Interise Trust (INTERISE) Quarterly Report Analysis & Insights

Interise Trust

| Audited Standalone Financial Information for the Quarter and Year Ended March 31, 2026

⬤28th Apr 26

Summary : Interise Trust reports strong financial performance with increased profit and consistent distributions, while actively managing ongoing arbitration and regulatory challenges.

Quarterly Report Analysis & Insights

Financial Disclosures

Standalone Total Expenses: Rs. 81,138.76 Lakhs (FY26).
Consolidated Finance costs: Rs. 1,37,285.11 Lakhs (FY26).
Consolidated Operation and Maintenance expenses: Rs. 72,162.38 Lakhs (FY26).
Trade receivables aging schedule provided.
Undisputed dues are categorized by age.
Disputed dues are also categorized by age.
Standalone Revenue from operations: Rs. 1,62,280.72 Lakhs (FY26).
Consolidated Toll Collections and annuity income: Rs. 3,49,809.19 Lakhs (FY26).
Consolidated Other income: Rs. 8,486.74 Lakhs (FY26).
Standalone Net cash used in operating activities: Rs. (7,361.46) Lakhs (FY26).
Consolidated Net cash generated from operating activities: Rs. 1,86,697.11 Lakhs (FY26).
Standalone Net cash generated from investing activities: Rs. 1,50,593.72 Lakhs (FY26).
Consolidated Net cash used in investing activities: Rs. (24,210.05) Lakhs (FY26).
Standalone Net cash used in financing activities: Rs. (1,38,928.41) Lakhs (FY26).
Consolidated Net cash used in financing activities: Rs. (1,39,708.87) Lakhs (FY26).
Bank guarantees amounting to Rs. 22,900.00 Lakhs.
Disputed claims with EPC contractor and NHAI.
Income-tax and Goods and Service Tax liabilities under appeal.
Standalone Total Assets: Rs. 15,94,696.24 Lakhs (FY26).
Consolidated Total Assets: Rs. 21,23,826.42 Lakhs (FY26).
Standalone Total Equity: Rs. 7,15,988.91 Lakhs (FY26).
Consolidated Total Equity: Rs. 4,65,771.29 Lakhs (FY26).
Standalone Total Liabilities: Rs. 8,78,707.33 Lakhs (FY26).
Consolidated Total Liabilities: Rs. 16,58,055.13 Lakhs (FY26).
Transactions include loans given to subsidiaries and interest income.
Reimbursement of expenses to/from related parties.
Distributions made to unitholders (related parties).
Standalone financial information reviewed by audit committee.
Consolidated financial information includes Trust and subsidiaries.
Consolidated statements reflect group's overall performance.

Corporate Overview

India (various states including Telangana, Tamil Nadu, Rajasthan, Karnataka, Madhya Pradesh, Bihar)
Arbitration proceedings with NHAI regarding mutual claims, concession period extensions, and COVID-19 impacts.
Impact of revised Wholesale Price Index (WPI) linking factor on base toll rates.
Capital reduction scheme for Igatpuri Highway Private Limited (IHPL) affecting distribution.
National Highways Authority of India (NHAI) and State authorities for concession agreements and approvals.
Owns and invests in road sector assets in India.
Manages infrastructure projects through Special Purpose Vehicles (SPVs).
SPVs operate under Design, Build, Finance, Operate and Transfer (DBFOT) or Build, Operate and Transfer (BOT) models.
Confident in favorable outcomes for arbitration and extensions.
Committed to meeting regulatory distribution requirements.
Road users (toll collections)
National Highways Authority of India (NHAI) and State authorities (annuity/compensation)
Toll Collections and annuity income
Change of scope revenue
Construction revenue
Interest income from loans to subsidiaries
Dividend income from subsidiaries
Treasury income from bank deposits and investments
Capital commitments are Nil as of March 31, 2026.

Risk Factors

Ongoing arbitration proceedings with NHAI.
Potential impact of WPI linking factor.
Capital reduction scheme for a subsidiary.
Negative working capital position.

Key Drivers

Increased profit and comprehensive income.
Consistent dividend distribution to unitholders.
Extension of key concession periods approved.
Debt optimization through refinancing initiatives.

Auditor’s Report

Unmodified opinion on standalone and consolidated financial statements.
Fair value computation and disclosures for net assets and total returns.
Impairment assessment of investments and loans to subsidiaries.
Allowance for credit loss on loans and interest to subsidiaries.
Accuracy and completeness of related party transactions and disclosures.
Major maintenance expenses provision.
Toll revenue recognition under service concession arrangements.

Board Commentary

Declared a distribution of Rs. 1.25 per unit for Q4 FY26.
Total distribution for FY26 is Rs. 6.34 per unit.
Trust distributes not less than 90% of Net Distributable Cash Flows.
Litigation and regulatory challenges impacting operations.
Arbitration proceedings with NHAI for various SPVs.
Challenge to WPI linking factor circular in Delhi High Court.
Stamp Duty applicability on concession agreements assessed.
No capital commitments as of March 31, 2026.

Management Discussion & Analysis

Future Strategy

Actively pursuing refinancing of existing loans for longer tenure and favorable rates.
Managing liquidity through cash flow monitoring and committed credit facilities.

Macroeconomic Outlook

Impact of revised WPI linking factor on toll rates.

Operational Focus Areas

Ensuring compliance with concession agreements and regulatory requirements.
Optimizing major maintenance expenses and provisions.

Performance Drivers

Toll collections and annuity income from operational assets.
Successful arbitration outcomes for concession period extensions.
Effective management of financial liabilities and borrowing costs.

Risk Control Measures

Management confident in favorable arbitration outcomes.
High Court stay on WPI circular implementation.
Refinancing existing loans for improved liquidity.

Critical Risks

Arbitration outcomes impacting concession periods.
Regulatory changes affecting toll rates.
Liquidity risk from negative working capital.