Cube Highways Trust turns profitable with strong FY26 revenue growth

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.

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 six months ended September 30, 2025, recording a profit of ₹40.69 crore. This marks a turnaround from the loss of ₹26.04 crore reported in the same period of the previous year. The financial improvement was supported by a 23.85% increase in revenue from operations, which reached ₹1,995.90 crore for the period.

The Trust's portfolio comprises 27 road assets spanning 8,754 lane kilometers across 12 states and one union territory. As of September 30, 2025, the Enterprise Value or Assets Under Management (AUM) stood at ₹365,199.18 million. The weighted average residual concession period for these assets is 18.44 years, providing long-term revenue visibility.

Revenue streams are diversified between toll and annuity models. In FY2025, toll revenues constituted 85.50% of revenue from operations at ₹28,275.30 million, while annuity revenues accounted for 12.51% at ₹4,135.70 million. The Trust has maintained a AAA/Stable credit rating, the highest investment-grade rating.

Financial Performance

The Trust has demonstrated strong operational cash flow generation. For the half-year ended September 30, 2025, cash from operations totaled ₹1,764.61 crore. However, net cash flow was negative at ₹606.30 crore due to significant investing and financing outflows related to debt servicing and distributions.

Period	Revenue from Operations (₹ Crore)	Total Profit / (Loss) (₹ Crore)
FY2024	2,916.14	-705.91
FY2025	3,307.14	-35.72
H1 FY2025	1,611.60	-26.04
H1 FY2026	1,995.90	40.69

Balance Sheet and Debt

Total assets grew to ₹30,252.01 crore in H1 FY2026, up from ₹28,000.15 crore in FY2025. Non-current liabilities increased to ₹18,346.10 crore, reflecting higher borrowings for acquisitions. Total equity declined to ₹10,641.65 crore, impacted by accumulated losses and distributions.

Consolidated borrowings as of December 31, 2025, were approximately ₹178,834.52 million, with a net borrowing ratio of 46.86%. A significant portion of the debt, 71.37%, is at variable rates, exposing the Trust to interest rate volatility.

Key Metrics and Risks

The Trust is backed by institutional investors including BCI, Mubadala, I Squared Capital, and ADIA. Since listing in April 2023, it has raised total unit capital of ₹134,406.97 million and distributed ₹35,897.35 million to unitholders.

Despite the recent profitability, the Trust faces risks including high debt levels, dependence on NHAI for annuity payments, and regulatory uncertainties regarding toll rates. Two assets, APEPL and WUPTPL, have short residual concession lives of 1.00 year and 0.73 years, respectively.