Capital Infra Trust Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis

Global Economy Overview

The global economy in FY26 was a challenging year, marked initially by escalating trade tensions and tariff actions, followed by the outbreak of conflict in the Middle East. These developments contributed to geopolitical uncertainty and intermittent volatility across commodity markets, firmed up inflation expectations. The situation involving Iran added to market sensitivity, given its relevance to global energy supply and key trade routes.

These dynamics were reflected in energy markets, particularly in energy-importing economies. Uncertainty around key transit passages such as the Strait of Hormuz, along with precautionary adjustments in trade and logistics, led to fluctuations in oil prices, freight costs, and insurance premiums.

According to the International Monetary Fund, global growth is projected at 3.1% in 2026 and 3.2% in 2027, under the assumption of a contained conflict scenario. These projections are modestly lower than recent outcomes and remain well below pre-pandemic averages, reflecting a structurally slower growth trajectory. Inflation, which was expected to ease steadily, is now anticipated to tick up in 2026 before resuming its decline in 2027, driven largely by energy price volatility and supply-side disruptions, with pressures more pronounced across emerging market and developing economies.

Outlook - Global

The global economic environment remains sensitive to geopolitical developments, including conditions in the Middle East. The situation involving Iran will continue to be an important factor to monitor, particularly in relation to energy markets and trade routes. While any prolonged or expanded disruptions could influence commodity prices and inflation dynamics, the extent of the impact will depend on the scale and duration of such developments.

More broadly, while domestic demand and policy support in key economies may provide some stability, ongoing supply-side risks, elevated energy costs, and relatively tighter financial conditions could weigh on growth. At the same time, global growth is expected to continue, albeit at a moderate pace, supported by gradual normalization in inflation over the medium term.

Source: International Monetary Fund (IMF) Report

Indian Economy Overview

India continued to be one of the fastest-growing major economies globally, with growth anchored in private consumption, public capital expenditure, and a robust infrastructure sector. While external pressures elevated energy prices and intermittent trade disruptions posed challenges, resilient domestic demand helped offset the impact of a broader global slowdown. Reflecting this relative strength, the International Monetary Fund reaffirmed confidence in Indias outlook, projecting economic growth of ~6.5% in FY27, underscoring the durability of Indias medium-term growth trajectory.

Inflation remained well contained through FY26, providing a key pillar of macroeconomic stability, supported by favorable food price dynamics, adequate agricultural output, and stable core inflation. While inflation is expected to firm modestly towards the latter part of the fiscal year due to base effects, underlying price pressures are assessed to remain muted. The

RBI identified energy price volatility, geopolitical developments, and climate-related disruptions as key upside risks to the inflation outlook.

Monetary policy remained measured and vigilant. The Monetary Policy Committee maintained the key policy repo rate at 5.25%, holding its neutral stance, emphasizing flexibility amid evolving global developments. Domestic financial conditions remained supportive, characterized by healthy credit growth, strong banking sector balance sheets, and adequate system liquidity, thereby providing a conducive environment for investment and consumption.

Foreign direct investment (FDI) trends further reinforced confidence in Indias economic fundamentals. During April— December FY26, FDI equity inflows rose 18% YoY, despite persistent geopolitical disruptions and volatile commodity markets. The broad-based nature of capital inflows, led by services, technology, and infrastructure-linked sectors, highlights Indias continued appeal as a preferred destination for long-term investment amid global uncertainty.

Outlook - India

India is well positioned to sustain its growth momentum, supported by strong domestic demand, ongoing infrastructure investment, and a favorable policy environment. While external headwinds particularly geopolitical tensions in the Middle East, notably risks around the Strait of Hormuz, which handles ~20% of global oil trade, may contribute to intermittent energy price volatility, and supply uncertainties, alongside global financial tightening, these factors may pose near-term challenges. Nevertheless, Indias macroeconomic stability and structural growth drivers are expected to provide resilience.

Source: International Monetary Fund Report  ET India

Sectoral Outlook

Infrastructure And Construction

The Indian infrastructure sector continues to play a pivotal role in supporting the countrys economic growth with the Government of India maintaining an infrastructure-led development approach. Driven by sustained government focus on capital expenditure, the sector has witnessed steady momentum across roads and highways, urban infrastructure, and industrial corridors. The FY27 Union Budget reaffirmed the governments focus on infrastructure, with capital expenditure increased to Rs. 12.2 lakh crore, reflecting growth of ~9% YoY. This allocation is part of the governments strategy to enhance connectivity and logistics efficiency across the country.

Manufacturing

Indias manufacturing sector demonstrated resilience in FY26, supported by strong domestic demand, rising government-led capital expenditure and continued policy impetus under the Make in India and Production-Linked Incentive (PLI) frameworks. During the year, heightened geopolitical uncertainties arising from the West Asia conflict posed near-term challenges, affecting manufacturing operations through supply-chain disruptions, higher energy and input costs. Despite these headwinds, manufacturing sector total exports grew by 6.18% YoY to US$ 349.35 billion during April-August 2025. Alongside the broader manufacturing industry, structurally growing sectors like electronics, pharmaceuticals, automobiles and textiles are driving long-term growth and shaping Indias global competitiveness. Together, these sectors not only anchor Indias export momentum but also reinforce its ambition to become a US$ 1 trillion manufacturing economy by FY26.

Services

The services sector continues to be the primary engine of Indias economic growth, accounting for a dominant share of employment, exports and foreign direct investment in FY26. According to the Economic Survey 2025-26, services contributed -53-56% of Gross Value Added, supported by strong performance across financial services, IT & IT-enabled services, trade, transport and professional services. With India emerging as one of the worlds largest exporters of services and a leading destination for global capability centers, the sector is well positioned for long-term expansion. By 2047, the services sector is expected to contribute 60% of Indias GDP, while manufacturing will account for 32%, both playing a pivotal role in economic expansion.

Inflation Overview and RBI Policy

The RBIs Monetary Policy Committee (MPC) has maintained the benchmark repo rate at 5.3%, reaffirming its commitment to support growth while anchoring inflation expectations. For FY27, i headline CPI inflation is projected at 4.6%, while core inflation at 4.4%, reflecting price stability despite global uncertainties.

While external headwinds persist, particularly from ongoing _ geopolitical and trade-related uncertainties, the RBI Governor has indicated that the successful conclusion of key trade _ agreements could help sustain growth momentum over a longer period. The Reserve Bank also reiterated its intent to remain proactive in liquidity management to support the productive needs of the economy. This policy stance is supportive for capital-intensive sectors such as roads and infrastructure, where ! access to long-tenor and cost-effective financing is an important " determinant of project feasibility.

A moderating inflation and a stable repo rate environment support in containing borrowing costs for infrastructure developers and infrastructure investment trusts (InvITs). For InvITs, in particular, controlled inflation and orderly liquidity conditions assist in managing debt servicing costs, sustaining distribution yields and  enabling asset acquisitions in line with portfolio growth strategies. :

On the cost side, while volatility in commodity prices may influence construction inputs in the near term, the road infrastructure sector continues to benefit from stable domestic demand and contractual cost pass-through mechanisms. ICRAs commodity outlook suggests that although global developments may intermittently affect input prices, overall cost pressures are expected to remain contained. Stable cement margins, moderated steel prices and a favorable outlook for bitumen collectively support a predictable input cost environment for road and infrastructure projects.

Industry Overview

Road Sector

The road and highways sector continues to play a central role in Indias economic development by enhancing regional connectivity and supporting industrial and commercial activity. India has the worlds largest road network, spanning over 6.34 million kilometers, including 1,46,204 km of national highways. While national highways constitute a small share of the overall network, they carry nearly 40% of total traffic, underscoring their importance for economic growth. The expansion and upgradation of these corridors support the creation of long-life road assets with stable operating characteristics, which are well suited to the HAM framework.

The Government of India continues to support the sector through sustained budgetary allocations. Under the Union Budget FY27, the capital outlay for MoRTH increased by ~8% to Rs. 2.94 lakh crore from Rs. 2.72 lakh crore in FY26. The allocation represents 24.1% of the total Union Budget capital outlay, indicating continued emphasis on road development, execution and project awards. For HAM-based InvITs, this policy continuity supports the availability of new projects, timely annuity payments and long-term asset stability.

In addition to budgetary support, the sector is being driven by flagship programs aimed at expanding and strengthening the highway network. Under the Bharatmala Pariyojana (BMP-I), highways spanning 34,800 kilometers were planned for development to improve connectivity across economic corridors, border areas and remote regions, of which 26,245 kilometers had been awarded as of February 2025. These initiatives are complemented by the Vision 2047 roadmap, which seeks to connect the national highway network through access-controlled, high-speed corridors, ensuring improved nationwide connectivity over the long term.

Source: India Budget  Ministry of Finance  Government of India

Highway Construction in India

Indias national highway network has expanded significantly over the last 10 years, increasing by ~60% from 91,287 km to 1,46,342 km at present. This rapid expansion reflects a focus on strengthening connectivity and enhancing freight movement efficiency. A notable shift has been towards the development of access-controlled and high-speed corridors, including expressways, the length of which has grown sharply from 93 km in March 2014 to ~5,110 km currently. This increasing emphasis on expressways is expected to support higher growth in road construction in terms of lane-kilometers going forward.

In line with this strategic focus, project development continues to be guided by connectivity needs, traffic intensity, and alignment with the PM GatiShakti National Master Plan. Currently, 1,240 national highway projects, covering ~29,400 km, are under construction across the country. However, highway construction activity moderated during FY26, with national highways additions at 9,390 km compared to 10,660 km in FY25, primarily due to delays in land acquisition and slowdown in new project awards. The medium to long-term outlook remains positive, supported by continued policy emphasis on infrastructure development and the sustained focus on expanding high-quality road networks for long-term economic growth.

Source: ET Infra

Source: Government Fails to Meet Highway Construction Target for FY26 Amid Land Acquisition Delays, ETInfra

The top 10 developers in the HAM space have bagged ~42% of the HAM projects awarded by NHAI/MoRTH till August 2025.

About 38% of the total HAM projects with a length of ~9,080 km were operational till August 2025, primarily led by these 10 developers, while another ~20% are likely to become operational in the next 12 months. Around 90-100 projects with a BPC of more than Rs. 1,00,000 crore are expected to become operational in the next 12 months.

NHAI has announced 124 major projects to be awarded in FY26, of which 81 projects are to be awarded under HAM model, followed by 31 EPC projects and 12 projects under BOT-Toll.

NHAI continues to place significant reliance on the Hybrid Annuity Model (HAM) for the execution of highway development projects. Of the 52 projects invited for bidding with an aggregate value of Rs. 1.15 lakh crore, 29 projects valued at Rs. 76,150 crore are proposed to be awarded under the HAM framework.

Structure of the Industry to be kept same

Historically, infrastructure development in India has been largely driven by public sector investment. However, in recent years, the Government of India has introduced several initiatives to attract greater private sector involvement. This approach aims to enhance project design and execution quality, reduce costs, and ensure timely completion. To support this, various Public-Private Partnership (PPP) models have been implemented, offering structured frameworks for collaboration. Some commonly used construction business models are:

Type of project	Description	Development risk	Financing risk	Traffic risk and accrual of toll fee collection	Net cash outflow for the government	Revenue for private party	Concession period	Award criteria
BOT-Toll	Private party builds road, undertake O&M and collects toll	Concessionaire	Concessionaire	Concessionaire	Yes (In form of grant/ equity support)	Toll	Around 2030 years for the NHAI and other authorities	Highest revenue sharing bid / Highest premium/ lowest equity support
BOT- Annuity	Private party builds road, undertake O&M. Gets 40% of payment during construction and 60% as annuity along with interest	Concessionaire	Concessionaire	Authority	Yes, net payment to be made is the difference between the toll collection and the annuity payable	Annuity payment	Around 15-20 years for NHAI and other authorities	Lowest annuity
BOT HAM	Private party builds road, undertakes O&M. Gets 40% of payment during construction and 60% as annuity along with interest	Concessionaire	Concessionaire	Authority	40% during construction and 60% as semi-annual annuity along with interest, net of toll collected	Construction grant plus annuity payments interest on annuities, inflation indexed O&M payments	Around 15 years of operations plus additional construction period	Lowest project cost plus O&M Grant
EPC	Private party builds road, based on the cost incurred by the government	Concessionaire	Authority	Authority	Yes	Contract amount	Not required	Lowest contract price requester
OMT	Private party collects toll and undertakes O&M and major maintenance	No development risk except minimal risk in case of paved shoulders	Concessionaire	Concessionaire	No	Toll	Up to nine years for NHAI projects	Highest percent of toll revenue share or highest premium per year
Tolling	Private party pays the estimated toll upfront to the authority and collects the toll during concession period	No development	Concessionaire	Concessionaire	No	Toll	Around one year for NHAI projects	Highest revenue sharing bid
TOT	Private party pays the estimated toll (revenue share) upfront to the authority, undertakes O&M plus certain capex and collects the toll during concession period	Authority (in case upgradation of lanes is taken up during the concession period)	Concessionaire	Concessionaire	No	Toll	15-20 years	Highest upfront payment

Highway Sector Growth Drivers

Strong Government Push through Increased Budget Allocations

* Continued focus by the Ministry of Road and Transport and Highways on expanding national highway network

* The Government has increased infrastructure capex by ~8.9% to Rs.12.2 lakh crore for FY27, compared to Rs.11.2 lakh crore budgeted for FY26

* Within this allocation, MoRTH has been allocated Rs.3.10 lakh crore, an increase of ~8% compared to Rs.2.87 lakh crore in FY26

* The NHAI has been allocated Rs.1.87 lakh crore, marking an increase of 10% over Rs.1.70 lakh crore from FY26

Shift Towards Asset Monetization (InvITs)

* Growing use of Infrastructure Investment Trusts to recycle capital

* Monetization of operational road assets under National Monetization Pipeline

* Enhances private sector participation and liquidity

Increasing Focus on Road Safety

* Rising emphasis on road safety standards, climate-resilient infrastructure, and disaster-resistant design is influencing highway development

Features of new BOT model under consideration

* There is a renewed policy focus on reviving private sector participation through the Built-Operate-Transfer (BOT), model with projects worth ~Rs. 62,000 crore planned under this route in FY26

* The focus is shifting towards monetizing brownfield assets over new debt-funded projects, aligning capex with government projections

* The new MCA will link all parameters to traffic, removing the uncertainty associated with competing roads and ensuring a buy-out principle if traffic falls below a certain threshold

Shift Toward High-Quality, Access-Controlled Infrastructure

* Policy emphasis is increasingly focused on building access-controlled expressways and economic corridors

* This shift supports higher lane-kilometre additions per project and improves travel efficiency Government Thrust

* In FY26, ~5,300 km of highways were constructed, surpassing annual targets

* Launched Bharatmala Pariyojana, a flagship umbrella programme for the highways sector aimed at improving freight and passenger movement

* A total planned length of 34,800 km under Phase I , projects covering ~26,425 km have been awarded under Bharatmala Pariyojana Phase I

Key Government Initiatives

Initiative	Description
	* Focuses on providing all-weather road connectivity to rural and unconnected areas, improving access to markets, healthcare and education.
Pradhan Mantri Gram Sadak Yojana (PMGSY)	* As of FY25-26, over 8.38 lakh km of rural roads have been sanctioned, with 7.8-7.9 lakh km completed
	* The programme continues with an allocation of Rs. 19,000 crore in FY25-26 and PMGSY-IV aims to connect 25,000 additional habitations through 62,500 km of roads
National Highway	* A flagship programme for development and upgradation of National Highways, including the Golden Quadrilateral and North-South & East-West corridors
Development Project (NHDP)	* The programme has now been largely subsumed under Bharatmala Pariyojana, with corridor- based development continuing under the new framework
Special Accelerated Road Development	* Aims to improve road connectivity in the North-East region by linking state capitals, district headquarters and remote areas, supporting regional connectivity and economic activity
Programme for NorthEast (SARDP-NE)	* It forms part of broader national highway expansion initiatives
Special Programme for Development of Roads	* Focuses on construction and upgradation of roads in LWE-affected regions to improve accessibility, security and economic integration
in Left Wing Extremism Affected Areas (LWE)	* The programme covers critical corridors including strategic links across states such as Andhra Pradesh, Odisha, Chhattisgarh and Jharkhand
	* Involves development of road infrastructure through funding support from multilateral and
Externally Aided Projects	bilateral agencies
(EAP)	* Enabling access to advanced construction technologies, improved project structuring and additional financial resources for highway expansion.

Source https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId=3&NoteId=1.5.5199&lang=1&reg=3& Source https://www.pib.gov.in/PressReleasePage.aspx?PRID=2209837&lang=2&reg=3&

Source https://www.pib.gov.in/PressReleasePage.aspx?PRID=2209837&lang=2&reg=3&

Industry Outlook

The infrastructure sector, particularly the roads segment, continues to remain a key focus area for the government, supported by sustained budgetary allocations and policy emphasis on improving connectivity and logistics efficiency. In the recent years, the government support has been crucial in aiding investors participation and facilitating growth in the road InvITs. Through policy initiatives such as National Monetization Plan (NMP), the central government has been actively promoting monetization of road assets supported by initiatives from NHAI and other state government road authorities adding significant value to the sector. As India embarks on ambitious infrastructure development, InvITs are poised to play a pivotal role in mobilizing private capital, optimizing asset utilization, and ensuring sustainable economic growth.

Sector-wise NMP 2.0 Award Targets over FY26-30

It is estimated that largest portion of the proceeds under NMP 2.0 will be for highways (including MMLPs and ropeways), the single largest sectoral allocation in the pipeline. Of this, Rs. 3.35 lakh crore is allocated specifically for monetization through InvIT and TOT structures, corresponding to 19,200 km of road assets.

Infrastructure Investment Trusts (InvITs)

Introduced in 2014 through SEBIs Infrastructure Investment Trust (InvIT) regulations, InvITs have rapidly evolved to become a significant force in Indias infrastructure financing landscape. They have helped democratize infrastructure ownership by allowing a broad range of investors to participate in income generating assets such as roads, transmission networks, telecom infrastructure, fibre optics, warehousing, and renewable energy projects.

InvITs have emerged as a highly regulated, safe and transparent investment vehicle providing an opportunity to investors to participate in the countrys infrastructure growth story. With stringent regulations governing InvITs, they operate with high quotient of corporate governance and provide superior risk adjusted returns to its unitholders.

Features and Benefits of an Invit

* Minimum 90% NDCF distributed to unitholders, at least semi-annually

* Minimum 90% portfolio of operational assets

* Leverage celling at 70%

* Mandatory credit rating

* Unitholder approval for all key decisions

* Board representation for unitholders with stake beyond 10%

Benefits of InvITs

* Provide long-term financing option for existing infrastructure projects

* Free up developer capital for reinvestment into new infrastructure projects

* To bring higher standards of governance into infrastructure development and management

* Facilitation of ownership of diversified infrastructure assets for retail investors

* Low-risk Investments option to benefit long-term investors

* Growth potential for investors

Infrastructure Investment Trusts have gained traction as a means of asset monetization, offering investors relatively stable returns and fostering Infrastructure development. Assets under InvITs represent diverse sectors, such as roads, transmission, telecom, pipeline, renewable and warehousing, InvITs are anticipated to further contribute to Indias infrastructure development by offering fresh investment opportunities and unlocking growth capital for developers.

InvITs offer a transparent, regulated investment structure that accommodates both large and small investors. As on March 2026, there are 28 InvITs registered with SEBI, 8 of which are publicly listed and 20 privately listed. Recognized for their high standards of corporate governance and regulatory oversight, InvITs provide a relatively safe and stable investment option, delivering strong risk-adjusted returns. They have firmly established themselves as an essential vehicle for channeling capital into Indias long-term infrastructure development.

Significance of InvITs

* Income generation potential: Regulatory distribution norms by SEBI enable regular income for unitholders by conversion of operating cash flows

* Reduced project risk exposure: InvITs primarily invest in operational assets, significantly lowering construction and execution risks compared to greenfield infrastructure investments

* Attractive yield-oriented investment option: InvITs offer relatively higher and stable yields compared to traditional fixed-income instruments, making them appealing for income-focused investors

* Liquidity: Exchange-listed units provide ease of entry and exit without private negotiations

* Portfolio diversification benefit: Investing in real assets like roads, power, or warehouses helps spread risk as they are less volatile in nature and protect returns from inflation

Road InvITs

The road sector continues to present a compelling opportunity for InvITs, supported by its ability to generate stable and predictable cash flows. Operational road assets, backed by annuity-like revenue structures, provide visibility of returns, making them attractive to long-term institutional and yield-oriented investors.

Diversification is another key factor enhancing the road sectors attractiveness for InvITs. Road InvITs benefits from both geographic and concession-type diversification, which mitigates risks from local economic volatility and traffic disruptions, thereby ensuring more stable revenue generation.

Road EPC companies have completed several HAM assets over the last few years, resulting in an estimated value of monetizable assets at. Rs 1.3 lakh crore. This sizeable pipeline provides a strong runway for InvIT growth. Moreover, HAM asset class has established a track record of generating stable and timely cash flows over the years.

Assets under management (AUM) of InvITs in the road sector are poised to surge ~68% to ~Rs. 3.2 lakh crore by March 2026, from ~Rs. 1.9 lakh crore as of September 2024. The growth will be fueled by the expansion of existing InvITs asset pool and the emergence of new InvITs.

Growth in AUM of road InvITs will be driven by two key drivers:

1. Existing InvITs adding new assets. These InvITs already have an acquisition pipeline of Rs. 55,000-60,000 crore of assets over the next one year. Additionally, monetization of assets by NHAI and road developers is expected to add another Rs. 50,000-55,000 crore to AUM

2. New InvITs floated, with estimated AUM of Rs. 20,000-25,000 crore

Reflecting this momentum, road-sector InvITs have emerged as the dominant vehicle for highway asset monetization in India. According to industry estimates, assets under management of road InvITs is projected to increase to Rs. 5.45 lakh crore by fiscal 2030. The AUM growth will be accompanied by diversification in terms of geography and concession type, which will help build resilience. The average leverage of road InvITs is expected to remain under control at below 49% by

March 2026, further supporting balance sheet strength. This, along with prudent capital structures, will keep credit profiles of road InvITs strong.

Source: Report by the Federation of Indian Chambers of Commerce and Industry and Crisil.

HAM Asset Monetization to Sustain Momentum

* HAM assets have become ideal for monetization by developers after the completion of construction. Based on iCRAs estimates, these assets have been acquired at an EV/EBITDA multiple range of 5.10 to 7.66 times with median multiple being 6.07 times.

* Till August 2025, NHAI/MoRTH has awarded more than 19,700 km length of projects under the HAM model

* Of the 469 HAM projects awarded since January 2016, about 180 projects are operational up to August 2025

* ~150 HAM projects involving BPC of around Rs. 1.6 lakh crore are likely to become operational over the next two years (H2 FY2026 - H1 2028)

* ICRA expects M&A as well as refinancing activity in the HAM space to remain strong in the medium term

Our Trust

1. Corporate Structure and Infrastructure Portfolio

Capital Infra Trust core focus is management and maintenance of roads and highways. With a diversified portfolio of nine BuildOperate-Transfer (BOT) assets under the Hybrid Annuity Model (HAM) as initial portfolio, Trust aspire to be a key contributor to the nations infrastructure development. The Trust is open to expand its footprints through the strategic addition from its sponsor (under ROFO agreement) as well as third parties to further strengthen its portfolio. Trusts success is underpinned by its meticulous assets in its pool, presently only HAM assets. The Trusts experienced leadership team, with deep sectoral expertise, enables it to mitigate risks effectively, and make data- driven decisions. In summary, Trust remains committed to sustainable infrastructure development, driven by strategic asset management, prudent investment, and a forward-looking vision aligned with Indias long-term growth objectives.

2. Enhancing Operational Performance

We are dedicated to achieving operational excellence by implementing standardized processes, integrating advanced technologies, and actively engaging with local communities. These efforts are designed to enhance user experience and ensure optimal operational efficiency. Through strict adherence to standard operating procedures (SOPs) and data-driven decision-making, we maximize resource utilization and improve strategic outcomes.

Our community engagement initiatives help us building strong local relationships and provide valuable insights into regional priorities. At the same time, our focus on compliance, cost control and process optimization strengthen operational discipline and reduces risk. By leveraging automation and predictive maintenance, we look forward to enhancing asset performance, improve cost efficiency and solidify our position as a trusted leader in infrastructure management

3. Portfolio snapshot over India

Capital Infra Trust is primarily focused on management and maintenance of roads and highway assets. The InvIT has a portfolio of 12 Hybrid Annuity Model (HAM) assets spread across 8 states, operating under concessions from NHAI. The diversified portfolio of HAM assets offers annuity-based revenue, mitigates traffic risk and provides strong cashflow visibility.

4. Acquisitions details

During FY26, CIT acquired 3 HAM assets at of -9.3% discount to enterprise value, funded through a QIP of Rs. 12,500 million and debt of Rs. 11,000 million. This strategic resulted in NAV accretion and significantly enhanced overall portfolio value.

Furthermore, through acquisition CIT added -Rs. 25,707 Mn to the InvITs enterprise value. The assets, being fully operational, were seamlessly integrated into the portfolio, contributing immediately to cash flows while strengthening portfolio quality and diversification.

Key assets include:

5. CSR Initiatives-

Pursuant to Section 135 of the Companies Act, 2013 and the rules made thereunder, the Investment Manager was not required to undertake Corporate Social Responsibility ("CSR") activities during FY 2024-25 as it did not meet the prescribed applicability thresholds. However, certain Project SPVs within the Trusts portfolio were subject to the CSR provisions of the Act and undertook CSR initiatives during FY 2025-26 in compliance with the applicable provisions of the Companies Act, 2013 and Schedule VII thereto.

The CSR initiatives undertaken by the eligible SPVs primarily focused on animal welfare, including support to registered gaushalas for the care, shelter, feeding and medical treatment of abandoned and injured cattle. These initiatives were implemented through the Gawar Foundation and other eligible institutions.

During the year, the eligible SPVs collectively incurred CSR expenditure of Rs. 36.8 million, representing full utilisation of their CSR obligations. The CSR activities undertaken were in accordance with the CSR policies of the respective SPVs and were within the ambit of Schedule VII of the Companies Act, 2013.

Project	JRR Highways	Hansanpur Bakhtiyarpur	Champa Korba
State	Rajasthan (NH-125A)	Bihar (NH-20)	Chhattisgarh (NH-149B)
Length (Kms)	74.6	50.9	38.2
PCOD	Apr24	Jun24	Mar24
End of concession	Apr39	Jun39	Mar39
Bid Project Cost (Rs. Mn)	11,580	22,910	8,190
No. of annuities received	3	3	4

6. Financial Performance

• Standalone Performance

For FY26, the Trust reported total income of Rs. 7894.35 million. EBITDA, exclusive of impairment loss, stood at Rs. 7842.30 million. Profit after Tax for FY26 stood at Rs. 2,855.13 million, which also included interest from the freshly acquired SPVs in December 2025. The impairment is on account of the difference in fair value and the book value of the investments.

During the year, the Trust raised fresh term debt of Rs. 17,500 million which was primarily utilized to refinance existing debt of newly acquired SPVs, and towards the full redemption of dissenting holders of NCD Series II. Further, pursuant to the annual reset clause, the coupon rate on NCD Series II was revised from 7.60% p.a. to 6.85% p.a., effective March 5, 2026. As of March 31,2026, the Trusts net debt-to-asset value ratio stood at 40.9%, well within the SEBI-prescribed limit.

• Consolidated Performance

The Trust continued to demonstrate the strength and stability of its operating portfolio in FY26, with total income at Rs. 9201.78 million. EBITDA stood at Rs. 4016.90 million and profit after tax at Rs. 2105.05 million in FY26.

During the year, the Trust received indemnity pertaining to short receipt from NHAI towards the agreed GST CIL amount at the time of SPA execution for the acquired SPVs during IPO which is classified as Other Income in the consolidated financials.

7. Distributions

During FY26, Capital Infra Trust paid total distributions of Rs. 4360 million to Unitholders. This outflow was composed of four key components: Rs. 1293 million in dividend income, Rs. 1508 million in interest income, Rs. 1543 million in the form of debt repayments and Rs. 16 million in the form of other incomes. These distributions reflect the underlying strength and consistent cash-generating ability of the SPV portfolio. After accounting for finance costs, trust-level expenses, and necessary statutory provisions, the Net Distributable Cash Flow (NDCF) available at the Trust level stood at approximately Rs. 4360 million. This figure underscores the operational efficiency and financial discipline maintained at both the SPV and Trust levels. For FY26, the Distribution Per Unit (DPU) was Rs. 11.6 per unit. The distribution structure is carefully designed to optimize tax efficiency for unitholders. The total payout included Rs. 2.88 per unit as dividend, Rs. 3.98 per unit as interest income, Rs. 4.70 per unit representing repayment of capital, and Rs. 0.04 per unit as Other Income. This comprehensive distribution highlights the Trusts commitment to delivering stable and value-accretive returns while maintaining a balanced approach to capital allocation and compliance.

8. Operational Overview

• Operational & Maintenance: Stabilized operations across the portfolio with no NHAI litigations, penalties or show-cause notices reported during FY26

• Regular maintenance activities have been carried out across all SPVs.

• Traffic Volume: Overall traffic across the portfolio remained stable and showed continuous growth during the quarter

• Average monthly vehicle count stood at 28 lakh vehicles per month across all projects combined

• Riding Quality & Road Safety: The Independent Engineers inspections confirmed smooth ride quality, with no major surface or pavement issues.