Indus Infra Trust Q3 FY26 Earnings Analysis

- Strong and sustainable opportunity pipeline with a disciplined and selective acquisition approach (Page 4). - Addition of INR4,000 to INR4,500 crores AUM expected in remaining part of FY '26, with 2-3 assets targeted for Q4 (Page 5). - FY '27 AUM growth projected at INR6,500 to INR7,000 crores, leading to a total AUM of ~INR17,000 to INR18,000 crores by year-end (Page 5). - Revenue stability supported by timely annuity receipts from 9 operational HAM assets and healthy collection cycle (Page 3). - Anticipated distribution guidance for FY '26 is INR12.5 per unit, with 45-50% components as interest, dividend, and repayment (Page 5). - Continued focus on operational excellence, prudent capital allocation, and responsible growth aims to enhance long-term value creation (Page 4).

- Indus Infra Trust expects strong AUM growth with INR4,000-4,500 crores incremental AUM addition in the remaining part of FY '26 and around INR6,500-7,000 crores in FY '27, potentially taking AUM to INR17,000-18,000 crores by end FY '27. - Distribution per unit guidance for FY '26 is around INR12.5 with potential to beat this, with 45-50% of returns as capital repayment and the rest as interest/dividend. - The Trust is focused on operational excellence and prudent capital allocation to sustain earnings growth. - Leverage levels are planned to be managed around 60-65%, with equity raises of INR800-1,000 crores in Q1 FY '27 and INR2,500-3,000 crores in Q4 FY '27 to fund acquisitions and manage gearing. - EBITDA excluding impairments showed growth in H1 FY '26 (INR382.91 crores). Impairments relate to asset cash upstream and finite life assets, not impacting consolidated profit negatively long term. - Stable annuity receipts and timely collections indicate consistent operating performance ahead.

- Indus Infra Trust plans acquisitions of assets to grow its AUM by approximately INR4,000 to INR4,500 crores in the current financial year (FY '26) and around INR6,000 to INR6,500 crores in FY '27, including both ROFO and non-ROFO assets. - They expect 4-5 asset acquisitions in the near term without the need for equity raising, leveraging existing equity and debt capacity. - Additional equity raises are planned: around INR800 to INR1,000 crores in Q1 and INR2,500 to INR3,000 crores in Q4 of the next financial year to manage leverage levels near 60-65%. - One specific asset acquisition (Araria-Galgalia Package 2) is expected in the current quarter. - Capital expenditure (MMR reserves) at SPV level maintained prudently for maintenance requirements. - The Trust follows a disciplined selective approach focusing on quality and long-term value creation aligned with India’s infrastructure expansion.

- For the next INR6,000 to INR7,000 crores of acquisitions, Indus Infra Trust plans to primarily use debt funding. - This will increase leverage to around 60-65%. - To maintain a comfortable leverage level and enable further acquisitions, the Trust plans equity raises. - Planned equity fundraising includes: - Around INR800 crores to INR1,000 crores in Q1. - Around INR2,500 crores to INR3,000 crores in Q4. - The timing and amount depend on how the acquisition strategy unfolds.

- Indus Infra Trust has a strong and sustainable opportunity pipeline for acquisitions. - For the remaining part of the current year (about 4.5 months left), the Trust expects to add approximately INR4,000 to INR4,500 crores of Assets Under Management (AUM). - This includes the acquisition of one GR asset, Araria-Galgalia package 2, expected within the current quarter. - Additionally, 2 to 3 non-GR assets are expected to be acquired in Q4, further increasing AUM. - For FY '26, the total pipeline for acquisition assets is around INR4,500 crores. - For FY '27, the pipeline is expected to be between INR6,000 to INR6,500 crores, combining ROFO and non-ROFO assets. - The Trust is currently in advanced stages of due diligence for the next set of ROFO and non-ROFO assets. Overall, Indus Infra Trust expects to grow its AUM substantially through these acquisitions over the next 1-2 years.