India’s Infrastructure Investment Trusts (InvITs) are projected to experience a substantial increase in assets under management, reaching around Rs 1 lakh crore by FY26, as per a report by CareEdge Ratings. The report highlights that the AUM of these trusts had doubled from approximately Rs 3 lakh crore in FY22 to about Rs 6.25 lakh crore by FY25. The industry is expected to maintain a combined leverage of around 49 per cent in FY26, driven by increased valuations from equity raising and lower interest rates.
The number of InvITs has grown from 11 in FY22 to 22 in FY25, with a significant portion of AUM concentrated in telecom at about Rs 3.06 lakh crore and roads at Rs 2.46 lakh crore, collectively representing nearly 90 per cent of the industry’s AUM. There are promising prospects for portfolio expansion in roads, transmission, warehousing, and renewables, with the National Monetisation Pipeline‑II and the increasing activity on transmission and warehousing platforms expected to bolster the medium-term trajectory.
The transmission sector presents a substantial investment opportunity, with planned investments totaling about Rs 4.86 lakh crore until 2030–31, as outlined in the Central Transmission Utility’s Master Rolling Plan, creating a sustained pipeline of operational assets. Maulesh Desai, Director at CareEdge Ratings, emphasized the robust credit profile of the sector, underpinned by diversified operational asset pools, while also noting the potential for further enhancing creditor protections and broadening the domestic investor base.
InvITs have successfully raised Rs 88,000 crore of equity during FY23–FY25 and are anticipated to raise Rs 16,500 crore in the current fiscal year. The report forecasts that bond market participation will likely remain moderate, with non-convertible debentures constituting approximately 20 per cent of the estimated outstanding debt. Additionally, the credit agency projects a significant increase in India’s installed renewable capacity to 460 GW by FY30, leading to a substantial pipeline of operational assets.
