infrastructure investment trust (InvIT) units. The NAV was computed by management based on a fair enterprise value report issued by independent registered valuer CA Jayeshkumar Shah on August 3, 2026, in compliance with the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.

The valuation exercise covered the trust’s entire portfolio of 16 special purpose vehicles (SPVs), comprising three transmission assets and 13 solar power generation projects. The total fair enterprise value of these assets was determined to be INR 96,114 million, with transmission assets contributing INR 46,561 million and solar assets accounting for INR 49,554 million. The trust holds 100% stake in its transmission SPVs and a 74% stake in most of its solar SPVs, resulting in an effective enterprise value attributable to the trust of INR 87,323 million. With 33,60,62,900 units outstanding as of June 30, 2026, the per-unit NAV reflects the underlying asset quality and contracted cash flows from long-term transmission service agreements (TSAs) and power purchase agreements (PPAs).

Portfolio Composition and Valuation Methodology

The valuation employed the discounted cash flow (DCF) method under the income approach, utilizing free cash flow to firm projections provided by the investment manager, EAAA Real Assets Managers Limited. The discount rate applied was the weighted average cost of capital (WACC) for each SPV, ranging from 7.31% to 8.17%. Key assumptions included a risk-free rate of 6.81%, an equity risk premium of 7.0%, and a debt-to-equity ratio of 70:30, consistent with industry benchmarks for infrastructure assets.

The trust’s transmission portfolio includes Darbhanga-Motihari Transmission Company Limited (DMTCL), NRSS XXXI (B) Transmission Limited (NRSSB), and Kudgi Transmission Limited (KTL). KTL was acquired during the quarter ended June 30, 2026, from related parties for an aggregate consideration of INR 10,233 million, subject to closing adjustments. The solar portfolio consists of 13 SPVs, including Solzen Urja Private Limited (SOUPL), which was acquired earlier in FY26. The solar assets have PPAs with off-takers such as SECI, NTPC, and various state distribution companies, with tenures extending up to 25 years from commercial operation dates.

Material Disclosures and Litigation

The valuation report highlights several material disclosures regarding ongoing litigation and regulatory claims that were excluded from the fair value calculation due to uncertainty. For SOUPL, a change-in-law claim amounting to approximately INR 1,114 million related to safeguard duties on solar cells remains under appeal before the Appellate Tribunal for Electricity (APTEL). Similarly, DMTCL and NRSSB are involved in regulatory proceedings concerning incremental revenue claims arising from force majeure events and changes in law, with APTEL orders acknowledging certain delays but leaving final compensation amounts subject to further adjudication.

Additionally, KTL faces multiple civil suits related to right-of-way compensation in Karnataka, though the investment manager assesses these as low-to-medium risk and substantially covered by indemnities in share purchase agreements. A contingent capital expenditure adjustment of INR 26 million was incorporated for SSPPL to account for potential cash outflows from land litigation. Insurance claims for revenue loss and equipment damage at SOUPL, totaling approximately INR 111 million, are expected to be received in FY27, with INR 38.22 million already settled.

What the Numbers Show

The NAV of ₹131.40 per unit underscores the stability of Anzen InvIT’s asset base, characterized by long-term contracted revenues and minimal volume risk. The transmission assets, operating under annuity-like cash flows, provide a foundational yield, while the solar assets contribute significant growth potential through their extensive PPA tenures. The exclusion of uncertain litigation proceeds from the valuation ensures a conservative estimate of fair value, protecting unitholders from overstatement of asset worth. The consistent WACC assumptions and robust project performance indicate a well-managed portfolio capable of delivering sustainable distributions to investors.

anzen india energy yield plus trust reported a consolidated net profit of ₹540.37 million for the quarter ended June 30, 2026, a significant rise from ₹95.52 million in the corresponding quarter of the previous year. The Trust’s revenue from contracts with customers increased to ₹2,811.09 million, up from ₹1,071.81 million in Q1FY26, driven primarily by the inclusion of newly acquired assets. The Board of Directors of EAAA Real Assets Managers Limited approved a distribution of ₹3.00 per unit for the quarter, with a record date of August 7, 2026, and payment scheduled on or before August 14, 2026.

The financial results were reviewed by S R B C & Co LLP, the independent auditor, in accordance with Standard on Review Engagements (SRE) 2410. The standalone net profit stood at ₹696.09 million, compared to ₹537.17 million in Q1FY26. Standalone total income reached ₹1,325.11 million, up from ₹938.32 million in the prior year period. The Trust maintained its credit ratings of "CRISIL AAA/Stable" and "IND AAA/Stable" as confirmed in May 2026.

Financial Performance

Consolidated Earnings Before Interest, Depreciation, and Tax (EBITDA) amounted to ₹2,322.17 million, compared to ₹1,167.70 million in Q1FY26. Finance costs were recorded at ₹1,047.32 million, while depreciation expense totaled ₹699.97 million. The Net Distributable Cash Flows (NDCF) for the quarter were ₹1,008.19 million, enabling the declared distribution.

Asset Acquisitions and Portfolio Expansion

The revenue growth reflects the impact of several strategic acquisitions completed during the quarter. On March 2, 2026, the Trust acquired 74% of the paid-up equity shares of 12 solar power Special Purpose Vehicles (SPVs) from Edelweiss Infrastructure Yield Plus and SEPL Energy Private Limited. Subsequently, on May 19, 2026, it acquired 100% equity and optionally convertible redeemable preference shares of Kudgi Transmission Limited. On June 10, 2026, the Trust acquired 100% equity shares of SEPL Energy Private Limited.

These acquisitions have expanded the Trust’s portfolio in both power transmission and renewable energy segments. The change in accounting estimate for depreciation, shifting from Written Down Value to Straight Line Method for transmission entities effective April 1, 2026, was also noted.

Capital Raise and Debt Management

In February 2026, the Trust issued 59,525,000 units at ₹117 per unit to institutional investors, raising ₹6,964.43 million. As of June 30, 2026, ₹6,823.24 million of these proceeds had been utilized towards the stated objects of the issue, with ₹141.19 million remaining unutilized. The Trust redeemed ₹3,000 million worth of Non-Convertible Debentures (NCDs) on May 27, 2026. The Net Borrowing Ratio stood at 50.86% as of June 30, 2026, down from 53.25% at the end of FY26.

What the Numbers Show

The sharp increase in net profit is largely attributable to the consolidation of new assets rather than organic growth alone, as comparative figures for the prior year did not include these entities. The acquisition of Kudgi Transmission Limited and the 12 solar SPVs significantly boosted the revenue base. Additionally, the Trust recognized ₹37.74 million as insurance income in Q4FY26 related to damaged inverters at Solzen Urja Private Limited, with further claims under process. The shift in depreciation method for transmission assets may impact future earnings patterns, reflecting a more systematic consumption of economic benefits.