Cube Highways Trust (543899) Q2 25/26 earnings summary

Executive summary

• Portfolio expanded to 27 assets across 13 states and 1 union territory, totaling 2,021 km of highways and 8,819 lane km, with a diversified mix of toll, HAM, and annuity assets.

• Assets under management (AUM) reached INR 365.19 billion as of September 30, 2025, up 25% year-over-year.

• Net distributable cash flows (NDCF) for H1 FY26 reached Rs. 17,261.43 million, up from Rs. 11,462.29 million in the prior year period.

• Maintained a AAA credit rating and robust financial discipline, with strong investor returns and a cumulative distribution of INR 27.19 per unit since listing.

• Total comprehensive income for H1 FY26 was Rs. 406.37 million, a turnaround from a loss of Rs. 261.43 million in the prior year period.

Financial highlights

• Revenue from operations for H1 FY26 rose 23.85% YoY to INR 19,959 million; total consolidated income at INR 20,652 million.

• EBITDA margin for H1 FY26 was 73.20%, up from 68.93% in the prior year period.

• Q2 FY26 toll revenue grew 9.8% YoY, with portfolio traffic growth of 7.2% YoY.

• Declared Q2 FY26 distribution of INR 3.6 per unit, H1 FY26 cumulative distribution at INR 6.1 per unit, totaling INR 8,200 million.

• Net Debt/AUM at 47.37%; Debt/EBITDA at 4.4x; DSCR at 1.8x.

Outlook and guidance

• Strong GDP growth and GST reforms expected to support sustained traffic and revenue growth.

• Portfolio positioned for further expansion with adequate debt headroom and stable leverage.

• Minimal impact anticipated from recent regulatory changes to toll rate escalation; compensation mechanisms in place for annual pass adoption.

• The Trust targets quarterly distributions of at least 90% of NDCF, in line with SEBI InvIT regulations.

• Management expects continued strong cash flows from SPVs and ongoing compliance with distribution and leverage covenants.