Detailed Rationale

Crisil Ratings has reaffirmed its ‘Crisil AAA/Stable' rating on the long-term bank facilities and non convertible debentures of Anzen India Energy Yield Plus Trust (Anzen).

 

Anzen has completed acquisition of 74% stake in 11 solar assets from Edelweiss Infrastructure Yield Plus Fund (EIYP) and one solar asset from SEPL Energy Pvt Ltd (SEPL; sponsor; 'Crisil AA/Stable'), collectively referred to as the Sekura group. Anzen has acquired 74% stake in assets for an enterprise valuation of ~Rs 2,418 crore (subject to closing adjustments) by mix of debt and equity raised by issuance of additional units.

 

The Sekura assets have a total capacity of ~606 megawatt (MW) [AC] and an established operational track record of ~8 years with healthy plant load factor (PLF) of 22.74% for fiscal 2026  (23.35% in fiscal 2025, 23.37% in fiscal 2024). Furthermore, the assets are well-diversified across 5 states and more than 80% of the capacity is tied with strong counterparties such as Solar Energy Corporation of India Ltd (SECI), NTPC Vidyut Vyapar Nigam Ltd (NVVN) and National Thermal Power Corporation (NTPC). Rest of the capacity is tied up with power distribution companies of Telangana and Punjab. The collection track record of all assets remains comfortable with average receivables of 22 days in the first nine months of fiscal 2026 (26 days in fiscal 2025) Post acquisition, Anzen has refinanced SPV (special-purpose vehicle) debt under a cash pooling structure wherein surplus cash flows of one SPV can be utilised towards debt obligation of other SPVs in case of any shortfall before upstreaming to the promotors, thus providing comfort for debt repayment. Post-acquisition, the credit risk profile, including the debt service coverage ratio (DSCR), remains healthy, in line with the rating category.

 

The ratings continue to reflect the stable revenue profile of Anzen InvIT (infrastructure investment trusts), with the underlying transmission SPVs under the point of connection (PoC) mechanism, Solzen Urja Pvt Ltd (SUPL) having long-term offtake agreement (remaining life of ~21 years and fixed tariff) and Sekura assets with capacity-weighted average remaining life of ~16.8 years.

 

The transmission SPVs have a healthy operational track record. During fiscal 2026, Darbhanga Motihari Transmission Co Ltd (DMTCL) had line availability of 99.41% (fiscal 2025: 99.79%) and NRSS XXXI (B) Transmission Ltd (NRSS) had 99.91% (fiscal 2025: 99.86%) and has remained higher-than-normative levels over the past seven fiscals. SUPL also reported healthy PLF (AC) of 27.16% in fiscal 2025 and 28.00% in fiscal 2024. Overall healthy operational performance and long-term PPA will ensure steady cash flow over the debt tenure for Anzen InvIT with healthy DSCR and adequate debt service reserve account (DSRA), resulting in strong financial risk profile.

 

The Trust has also executed a share purchase agreement for the acquisition of Kudgi Transmission Ltd (KTL) for an enterprise value of ~Rs 2,000 crore. The equity value of acquisition will be funded through a unit swap arrangement, wherein Infrastructure Yield Trust entities (current shareholders of KTL) will get units in Anzen of up to Rs 1,100 crore (including cash and equivalents) as consideration of 100% stake in KTL. After the acquisition, Anzen is expected to utilise the incremental term loan of Rs 1,535 crore towards refinancing the existing debt at KTL for up to Rs 1,200 crore and towards refinancing existing NCD (non-convertible debentures) of Rs 300 crore.

 

With assets under management (AUM) of Rs 65.52 billion as on December 31, 2025[1], the net debt to AUM ratio is expected to be within the 70% stipulated by the Securities and Exchange Board of India (SEBI).

 

Anzen is likely to continue to add renewable and transmission assets to the InvIT over the medium term. Given transmission and renewables sectors have different risk profiles, Crisil Ratings will continue to closely monitor further diversification and its impact on the credit profile of the InvIT.

 

These strengths are partially offset by exposure to operations and maintenance (O&M) risk for the underlying transmission and solar assets.

[1]Including valuation of Sekura RG as detailed in independent valuation report dated January 22, 2026

Analytical Approach

Crisil Ratings has combined the business and financial risk profiles of Anzen InvIT and its SPVs, DMTCL, NRSS and Solzen, as Anzen InvIT has direct control over the SPVs and will support them during exigencies. Furthermore, the SPVs will have to mandatorily dispense 90% of their net distributable cash flow (after meeting their debt obligations) to the InvIT, leading to highly fungible cash flow.

 

All external debt, except the debt of Pokaran Solaire Energy Pvt Ltd, Solairedirect Projects India Pvt Ltd(SPIPL), Suryauday Solaire Prakash Pvt Ltd(SSPPL), Northern Solaire Prakash Pvt Ltd, Solaire Power Pvt Ltd(SPPL), Solaire Urja Pvt Ltd (SUPL), Nirjara Solaire Urja Pvt Ltd (NSUPL), Ujjvalatejas Solaire Urja Pvt Ltd (USUPL), Suprasanna Solaire Energy Pvt Ltd (SSEPL), Solaire Surya Urja Pvt Ltd (SSUPL), Enviro Solaire Pvt Ltd (ESPL) and Solairepro Urja Pvt Ltd (SUPL), collectively referred to as the Sekura group, has been raised under Anzen.

 

For Sekura group SPV’s surplus cash flow, post servicing of respective debt obligations has been considered in proportion to Anzen’s holding given the lenders in Sekura have the first right on cash flow from the respective projects. Lenders of Sekura SPVs will not have rights over securities of other SPVs and lenders of Anzen Trust will have rights over surplus generated by Sekura SPVs (in proportion to its holding) after covering all expenses and external debt servicing.

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers - Strengths

Stable revenue of underlying operational assets

The two underlying transmission SPVs have a track record of above-normative transmission line availability of around seven years. Their TSAs ensure payment of stipulated tariff subject to achievement of normative line availability of 98%.

 

The revenue of a transmission SPV is completely delinked from the power demand-supply situation and volatility in electricity prices. Moreover, factors affecting line availability—such as unchecked vegetation growth, lightning or high ambient temperature causing wear and tear of insulators and flashovers—are routine. These events do not entail significant cost and can be easily rectified, thus minimising outage time. Any outage on account of extreme weather conditions, cyclones or excessive lightning is usually classified as an Act of God and is covered under the force majeure clause of the TSA. Hence, such an outage has no impact on the line availability.

 

The solar portfolio contributes 70-75% of the revenue, which will remain dependent on radiation levels. After acquisition of KTL, the contribution of solar assets is expected to moderate to 45-50%. The generation remains susceptible to variability in climatic conditions and risks pertaining to equipment. However, the solar projects are backed by long-term PPA and healthy operational performance, which will likely support the revenue profile.

Cash flow stability under the PoC pool mechanism and strong counterparty

The transmission SPVs are interstate transmission system (ISTS) licensees and come under the PoC pool mechanism, wherein the central transmission utility (CTU) collects monthly transmission charges from all designated ISTS customers on behalf of the licensees. All ISTS licensees are then paid their share of the transmission charges from the centrally collected pool. This method mitigates counterparty risk as the risk of default or delay in payment from a customer is proportionately distributed among all ISTS licensees. Though most customers (power distribution companies) are weak counterparties, the CTU has maintained strong collection efficiency. The SPVs will continue to benefit from the strong collection efficiency of the CTU and diversification of the counterparty risk under the PoC pool mechanism.

 

SUPL has been operational for around four years and has a track record of healthy collection efficiency. On average, bill payments are received within 15 days. Furthermore, Sekura solar assets have more than 80% of the capacity tied with strong counterparties such as SECI, NVVN and NTPC. Three solar assets have PPAs with power distribution companies of Telangana, which have historically delayed payments. However, since fiscal 2023, receivables for these have improved and payments are now received in less than 80 days of raising invoices.

 

Expectation of a strong financial risk profile

The Trust has stable cash flow aided by the long-term TSAs/PPAs of its underlying SPVs and the sound collection efficiency. The cash flow shall support healthy DSCR over the medium term. Furthermore, DSRA equivalent to three months of principal and interest obligations (excluding bullet repayments) is maintained for the debt raised at Anzen and its SPVs.

 

The Trust has executed SPA for acquisition of 100% stake in KTL. Future acquisitions, including KTL by Anzen, and their impact on the financial risk profile of the InvIT, remain monitorable.

Key Rating Drivers - Weaknesses

Exposure to O&M risks for SPVs

Maintenance of high line availability is critical to ensure stability of revenue in the power transmission sector. Although the O&M expense forms a small portion of revenue, improper line maintenance may lead to revenue loss and weaken the loan repayment capability of the SPVs. Similarly, timely O&M for solar assets is critical for healthy generation. However, these risks are mitigated by low technical complexity and O&M being a routine activity. Furthermore, for the 12 Sekura group assets, O&M contract is tied up with Solairedirect India LLP for the entire PPA term, thus providing visibility and certainty on operational expenses.

 

Exposure to refinancing risk

Anzen InvIT has bullets because a part of the date is raised through NCDs. However, the long life of underlying assets is expected to support refinancing at favourable terms, as indicated by the strong project life cycle ratio. Anzen is expected to prudently refinance the maturing debt, as was done in the past, and maintain its healthy DSCR over the medium term.

Liquidity Superior

Stable revenue and strong cash accrual will ensure healthy DSCR over the debt tenure and comfortably cover the debt obligation over the medium term. Moreover, the long life of underlying assets, exceeding the debt tenure, should help in refinancing the bullet repayment at favourable terms. Maintenance of a three-month DSRA supports liquidity.

Outlook Stable

Crisil Ratings believes Anzen InvIT will generate stable cash flow, backed by the ability of its transmission assets to maintain the stipulated line availability and implementation of the PoC pool mechanism for billing and collection. Additionally, solar portfolio of Anzen has an operational track record of healthy generation of ~8 years which, along with strong off-takers making timely payments, mitigates counterparty risk.

Rating sensitivity factors

Downward factors

• Decline in line availability to below 98% on a sustained basis or material fall in PLFs on sustained basis, thereby weakening the cash flow
• Delay in collection under the PoC mechanism

 

Key monitorable

Given the nature of the InvIT platform, the trust will acquire new assets over the medium term. The quality of assets, funding of acquisitions and their impact on the credit risk profile of the trust will be monitorable.

Any other information: Not applicable