| Indus Infra Trust | ||||
| Rating reaffirmed at 'Crisil AAA / Stable' | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AAA/Stable’ rating on the long-term bank facilities of Indus Infra Trust (Indus), an infrastructure investment trust (InvIT) sponsored by Aadharshila Infratech Pvt. Ltd (AIPL), with GR Highways Investment Manager Pvt. Ltd (GHIMPL) as the investment manager, AIPL as the project manager and IDBI Trusteeship Services Ltd (ITSL) as the trustee.
Indus via a disclosure dated on December 25, 2025, announced that it has signed share purchase agreements (SPAs) with KNR Constructions Ltd (KNRCL, rated 'Crisil AA/Stable/Crisil A1+') to acquire 100% equity stake in four of KNRCL’s special purpose vehicles, namely KNR Palani Infra Pvt. Ltd (KPIPL, rated ‘Crisil AAA/Stable’), KNR Ramanattukara Infra Pvt. Ltd (KRIPL, rated ‘Crisil AA-/Positive’), KNR Ramagiri Infra Pvt. Ltd (KRAIPL) and KNR Guruvayur Infra Pvt. Ltd (KGIPL). All four SPVs own and operate hybrid annuity model (HAM) projects with the National Highways Authority of India (NHAI, rated ‘Crisil AAA/Stable’) as the counterparty. All the projects are operational as on date with KPIPL and KRAIPL having received six and two annuities till date respectively.
The transaction, valued at Rs 3,482 crore, is expected to be concluded in two tranches by September 2026 and is expected to be financed by a mix of incremental debt and internal accrual. Healthy operating performance coupled with low leverage led to strong average debt service coverage ratio (DSCR) of 2.3-2.5 times (Crisil Ratings adjusted) over the tenure of the existing debt of the trust, and the debt protection metrics should remain comfortable even with the incremental debt to be availed for the planned acquisition. Crisil Ratings will continue to engage with Indus’ management regarding updates on these developments.
The trust has completed the acquisition of GR Bahadurganj Araria Highway Pvt. Ltd (GBAHPL) from G R Infraprojects Ltd (GRIL) for the enterprise value of Rs 608 crore as on December 30, 2025.
The rating continues to be driven by the healthy operational track record of the trust’s portfolio of ten assets under HAM concession with NHAI, having average balance concession life of 10.85 years and received seventy-four annuities timely without any major delay or deductions, and strong debt protection metrics driven by low gross debt to enterprise (EV) of 31.6% as on September 30, 2025. The rating also factors in extensive experience of the trust’s management team and fixed-price long-term maintenance contract with G R Infraprojects Ltd (rated 'Crisil AA/Stable/Crisil A1+'). These strengths are partially offset by susceptibility to volatility in interest rates. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of Indus with its existing and proposed SPVs. This is because the trust has / will have direct control over the SPVs and has infused / will infuse funds in them (in the form of InvIT loan) to repay existing debt in the SPVs. Furthermore, the SPVs will distribute their entire surplus cash flow to the InvIT in the form of interest and repayment (on InvIT loan) and dividend, leading to highly fungible cash flow. Also, as per the financing terms, the cap on borrowings has been defined at a consolidated level - aggregate consolidated borrowing for the InvIT and its SPVs shall be restricted at 70% of the valuation subject to compliance with InvIT regulations.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Healthy operational track record of assets with strong counterparty The trust’s portfolio comprises ten operational HAM assets as on December 31, 2025. These assets have an operational track record of 1.75 - 4.75 years and are located across six states thereby providing geographical diversification. Additionally, no HAM asset contributes more than 25% to the total annuity of the InvIT, and the balance concession period for the ten assets (9.16-13.62 years) will provide long-term cash inflow to the InvIT.
The counterparty for all the assets is NHAI and the outlook on it reflects the outlook on the sovereign, which reduces counterparty risk. Additionally, due to the inherent benefits of HAM projects, the traffic risk has been assumed by NHAI, which provides stability and predictability to cash flow.
GR Phagwara Expressway Ltd (GPEL) and Porbandar Dwarka Expressway Pvt Ltd (PDEPL) have received eleven annuities, while GR Akkalkot Solapur Highway Pvt Ltd (GASHPL), GR Sangli Solapur Highway Pvt Ltd (GSSHPL) have received nine annuities each. Further, Varanasi Sangam Expressway Pvt Ltd (VSEPL) has received ten annuities and GR Gundugolanu Devarapalli Highway Pvt Ltd (GDHPL) has received eight annuities. Furthermore, GR Dwarka Devariya Highway Pvt Ltd (GDDHPL) has received six annuities, GR Aligarh Kanpur Highway Pvt Ltd (GAKHPL) has received five annuities, GR Galgalia Bahadurganj Highway Pvt Ltd (GGBHPL) has received three annuities and GR Bhadurganj Ahraria Highway Pvt. Ltd (GBAHPL) has received two annuities till December 31, 2025. The annuity payments for ten HAM assets have been received without any substantial delay or material deduction.
The trust is currently in the process of acquiring four new assets to the pool and has signed SPAs with KNRCL for the assets which are expected to be concluded by transfer of assets in two tranches by September 2026. All the assets are operational with KPIPL and KRAIPL having received six and two annuities till date respectively.
Strong debt protection metrics The financial risk profile is driven by a strong average DSCR of 2.3-2.5 times (Crisil Ratings adjusted) over the tenure of the debt which is expected to remain strong considering the incremental debt for proposed acquisition of the assets. The same is aided by fixed annuity payments and moderate debt of Rs 2,240 crore as on September 30, 2025 for the trust. Due to the fixed nature of the annuities and a strong counterparty (NHAI), all cash inflows, that is, the annuity payment from NHAI, interest on remaining annuity and inflation-adjusted O&M payment from NHAI are expected in a timely manner, which will support debt repayment. The trust has a lower dependence on debt currently keeping the gearing low with cushion available of incremental debt for further acquisitions and the debt servicing is expected to be further supported by cash flow pooling of all projects under the InvIT structure. However, adequacy of gearing for proposed acquisition of assets with healthy debt protection metrics to be maintained by trust remains a key monitorable.
As per the InvIT guidelines, debt must not exceed 49% of the asset value (until six consecutive dividend distributions) which is also built in the financing documents. The portfolio enjoys comfortable leverage with gros debt / enterprise value (EV) of around 31.6% as on September 30, 2025. Furthermore, the trust has completed six distributions by quarter ended June 2025. Post this, the trust is allowed to take Debt/EV up to 70% maintaining AAA rating and other regulatory approvals. Additionally, as per the term loan agreement, the trust has maintained a 3-month DSRA of Rs 117.7 crore in the form of fixed deposits (FDs) with banks as on September 30, 2025.
Experienced management team Indus is backed by the experienced management team of AIPL and GRHIMPL, who have a strong management team with extensive experience, in-depth understanding and a proven track record of performance in the road and highways sector. The management team has more than 33 years of experience on average in various sectors including in the road and highways sector and brings expertise in the areas of business strategy, operational and financial capabilities. In addition, Indus assets are managed by qualified personnel of the project manager.
Fixed-price, long-term O&M agreement O&M payments have come from NHAI without any major deductions for all the ten operational SPVs so far. Furthermore, O&M expenses are inflation-adjusted with 70% weight to WPI and 30% weight to CPI, reducing the variability in O&M payments. The HAM assets have executed fixed-price O&M Contracts between respective SPVs and AIPL and back-to-back O&M sub-contracts between AIPL and GRIL, the O&M contractor for the entire concession period. These fixed-price contracts provide the cushion in terms of stability of cash outflow. Any increase in O&M higher than stipulated in the agreement will be borne by GRIL, resulting in lower volatility in cash flow for Indus. |
Key Rating Drivers - Weaknesses Susceptibility to volatility in interest rates: The trust is exposed to risk of reduction in the bank rate/ MCLR that can impact the inflow from interest received on annuity balance thus impacting the cash inflows for DSCRs given that a large proportion of inflow is from interest. Furthermore, as operation costs depend on inflation and the sanctioned rupee term debt has a floating interest rate, any significant increase in these components could impact cash flow. However, coverage indicators will be safeguarded to some degree by the natural hedge as the movement in interest rate on borrowings that are linked to external benchmark and the interest on annuities that are linked to the bank rate shall move in the same direction. |
Liquidity Superior Annuity receipts by the SPVs which will be subsequently up streamed to the Indus in the form of interest payments, principal repayments and dividends will be adequate to meet operational expenses and debt obligation. The trust is expected to have a strong average DSCR of 2.3-2.5 times (Crisil Ratings adjusted) over the tenure of existing debt. Additionally, the trust has maintained three months DSRA of Rs 117.7 crore in the form of FDs with banks as on September 30, 2025 as per the sanctioned terms. |
Outlook Stable Crisil Ratings believes Indus will continue to benefit from the steady and timely receipt of annuities by the SPVs backed by a strong counterparty. |
Rating sensitivity factors Downward factors
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About the InvIT Indus is an infrastructure investment trust of roads sector assets sponsored by AIPL with GHIMPL as its investment manager, AIPL as the project manager and ITSL as the trustee.
The InvIT was registered with SEBI in 2022 and has acquired 100% of the shareholding of the sponsor in 7 project SPVs: GPEL, PDEPL, GDHPL, GASHPL, VSEPL, GSSHPL, GDDHPL, GAKHPL and GGBHPL. Indus was listed on the BSE and NSE on March 12, 2024. Post acquisition of the equity shares of the project SPVs, the InvIT has issued fully subscribed ordinary units of 44,29,38,605 at Rs 100 per unit.
The trust completed acquisition of two more assets from GRIL, GAKHPL and GGBHPL. Post acquisition of these two assets, the trust has a portfolio of 9 assets under hybrid annuity mode (HAM) concession as on September 2025. Further, the trust added one asset from GRIL being GBAHPL in December 2025 making portfolio of 10 assets.
The trust is currently under process of acquisition of four HAM assets from KNR wherein the trust signed a SPAs on December 24, 2025 and the transaction is expected to be completed by September 2026.
The details of assets held by trust in its portfolio as on date is as follows:
GPEL was incorporated in 2016 for four laning of the Phagwara to Rupnagar section of NH-344A from Km 0.00 (Design Chainage) to Km. 80.820 (Design Chainage) in Punjab on HAM basis. The project received PCOD on February 25, 2020, and COD on May 26, 2021, and had received eleven annuities till December 31, 2025
PDEPL was incorporated in 2017 for four-laning of the Porbandar-Dwarka section of National Highway 8E in Gujarat from 356.786 km to 473.000 km (a stretch of 116.214 km) on a design, build, finance, operate, and transfer basis under HAM. The project received PCOD on April 18, 2020, and COD on October 13, 2021, and has received eleven annuities till December 31, 2025.
VSEPL was incorporated in 2017 for six-laning of the Handia to Varanasi section of NH-2 from km 713.146 to km 785.544 in Uttar Pradesh under NHDP phase–V. The project received PCOD on November 2, 2020 and COD on January 19, 2022, and had received ten annuities till December 31, 2025.
GASHPL was incorporated in 2018 for four-laning of the Akkalkot-Solapur section of NH 150E with paved shoulders from design chainage km. 99.400 to km 138.352 / existing chainage from km. 102.819 to km. 141.800 (design length 38.952 km.) including Akkalkot bypass (design length 7.350 km.). The project received PCOD on March 31, 2021, and COD on March 09, 2023, and had received nine annuities till December 31, 2025.
GSSHPL was incorporated in 2018 for four-laning of the Sangli-Solapur (Package- III: Watambare to Mangalwedha) Section of NH-166 from existing Ch. Km 272.394 to Ch. km 314.969 (Design Ch. km. 276.000 to Ch. km. 321.600). The project received PCOD on June 28, 2021, and COD on March 01, 2023, and had received nine annuities till December 31, 2025.
GDHPL was incorporated in 2018 for four-laning of the Gundugolanu-Devarapalli-Kovvuru section of NH-16 from km 15.320 (existing km 15.700) to km 85.204 (existing km 81.400) in Andhra Pradesh under Bharatmala Pariyojana. The project received PCOD on July 10, 2021, and COD on September 30, 2022, and received eight annuities till December 31, 2025
GDDHPL was incorporated in 2019 for four-laning of the Dwarka (Kuranga)-Khambhaliya-Devariya section of NH 151A in Gujarat under Bharatmala Project. The project received PCOD on August 2, 2022, and received six annuities till December 31, 2025.
GAKHPL was incorporated in 2021 for four-laning of the Aligarh-Kanpur section from Naviganj to Mitrasen of NH-91 in the state of Uttar Pradesh under Bharatmala Project. The project received PCOD on February 24, 2023, and COD on August 09, 2024, and received five annuities till December 31, 2025.
GGBHPL was incorporated in 2022 for four-laning of the Galgalia to Bhadurganj section of NH-372 on hybrid annuity mode in the state of Bihar under Bharatmala Project. The project received PCOD on April 06, 2024, and had received three annuities till December 31, 2025.
GBAHPL was incorporated in 2022 for four-laning of the Bhadurganj to Ahraria section of NH-372 on hybrid annuity mode in the state of Bihar under Bharatmala Project. The project received PCOD on August 10, 2024, and had received two annuities till December 31, 2025. |
Key Financial Indicators
Note: Financials of fiscal 2024 are not meaningful (NM) as the assets were acquired in the month of March 2024. |
List of covenants Key terms of debt
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||
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Criteria Details
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