Summary:

According to Crisil Ratings, the assets under management (AUM) of Infrastructure Investment Trusts (InvITs) in the road sector are expected to increase by 68% to US$ 37.62 billion (Rs. 3,20,000 crore) by March 2026, up from US$ 22.34 billion (Rs. 1,90,000 crore) in September 2024. This growth will be driven by the expansion of existing asset pools and new InvITs, along with geographical and concession-type diversification to enhance resilience.

Crisil Ratings stated that the growing AUM would result in more diverse asset pools, with toll projects offering growth opportunities and Hybrid Annuity Model (HAM) projects ensuring cash flow stability. The average leverage of road InvITs is expected to remain below 49% by March 2026, indicating strong credit profiles. Road InvITs will be well-positioned for long-term growth due to their diversification strategy and effective leverage management.

Source: IBEF

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