NDR InvIT Q2 revenue rises 28%, profit falls 7% on tax

NDR InvIT Trust reported consolidated revenue from operations of Rs 132.23 crore for the quarter ended September 30, 2026, up 27.63% year on year, but profit fell 7.13% to Rs 33.992 crore as total tax expense increased to Rs 16.067 crore from Rs 5.898 crore.

Why did NDR InvIT profit fall despite higher Q2 revenue?

NDR InvIT’s quarterly profit fell because tax expense and total costs rose faster than profit before tax. Total income increased 29.15% to Rs 138.922 crore in the September 2026 quarter, while total expenses rose 36.58% to Rs 88.863 crore. Profit before tax therefore increased 17.79% to Rs 50.059 crore, but profit after tax declined from Rs 36.602 crore a year earlier.

Tax was the principal driver of the gap between pre-tax and post-tax performance. Current tax rose to Rs 10.432 crore from Rs 4.458 crore, while deferred tax increased to Rs 5.635 crore from Rs 1.440 crore. Total tax expense consequently increased by Rs 10.169 crore, exceeding the Rs 7.559 crore increase in profit before tax.

Sequentially, revenue from operations increased 6.62% from Rs 124.021 crore in the quarter ended June 30, 2026. However, profit was 5.60% below the preceding quarter’s Rs 36.007 crore, as total expenses rose from Rs 80.257 crore and tax expense increased from Rs 15.832 crore. The reported profit decline therefore occurred despite growth in quarterly revenue.

Which costs increased in NDR InvIT’s September quarter?

NDR InvIT reported higher finance costs, depreciation and other operating expenses in the September 2026 quarter. Finance costs rose 41.11% to Rs 46.065 crore, depreciation and amortisation increased 25.52% to Rs 24.943 crore, and other operating expenses climbed 50.66% to Rs 12.190 crore. Together, these three lines increased by Rs 17.908 crore from the September 2025 quarter.

Project manager fees and investment manager fees each rose to Rs 2.634 crore from Rs 2.036 crore a year earlier. Audit fees increased to Rs 0.334 crore from Rs 0.295 crore, while trustee fees declined to Rs 0.054 crore from Rs 0.078 crore. Total expenses were Rs 8.606 crore higher than in the June 2026 quarter, when they stood at Rs 80.257 crore.

For the half year ended September 30, 2026, revenue from operations rose 24.90% to Rs 256.251 crore from Rs 205.164 crore. Half-year finance costs increased 39.29% to Rs 90.285 crore and depreciation rose 21.71% to Rs 47.766 crore. Half-year profit declined 6.09% to Rs 70.000 crore as total tax expense rose to Rs 31.898 crore from Rs 11.027 crore.

The half-year cash-flow reconciliation also recorded a Rs 2.497 crore loss due to floods. NDR InvIT did not separately quantify the effect of that loss on the September-quarter revenue or profit statement. Operating profit before working-capital changes was Rs 228.564 crore for the six months, compared with Rs 179.856 crore in the prior-year half.

What happened to NDR InvIT’s operating cash and liquidity?

NDR InvIT generated Rs 20.853 crore of net cash from operating activities in the half year ended September 30, 2026, down from Rs 157.553 crore a year earlier. Cash flow from operations before taxes fell to Rs 42.618 crore from Rs 176.130 crore, principally alongside a Rs 194.100 crore decrease in other financial liabilities. Income taxes paid rose to Rs 21.765 crore from Rs 18.577 crore.

Investing activities used Rs 385.618 crore during the six months, compared with cash generated of Rs 49.656 crore in the prior-year period. NDR InvIT purchased mutual-fund units for Rs 1,710.883 crore and redeemed units worth Rs 1,539.904 crore. It also paid Rs 144.963 crore as acquisition consideration and spent Rs 52.807 crore on investment property purchases.

Cash and cash equivalents were Rs 14.296 crore at September 30, 2026, compared with Rs 426.086 crore at March 31, 2026. The half-year net reduction was Rs 426.085 crore, while the group acquired Rs 14.295 crore of cash and cash equivalents in a business combination. Bank balances other than cash equivalents rose to Rs 67.106 crore from Rs 10.268 crore at the March year-end.

How did NDR InvIT’s assets, debt and NAV change?

NDR InvIT’s total assets increased to Rs 6,811.001 crore at September 30, 2026 from Rs 6,443.308 crore at March 31, 2026. Investment property rose by Rs 490.598 crore to Rs 5,690.916 crore, while capital work-in-progress increased by Rs 27.775 crore to Rs 123.121 crore. Total equity increased to Rs 4,415.312 crore from Rs 3,779.709 crore.

Non-current borrowings were Rs 1,763.256 crore at September 30, compared with Rs 1,761.695 crore at March 31. Current borrowings declined to Rs 22.477 crore from Rs 231.419 crore, while non-current lease liabilities rose to Rs 210.685 crore from Rs 154.677 crore. NDR InvIT issued 6,20,26,829 units during the half year, taking unit capital to Rs 4,788.605 crore.

Fair-value net assets increased to Rs 6,476.866 crore at September 30 from Rs 5,715.744 crore at March 31. Fair-value net asset value, or NAV, was Rs 141.40 per unit, below Rs 142.03 at March 31 but above Rs 133.75 on September 30, 2025. The filing states that investments were fair valued as at June 30, 2026, with additions to capital work-in-progress during the September quarter included.

What distributions, acquisitions and funding plans did NDR InvIT disclose?

NDR InvIT proposed a distribution of Rs 91.608 crore to unitholders for the quarter ended September 30, 2026. The filing states that Infrastructure Investment Trust regulations require the trust to distribute at least 90% of net distributable cash flows each quarter. During the six months, distributions included Rs 84.325 crore of return of unit capital and Rs 92.476 crore of return on capital.

NDR InvIT acquired 100% of Sai Sankalpa Infra Projects Private Limited during the September quarter for Rs 66.020 crore, payable in cash. In the June quarter, it acquired NDR Space Private Limited for Rs 80.260 crore, funded through Rs 46.872 crore in cash and 24,58,591 units valued at Rs 33.388 crore. The cash-flow statement recorded Rs 144.963 crore of purchase consideration for acquisitions during the half year.

Unit-issue proceeds still unutilised at September 30 were Rs 115.300 crore and were temporarily invested in mutual funds pending deployment. Gross proceeds from the unit issue were Rs 721.777 crore, with Rs 308.957 crore deployed by September 30 toward acquisitions, debt refinancing and capital expenditure. NDR InvIT also disclosed that all Rs 361.561 crore of previously unutilised non-convertible debenture proceeds had been used by September 30.

Conclusion

NDR InvIT’s September-quarter results show that revenue growth did not translate into higher reported profit: revenue rose 27.63% while profit fell 7.13%, primarily because the Rs 10.169 crore year-on-year increase in tax expense exceeded the Rs 7.559 crore rise in profit before tax. The half-year results also show lower operating cash generation, even as assets, unit capital and fair-value net assets increased.

The next disclosed matter to watch is NDR InvIT’s planned conversion from a privately listed InvIT to a publicly listed InvIT through a fresh issue and offer for sale. The investment manager’s board approved the proposal on June 26, 2026, unitholders approved it on July 17, 2026, and the offer was filed with the Securities and Exchange Board of India on August 10, 2026, subject to necessary approvals.