IndiGrid Infrastructure Trust draws ₹12 crore for Q2 DPU

IndiGrid Infrastructure Trust declared a ₹4.12 per-unit distribution for Q2 FY27, but generated ₹380 crore of net distributable cash flow against a ₹392 crore distribution and used ₹12 crore from reserves to meet the gap. IndiGrid said the payout remains in line with management’s FY27 distribution guidance of ₹16.48 per unit.

Why did IndiGrid use reserves for its Q2 FY27 distribution?

IndiGrid used ₹12 crore of reserves because Q2 FY27 net distributable cash flow, or NDCF, of ₹380 crore was below the ₹392 crore distribution in its consolidated EBITDA-to-NDCF waterfall. The presentation says ₹12 crore was consumed from reserves during the quarter, leaving an NDCF reserve balance of about ₹510 crore.

The cash-flow bridge started with ₹880 crore of earnings before interest, tax, depreciation and amortisation, or EBITDA, at special purpose vehicle, or SPV, level. Working-capital movement reduced this by ₹55 crore, capital-expenditure-related movement by ₹9 crore and SPV tax by ₹5 crore, producing ₹810 crore of NDCF at SPV level. At trust level, ₹423 crore of finance cost, ₹5 crore of expenses and ₹4 crore of tax were partly offset by a ₹2 crore working-capital movement.

The declared DPU comprised ₹3.1878 per unit of interest and ₹0.9322 per unit of capital repayment. The presentation showed no dividend or other-income component for Q2 FY27. IndiGrid had 95.26 crore outstanding units, versus 83.45 crore in Q2 FY26, and reported gross distribution of about ₹396 crore for Q2 FY27.

Is IndiGrid’s ₹4.12 DPU on track for FY27 guidance?

Yes. IndiGrid said its ₹4.12 Q2 FY27 DPU was in line with management’s ₹16.48 per-unit guidance for FY27. The record date was November 11, 2026, while the tentative distribution date was on or before November 18, 2026.

The quarterly DPU increased 3.0% from ₹4.00 in Q2 FY26 to ₹4.12 in Q2 FY27. IndiGrid’s annual distribution series rose from ₹13.35 per unit in FY23 to ₹16.00 in FY26, with FY27 guidance of ₹16.48 per unit. The presentation calculated a compound annual growth rate, or CAGR, of 5.4% across this series.

IndiGrid reported cumulative distributions of about ₹125.56 per unit, totalling about ₹8,433 crore since listing, including the Q2 FY27 distribution. Net asset value, or NAV, was about ₹138.5 per unit in Q2 FY27, compared with about ₹148.4 in Q2 FY26. The presentation attributed the NAV impact to upward revisions in the risk-free rate and effective corporate tax rate.

Did earnings and collections support IndiGrid’s Q2 FY27 payout?

IndiGrid reported revenue of ₹1,315 crore in Q2 FY27, up 59.0% year on year, while EBITDA rose 18.3% to ₹858 crore and NDCF increased 4.7% to ₹380 crore. Thus, NDCF growth was materially lower than reported revenue growth and did not cover the ₹392 crore distribution shown in the waterfall.

Service-concession accounting contributed ₹443 crore of Q2 FY27 revenue, compared with ₹22 crore in Q2 FY26, while operational-asset revenue increased from ₹805 crore to ₹872 crore. Operational-asset EBITDA increased from ₹724 crore to ₹782 crore, and service-concession accounting EBITDA rose from ₹1 crore to ₹76 crore.

Transmission collections were 103% in Q2 FY27, down from 108% in Q2 FY26, while days sales outstanding, or DSO, increased to 37 days as of September 2026 from 35 days in September 2025. Solar collections improved to 94% from 89%, and solar DSO fell to 35 days from 51 days. The disclosed DSO figures exclude unbilled revenue.

Solar generation increased to 562.3 million units in Q2 FY27 from 533.3 million units in Q2 FY26, while capacity utilisation factor, or CUF, rose to 22% from 20.9%. Solar plant availability was about 96.7%, compared with 96.9% a year earlier. Transmission weighted-average availability was about 99.37% in Q2 FY27.

What operating and financing factors should be monitored?

IndiGrid’s GPTL Sohna substation fire on August 8, 2026 impaired interconnecting transformers and affected the availability of the substation and associated lines. GPTL availability was 89.96% in Q2 FY27, compared with 99.79% to 100.00% for most listed transmission elements. IndiGrid expects full operations after transformer replacement by May 2027 and has filed insurance claims.

The presentation says the incident’s impact has been factored into the latest valuation. Management’s business outlook sets an objective to sustain more than 99.5% availability across the operational portfolio. Battery energy storage system assets KBPL and GBPL reported weighted-average availability of 97.71%, above their 95% contractual requirement, and round-trip efficiency of 88.56%, above the 85% contractual requirement.

IndiGrid reported an average cost of debt of about 7.46%, with about 86% of borrowings at fixed rates. Net debt to assets under management was about 60.4%, while EBITDA-to-interest was 1.99 times. Cash balance was ₹1,568 crore, including ₹392 crore held for distribution and about ₹407 crore for debt-service reserve account or lien-marked purposes.

Management’s FY27 plan includes adding assets worth about ₹2,000 crore from EnerGrid’s identified pipeline, undertaking augmentation work and executing greenfield projects. It also plans to optimise interest costs and debt tenor for acquisitions. Management linked delivery of the ₹16.48 FY27 DPU guidance to disciplined capital deployment.

Conclusion

IndiGrid increased its Q2 FY27 DPU to ₹4.12 and maintained that it was aligned with its ₹16.48 FY27 guidance, but its ₹380 crore NDCF did not fully cover the ₹392 crore distribution in the quarterly waterfall. The resulting ₹12 crore reserve draw reduced the disclosed NDCF reserve balance to about ₹510 crore.

The next disclosed events are the tentative distribution payment on or before November 18, 2026, planned FY27 additions of about ₹2,000 crore from EnerGrid’s pipeline, and expected restoration of full GPTL Sohna operations by May 2027. Future disclosures can show whether NDCF covers distributions without reserve consumption and whether management reaches its more-than-99.5% availability objective.