Vertis Infrastructure Trust (VERTIS) Q2 25/26 earnings summary

Executive summary

• Completed acquisition of 11 projects/SPVs from PNC Infratech, expanding and diversifying the portfolio into energy and enhancing cash flow visibility.

• Distributed INR 3.00 per unit in Q2 FY26, totaling over INR 50 per unit since listing, with cumulative distributions of INR 39,162 mn.

• Public holding increased from 28% to 42% following significant block trades.

• Demonstrated 5x AUM growth since August 2022, with AUM reaching INR 26,600 crore and a portfolio spanning 8,300 lane-kilometers across 10 states.

• Upgradation work commenced on key assets, with handovers and inspections progressing as scheduled.

Financial highlights

• Q2 FY26 operating revenue reached INR 10,511 million with an 89% EBITDA margin.

• H1 FY26 consolidated total income was INR 18,913.37 million, with consolidated profit after tax at INR 3,179.24 million.

• Toll traffic and revenue grew 9.9% and 14% year-over-year in Q2 FY26.

• Annuity income from HAM assets was INR 4,705 million for Q2 FY26.

• Net distributable cash flow for Q2 FY26 was INR 4,530 million, translating to DPU of INR 3.00.

Outlook and guidance

• Acquisition pipeline is moderate in the near term; focus remains on selective, high-quality opportunities.

• Upgradation work on CA and AK2 to complete by Q1 FY27; MN and JF upgrades scheduled for H2 FY26.

• DPU expected to remain stable for the rest of FY 2026, similar to Q2 levels.

• Management expects stable cash flows and intends to maintain a distribution of at least 90% of NDCF.

• Anticipates continued benefit from government monetization programs and regulatory changes increasing domestic investor participation.