Cube Highways Trust has received rating reaffirmations from CRISIL Ratings across its debt portfolio, with the rating agency maintaining its AAA/Stable outlook on the infrastructure investment trust's financial instruments. The comprehensive rating review covers bank facilities totaling Rs 13,850 crore and various debt instruments, reinforcing the trust's strong credit profile in the infrastructure financing sector.

Rating Reaffirmations Overview

CRISIL Ratings has reaffirmed multiple ratings for Cube Highways Trust across different financial instruments. The rating actions were communicated via email dated February 10, 2026, covering the trust's entire debt portfolio.

Bank Facility Details

The Rs 13,850 crore bank loan facilities comprise various instruments across multiple leading financial institutions. The facilities include rupee term loans from major banks and proposed long-term bank loan facilities.

Credit Rating Significance

The AAA/Stable rating represents the highest degree of safety regarding timely servicing of financial obligations, with securities carrying the lowest credit risk. The A1+ rating on short-term instruments indicates very strong degree of safety regarding timely payment of financial obligations.

Regulatory Compliance

The rating reaffirmation was communicated to stock exchanges in compliance with Regulation 23 of SEBI (Infrastructure Investment Trusts) Regulations, 2014, and Regulation 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Richa Gupta Rohatgi, Company Secretary and Compliance Officer of Cube Highways Fund Advisors Private Limited, acting as Investment Manager to Cube Highways Trust.

Cube Highways Trust delivered robust financial performance in Q3FY26, demonstrating strong operational execution across its diversified portfolio of road infrastructure assets. The trust's investor call on February 6, 2026, revealed sustained momentum in toll collections and strategic initiatives to accelerate future growth.

Financial Performance Highlights

The trust reported impressive growth metrics for the quarter ended December 31, 2025. Revenue from operations stood at ₹3,077 crore, representing a 25% year-on-year increase, while total consolidated income reached ₹3,170 crore.

Distribution and Portfolio Performance

Cube Highways Trust declared a quarterly distribution of ₹4.10 per unit, comprising ₹2.00 per unit as interest, ₹1.33 per unit as return of capital, and ₹0.77 per unit as dividend. This brought the year-to-date distribution to ₹10.20 per unit, with total distributions of ₹1,371 crore generated entirely from Net Distributable Cash Flow (NDCF).

The trust's portfolio now comprises 27 road assets spanning 8,819 lane kilometres across 13 states and Union Territories, maintaining a healthy 85:15 toll-to-annuity mix with an average residual concession life of 18.2 years.

Traffic Growth and Operational Excellence

Traffic performance remained strong with 9.4% year-on-year growth translating into toll revenue growth of 12.1%. Key performing assets included Ghaziabad–Aligarh and the Madurai–Kanyakumari corridor. The trust benefited from sustained increase in passenger car traffic driven by strong vehicle sales, rising disposable incomes, and improved highway connectivity.

Strategic Acquisitions and Public Listing

The Board approved the acquisition of four fully operational assets with an enterprise value exceeding ₹7,200 crore. The acquisition includes three toll assets from CH-V and one annuity asset from CH-II, collectively generating around ₹13.9 billion revenue in FY25.

The trust also initiated conversion from private to public InvIT status, which should provide access to deeper capital pools and improved liquidity for investors. The conversion includes a change of sponsor to CH-V, which will bring three additional assets under Right of First Offer (ROFO) arrangements.

Financial Strength and Outlook

Cube Highways Trust maintained robust balance sheet metrics with Net Debt to AUM at 46.86% and total AUM stable at ₹36,093 crore. The trust continues to hold AAA ratings from CRISIL, ICRA, and India Ratings, providing adequate headroom for future growth while maintaining prudent leverage.

Since listing, the trust has delivered cumulative distributions of ₹31.29 per unit and total returns of ₹74.29 per unit over 2.75 years. Management expects the distribution momentum to continue, supported by full-year contributions from recent acquisitions and strong operational performance across the portfolio.