Intelligent Supply Chain Infrastructure Trust Q2 loss narrows

Intelligent Supply Chain Infrastructure Trust reported a consolidated loss of Rs 2.42 crore for the quarter ended September 30, 2026, compared with a Rs 39.32 crore loss a year earlier, while its half-year result turned to a Rs 7 lakh profit from a Rs 117.75 crore loss. Revenue from operations was Rs 344.83 crore.

How did the Trust perform in the September 2026 quarter?

The Trust recorded a consolidated loss before and after tax of Rs 2.42 crore for the quarter ended September 30, 2026, against a Rs 39.32 crore loss in the quarter ended September 30, 2025. No tax expense was reported in either quarter, leaving the pre-tax result and reported loss identical.

The September-quarter result was lower than the Rs 2.49 crore profit recorded in the quarter ended June 30, 2026. Total income was largely unchanged across all three quarters at Rs 347.22 crore in September 2026, Rs 347.12 crore in June 2026 and Rs 347.60 crore in September 2025, while total expenses rose sequentially to Rs 349.64 crore from Rs 344.63 crore.

The Trust reported a loss per unit of Rs 0.08 for the September 2026 quarter, compared with a loss per unit of Rs 1.29 a year earlier. The June 2026 quarter produced earnings per unit of Rs 0.08, and the filing states that quarterly and half-year per-unit figures are not annualised.

What reduced the Trust’s year-on-year loss?

The Trust’s loss narrowed because total expenses declined to Rs 349.64 crore in the September 2026 quarter from Rs 386.92 crore a year earlier, whereas total income decreased only to Rs 347.22 crore from Rs 347.60 crore. Depreciation and amortisation fell to Rs 117.96 crore from Rs 149.08 crore, and finance costs declined to Rs 65.13 crore from Rs 75.89 crore.

Operations and maintenance expense moved higher to Rs 127.17 crore from Rs 121.10 crore in the prior-year quarter. Other expenses were Rs 37.87 crore, below Rs 39.26 crore a year earlier but above Rs 13 lakh in the June 2026 quarter; investment management and project management fees were Rs 59 lakh each in all three quarters shown.

For the half year ended September 30, 2026, operations and maintenance expense increased to Rs 254.34 crore from Rs 242.18 crore. This increase was offset by lower finance costs of Rs 132.05 crore versus Rs 153.65 crore, depreciation and amortisation of Rs 266.76 crore versus Rs 297.02 crore, and other expenses of Rs 38 crore versus Rs 121.70 crore.

Did the Trust return to profit in the first half?

The Trust reported a consolidated profit of Rs 7 lakh for the half year ended September 30, 2026, compared with a Rs 117.75 crore loss in the corresponding 2025 period. The result reflects the Rs 2.49 crore June-quarter profit and the Rs 2.42 crore September-quarter loss.

Revenue from operations increased marginally to Rs 689.74 crore in the first half from Rs 689.24 crore a year earlier. Total income declined to Rs 694.34 crore from Rs 699.86 crore as other income fell to Rs 4.60 crore from Rs 10.62 crore, but total expenses declined more sharply to Rs 694.27 crore from Rs 817.61 crore.

The prior-year comparison includes warehouse-closure items recorded in the cash-flow statement. The half year ended September 30, 2025 included a Rs 121.11 crore write-off of assets on closure of warehouses and a Rs 5.45 crore gain from right-of-use assets and lease liabilities on those closures; neither item was reported for the 2026 half year.

What do cash flow, distributions and the balance sheet show?

The Trust generated net operating cash flow of Rs 533 crore in the half year ended September 30, 2026, compared with Rs 474.63 crore in the previous-year period. Cash generated from operations was Rs 534.51 crore, including a Rs 570.52 crore decrease in trade receivables, while other current liabilities decreased by Rs 505.87 crore.

The Trust distributed Rs 169.08 crore to unitholders as return of capital in the first half, nearly unchanged from Rs 169.26 crore a year earlier. Trust-level net distributable cash flow was also Rs 169.08 crore and the filing records a 100% distribution; the disclosed InvIT regulations require distribution of at least 90% of annual net distributable cash flows.

At September 30, 2026, total assets were Rs 4,085.54 crore and total liabilities were Rs 2,228.91 crore, producing book net assets of Rs 1,856.63 crore. Total assets were lower than Rs 4,858.22 crore at March 31, 2026, while total liabilities declined from Rs 2,832.58 crore; non-current borrowings remained Rs 2,110.87 crore and current borrowings were Rs 11.13 crore.

How did the Trust’s net asset value change?

The Trust’s book net asset value was Rs 60.91 per unit at September 30, 2026, compared with Rs 66.46 at March 31, 2026 and Rs 71.84 at September 30, 2025. Book net assets fell to Rs 1,856.63 crore, while unit capital remained Rs 3,048 crore and the number of units remained 30.48 crore.

On a fair-value basis, net assets were Rs 3,149.77 crore and net asset value was Rs 103.34 per unit at September 30, 2026, compared with Rs 3,058.09 crore and Rs 100.33 per unit at March 31, 2026. The filing states that the September 2026 fair value uses the March 31, 2026 valuation report, adjusted for cash, investments and other current balance-sheet items.

Deloitte Haskins & Sells LLP conducted a limited review of the consolidated information for the quarter and half year ended September 30, 2026. The auditor said nothing had come to its attention indicating a material misstatement, while drawing attention to the presentation of unit capital as equity under the applicable InvIT regulations.

Conclusion

The Trust narrowed its September-quarter loss to Rs 2.42 crore as lower depreciation, amortisation and finance costs more than offset a rise in operations and maintenance expense, with revenue from operations broadly unchanged at Rs 344.83 crore. The first-half return to a Rs 7 lakh profit also reflects the absence of the prior-year Rs 121.11 crore warehouse-closure asset write-off.

The filing does not disclose a new operating plan, target or scheduled event. The disclosed annual requirement to distribute at least 90% of net distributable cash flows remains a key item to monitor after the Trust distributed Rs 169.08 crore, or 100% of its Trust-level net distributable cash flow, in the half year ended September 30, 2026.