InvITs AUM May Cross Rs8 Trillion by FY27

28 Jul 2025 CW Team

While the wave of acquisitions is set to push leverage levels to approximately 50 per cent, credit profiles remain stable, supported by predictable cash flows, long asset lives, and regulatory safeguards. Mature InvITs are poised to contribute 80–85 per cent of the new AUM — a marked increase from 65 per cent over the last two financial years.

The Rs1.7–1.8 trillion in projected AUM addition over FY25 and FY26 will be slightly below the Rs2 trillion added in the prior two-year period. Other sectors — including renewables, transmission, and warehousing — will add modestly to the total due to higher upfront leverage requirements and a limited pool of operational assets.

Manish Gupta, Deputy Chief Ratings Officer at CRISIL, noted, “With most InvITs having achieved operational stability, they are now well-positioned for growth. As a result, leverage is expected to edge up to nearly 50 per cent by FY27.”

Despite the increase in debt, Debt Service Coverage Ratios (DSCR) remain healthy at around 1.7x, only a slight dip from 1.8x in FY23, reflecting the sector’s resilience in absorbing higher leverage without significant deterioration in credit quality. Regulatory provisions — such as the rule requiring six consecutive distributions before exceeding 49 per cent leverage — continue to ensure financial discipline.

Anand Kulkarni, Director at CRISIL Ratings, added, “Even with rising leverage, the inclusion of low-risk assets such as annuity roads and transmission lines allows InvITs to maintain credit strength.”

As InvITs increase in scale and operational complexity, prudent capital structuring will be essential. With long-term cash flow visibility and staggered debt repayments, the sector’s growth outlook remains strong, though vigilant oversight will be crucial.

India’s Infrastructure Investment Trusts (InvITs) are entering a fresh growth phase, with assets under management (AUM) projected to exceed Rs8 trillion by FY27, up from around Rs6.3 trillion in FY25. This rise is largely driven by mature InvITs acquiring high-quality infrastructure assets, particularly in the road sector, which is expected to account for nearly 80 per cent of the incremental AUM.While the wave of acquisitions is set to push leverage levels to approximately 50 per cent, credit profiles remain stable, supported by predictable cash flows, long asset lives, and regulatory safeguards. Mature InvITs are poised to contribute 80–85 per cent of the new AUM — a marked increase from 65 per cent over the last two financial years.The Rs1.7–1.8 trillion in projected AUM addition over FY25 and FY26 will be slightly below the Rs2 trillion added in the prior two-year period. Other sectors — including renewables, transmission, and warehousing — will add modestly to the total due to higher upfront leverage requirements and a limited pool of operational assets.Manish Gupta, Deputy Chief Ratings Officer at CRISIL, noted, “With most InvITs having achieved operational stability, they are now well-positioned for growth. As a result, leverage is expected to edge up to nearly 50 per cent by FY27.”Despite the increase in debt, Debt Service Coverage Ratios (DSCR) remain healthy at around 1.7x, only a slight dip from 1.8x in FY23, reflecting the sector’s resilience in absorbing higher leverage without significant deterioration in credit quality. Regulatory provisions — such as the rule requiring six consecutive distributions before exceeding 49 per cent leverage — continue to ensure financial discipline.Anand Kulkarni, Director at CRISIL Ratings, added, “Even with rising leverage, the inclusion of low-risk assets such as annuity roads and transmission lines allows InvITs to maintain credit strength.”As InvITs increase in scale and operational complexity, prudent capital structuring will be essential. With long-term cash flow visibility and staggered debt repayments, the sector’s growth outlook remains strong, though vigilant oversight will be crucial.

Infrastructure Transport

07 Apr 2026

Tunnelling Begins for Thane, Borivali twin tunnel project

Tunnelling work has commenced for the 11.84-km Thane–Borivali Twin Tunnel, set to be India’s longest urban road tunnel, marking a key milestone in Mumbai’s infrastructure development.As per a post shared by Mumbai Metropolitan Region Development Authority on social media platform X, the tunnel boring machine (TBM) ‘Nayak’—the country’s largest single-shield hard rock TBM for an urban tunnel—was launched by Devendra Fadnavis on Tuesday. The event was attended by Eknath Shinde and Sunetra Pawar, among other dignitaries. A second TBM, ‘Arjuna’, is expected to be launched so..

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Infrastructure Energy

07 Apr 2026

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..