Road InvIT AUM to rise 68% to Rs 3.2 trillion by Mar 2026: CRISIL Ratings

The assets under management of infrastructure investment trusts (InvITs) in the road sector are poised to surge 68 per cent to Rs 3.2 trillion by March 2026 from Rs 1.9 trillion as of September 2024, Crisil Ratings said on Thursday.

The rating agency further said the growth will be fuelled by the expansion of existing InvITs' asset pool and the emergence of new InvITs.

"The AUM (assets under management) growth will be accompanied by diversification in terms of geography and concession type, which will help build resilience," Crisil Ratings said, adding that this, along with leverage levels being under control, will keep credit profiles of road InvITs strong.

Infrastructure Investment Trust (InvIT) is an instrument on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time.

According to the rating agency, the AUM growth will also bring diversification in terms of geographies and concession types.

It said diversified asset pools, comprising toll projects that offer growth opportunities and HAM projects that provide cash flow stability are better equipped to withstand comparatively high levels of leverage.

Crisil Ratings further pointed out that the average leverage of road InvITs is expected to remain under control at below 49 per cent by March 2026, keeping credit profiles strong.