Cube Highways Trust turns profitable, files DRHP for issue
Cube Highways Trust filed its DRHP for an InvIT public issue opening July 22, 2026, reporting a turnaround to a net profit of ₹216.72 crore in FY26. Revenue from operations rose to ₹4,238.88 crore, driven by a portfolio of 27 road assets with an AUM of ₹365,199.18 million. The Trust faces risks including high variable-rate debt and short concession lives for two assets, but maintains an AAA/Stable rating and strong operating cash flows.
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Cube Highways Trust filed its Draft Red Herring Prospectus (DRHP) for an InvIT public issue scheduled to open on July 22, 2026. The Trust, sponsored by Cube Highways and Infrastructure V Pte. Ltd., manages a portfolio of 27 road assets spanning 8,754 lane kilometers across 12 states and one union territory. The filing highlights a turnaround in financial performance, with the Trust reporting a net profit of ₹216.72 crore in FY26 compared to losses in the preceding two years.
The Trust's revenue from operations grew to ₹4,238.88 crore in FY26, up from ₹2,916.13 crore in FY2024, representing a growth of approximately 45.36% over the two-year period. Toll revenue constituted 85.50% of revenue from operations in FY2025, amounting to ₹28,275.30 million, while annuity revenue contributed 12.51%. The portfolio has a weighted average residual concession period of 18.44 years, providing long-term revenue visibility. As of September 30, 2025, the Enterprise Value or Assets Under Management (AUM) stood at ₹365,199.18 million.
Financial Performance
The Trust reported a Profit After Tax (PAT) of ₹216.72 crore in FY26, a significant shift from the net loss of ₹686.85 crore reported in FY2024. Total assets increased to ₹29,398.47 crore in FY26 from ₹24,625.75 crore in FY2024. However, total equity declined from ₹12,948.99 crore in FY2024 to ₹9,782.91 crore in FY26, primarily due to distributions to unitholders and accumulated losses. Total liabilities rose to ₹19,615.55 crore in FY26 from ₹11,676.76 crore in FY2024, reflecting debt-funded asset acquisitions.
| Metric | FY2024 (₹ Crore) | FY2025 (₹ Crore) | FY2026 (₹ Crore) |
|---|---|---|---|
| Revenue from Operations | 2,916.13 | 3,307.14 | 4,238.88 |
| Total Revenue | 3,074.10 | 3,453.15 | 4,359.03 |
| Profit Before Tax | (705.92) | (50.31) | 324.68 |
| Total Profit (PAT) | (686.85) | (35.72) | 216.72 |
| Total Assets | 24,625.75 | 28,000.15 | 29,398.47 |
| Total Equity | 12,948.99 | 11,437.45 | 9,782.91 |
Key Risks and Strengths
The DRHP identifies several risk factors, including a history of losses in FY2023, FY2024, and FY2025. As of December 31, 2025, consolidated borrowings stood at ₹178,834.52 million, with a net borrowing ratio of 46.86%. Additionally, 71.37% of these borrowings are at variable rates, exposing the Trust to interest rate volatility. The filing also notes that two assets, APEPL and WUPTPL, have short residual concession lives of 1.00 year and 0.73 years, respectively, as of September 30, 2025.
Despite these risks, the Trust highlights its strong operating cash flow generation, which grew to ₹3,802.94 crore in FY26 from ₹1,869.94 crore in FY2024. The Trust holds an AAA/Stable credit rating and is backed by institutional investors such as BCI, Mubadala, I Squared Capital, and ADIA. Since listing in April 2023, the Trust has distributed a total of ₹35,897.35 million, with a Distribution Per Unit (DPU) of ₹27.19. The portfolio includes three Right of First Offer (ROFO) assets available for potential acquisition.
Issue Details
The public issue is set to open on July 22, 2026, and close on July 24, 2026. The DRHP does not disclose the price band, issue size, or the breakdown between fresh issue and Offer for Sale (OFS). The Trust's structure allows for the acquisition of road assets under BOT, HAM, TOT, and Annuity models from the National Highways Authority of India (NHAI) and state authorities.
Historical Stock Returns for Cube Highways Trust
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.08% | +0.55% | +3.18% | +10.77% | +17.75% | +54.25% |
How will the Trust manage the refinancing risk for the 71.37% of borrowings currently exposed to variable interest rates?
What is the strategy for the two assets, APEPL and WUPTPL, which have concession periods expiring within a year?
Will the upcoming public issue focus primarily on debt reduction or funding the acquisition of the three identified ROFO assets?
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