Anzen India Energy Yield Plus Trust Management Discussions

Indian Economy Overview

As per the IMFs World Economic Outlook (April 2026), global growth is projected to moderate to 3.1% in CY2026 and 3.2% in CY2027, down from 3.3% in CY2025. The slowdown is primarily attributable to disruptions in global energy supply chains arising from the ongoing conflict in the Middle East. Crude oil prices have risen sharply, with Brent increasing by over 55% from USD 72/bbl on February 27, 2026 to nearly USD 120/bbl at its peak in late March. The impact is expected to be more pronounced for energy-importing emerging economies, with downside risks persisting due to geopolitical fragmentation, elevated public debt levels, and the likelihood of renewed trade tensions.

In India, real GDP growth is projected to ease to 6.9% in FY2027 from 7.6% in FY2026, led by global energy volatility. However, the adverse impact of higher energy prices is expected to be partially mitigated by resilient private consumption, continued public capex in infrastructure and renewables, and a well-capitalised banking system. Since the escalation of the conflict in February 2026, the INR has depreciated to Rs 95/USD (11%+ decline in FY2026 vs 2.5% in FY2025), accompanied by record FPI outflows.

CPI inflation for FY2027 is estimated at 4.6% by the RBI, remaining within the 2 to 6% target band. While inflation averaged 2.1% in FY2026, the recent energy price shock has led to an upward revision. The RBI maintained the policy repo rate at 5.25% in April 2026 under a neutral stance, following cumulative easing of 125 bps during FY2026.

Power demand growth in India moderated sharply to 0.84% YoY in FY2026, compared to 4.5% YoY in the previous fiscal, with total consumption reaching 1,708 BU. The slowdown was primarily driven by an early and prolonged monsoon and an unfavorable base effect. Total installed power capacity increased to 533 GW as of March 2026, up from 475 GW in March 2025.

FY2026 marked a record year for capacity addition, with 55.3 GW of non-fossil capacity added which was nearly double the additions in FY2025 (28 GW), FY2024 (25 GW), and FY2023 (16 GW). Solar capacity led the expansion with 44.6 GW added (87% YoY growth), followed by 6 GW from wind. Overall, renewable energy accounted for 73% of total capacity additions, taking cumulative installed renewable capacity to 275 GW as of March 31, 2026.

Indian Power Transmission Sector

Indias power transmission network expanded to 506,513 ckm by March 2026, reflecting 2.5% YoY growth (versus 1.8% in FY2024). Total transformation capacity reached 1,450,526 MVA as of March 31, 2026, registering 8.4% YoY growth (compared to 6.9% in FY2024). PGCIL alone commissioned 62,005 MVA during FY2026. Notably, 48% of the incremental capacity was added at the 765 kV level, indicating continued scale-up to support long-distance evacuation of renewable power.

Indias transmission sector is poised for significant expansion, driven by ambitious energy targets, rising electricity demand, and ongoing technological advancements. Key growth drivers include:

- Renewable Integration: Increased curtailment renewable energy capacity due to grid constraints (curtailment of 31 GW in Q4FY2026) highlights the urgent need to scale up transmission infrastructure to support the 500 GW non-fossil capacity target by 2030.

- Rising Demand: Sustained urbanization, industrial growth, and increasing electric vehicle adoption are expected to drive higher electricity demand, necessitating enhanced transmission capacity.

- Technology Adoption: The rollout of smart grid initiatives, including real-time monitoring, predictive maintenance, and SCADA systems, is expected to improve operational efficiency and grid reliability.

- Policy Support: The CEAs National Electricity Plan (March 2026) envisages the addition of 1.4 lakh ckm of transmission lines, with an estimated investment of Rs 7.9 lakh crore over FY2027-FY2036.

Indias renewable energy sector witnessed strong growth in FY2026, positioning the country as the worlds third-largest renewable energy market after China and the United States (IRENA, 2026). Total installed renewable capacity reached 275 GW as of March 31, 2026, with overall non-fossil capacity at 283 GW. Solar energy led capacity additions, crossing 150 GW with a record 44.6 GW added during the year. Wind capacity stood at 56 GW, with 6 GW of additions. Hydro capacity (including large and small hydro) reached 56.6 GW, while bioenergy contributed 11.8 GW, supporting decentralized and rural energy needs.

Going forward, scaling solar-wind hybrid systems, energy storage, and green hydrogen will be critical to manage intermittency and sustain growth. Achieving the 500 GW non-fossil target by 2030 will require sustained annual capacity additions of 54 GW and significant capital deployment. Supported by favorable policy frameworks and deepening infrastructure capital markets, the sector continues to offer strong long-term investment opportunities for the Trust.

Anzen India Energy Yield Plus Trust ("Anzen Trust" or "Anzen" or "Trust") is an irrevocable trust formed under the provisions of the Indian Trusts Act, 1882, and registered with SEBI as an InvIT on January 18, 2022, under Regulation 3(1) of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, as amended ("InvIT Regulations"). Anzen Trusts objective is to invest in a diversified portfolio of energy assets to provide long term predictable yield & growth to investors. Anzen is managed by EAAA Real Assets Managers Limited (formerly known as Edelweiss Real Assets Managers Limited)

("ERAML"), part of EAAA Alternatives. EAAA Alternatives is one of Indias leading alternative asset managers with an AUM of Rs 655 bn as on March 2026.

Anzen Trust has built a diversified portfolio across transmission and renewable assets through a series of acquisitions. In November 2022, the Trust acquired a 100% stake in two power transmission projects comprising 855 ckm of network and two substations with 1,400 MVA transformation capacity ("Initial Portfolio"), followed by the acquisition of a 420 MWp solar project in Jaisalmer, Rajasthan in March 2025. In March 2026, the Trust further acquired a 74% stake in 12 solar projects aggregating 816 MWp ("Sigma Assets"), with assets spread across Andhra Pradesh, Punjab, Rajasthan, Telangana, and Uttar Pradesh, and also executed a Share Purchase Agreement for the acquisition of a 100% stake in a 980 ckm power transmission project in Karnataka.

ERAML is led by a professional team with extensive experience in the infrastructure sector. The Board comprises three independent directors reinforcing its strong corporate governance framework. The Trust will leverage the strong growth in the Indian energy sector to grow its portfolio through a value accretive acquisition strategy.

A brief overview of the portfolio assets of Anzen is outlined below:

* LTTC : Long Term Transmission Customer ** Rounded off to the nearest rupee

The Assets have entered into a Project Implementation and Management Agreement

("PIMA") with SEPL Energy Private Limited in the capacity as Project Manager pursuant to which the Project Manager is responsible for operations, maintenance, and upkeep required for the portfolio assets. The Project Manager has adopted comprehensive procedures for asset management and operations and maintenance employing preventive and corrective measures to optimize the long-term performance and overall operational efficiency.

All the Operations and Maintenance (O&M) practices including technical, safety, health and environment, and risk management protocols are aligned to industry practices and validated through independent ISO audits and accreditations under ISO14001 (Environment Management System), ISO45001 (Occupational Health & Safety Management System), ISO27001 (International Standard for Information Security), and ISO55001 (International Standard for Asset Management). The average availability for the Initial Portfolio Assets is outlined below.

Availability at DMTCL was temporarily impacted in Q2 FY2026 due to a transformer tripping related issue. The issue has since been rectified, with no material impact expected on overall financial performance.

For Solzen, PLF in the first nine months of FY2026 was impacted due to the breakdown of 155 inverters. Restoration of 70 inverters was completed by August 2025, with the balance restored by December 2025. The resultant revenue impact is expected to be largely mitigated through insurance/warranty claims.

The summary of financial statements on a Consolidated and Standalone basis of the Trust for the financial year ended March 31, 2026 is outlined below :

The total income of the Trust at a consolidated level was Rs 4,776.75 million in FY2026, of which Rs 204.32 million was other income. EBIDTA and PAT (Loss) for the year stood at Rs 3931.53 million and Rs 11.45 million. EBIDTA margin on a consolidated basis was 82% with key cost components being repair & maintenance, insurance expenses, and Investment Management fees. The Trust has cumulatively distributed Rs. 34.26/unit to unitholders since listing (Rs. 11.00/unit in FY2026).

As per the requirements of the InvIT Regulations, Anzen Trust requires to appoint a Registered Valuer who shall perform valuation of the Project Companies once every financial year, as at the end of financial year i.e., as on March 31, of every year. Considering the same, Anzen Trust had appointed Mr. Jayeshkumar Shah bearing IBBI registration number IBBI/RV/07/2020/13066 to perform valuation of DMTCL, NRSS, SUPL, and Sigma for the financial year ended March 2026. The full valuation report as received from the Valuer for the year ended March 2026 is available on the website of Anzen Trust. For valuation purposes, the Valuer adopted the Discounted Cash Flow (DCF) Method under the Income Approach. The Valuation summary of the Portfolio Assets as of March 31, 2026 is as follows:

Pursuant to Regulation 10 of InvIT Regulations, the Net Asset Value ("NAV") of Anzen Trust as on March 31, 2026 is as follows: A. Statement of Net Assets at Fair Value - Standalone (Rs. Million)

B. Statement of Net Assets at Fair Value -Consolidated (Rs. Million)

The consolidated borrowings of Anzen as on March 31, 2026 stood at Rs 25,078 million. Furthermore, the SPVs of Sigma portfolio had an outstanding debt of Rs. 16,808 million corresponding to 74% stake held by the Trust, of which Rs. 4,739 million was repaid on April 2, 2026, resulting in total debt of Rs. 12,069 million. Details on the borrowing are as follows:

Credit ratings of "CRISIL AAA/Stable" from CRISIL Limited and "IND AAA/Stable" from India Ratings & Research were obtained by the Trust. As on date, there is no revision in the credit ratings.

Anzen Trust aims to expand its portfolio through a disciplined, value-accretive acquisition strategy focused on the power transmission and renewable energy sectors. The Trust will also evaluate investments in assets with similar risk-return profiles, including energy storage, that offer stable, long-term cash flows, support sustained returns for unitholders, and provide potential for capital appreciation in line with its investment objectives. Leveraging the deep expertise of its Project Manager and Investment Manager, the Trust is well-positioned to identify, structure, and execute acquisitions efficiently, ensuring seamless integration and optimal portfolio performance.