IndiGrid Infrastructure Trust , India's first power sector Infrastructure Investment Trust (InvIT), has announced a significant move to bolster its energy storage portfolio. The company has executed a definitive agreement to acquire a 187.5 MW/750 MWh Battery Energy Storage System (BESS) project in Uttar Pradesh from Enerica ReGrid Infra Private Limited.

Key Details of the Acquisition

• The acquisition involves purchasing 100% shareholding of Enerica Infra 3 Private Limited, which holds a Battery Energy Storage Purchase Agreement (BESPA) with SJVN Limited.
• The enterprise value for the acquisition is capped at INR 7,056.00 million, subject to closing adjustments.
• The project is expected to generate annual revenue of approximately INR 810.00 million.
• It operates under a 15-year concession period following a Build Own Operate (BOO) model.

Strategic Implications

This acquisition marks a significant step in IndiGrid's expansion into the energy storage sector, aligning with India's push towards grid stability and renewable energy integration. The BESS project's substantial capacity of 750 MWh positions IndiGrid as a key player in addressing the intermittency challenges associated with renewable energy sources.

Timing and Completion

The acquisition is set to be completed one year after the project achieves its Commercial Operation Date (COD). This structure allows IndiGrid to mitigate development risks while securing a strategic asset in the rapidly evolving energy storage market.

Related Party Transaction

It's worth noting that the seller, Enerica ReGrid Infra Private Limited, is considered a related party due to having a common director with IndiGrid's Investment Manager. However, IndiGrid has emphasized that the transaction will be conducted at arm's length pricing, ensuring compliance with relevant regulations.

Market Impact

This move by IndiGrid demonstrates the growing importance of energy storage in India's power sector. As the country aims to integrate higher percentages of renewable energy into its grid, BESS projects like this one will play a crucial role in maintaining grid stability and reliability.

The acquisition also reflects IndiGrid's strategy to diversify its asset portfolio beyond traditional transmission infrastructure, positioning itself as a comprehensive player in India's evolving energy landscape.

As the energy transition accelerates, IndiGrid's investment in large-scale battery storage showcases the trust's commitment to supporting India's clean energy goals while potentially opening up new revenue streams in the rapidly growing energy storage market.

IndiGrid Infrastructure Trust (IndiGrid) has reported a stable performance for the first quarter of fiscal year 2026, maintaining its distribution per unit (DPU) guidance of INR16 for the year despite facing some operational challenges.

Financial Highlights

IndiGrid reported a flat revenue growth of 0.6% year-on-year, reaching INR839.80 crore for the quarter ended June 30, 2025. However, the company's EBITDA declined by 8% to INR704.00 crore, primarily due to a generator-related issue at a solar thermal asset in Rajasthan and a one-time investment management fee of INR12.00 crore related to recent acquisitions.

Despite the challenges, IndiGrid maintained its quarterly distribution per unit at INR4.00, representing a 6.7% increase compared to the same period last year. This distribution is in line with the company's annual guidance of INR16.00 per unit.

Operational Performance

The company's weighted average quarterly transmission availability stood at 99.04%, while solar CUF was at 17.7%. The lower solar CUF was attributed to the generator-related issue at the Godawari Green Power Project in Rajasthan, which has since been resolved.

Collections for the quarter were robust, with transmission assets at 93% and solar assets at 111%. The receivable days for transmission assets improved to 41 days from 51 days in the previous quarter.

Recent Acquisitions and Growth

IndiGrid acquired two significant assets during the quarter:

1. ReNew Surya Aayan Private Limited (RSAPL) - a 300-megawatt solar project
2. Koppal-Narendra Transmission Limited - a 276 circuit kilometer transmission project

These acquisitions, valued at a total enterprise value of approximately INR2,108.00 crore, are expected to contribute significantly to IndiGrid's asset under management (AUM) and EBITDA.

Future Outlook

IndiGrid's sponsored entity, EnerGrid, won its first battery energy storage project with a capacity of 187.5 megawatt / 750-megawatt hour. This project, featuring a 4-hour storage cycle, marks IndiGrid's entry into the energy storage sector, aligning with India's energy transition goals.

The company's net debt to AUM ratio stood at 61.2%, providing headroom for future acquisitions of approximately INR6,500.00 crore without equity dilution.

Management Commentary

Harsh Shah, Managing Director of IndiGrid, commented on the results, stating, "We are doing our best to ensure stable, predictable returns. We see the outlook for this sector and our business improving massively due to the significant investments in the sector. With favorable cost of capital and numerous opportunities on the horizon, we anticipate good times ahead for IndiGrid unitholders."

IndiGrid continues to focus on growing its portfolio while maintaining stable operations to ensure predictable distributions. The company remains committed to its DPU guidance of INR16.00 for FY26, balancing growth with consistent returns for its investors.