Roadstar Infra Investment Trust is India’s first debt-resolution InvIT - a structure created not to build new roads, but to take over six existing highways from the financially stressed IL&FS Group, bundle them into a single publicly listed trust, and hand their future toll and annuity income to the creditors who were owed money. Born from a court-approved resolution framework, the Trust acquired its assets between 2021 and 2024, listed on the stock exchanges in March 2025, and now operates as a pure-play road infrastructure platform that must distribute at least 90% of its net cash flows to unitholders every year. The recurring logic is simple: collect user fees or government-guaranteed payments from mature, operational highways, run them efficiently through a single in-house maintenance company, and pass the cash straight through to investors - no construction risk, no greenfield bets, just steady infrastructure income. # Business segments Two revenue engines feed the Trust - toll roads that collect fees from every vehicle that passes, and annuity roads that receive fixed government payments regardless of traffic - both managed by a shared operations platform that keeps all 685 kilometres running. ## 1. Toll roads: the cash engine that rises with traffic and inflation **Four highways collect a fee from every vehicle, and because tariffs reset annually in line with the wholesale price index, revenue grows even before a single extra car shows up.** - **Paid at the plaza, not by the government** - each of the four toll assets earns its keep from user fees collected at toll plazas, with revenue driven by how many vehicles pass through (measured in passenger car units, or PCUs) and by annual tariff revisions linked to wholesale price inflation. Toll assets contribute over 98% of the Trust’s cash EBITDA, so they are effectively the business. - **Four corridors, four different traffic mixes** - the portfolio spans a freight-heavy link between eastern and northern India (Barwa Adda, 122.9 km, six lanes), a commuter-and-freight route connecting Delhi to Lucknow (Moradabad Bareilly, 121.8 km, four lanes), a freight-led artery between western India and the southern states (Pune Sholapur, 101.4 km, four lanes), and a commuter-dominated stretch across Rajasthan with over 80% of its freight originating and ending within the state (Sikar Bikaner, 237.6 km, two and four-lane sections with paved shoulders). - **FASTag keeps the cash honest** - 98% of toll collection happens electronically through FASTag, which cuts out cash handling, reduces leakage, and shortens the time vehicles spend at the plaza. Automatic vehicle counters classify each vehicle type so the right fee is charged with minimal human intervention, while weigh-in-motion sensors handle weight-based pricing on the relevant stretches. - **Concessions that run for another decade or more** - the four toll roads operate under build-operate-transfer (BOT) agreements with concession end dates ranging from September 2035 (Pune Sholapur) to September 2043 (Sikar Bikaner), giving the Trust a long runway of fee-collection rights before the roads revert to the government. ## 2. Annuity roads: the sovereign-backed floor under the portfolio **Two roads receive fixed, semi-annual payments from government authorities - traffic can rise or fall and the cheque still arrives, covering baseline costs no matter what.** - **A revenue stream decoupled from traffic** - unlike the toll assets, the annuity roads earn fixed payments every six months from the National Highways Authority of India (NHAI) or the Kerala Road Fund Board, so their income is insulated from volume swings and provides a sovereign-backed floor under the Trust’s overall cash flows. Annuity revenue made up 13% of total collections in the last financial year. - **A short-concession connector in Jharkhand** - the Hazaribagh Ranchi Expressway (73.8 km, four lanes) is a critical industrial and passenger corridor across central Jharkhand, earning a semi-annual annuity of ₹64.08 crore from NHAI until its concession ends in July 2028. - **A city-road project winding down in phases** - the Thiruvananthapuram city road improvement project (102.08 km across 10 city corridors and three bypass links) was built in four phases under an annuity model with the Kerala Road Fund Board, earning ₹118.49 million semi-annually. Phase I has already been handed back to the authority, and the final phase runs until May 2031, so the asset is gradually returning to the government. # Operations and maintenance platform **A single in-house company runs all six roads - 685 kilometres, 10 toll plazas and 108 toll lanes - so maintenance quality, cost control and emergency response stay under one roof.** - **One project manager for everything** - Elsamex Maintenance Services Ltd (EMSL) serves as the Project Manager across the entire portfolio, handling day-to-day operations, toll collection, routine and major maintenance, and traffic management on national and state highways, bridges and urban roads. - **From pothole repair to AI-powered inspections** - EMSL carries out everything from pothole repair, signage and lighting to periodic resurfacing and structural rehabilitation, while AI-powered cameras and mobile software now run quarterly road-condition assessments that catch defects early and shift the approach from reactive fixes to preventive maintenance, lowering lifecycle costs. - **Round-the-clock traffic management** - Highway Traffic Management Systems operate across all six assets with patrol vehicles, emergency control rooms and rapid-response protocols, while backup power keeps toll plazas and data centres running through outages. The Trust is also deploying Advanced Traffic Management Systems to strengthen real-time monitoring further. - **A fully funded maintenance reserve** - a major-maintenance liquidity reserve of ₹162.55 crore has been created and funded in full across all project companies, ensuring that long-term concession obligations can be met without scrambling for cash later. - **Local workforce, local vendors** - 86% of the workforce is hired from the regions where the roads operate, and 69% of vendor spending went to local suppliers in the last financial year, embedding the operations in the communities they serve. # Group structure and partners **The Trust separates ownership, oversight and operations into distinct entities - a sponsor that assembled the portfolio, a trustee that protects unitholders, an investment manager that runs strategy, and a project manager that runs the roads.** - **A sponsor born from resolution** - Roadstar Infra Private Ltd (RIPL) is the Sponsor, created in 2020 specifically to transfer the IL&FS road assets into the Trust; it draws its sector expertise from its holding company, IL&FS Transportation Networks, which has over two decades of experience developing and operating BOT road projects across India. The Sponsor and its Holding Company together hold a 22% share. - **A sponsor transition underway** - the Sponsor and its holding company are themselves under financial resolution and cannot inject fresh capital, so IL&FS has initiated a structured process to find a new strategic sponsor, with 15 expressions of interest already received. - **Independent oversight for unitholders** - Axis Trustee Services, a wholly-owned subsidiary of Axis Bank, acts as the Trustee, operating independently to safeguard unitholder interests, monitor governance and ensure the Trust complies with its regulatory obligations. - **The investment brain** - Roadstar Investment Managers Ltd (RIML) is the Investment Manager, responsible for strategy, capital allocation, portfolio oversight and regulatory compliance, drawing on 17 years of direct experience managing road infrastructure under annuity-based concessions. It had 44 employees as of March 2026 and is majority-owned by the Sponsor. - **Six project companies, held directly** - the Trust owns the six road assets through separate special-purpose vehicles: four toll-road companies (MBEL and SBHL at 100%, PSRDCL at 90.91%, BAEL at 100%) and two annuity-road companies (HREL at 100%, TRDCL at 50%), keeping each asset’s finances and concessions ring-fenced.