India's Infrastructure Investment Trusts Set for Rs 1 Lakh Crore Growth in FY26
Synopsis
India's Infrastructure Investment Trusts are on track for a significant asset growth of Rs 1 lakh crore in FY26. This promising forecast reflects a robust expansion in the sector, highlighting investment opportunities and increased operational capacities.
Key Takeaways
Projected growth of InvIT assets by Rs 1 lakh crore in FY26.
AUM increased from Rs 3 lakh crore in FY22 to Rs 6.25 lakh crore by FY25.
InvIT count rose from 11 to 22 from FY22 to FY25.
Significant investment opportunities in transmission and renewable energy .
Credit profile remains strong, but improvements in creditor protections are needed.
New Delhi, March 19 (NationPress) India’s Infrastructure Investment Trusts (InvITs) are projected to witness a remarkable increase in their assets under management, expected to grow by approximately Rs 1 lakh crore in FY26, as reported on Thursday. The analysis from CareEdge Ratings highlights that the AUM for these trusts surged from Rs 3 lakh crore in FY22 to an estimated Rs 6.25 lakh crore by FY25.
The report indicates that the overall leverage, or the ratio of total external debt to enterprise value, is anticipated to stabilize at around 49 percent in FY26. This stability is driven by enhanced valuations from equity raises and declining interest rates.
The count of InvITs has expanded from 11 in FY22 to 22 in FY25, with asset management heavily concentrated in the telecom sector at approximately Rs 3.06 lakh crore and the roads sector at Rs 2.46 lakh crore, collectively representing nearly 90 percent of the industry's total AUM.
There are robust prospects for portfolio expansion in areas such as roads, transmission, warehousing, and renewable energy. The medium-term outlook is bolstered by the National Monetisation Pipeline-II, the array of operational HAM assets, and increased activities within transmission and warehousing.
The potential for investment in transmission is substantial, with planned expenditures of around Rs 4.86 lakh crore expected by 2030–31, as outlined in the Central Transmission Utility’s Master Rolling Plan, resulting in a steady supply of operational assets.
According to Maulesh Desai, Director at CareEdge Ratings, "The credit profile of the sector remains robust, supported by a diverse and operational asset pool. However, there is considerable room to improve creditor protections and to expand the domestic investor base, especially since retail investors, mutual funds, and insurance companies have low participation levels currently."
InvITs have raised Rs 88,000 crore of equity during the period from FY23 to FY25 and are projected to secure Rs 16,500 crore in this fiscal year. The bond market's role is expected to remain moderate, with non-convertible debentures making up about 20 percent of the anticipated outstanding debt, according to forecasts from CareEdge.
Furthermore, the credit agency anticipates that India's installed renewable capacity will rise to 460 GW by FY30, paving the way for a significant pipeline of operational assets.
aar/pk
Point of View
It's evident that the projected growth of India's InvIT assets signifies not only a robust market but also a strategic expansion in critical infrastructure sectors. This trend offers immense potential for both institutional and retail investors, fostering a diverse investment landscape.
NationPress
20 Jun 2026
Frequently Asked Questions
What are Infrastructure Investment Trusts (InvITs)?
Infrastructure Investment Trusts (InvITs) are investment vehicles that enable investors to pool their money to invest in infrastructure assets.
How much is the expected growth of InvIT assets in FY26?
InvIT assets are expected to grow by approximately Rs 1 lakh crore in FY26.
What sectors are dominating InvIT asset management?
The telecom and roads sectors dominate InvIT asset management, accounting for nearly 90 percent of the industry's total assets.
What is the significance of the National Monetisation Pipeline-II?
The National Monetisation Pipeline-II is crucial as it supports the medium-term growth trajectory of operational assets across various sectors.
What is the projected renewable capacity in India by FY30?
India's installed renewable capacity is expected to increase to 460 GW by FY30.
