Cube Highways Trust turns profitable with ₹216.72 crore PAT in FY26

Cube Highways Trust returned to profitability in FY26 with a total profit of ₹216.72 crore, marking a significant turnaround from losses of ₹686.85 crore in FY2024 and ₹35.72 crore in FY2025. Revenue from operations grew 28.17% year-on-year to ₹4,238.88 crore, supported by the addition of nine road assets since its listing in April 2023. The Trust's Enterprise Value reached ₹365,199.18 million (~₹36,519.92 crore) as of 30-Sep-2025, reflecting its active acquisition strategy.

The financial performance was underpinned by strong operational cash flows, which rose to ₹3,802.94 crore in FY26 from ₹1,869.94 crore in FY2024. Total revenue for the year stood at ₹4,359.03 crore. Despite the return to profitability, the Trust's debt levels increased, with the debt-to-equity ratio rising to 2.00x in FY26 from 0.90x in FY2024. Consolidated borrowings were approximately ₹17,883.45 crore as of 31-Dec-2025, with 71.37% at variable rates.

Financial Performance

The Trust's expense ratio improved to 92.55% in FY26 from 122.33% in FY2024, indicating better operational efficiency. Profitability margins also recovered, with the PAT margin reaching 4.97% in FY26 compared to a negative 22.34% in FY2024.

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
Total Expenses	3,760.95	3,503.46	4,034.34
Profit Before Tax	-705.92	-50.31	324.68
Total Profit (PAT)	-686.85	-35.72	216.72

Operational Metrics and Portfolio

Cube Highways Trust manages a diversified portfolio of 27 road assets spanning 8,754 lane kilometers across 12 states and one union territory. The weighted average residual concession life stands at 18.44 years, providing long-term revenue visibility. The portfolio includes a mix of Build-Operate-Transfer (BOT), Hybrid Annuity Model (HAM), Toll-Operate-Transfer (TOT), and annuity-based structures.

Toll revenue accounted for 85.50% of revenue from operations in FY2025, while annuity revenue from NHAI contributed 12.51%. The Trust has maintained a AAA/Stable credit rating and has distributed ₹35,897.35 million (DPU of ₹27.19) to unitholders since its listing.

Balance Sheet and Cash Flows

Total assets grew to ₹29,398.47 crore in FY26 from ₹24,625.75 crore in FY2024. However, total equity declined from ₹12,948.99 crore to ₹9,782.91 crore over the same period, while total liabilities increased to ₹19,615.55 crore. This shift reflects the Trust's strategy of funding acquisitions through debt.

Cash Flow Component	FY2024 (₹ Crore)	FY2025 (₹ Crore)	FY2026 (₹ Crore)
Cash from Operations	1,869.94	2,916.35	3,802.94
Cash from Investing	-1,032.88	-301.94	-758.47
Cash from Financing	-1,224.05	-2,186.50	-1,224.05
Net Cash Flow	-386.99	+427.91	-824.96

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.08%	+0.55%	+3.18%	+10.77%	+17.75%	+54.25%

Cube Highways Trust returned to profitability in the financial year ended March 31, 2026 (FY26), recording a net profit of ₹216.72 crore. This turnaround follows net losses of ₹686.85 crore in FY2024 and ₹35.72 crore in FY2025. Revenue from operations grew 28.17% year-on-year to ₹4,238.88 crore, supported by the Trust's expanded portfolio of operational road assets under the public-private partnership model.

The Trust's financial performance reflects the impact of its inorganic growth strategy. Since listing in April 2023, the portfolio has expanded from 18 to 27 assets, increasing the Enterprise Value/AUM from ₹236,807.96 million to ₹365,199.18 million as of September 30, 2025. The assets span 8,754 lane kilometres across 12 states and one union territory, with a weighted average residual concession period of 18.44 years.

Financial Performance

The recovery in profitability was accompanied by robust top-line expansion. Total revenue rose 26.23% to ₹4,359.03 crore in FY26. Toll revenue remained the primary contributor, accounting for approximately 85.50% of revenue from operations in FY2025 at ₹28,275.30 million. Annuity revenue contributed ₹4,135.70 million, or 12.51%, in the same period.

Metric (₹ Cr)	FY2024	FY2025	FY2026
Revenue from Operations	2,916.13	3,307.14	4,238.88
Total Revenue	3,074.10	3,453.15	4,359.03
Total Expenses	3,760.95	3,503.46	4,034.34
Profit for the Period (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

Balance Sheet and Leverage

While profitability improved, the Trust's balance sheet reflects the high capital intensity of its acquisition strategy. Total liabilities increased significantly from ₹11,676.76 crore in FY2024 to ₹19,615.55 crore in FY26. Consequently, total equity declined from ₹12,948.99 crore to ₹9,782.91 crore over the same period. The debt-to-equity ratio rose to 2.01x in FY26 from 0.90x in FY2024.

Consolidated borrowings stood at ₹178,834.52 million as of December 31, 2025, with a net borrowing ratio of 46.86%. The Trust retains a AAA/Stable credit rating. However, 71.37% of these borrowings were at variable rates as of September 30, 2025, exposing the entity to interest rate fluctuations.

Operational Metrics and Risks

The Trust benefits from a diversified portfolio comprising BOT, HAM, TOT, and annuity assets. Traffic mix is approximately 72% passenger vehicles and 28% commercial vehicles. Despite the strong operational metrics, the Trust faces risks including dependence on annuity payments from the National Highways Authority of India (NHAI) and potential regulatory changes to toll escalation mechanisms.

Two assets, APEPL and WUPTPL, have short residual concession lives of 1.00 year and 0.73 years, respectively, posing a risk of revenue decline upon expiry. The Trust has distributed a cumulative ₹35,897.35 million (DPU of ₹27.19) since listing.