IndiGrid Revenue Up 11.7%, Buys Projects Worth INR 2.9K Cr
17 February 2026
IndiGrid Infrastructure Trust reported a solid Q3FY26 with revenue climbing 11.7% year-on-year to INR 862 Cr and EBITDA rising 13% to INR 784.3 Cr. The trust maintained its Distribution Per Unit (DPU) at INR 4, reaffirming its full-year guidance of INR 16, while strengthening its asset pipeline with acquisitions totalling approximately INR 2,900 Cr, including Gadag Transmission and two under-construction projects via EnerGrid. However, a dip in transmission asset collections to 90% and muted Net Cash Flow from Distribution warrant attention.
IndiGrid Charts Growth Path Amidst Strategic Acquisitions and Operational Focus
IndiGrid Infrastructure Trust has announced robust financial results for the third quarter of FY26, with revenue and EBITDA showing healthy year-on-year growth. The trust reported revenue of INR 862 Crore, an increase of 11.7%, and EBITDA of INR 784.3 Crore, up 13% compared to the same period last year. This performance underscores the stable, income-generating nature of its infrastructure assets.
Financial Performance Deep Dive
The trust maintained its Distribution Per Unit (DPU) at INR 4 for the quarter, consistent with its full-year guidance of INR 16. This represents a 6.7% increase over the previous year's DPU. IndiGrid's strategic capital raise of INR 1,500 Crore through an Institutional Placement, which was oversubscribed by two times, has helped improve its financial structure. Post-placement, the Net Debt to Assets Under Management (AUM) ratio stands at approximately 56.5%, down from 61% in December 2025. This provides ample headroom for future growth and acquisitions. The average cost of debt remains competitive at 7.41%, with a significant 88% of borrowings at a fixed rate, mitigating interest rate volatility.
However, investors should note a slight dip in collections for its transmission assets, which stood at 90% in Q3FY26 compared to a full 100% in the prior year. Solar asset collections, though, remained strong at 98%. Days Sales Outstanding (DSO) saw improvement across both transmission (38 days vs. 48 days) and solar assets (32 days vs. 50 days), indicating better working capital management.The Net Cash Flow from Distribution (NDCF) for the quarter was INR 328 Crore. Management described this figure as muted, primarily due to working capital adjustments and a comparison with higher collections recorded in the preceding quarter. To meet the distribution of INR 381 Crore, INR 52.7 Crore was drawn from reserves, leaving a balance of INR 520.7 Crore.
The operational performance remains a key strength, with the entire portfolio availability consistently high at 99.77%.
Strategy and Growth Initiatives
IndiGrid's vision is to be the most admired yield vehicle through a focused business model, value-accretive growth, and predictable distributions. A cornerstone of this strategy is its robust pipeline of INR 7,500 Crore in augmentation and under-construction projects. The company has taken significant steps to bolster this pipeline.
It has signed a Share Purchase Agreement (SPA) to acquire Gadag Transmission Limited for approximately INR 372 Crore. Furthermore, through its EnerGrid initiative, IndiGrid has entered into definitive agreements for two under-construction projects: a 500 MW battery project in Uttar Pradesh valued at INR 957 Crore (EV) and an Inter State Transmission System (ISTS) project in Madhya Pradesh valued at INR 1,577 Crore (EV).These acquisitions signal IndiGrid's intent to expand its footprint in stable, long-term contracted assets, including new energy storage solutions like battery projects, which align with India's renewable energy push.
Outlook and Investor Watchpoints
Looking ahead, IndiGrid anticipates its AUM to grow towards INR 40,000-45,000 Crore, driven by its existing pipeline and new initiatives like EnerGrid. Management expressed confidence in their ability to continue delivering predictable DPU growth. The focus will remain on value-accretive acquisitions, optimizing the balance sheet by elongating debt tenors and reducing interest costs, and maintaining high operational availability.Investors will be keen to observe the resolution of the dip in transmission asset collections and the continued management of working capital to ensure a healthier NDCF in upcoming quarters. The Interest Coverage Ratio stands at 1.92x, which, while operational, is a metric to monitor for debt servicing capacity as the company expands.
Peer Comparison
The Indian infrastructure investment trust (InvIT) sector is gaining traction, with companies like IRB InvIT Fund operating in complementary segments such as toll roads. IndiGrid's focus on power transmission and renewable energy assets, backed by long-term agreements, provides a distinct advantage in terms of revenue predictability. Unlike some other infrastructure funds that might face varied market dynamics, IndiGrid's regulated asset base offers a relatively stable investment proposition. Its strategy of acquiring operational assets and developing new projects, supported by regular capital raises, positions it as a significant player in the Indian infrastructure financing landscape, aiming for sustained yield generation.