National Highways Infra Trust cuts net borrowings ratio to 41.19%

NHIT reported a 41.19% net borrowings ratio at September 30, 2026, down from 42.89% at March 31, 2026, as net borrowings declined to Rs 24,583.82 crore while independently valued InvIT assets increased to Rs 59,683.85 crore. The period also included a Rs 1,100 crore Bank of India refinancing of Axis Bank debt.

Why did NHIT's net borrowings ratio fall to 41.19%?

NHIT's net borrowings ratio fell because cash increased faster than total borrowings and the independently valued asset base expanded over the six months to September 30, 2026. The ratio is calculated as aggregate borrowings and deferred payments, net of cash and cash equivalents, divided by the value of InvIT assets.

Total borrowings rose by Rs 126.38 crore from Rs 25,229.16 crore at March 31, 2026 to Rs 25,355.54 crore at September 30, 2026. Cash and cash equivalents increased by Rs 152.02 crore to Rs 771.72 crore, leaving net borrowings Rs 25.64 crore lower at Rs 24,583.82 crore.

The independently valued enterprise value of InvIT assets rose by Rs 2,310.39 crore during the same period, from Rs 57,373.46 crore to Rs 59,683.85 crore. The ratio was also below the 43.80% reported at September 30, 2025, when net borrowings were Rs 21,186.10 crore and the asset value was Rs 48,371.30 crore.

How did NHIT refinance the Axis Bank loan?

NHIT refinanced Rs 1,100 crore of existing Axis Bank debt through a Bank of India loan facility during the period ended September 30, 2026. Bank of India directly remitted the proceeds to Axis Bank to repay the outstanding borrowing, rather than transferring funds through NHIT's own bank accounts.

NHIT classified the arrangement as a non-cash financing transaction, so it was not reflected in the cash flow statement. The Trust said the Axis Bank borrowing was settled in its loan records and the corresponding Bank of India borrowing was recognised as applicable.

The reported lender balances reflect a change in the debt mix. Axis Bank term loans fell to Rs 3,029.47 crore at September 30, 2026 from Rs 4,057.37 crore at March 31, 2026, while Bank of India reported Rs 1,098.06 crore outstanding at September 30 and no balance at the March reporting date.

The lender-level movement is broadly consistent with the disclosed Rs 1,100 crore refinancing, although the reported balances also include other borrowing movements during the half year. NHIT separately disclosed fresh Round 5-related disbursements of Rs 106.03 crore from Axis Bank, Rs 60.11 crore from IDBI Bank and Rs 36.20 crore from Punjab National Bank.

Which instruments and lenders make up NHIT's borrowings?

NHIT's Rs 25,355.54 crore borrowing base at September 30, 2026 consisted of listed non-convertible debentures, zero-coupon bonds, accrued interest and term loans from seven named lenders. State Bank of India was the largest term-loan lender, with Rs 7,941.44 crore outstanding.

Rated, listed and redeemable non-convertible debentures accounted for Rs 1,500 crore, unchanged from March 31, 2026. Rated, listed and redeemable zero-coupon bonds stood at Rs 999.99 crore, also unchanged, while accrued interest on non-convertible debentures and zero-coupon bonds rose to Rs 185.30 crore from Rs 142.63 crore.

Among term lenders, Punjab National Bank had Rs 4,685.25 crore outstanding, followed by the National Bank for Financing Infrastructure and Development at Rs 3,738.67 crore and Axis Bank at Rs 3,029.47 crore. Bank of Baroda had Rs 1,816.22 crore, Bank of India had Rs 1,098.06 crore and IDBI Bank had Rs 361.12 crore.

NHIT said its Rs 1,500 crore of secured non-convertible debentures across STRPP A, STRPP B and STRPP C mature between the eighth and 25th anniversaries of allotment. The Trust reported that security cover exceeded 100% of the principal and interest amount of those debentures at September 30, 2026.

How did cash and asset values support NHIT's ratio?

NHIT's cash and cash equivalents of Rs 771.72 crore at September 30, 2026 supported the lower net-borrowings calculation, compared with Rs 619.70 crore at March 31, 2026. NWPPL held the largest entity-level balance at Rs 339.69 crore, followed by NSPPL at Rs 189.05 crore and NEPPL at Rs 185.97 crore.

NHIT itself held Rs 57.02 crore of cash and cash equivalents at September 30, 2026, down from Rs 83.79 crore at March 31, 2026. The Trust's disclosure also included Rs 742.05 crore invested in mutual funds within cash and cash equivalents, because it considered those investments readily convertible to known amounts of cash with insignificant risk of value change.

The September 30 asset value was based on the latest available report from an independent valuer appointed by NHIT. NWPPL's enterprise value rose to Rs 21,486.50 crore from Rs 20,649 crore at March 31, 2026, while NEPPL increased to Rs 18,009.70 crore from Rs 17,185.90 crore.

NSPPL's value increased to Rs 19,803.50 crore from Rs 19,153.10 crore over the same six-month period. NHIT's own value was Rs 384.15 crore at September 30, compared with Rs 385.46 crore at March 31, meaning the aggregate asset-value increase came from the three project subsidiaries.

What funding commitments did NHIT disclose?

NHIT disclosed that it had obtained Rs 3,500 crore of bank sanctions in the previous year for the acquisition of Round 5 assets. During the half year ended September 30, 2026, it passed Rs 51 crore to NWPPL, Rs 73 crore to NEPPL and Rs 78.34 crore to NSPPL as loans carrying 12.70% annual interest for initial improvement works.

The Trust reported Rs 1,152.31 crore of unutilised loan balances for initial improvement works within cash and cash equivalents at September 30, 2026. Actual initial improvement work completed during the half year was Rs 160.01 crore, compared with Rs 301.77 crore in the prior-year period.

NHIT also disclosed Rs 277.20 crore of major maintenance obligation provision at September 30, 2026, compared with Rs 324.65 crore in the prior-year period. Actual major maintenance work during the half year was Rs 30.68 crore, while finance cost on the provision was Rs 27.98 crore, down from Rs 37.71 crore a year earlier.

For the non-convertible debentures, NHIT disclosed first-ranking pari passu security over hypothecated assets and receivables, a pledge over 100% of shares in its special purpose vehicles and a negative lien undertaking. The Trust did not own immovable property at September 30, 2026, but said any future acquired immovable property would be mortgaged within 180 days of acquisition.

Conclusion

NHIT's 41.19% net borrowings ratio at September 30, 2026 reflected Rs 24,583.82 crore of net borrowings against Rs 59,683.85 crore of independently valued assets. Cash growth and higher asset values outweighed a Rs 126.38 crore increase in gross borrowings, while the Rs 1,100 crore Bank of India transaction shifted part of the lender mix from Axis Bank without a cash-flow-statement movement.

The next disclosures to watch are deployment of the Rs 1,152.31 crore unutilised loan balance for initial improvement works and further use of the Rs 3,500 crore of Round 5 acquisition bank sanctions. NHIT also has debenture maturities spanning the eighth through 25th anniversaries of allotment, while its stated project funding continues to cover initial improvement and major maintenance obligations.