Shrem InvIT Management Discussions

Global Economic Overview

The global economy during FY 2026 operated within an environment shaped by persistent geopolitical tensions, shifting monetary policy cycles and contrasting regional recovery tracks. As per the IMF World Economic Outlook (April 2026), global growth is projected at 3.1% for calendar year 2026, below long-term historical averages, held back by ongoing macroeconomic uncertainty.

The year saw clear volatility across financial and commodity markets, most visible after geopolitical instability in the Middle East disrupted energy distribution and elevated commodity pricing. This tightened credit conditions worldwide, weighed on investor sentiment and triggered downward growth revisions across several advanced and developing nations.

Although inflation eased in some geographies, renewed supply-side complications and firm energy pricing kept upward

pressure on prices. The IMF estimates global headline inflation at approximately 4.4% for calendar year 2026, with gradual moderation to follow. Advanced economies faced sluggish output under restrictive monetary settings and softer demand, while emerging market and developing economies (EMDEs) served as the primary engines of global expansion.

Global commerce and investment showed a moderate recovery, though supply chain realignments, protectionist measures and geoeconomic fragmentation reshaped cross-border capital flows and manufacturing output. Despite these headwinds, core infrastructure and energy transition sectors consistently drew long-duration institutional capital, supported by strong structural demand, policy-led public funding and investor appetite for inflation-linked, yield-generating assets.

- April 2026 WEO (pre-conflict)

- Adverse scenario

-April 2026 WEO (reference forecast) O January 2026 WEO Sources: IMF, April 2026 World Economic Outlook; and IMF staff calculations.

Outlook

The medium-term global outlook stays cautiously balanced. The IMF projects global output growth to pick up marginally to 3.2% in calendar year 2027, aided by cooling inflation and a gradual stabilisation of geopolitical volatility.

Downside risks, however, remain pronounced. Extended geopolitical conflicts, high sovereign debt, volatile raw material prices and restrictive global liquidity could derail growth momentum and challenge financial market stability. Under the IMFs severe downside scenarios, global expansion could drop to nearly 2.5%, with sticky inflation spikes and sharper capital market volatility.

In this climate of macroeconomic flux, long-duration infrastructure assets with stable, secure cash flow profiles stand out as vital tools for institutional investors seeking defensive, yield-generating allocations. Infrastructure Investment Trusts (InvITs) are accordingly gaining structural importance as efficient investment vehicles, offering straightforward, de-risked exposure to operational core infrastructure, backed by multidecade revenue prospects, disciplined debt profiling and exceptionally stable distribution cash flows.

Sources:

The Indian economy preserved its strong macroeconomic momentum throughout FY 2026, driven by a resilient domestic environment, steady capital inflows and a sustained focus on physical infrastructure creation. According to the Economic Surve 2025-26, Indias real GDP growth for the fiscal is estimated at 7.4 — making India the fastest-growing major economy for the fourth consecutive year, a sign of structural strength despite a complex and fractured global environment.

Household demand and domestic consumption stayed primary pillars of this growth, reinforced by recovering rural incomes, stable employment and a notable rise in purchasing power. Privat Final Consumption Expenditure (PFCE) rose to 61.5% of national GDP, its highest contribution in over a decade. Investment activit tracked upward alongside, with Gross Fixed Capital Formation (GFCF) holding at roughly 30.0% of GDP, supported by forwardlooking public capital expenditure and a gradual recovery in private deployment.

Physical infrastructure remained a central priority in the states structural master plan. Capital placement across highways, multi-modal transport, railways and urban systems stayed consistent, directed by flagship schemes such as PM Gati Shakti, Bharatmala Pariyojana and the National Infrastructure Pipeline (NIP), a programmatic focus on eliminating logistics bottlenecks, lowering transit times and enhancing economic competitiveness through scale.

The broader macroeconomic environment showed exceptional baseline stability. Retail inflation recorded clear disinflationary adjustments, with headline CPI averaging 1.7% over April- December 2025, anchored by resilient supply chains and

lower global food and fuel prices. The banking sector similarly demonstrated strong institutional health, with strengthened corporate balance sheets, healthier capital buffers and the gross N PA ratio of commercial banks easing to a comfortable 2.2%, collectively cushioning credit growth and private capacity expansion.

While global trade friction, tariff realignments, external raw material shocks and capital flow volatility introduced cross-border headwinds, Indias diversified demand base, strong external buffers and infrastructure-led growth trajectory insulated the domestic economy from major global disruptions.

Outlook

The structural outlook for the Indian economy is positive, a nchored by solid domestic macroeconomic settings, policy continuity and a deep pipeline of public investments. Reflecting this built-in resilience, the Economic Survey 2025-26 upgrades Indias medium- term potential GDP growth rate to 7%. For FY 2027, real growth is projected within a band of 6.8% to 7.2%, durable dynamics even in an integrated but complex global landscape.

This trajectory is expected to hold on government-led public works funding, an expanding private capital cycle, structured industrial urbanisation and rising domestic manufacturing, aided directly by Production Linked Incentive (PLI) frameworks. Deep digital penetration, growing transaction volumes across the Unified Payments Interface (UPI) network and steady supply-chain formalisation will further support commercial productivity over the medium term.

Multi-modal infrastructure expansion remains a core anchor of the nations long-term competitive strategy. Initiatives like the National Infrastructure Pipeline (NIP) and PM Gati Shakti continue to de-risk large-scale highway, port and logistics projects, lowering transport overheads and improving firm-level efficiency. The highway and road vertical stands out as a clear beneficiary, supported by an extensive, high-quality awards pipeline, ongoing monetisation targets and rising inflows of patient, yield-seeking global institutional capital. Here, the mature adoption of Infrastructure Investment Trusts (InvITs) as premier monetisation and capital-recycling platforms is playing a critical role, optimising capital reuse and supporting immediate reinvestment into operational highway networks.

Indias comfortable macroeconomic backdrop, deep structural safety margins, high foreign exchange reserves and consistent policy direction provides a secure environment for infrastructure investment vehicles managing high-quality operational assets with reliable, well-structured cash flow distributions..

Sources:

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2220800&reg=3&lang=2

https://www.indiabudget.gQv.in/ecQnQmicsurvev/dQc/InfQgraphics%20English.

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Industry Overview

Infrastructure

Indias infrastructure sector remains central to the national economic strategy, driven by consistent government investment, policy continuity and rising private sector engagement. Capital expenditure has scaled up substantially, with the Centres capex allocation set at 111.21 lakh crore, about 3.1% of GDP (Union Budget 2025-26, BE), up from the FY 2025 revised estimate of 110.18 lakh crore (Union Budget 2025-26, RE).

The drive is supported by large-scale programmatic frameworks, the National Infrastructure Pipeline (NIP), which projected total infrastructure investment of around 1111 lakh crore (NIP Task Force Final Report, DEA, FY 2020-25), and the PM Gati Shakti National Master Plan. Both are designed to resolve logistics bottlenecks, streamline multi-modal cargo transit and reduce overall transaction and handling costs, steadily improving execution efficiency and strengthening the broader infrastructure framework.

A pivotal evolution is the sharpened focus on brownfield asset monetisation and capital recycling. By unlocking equity value from functional, de-risked projects via the National Monetisation Pipeline (NMP), announced by NITI Aayog in August 2021, public authorities can systematically redeploy capital into fresh greenfield networks. This model has cemented the commercial importance of structured co-investment vehicles like Infrastructure Investment Trusts (InvITs), which continue to draw significant global and domestic institutional capital into Indias infrastructure landscape.

Roads and Highways

Indias road sector is among the most mature, developed and commercially scalable segments of the countrys infrastructure landscape. Indias total road network spans approximately 66 lakh km (MoRTH), with the core National Highways system expanding from around 91,287 km in 2014 to about 1,46,560 km by the end of 2025 (MoRTH, Year End Review 2025).

This growth has come alongside a strategic shift towards higher-capacity arterial infrastructure, multi-lane expressways, access-controlled high-speed corridors and targeted economic corridors aimed at improving freight logistics and cutting city-to- city travel times.

During FY 2026, N HAI constructed 5,313 km of national highways, about 15% above its target of 4,640 km (MoRTH/ NHAI, FY 26). Its capital expenditure reached 12,44,362 crore (NHAI, FY 26), about 2.5% above the government budgetary support of 12,38,384 crore, with the 15,978 crore gap met through NHAIs own resources. At a ministry level, road construction tracked between 23.74 and 29.00 km per day,

supported by improved engineering frameworks, automated project management and scaled-up contractor execution.

The sector is also seeing rising traffic intensity and toll monetisation efficiency, driven by:

• Rising commercial freight movement linked to broad-based domestic consumption and gross value-added growth

• Improved multi-modal logistics hub integration

• The universal adoption of digital tolling systems like FASTag, which has built a baseline for electronic payment security

Rating agency analysis indicates toll collection growth on standard commercial highways improved to a stable 7-9% range for FY 2026, supported by traffic expansion of 4-5%.

Hybrid Annuity Model (HAM)

The Hybrid Annuity Model (HAM) is the primary project delivery mechanism in the road sector, offering a balanced risk-sharing framework between public authorities and private developers. Under it:

• 40% of the project cost is funded by the authority as construction support, released in milestone-linked installments during the construction period

• The remaining 60% is paid to the developer as semi-annual annuities over the operations period of about 15 years, together with interest on the reducing balance (linked to the bank rate plus a spread) and payments indexed to inflation

By placing toll and traffic risk with the authority, the structure gives the developer a contracted, stable cash-flow stream across the concession lifecycle, making HAM assets particularly attractive to yield-focused investors. As these assets mature, they have built a deep pipeline of operational, de-risked projects well suited to InvIT

platforms. Migrating such seasoned assets into trust vehicles has become a defining industry trend, letting developers release equity for fresh bidding cycles while giving unitholders direct exposure to reliable, yield-generating infrastructure.

Asset Monetisation and the InvIT Ecosystem

Asset monetisation has become a central component of Indias infrastructure financing strategy. In line with NITI Aayogs assetrecycling framework, cumulative realisations through NHAIs two principal channels stand at:

• Over 148,000 crore through Toll-Operate-Transfer (TOT) transactions, which lease existing highway concessions to long-term operators (ICRA/NHAI, cumulative to FY 2025)

• More than 143,000 crore mobilised through SEBI-registered InvIT structures (ICRA/NHAI, cumulative to FY 2025)

The InvIT framework has gained significant traction from global capital because it offers a structured approach to:

• Stable, defensive cash flows insulated from construction- phase shocks

• Efficient capital reuse and recycling for concessionaires

• Long-term participation from global pension funds and sovereign wealth allocations

Recent market activity points to a deepening InvIT ecosystem. Following the Union Budget, these vehicles have shown strong operational resilience, with market yields ranging between 8% and 12%, an attractive proposition for income-oriented investors. The sector has also seen rising acquisition and consolidation, with major platforms expanding portfolios by integrating large-scale HAM and BOT projects, reflecting a broader trend of institutional scaling as platforms build out their asset bases and operational footprint.

Sector Outlook

Indias infrastructure and road outlook stays constructive, underpinned by sustained government investment, policy continuity and rising private sector participation. Continued expansion under public infrastructure programmes, alongside growing commercial freight and logistics demand, should drive further growth across the transportation network.

The asset monetisation pipeline stays active, with InvITs set to play a larger role in the long-term ownership and operation of core infrastructure assets. Advances in digital tolling and technology-driven asset management are expected to lift operational efficiency, reduce asset downtime and improve revenue realisation.

In this environment, infrastructure platforms with diversified portfolios, a high share of availability-based annuity assets and established operational capabilities are well placed to benefit from sustained sector growth and wider investor participation.

Road InvITs:

The Dominant Sub-Sector

As of March 31, 2026, Indias InvIT market comprised 28 registered trusts with a total AUM of 17.1 lakh crore. Of these, 17 were focused on the road sector, which has emerged as a dominant segment within the InvIT ecosystem. Road InvITs account for approximately 44% of the total AUM and continue to expand their share. The AUM of road InvITs has grown significantly from 10.60 lakh crore in FY 2021 to 13.1 lakh crore in FY 2026, reflecting a robust CAGR of around 39%.

Operating Environment

Preference for operational, yield-generating assets:

Institutional investors are moving away from the execution and completion risks of greenfield, under-construction projects, towards brownfield, operational assets that offer immediate, stable, contracted cash flows.

Central role of InvITs in infrastructure ownership:

InvITs have established themselves as the primary vehicle for holding and managing operational infrastructure in India, supported by growing SEBI regulatory clarity, tax optimisation and a marked rise in domestic and global institutional participation.

Upward trend in traffic and tolling reinvestment:

Faster domestic economic activity, expanding manufacturing and rising logistics and freight demand are pushing highway traffic volumes higher, directly lifting the revenue and distribution capacity of toll-based projects.

Expanding HAM asset pipeline:

As a large volume of Hybrid Annuity Model (HAM) projects reach completion, they create a reliable, recurring supply of mature, de-risked assets ready for monetisation and transfer into established InvIT platforms.

Sustained demand for stable yields:

Against volatile global equity markets and fluctuating interest rates, the 8% to 12% cash yields typically delivered by mature InvIT structures stay a major draw for investors focused on consistent, long-term, inflation- protected income.

Focus on scale and portfolio diversification:

Large platforms are increasingly pursuing strategic acquisitions to build larger, geographically diverse asset pools — spreading operational risk and underpinning resilient, cash-pooled distribution profiles for unitholders.

Business Overview

Shrem InvIT is a scaled, income-focused infrastructure platform managing 37 operational road assets across nine Indian states, spanning Hybrid Annuity Model (HAM), state annuity and toll concessions. Over successive acquisition cycles, the Trust has evolved into an annuity-led vehicle built around capital preservation and regular cash distributions, with more than 90% of portfolio earnings drawn from fixed annuity payments, structurally insulating income from traffic fluctuation and broader economic volatility.

AUM has grown from H72,687 million at listing in September 2021 to H129,451 million, and the asset footprint from 24 projects to 37. Growth has followed a deliberate, yield-first acquisition blueprint rather than expansion for scale alone, securing long-term revenue visibility and high asset quality with consistent transaction flow from the sponsor.

Position in the Developer Ecosystem

Shrem InvIT sits at the terminal stage of the infrastructure value chain: the Trust assumes long-term ownership of operational assets, giving highway developers a structured route to recycle capital into new construction. This rests on a foundational partnership with EPC developers, central to expanding the portfolio from 24 assets at listing to 37 today.

Acquisition Model

Acquisitions follow a yield-first discipline, with each project assessed for its contribution to a stronger distribution profile:

• HAM-centric preference — prioritising assets with assured, inflation-linked revenue and no traffic-linked income risk.

• Operational-only assets — construction risk is excluded by acquiring assets only after a provisional or final Commercial Operations Date (COD).

• Value-accretive screening — every acquisition is stress- tested and approved by an Investment Committee with a majority of Independent Directors, ensuring it improves longterm distribution visibility.

• Multi-dimensional risk review — covering technical integrity, financial serviceability and legal compliance, with crosscollateralisation across the portfolio providing a structural safety net for unitholders.

Portfolio Mix

The portfolio combines NHAI HAM concessions with select state annuity and toll contracts, forming a two-tiered revenue framework:

• Stability layer — 19 NHAI HAM assets, 6 state annuity highways and 10 state toll-plus-annuity projects. Payments route through central counterparties such as NHAI and established state road agencies, with built-in indexation linking a large share of receipts to base interest rates

and inflation.

• Growth layer — One pure NHAI toll asset and select state projects with tolling rights, capturing traffic upside along primary economic corridors and giving the Trust participation in long-term logistics and trade growth.

This configuration delivers a dependable income base while retaining structural exposure to commercial vehicle growth.

Revenue Architecture

The Trust is structured to generate and optimise Net Distributable Cash Flows (NDCF) through three channels: fixed semi-annual annuity instalments with inflation-adjusted O&M payouts from NHAI and state authorities; commercial toll collections, supported by high electronic tolling adoption; and treasury income from regulation-compliant investment of surplus funds.

Within the HAM framework, the annuity engine is layered into three protected components:

• Construction annuity — repayment of the bid project cost.

• Interest annuity — bank rate-linked, a natural hedge against monetary policy shifts.

• O&M component — inflation-indexed to preserve maintenance coverage against rising input costs.

Cost Discipline and Margin Protection

Margin protection rests on fixed-price O&M contracts across all 37 assets, locking maintenance costs for the full concession period and removing overrun risk.

On the balance sheet, consolidated borrowings were reduced to H76,161 million as of March 31, 2026, with zero external debt at individual SPV level, backed by a H13,911 million liquidity buffer to support uninterrupted debt servicing. Interest obligations are managed through a structured cash flow waterfall via escrow accounts.

Investment Strategy

Shrem InvIT adheres to a selective investment strategy, focusing on taking over mature, operational infrastructure assets that enhance long-term cash flow and secure steady distributions. The Trusts approach is built on the principle of "yield with discipline," where asset quality, counterparty reliability and contracted income streams take precedence over rapid expansion.

Asset Selection Criteria

The Trust applies a strict parameter set to every acquisition, ensuring alignment with its long-term financial and operational objectives:

• Operational readiness: Acquisitions are focused on operational HAM and annuity assets, removing the regulatory, environmental and cost-overrun risks of greenfield construction.

• Income predictability: Focus on road concessions with structured, contractual revenue, primarily assets backed by central counterparties such as the National Highways Authority of India (NHAI).

• Residual concession adequacy: Incremental projects must carry sufficient residual concession life to sustain the Trusts multi-year payout capability.

• Proven track record: Additions are audited for on-time annuity collections, low maintenance volatility and clean compliance with authority guidelines.

Every transaction passes a multi-layered due-diligence framework, independent third-party technical appraisals, valuation assessments and specialised legal reviews. To uphold governance, transparency and arms-length objectivity, all acquisitions require approval from the Investment Committee, where Independent Directors hold the voting majority. All material related-party transactions additionally require approval by a majority of non-Sponsor group unitholders.

This framework positions Shrem InvIT to capture select opportunities across Indias maturing road infrastructure and monetisation landscape, pairing a defensive capital structure with an audited acquisition path to deliver a yield-oriented platform.

Subsequent to year-end, the Trust executed a term sheet to acquire Chilakaluripet Bypass Private Limited, a fully commissioned 6-lane HAM project in Andhra Pradesh, counterparty-backed and consistent with its mandate of acquiring mature, annuity-generating assets with strong residual concession life.

ROFO Assets

Fuelling the Next Growth Phase

Shrem Infra Investment Manager Private Limited, acting as the Investment Manager of Shrem InvIT, based on the approval of the unitholders, formalised a Right of First Offer and Future Assets Agreement with its Sponsors / their affiliated group entities. Under this arrangement, Shrem InvIT will be granted the first right to evaluate and acquire future road infrastructure assets developed by the Sponsors or their group companies.

This agreement is designed to ensure that Shrem InvIT has early access to upcoming projects, thereby strengthening its pipeline of potential acquisitions. It also provides the Investment Manager with enhanced oversight and assurance of asset quality, as assets originating from the Sponsor group are expected to align with Shrem InvITs operational and financial standards.

By securing these rights, Shrem InvIT aims to:

• Establish a strategic advantage in sourcing high-quality road assets

• Maintain a steady flow of investment opportunities for portfolio expansion

• Reinforce its long-term commitment to delivering value to unitholders through sustainable growth and asset diversification

Operational Performance

Shrem InvITs operational performance throughout the financial year ended March 31, 2026 (FY 2026) was characterised by disciplined execution, a direct result of managing a fully commissioned infrastructure portfolio with a rigorous focus on lifecycle maintenance and structural asset reliability. By avoiding greenfield construction risks and operating within a structured monitoring framework, the Trust secured consistent cash flow generation while preventing unexpected operational or maintenance disruptions.

Asset Performance and Revenue Certainty

Since every road project in the portfolio is mature and operational, the Trust avoids the execution delays, environmental clearances and cost overruns typical of assets under development, allowing immediate, uninterrupted cash generation and rapid distribution upstreaming. A standout in this record is the annuity track: 513 annuities have been collected from concessioning authorities since the respective Commercial Operation Dates (COD) to date, reflecting strict adherence to concession terms and the reliability of central and state government partners.

The portfolio is built for continuous cash flow, with a weighted average residual concession life of nearly 11 years. Spread across 9 states, the assets sit on Indias primary economic and logistics corridors. Central and state availability-based annuities provide over 90% of top-line income, while the Trusts select toll assets have captured steady gains from rising long-haul logistics demand and broader traffic growth.

Maintenance Strategy and Cost Efficiency

Shrem InvIT manages cash expenditure through a fixed-price Operations and Maintenance (O&M) contract model running the full concession lifecycle, insulating the Trust from sudden raw-material price hikes, bituminous inflation and heavy routine or major maintenance bills. These agreements carry back-to- back indemnity clauses: any deductions or penalties levied by the authorities for localised O&M deficiencies are borne fully by the contractors, not the Trust.

Technology is a core driver of road quality and lower lifecycle costs. The Trust uses chainage-wise defect listing with live photographic evidence, GIS mapping for defect tracking and AI-based virtual monitoring, minimising highway downtime, reducing vehicle operating costs and keeping the network running efficiently. The outcomes are clear:

• Negligible revenue deductions: Almost no performance- linked cuts or withholding on incoming availability annuities, confirming the highways meet government-mandated quality standards.

• High availability: Preventive maintenance sustains maximum asset availability and fulfils all public service obligations.

The blend of a finished asset base and a predictable revenue model gives Shrem InvIT a structural stability rare in the broader infrastructure sector. By locking in maintenance costs and ensuring full compliance with central regulatory standards, the Trust has flattened operational variance, leaving a clear path for multi-year distributions to unitholders.

Financial Performance

Shrem InvIT delivered steady results for the year ended March 31, 2026, supported by consistent concession revenue, disciplined cost control and the first full-year contribution from assets acquired in the prior year. As an income-oriented platform, the Trusts earnings rest on government-backed availability payments, keeping cash flows stable and largely insulated from traffic and economic cycles.

• Revenue: Consolidated revenue was H22,122 million, reflecting long-term government concession agreements and inflation-linked adjustments. With most inflows from central and state availability payments, revenue is insulated from traffic variation.

• Profitability: Consolidated profit after tax was 8,554 million. The absolute profit was lower as compared to FY 25 due

to lower interest income on the Balance Completion Cost arising from annuity payments and reduction in benchmark interest rates, the margins were protected due to fixed-price,

long-term O&M contracts that pass inflation and repair risk to O&M partners and lower interest costs on the borrowings.

• Assets: Total asset size reached H129,451 million, including operating enterprise value of H115,540 million across 37 SPVs, plus cash and reserves, growth d riven by selective acquisition of operational HAM projects within prudent debt limits.

• Distributions: The Trust distributed a cumulative H22.8115 per unit during FY 2026.

Risk Management

Shrem InvIT uses a structured framework to identify and handle risks across its financial, operational and regulatory activities. This process is woven into the Trusts governance to ensure that cash flows remain steady and unitholder value is protected.

The risk lifecycle follows a clear path: identifying potential issues, assessing their impact and putting specific controls in place. This ensures that every threat is monitored and dealt with systematically rather than in a reactive manner.

Key Risk Categories and Mitigating Strategies

The Trusts exposure is divided into four main areas, each with a tailored approach to keep the platform secure:

• Financial Risk: This mainly involves shifts in interest rates or liquidity needs. The Trust manages this by matching debt repayments to the timing of annuity inflows and keeping dedicated cash reserves like the DSRA. Since the bulk of its revenue comes from fixed annuities, the Trust is naturally shielded from typical market fluctuations.

• Operational Risk: To prevent maintenance failures or service gaps, the Trust uses fixed-price O&M contracts. This keeps lifecycle costs fully contained and foreseeable. By holding contractors accountable through performance-linked clauses and focusing on preventive upkeep, the Trust ensures roads stay in top condition without unexpected expenses.

• Compliance and Regulatory Risk: Operating as a SEBI- regulated InvIT requires strict transparency and corporate

accountability. The Trust manages this through tight internal controls and constant monitoring of regulatory updates via specialised statutory committees. This framework is further strengthened through implementation of an Enterprise Compliance Dashboard, automating tracking and monitoring of compliances. Sticking closely to concession agreements and SEBI guidelines helps maintain high governance standards and avoids legal friction.

• Contractor Risk: Relying on third parties for long-term maintenance is managed through back-to-back indemnity structures. This means if a contractor fails to meet structural standards, any resulting financial penalties or deductions from authorities are passed directly to them. This setup ensures that the people managing the roads have full skin in the game.

Mitigation Framework

The Trust does not just react to risk; it uses a multi-layered

strategy overseen by a dedicated Risk Management Committee

to stay ahead of it:

• Risk Avoidance: Choosing only de-risked, fully operational assets during the acquisition phase.

• Risk Reduction: Using state-of-the-art document tracking, AI- based virtual monitoring, and technical operational protocols to minimise daily issues.

• Risk Transfer: Using structured contracts to shift specific financial, escalation, and performance burdens to third- party contractors.

Outlook

The outlook for Shrem I nvIT is positive, supported by I ndias infrastructure push and a steady supply of road assets ready for monetisation. As more Hybrid Annuity Model (HAM) projects move from construction to completion, the market is seeing an influx of de-risked, revenue-generating assets that fit the Trusts conservative acquisition profile.

Shrem InvIT is well placed to capture this growth. Its selective focus on operational assets appeals to investors prioritising stability over higher-risk greenfield expansion. Future growth will come from a mix of sponsor-backed projects via Right of First Offer (ROFO) agreements and third-party acquisitions, each vetted to protect unitholder returns.

Financially, the Trusts stable credit rating supports continued access to affordable institutional capital, and matching debt repayments to annuity inflows keeps the platform resilient against broad liquidity shifts. Fixed government annuities provide a clear revenue floor, while toll assets offer upside as national traffic and economic activity climb. The focus ahead is on disciplined scaling, adding assets only when they improve overall cash yield, and using technology to keep maintenance costs down.

Cautionary Statement

Certain statements in this report including Management Discussion and Analysis may constitute forward-looking statements. These include projections, estimates, expectations, or predictions regarding future performance, business prospects, or economic trends. While such statements are based on reasonable assumptions and internal assessments, actual results may differ materially due to various known and unknown risks, uncertainties, and other external factors beyond the control of Shrem InvIT.

Readers are advised to exercise caution and not place undue reliance on these forward-looking statements. Shrem InvIT undertakes no obligation to publicly update any such statements to reflect subsequent events or circumstances, except as required under applicable laws.