Mumbai (Maharashtra) [India], December 17 (ANI): India’s Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) reported robust growth in distributions during the second quarter of FY2026, supported by strong operating performance across asset classes such as roads, power and energy, commercial real estate, telecom infrastructure, and warehouse and logistics, according to data released by ICRA Analytics.
Distributions by public InvITs and REITs recorded a sharp quarter-on-quarter increase of 34.32 per cent, crossing Rs 3,300 crore in Q2 FY2026. On a year-on-year basis, distributions grew by 55.42 per cent compared to the corresponding quarter of the previous fiscal. The performance was further supported by fresh market entrants, which added incremental momentum to the sector alongside established trusts.
Among public trusts, REITs led the growth, registering a 49.49 per cent sequential rise and a 68.52 per cent year-on-year increase in distributions. The growth was driven by healthy leasing activity, higher rental rates, and improved collection efficiencies across commercial real estate portfolios. Road InvITs also posted strong growth, with distributions rising 23.57 per cent quarter-on-quarter and more than doubling on a year-on-year basis, aided by strong toll traffic volumes and seasonal uplift. Power and energy InvITs remained stable, reflecting the predictable nature of cash flows from these assets.
Private InvITs too reported steady growth, with total distributions exceeding Rs 4,700 crore during the quarter. This marked a quarter-on-quarter growth of 13.44 per cent over Q1 FY2026 and a year-on-year increase of 27.53 per cent.
Within private trusts, telecommunication infrastructure assets continued to perform strongly, supported by higher tower usage and expanding digital infrastructure requirements. Warehouse and logistics InvITs posted healthy growth, while road assets maintained stable momentum.
Power and energy assets remained largely flat on a sequential basis but recorded moderate year-on-year growth.
The period also witnessed increased market activity, with the listing of TVS Infrastructure Trust and Knowledge Realty Trust during Q2 FY2026, followed by the listing of Anantam Highways Trust in Q3 FY2026. These developments reflect growing investor confidence and signal increasing maturity of India’s InvIT and REIT ecosystem across both public and private platforms.
Commenting on the outlook, Madhubani Sengupta, Head, Knowledge Services, ICRA Analytics, said that traction in commercial real estate leasing, festive season tailwinds boosting traffic revenues, and rising demand for telecom infrastructure, solar power, and energy assets are expected to support a positive outlook for Q3 FY2026. (ANI)
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