1. Chilakaluripet Bypass acquisition - A binding term sheet was signed in May 2026 to acquire a fully commissioned, 6-lane HAM project in Andhra Pradesh with 144.46 lane km and existing annuity cash flows. This adds immediate, counterparty-backed annuity revenue to the portfolio, consistent with the Trust's yield-first acquisition model.
2. ROFO pipeline from sponsor - The sponsor group has formalised a Right of First Offer agreement giving Shrem InvIT first access to future road assets, and has already been awarded the KRDCL (₹14,000 million) and KBIP (₹10,000+ million) projects with financial closure secured. These pre-identified, sponsor-backed projects provide a concrete pipeline of operational assets that can be acquired once commissioned.
3. Debt reduction and AAA balance sheet - Consolidated borrowings were reduced by ₹8,216.62 million during FY26 to ₹76,167 million, with zero external debt at the SPV level and a liquidity buffer of ₹13,911 million. A stronger balance sheet with India Ratings' AAA/Stable rating lowers financing costs and creates headroom for debt-funded acquisitions without straining DSCR, which already stands at 1.82x.
4. Floating-rate liability transition - A substantial portion of borrowings has been shifted from fixed to floating rates linked to external benchmarks that also underpin annuity revenue. This alignment preserved profitability even as the bank rate declined 1.25% since February 2025, and it structurally reduces interest-rate mismatch risk going forward.
5. Fixed-price O&M contracts for full concession life - All projects operate under lump-sum, fixed-price O&M contracts with established contractors for the entire concession period, backed by indemnity structures covering O&M deficiencies. This locks in operating costs for the life of each asset, protecting EBITDA margins from supply-chain inflation and cost overruns.
6. Jalpa Devi Tollways traffic upside - The largest single asset, generating ₹1,789 million in FY26 revenue with a 16.45-year residual concession life, has a provision requiring payment of 25% of realisable revenue to NHAI from January 2042 onwards because traffic exceeded the target threshold. Traffic outperformance strong enough to trigger a revenue-share clause signals the asset is generating above-projection cash flows for the next 16 years.
7. Industry tailwinds - NHAI capex and road InvIT AUM growth - NHAI constructed 5,313 km of national highways in FY26, 15% above its target, and road InvIT AUM has grown at a 39% CAGR from ₹0.60 lakh crore in FY21 to ₹3.1 lakh crore in FY26. Expanding NHAI asset creation and growing institutional acceptance of the InvIT structure widen the pool of operational road assets available for acquisition.