At a Glance
Indus Infra Trust (Indus InvIT) just delivered Q1 FY26 results hotter than a Delhi summer – ₹1,205 million in net profit, a cool ₹3.25/unit distribution, and a yield of almost 9%. The stock, priced at ₹114, trades almost at book value (₹111), meaning Mr. Market is basically saying, “meh, prove it.” Promoter holding is a thin 15%, but who needs promoter love when distributions keep raining? This InvIT has grown revenue 224% and profit 290% in the last TTM. Buckle up, because this is the rare case where boring infrastructure pays handsomely while you binge Netflix.
Introduction
What do you get when you mix Indian roads, SEBI regulations, and a sprinkle of distribution magic? An Infrastructure Investment Trust (InvIT) that claims to make investors rich while traffic jams make others late. Indus Infra Trust, the toddler (born 2022), already shows the attitude of a seasoned uncle with an 8.9% dividend yield and stable cash flows.
In Q1 FY26, the trust reported profit of ₹1,205 million, robust cash generation, and continues to flex its ability to churn assets into distributions. But wait, the market doesn’t seem to care – stock fell 2.25% post-results. Why? Maybe investors wanted a higher DPU, or maybe they were just in a bad mood. Either way, Indus InvIT remains an income machine that refuses to slow down.
Business Model (WTF Do They Even Do?)
Imagine a REIT, but for roads and infra. Indus InvIT is SEBI-registered, acquires operational infrastructure assets (like toll roads, transmission lines, etc.), and uses cash flows from those assets to pay distributions. Sponsored by AIPL, managed by GRHIMPL, and trusteeed (yes, that’s a word now) by IDBI Trusteeship, the setup screams “complex” but works like a charm.
The InvIT structure allows them to raise funds, buy infra assets, operate them, and return cash to unitholders. No crazy R&D, no branding campaigns, just roads and predictable cash. Sarcastically speaking, it’s the only business where the more people curse traffic, the more investors smile.
Financials Overview
Numbers don’t lie, and Indus InvIT’s numbers are giving Bollywood’s item songs a run for their money.
- Revenue (TTM): ₹804 Cr (up from ₹121 Cr FY24 – turbocharged growth)
- EBITDA (TTM): ₹590 Cr (OPM 73% – infra cash cow)
- PAT (TTM): ₹491 Cr, Q1 FY26 profit ₹120.5 Cr
- EPS (TTM): ₹11.09
- Dividend Payout: 42% FY25 (₹3.25/unit in Q1 FY26)
- ROE: 9.3%, ROCE: 9.3%
Verdict: Cash is flowing, profit is growing, and investors are glowing – what’s not to like?
Valuation
Let’s play with numbers:
- Current Price: ₹114
- EPS (TTM): ₹11.09 → P/E: 10.3x
- Book Value: ₹111 → P/B: 1.03x
🔹 Fair Value Estimates
- P/E Method:
Sector avg ~15x → 15 × ₹11.09 = ₹166 - EV/EBITDA Method:
Assume EV/EBITDA 12x (peer avg), EBITDA ₹590 Cr → EV ≈ ₹7,080 Cr, subtract debt (₹2,144 Cr) → Equity ≈ ₹4,936 Cr → ₹129/unit - DCF Method (Simplified):
5% growth, 10% discount → FV ≈ ₹140/unit
Fair Value Range: ₹129 – ₹166
Market at ₹114? Discount shop open.
What’s Cooking – News, Triggers, Drama
- Q1 FY26: Profit ₹120 Cr, DPU ₹3.25/unit.
- Record Date: Aug 4, 2025, Payment by Aug 11.
- Asset acquisitions in pipeline – could boost future distributions.
- Debt creeping up (₹2,144 Cr) – watch leverage.
Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Assets | 6,259 | 7,112 |
| Liabilities | 6,259 | 7,112 |
| Borrowings | 1,138 | 2,144 |
| Net Worth | 4,956 | 4,909 |
Auditor Roast: Borrowings doubled like your pizza bill with extra cheese. But assets kept pace, so we’ll allow it.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Ops | 129 | 439 |
| Investing | 0 | 367 |
| Financing | 62 | -829 |
| Net Cash | 191 | -23 |
Auditor Roast: Cash from ops strong, financing outflow screams “we paid you distributions, now stop asking for more!”
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 9.38% |
| ROCE | 9.32% |
| P/E | 10.3x |
| PAT Margin | 61% |
| D/E | 0.44 |
Auditor Roast: Margins sexier than a startup pitch, D/E under control. Investor-approved.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY24 | FY25 | TTM |
|---|---|---|---|
| Revenue | 121 | 745 | 804 |
| EBITDA | 37 | 521 | 590 |
| PAT | 15 | 482 | 491 |
Auditor Roast: Revenue exploded like Diwali crackers, PAT followed suit. Love to see it.
Peer Comparison
| Peer | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Altius Telecom | 22,055 | 823.9 | 55.4 |
| Cube Highways | 3,523 | -39.1 | – |
| Energy InfrTr. | 4,006 | 8.96 | 607 |
| Indus InvIT | 804 | 491 | 10.3 |
Auditor Roast: While peers flex bigger revenues, Indus flexes profits and low P/E. Classic underdog.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 15% (low, but InvITs rely on institutional investors anyway)
- Public Holding: 85%
- Buzz: No IPO drama, no M&A scandals – just boringly profitable.
EduInvesting Verdict™ (500 words)
Indus Infra Trust is the quiet kid in class who scores 95% without making noise. Since its 2022 debut, it’s built a portfolio of cash-generating infra assets, maintained juicy distributions, and kept leverage manageable. FY25 saw revenue jump 6x and profit skyrocket 32x – numbers that make even growth stocks jealous.
The InvIT model ensures predictable payouts, tax-efficient distributions, and lower volatility than equity. At ₹114, trading at book and 10x earnings, it’s priced like your average chai, but paying like a fancy latte. Risks? Rising interest rates could eat into cash flows, asset acquisitions need to deliver, and low promoter holding means less skin in the game.
SWOT Analysis
- Strengths: Stable cash flows, high distribution yield, strong profit growth.
- Weaknesses: High dependence on debt, low promoter holding.
- Opportunities: Asset pipeline expansion, DPU hikes.
- Threats: Regulatory changes, traffic/revenue risk on assets.
Final Word: Income-seeking investors who love cash over capital gains may find Indus InvIT their new best friend. Growth junkies, look elsewhere. This trust is about collecting steady cash while sipping coffee, not chasing moonshots.
Written by EduInvesting Team | 31 July 2025
SEO Tags: Indus Infra Trust, InvIT, Infrastructure Investment, High Dividend Yield, SEBI InvIT
