Cube Highways Trust executed a binding offer on September 14, 2026, to acquire 100% equity in two infrastructure special purpose vehicles (SPVs). The cash deal targets Apco Chetak Ultraway Private Limited and Apco Chetak Expressway Private Limited, expanding the trust’s asset base in Uttar Pradesh.

The sellers are Apco Infratech Private Limited and Chetak Enterprises Limited. The acquisition is expected to strengthen the trust’s revenue base and enhance yield and net asset value (NAV). The total consideration remains subject to adjustments and will be disclosed upon execution of definitive agreements.

Asset Details

The target entities operate road infrastructure assets in Uttar Pradesh. Both SPVs have remaining concession lives between eight and nine years.

Transaction Structure

The deal is not a related-party transaction, with no promoter or group company interest in the acquired entities. Cube InvIT’s portfolio will comprise 29 SPVs across India post-acquisition, assuming completion of the current pipeline.

Completion is subject to satisfaction of conditions precedent, including statutory clearances from the National Highways Authority of India (NHAI) and Income Tax Authorities. The investment manager, Cube Highways Fund Advisors Private Limited, filed the intimation pursuant to Regulation 23(6) of the SEBI Infrastructure Investment Trusts Regulations, 2014.

Cube Highways Trust has released the transcript of its Q1FY27 investor conference call held on Monday, August 17, 2026. The call discussed the financial performance for the quarter ended June 30, 2026, marking the first quarter reported as a publicly listed InvIT following its transition via a ₹5,000 crore Offer for Sale in July 2026.

The portfolio delivered strong operating results, with toll revenue growing 11.5% year-on-year to reach total consolidated income of ₹1,157 crore. Traffic volumes rose 9.3% YoY, supported by broad-based growth across major assets. Consequently, the Board of the Investment Manager approved an upward revision of full-year FY27 Distribution Per Unit (DPU) guidance to ₹14.50 per unit, from the previous estimate of ₹14.00.

Financial Performance

Revenue from operations stood at ₹1,127 crore, up 19.3% YoY. EBITDA for the quarter rose approximately 16.7% YoY to ₹819 crore. Average Daily Collection was ₹10.1 crore, with Electronic Toll Collection (ETC) stable at 97.1%.

Net Debt stood at ₹17,645 crore, with Net Debt/AUM at 45.17%. Assets Under Management (AUM) remained stable at ₹367 billion. The weighted average cost of debt improved to 7.49%, supported by the issuance of fixed-rate instruments. NAV increased to ₹149.6 per unit from ₹145.8 in the previous quarter.

Operational Updates

The portfolio comprises 27 road assets across 12 states and one Union Territory, covering 8,754 lane kilometres. The mix includes 18 toll, 6 HAM, and 3 annuity projects, with an average residual concession life of 17.8 years.

Key operational highlights include:

• Traffic Growth: Passenger traffic benefited from longer trip lengths and Annual Pass adoption, which averaged 32% across the portfolio. Compensation for Annual Passes recognized as received/receivable was ₹108 crore as of June 30, 2026.
• Acquisitions: Conditions Precedent for two assets (CNTL and DTPL) are complete. Unitholder approvals for preferential issuance for four assets are expected by late August or early September 2026.
• Maintenance: Major maintenance at NAMEPL and DATRPL is progressing within budget. Micro-fine milling deployment saved approximately 2,250 MT of bitumen and 32,000 MT of aggregates.

Distribution and Tax Updates

The Trust generated NDCF of ₹532 crore in Q1FY27, distributing ₹531 crore (99.8% of NDCF). The distribution mix consisted of 53% interest, 27% dividends, 19% return of capital through SPV loan repayment, and treasury income.

Management highlighted the impact of the Taxation and Other Laws (Amendment) Bill, 2026. While the surcharge on SPVs opting for the new tax regime increases from 10% to 25% (raising effective tax rate to 28.6%), dividends distributed to unitholders will now be tax-exempt. Management expects this to improve post-tax returns for taxable investors, who constitute a large share of the base, as the dividend component of distributions is expected to increase over time.

What the Numbers Show

The significant divergence between the 19.3% revenue growth and 11.5% toll revenue growth indicates that non-toll income or other operational revenues contributed materially to the top-line expansion. Additionally, the sharp 57% YoY jump in NDCF, outpacing the 11.5% toll revenue growth, suggests improved cash conversion efficiency or favorable timing of annuity receipts, which totaled ₹449 crore in the quarter.

Call Details

The audio transcript of the call is available on the company website under Financial Results > Results > Current Year > Q1 > Investor Call Transcript (Audio). The call was moderated by DAM Capital Advisors Limited.