NHIT half-year profit reaches ₹558.84 crore on tax benefit

National Highways Infra Trust reported consolidated profit after tax of ₹558.84 crore for the half year ended September 30, 2026, compared with ₹233.55 crore a year earlier, after recognising a ₹351.56 crore deferred-tax benefit. NHIT’s profit before tax was ₹210.30 crore and revenue from operations rose to ₹2,592.81 crore.

How did NHIT’s half-year profit change?

NHIT’s consolidated profit after tax increased by ₹325.29 crore to ₹558.84 crore in the half year ended September 30, 2026, from ₹233.55 crore in the corresponding 2025 period. Total comprehensive income was ₹559.21 crore, including ₹0.38 crore of other comprehensive income, compared with ₹233.56 crore a year earlier.

The increase in post-tax profit exceeded the rise in pre-tax earnings because of the tax movement. Profit before tax rose to ₹210.30 crore from ₹58.12 crore, an increase of ₹152.18 crore, while profit after tax rose by ₹325.29 crore. The difference reflects the deferred-tax benefit recorded during the 2026 half year.

The quarter ended September 30, 2026 contributed ₹324.34 crore of profit after tax, compared with ₹234.50 crore in the quarter ended June 30, 2026. However, September-quarter profit before tax was ₹89.40 crore, below ₹120.90 crore in the June quarter, while the September-quarter deferred-tax benefit was ₹236.57 crore.

Why was NHIT’s reported profit higher than pre-tax profit?

NHIT’s profit after tax exceeded its profit before tax because it recorded a net tax credit of ₹348.53 crore for the half year ended September 30, 2026. This comprised a ₹351.56 crore deferred-tax benefit, partly offset by current tax of ₹3.02 crore.

In the half year ended September 30, 2025, NHIT reported a net tax expense of ₹175.43 crore, including a deferred-tax charge of ₹179.81 crore. The tax line therefore moved from an expense in the prior-year half to a credit in the latest period, accounting for much of the larger increase in reported profit.

NHIT’s net deferred-tax assets were ₹1,054.93 crore as of September 30, 2026, compared with ₹703.37 crore at March 31, 2026 and ₹509.77 crore at September 30, 2025. The ₹351.56 crore rise from March matches the deferred-tax benefit reported in the half-year profit and loss statement.

The trust reported a net profit margin of 21.57% for the September 2026 half, compared with 11.54% a year earlier. Earnings per unit, not annualised, were ₹2.61 against ₹1.21, and both reported measures include the effect of the tax credit.

What drove NHIT’s pre-tax earnings in the half year?

NHIT’s revenue from operations rose by ₹568.51 crore to ₹2,592.81 crore in the half year ended September 30, 2026. Other income was ₹25.84 crore, consisting of ₹5.40 crore of fixed-deposit interest, ₹19.69 crore of profit on sale of investments and ₹0.75 crore of other income.

Total expenses increased by ₹420.70 crore to ₹2,408.34 crore from ₹1,987.64 crore. Depreciation and amortisation rose to ₹874.10 crore from ₹688.31 crore, finance cost increased to ₹968.45 crore from ₹908.41 crore, and operating expenses climbed to ₹481.43 crore from ₹303.53 crore.

Revenue from operations rose by about 28% year on year, while total expenses increased by about 21%. That resulted in profit before tax of ₹210.30 crore, compared with ₹58.12 crore in the previous-year half, before the impact of the deferred-tax credit.

What do NHIT’s cash flow and distributable cash figures show?

NHIT generated net cash flow from operating activities of ₹2,160.92 crore in the half year ended September 30, 2026, up from ₹1,810.30 crore in the prior-year half. Operating cash flow before working-capital changes was ₹2,306.74 crore, including ₹874.10 crore of depreciation and amortisation, ₹918.88 crore of net finance cost and ₹277.20 crore of major-maintenance provision.

Working-capital movements reduced operating cash flow by ₹142.44 crore, compared with a ₹5.68 crore reduction a year earlier. Trade and other receivables increased by ₹110.08 crore, provisions reduced cash flow by ₹37.26 crore, and income tax paid was ₹3.38 crore.

Net distributable cash flow, or NDCF, at the trust level was ₹1,180.16 crore, compared with ₹916.91 crore in the half year ended September 30, 2025. The calculation included ₹2,228.06 crore of cash received from special purpose vehicles, or SPVs, and deductions of ₹914.93 crore for finance cost and ₹118.64 crore for debt repayment.

After adding ₹42.35 crore of unpaid zero-coupon bond interest and deducting ₹681.56 crore of NDCF already distributed, NHIT reported balance distributable cash flow of ₹540.95 crore. Its NDCF includes SPV cash received after September 30, 2026 but before the November 6, 2026 board meeting, including ₹269.35 crore from NHIT Western Projects Private Limited.

How did NHIT’s financial position change by September 2026?

NHIT’s total assets were ₹50,882.16 crore at September 30, 2026, compared with ₹50,993.58 crore at March 31, 2026. Total liabilities increased to ₹27,636.04 crore from ₹27,193.02 crore, while unit holders’ equity declined to ₹23,246.12 crore from ₹23,800.55 crore.

Cash and cash equivalents rose to ₹771.72 crore from ₹619.70 crore at March 31, 2026, following a net cash increase of ₹152.02 crore during the half year. Financing activities used ₹1,908.54 crore, including ₹1,102.85 crore of distributions to unit holders and ₹869.96 crore of financing charges paid.

NHIT reported a total debts-to-total-assets ratio of 79.18% at September 30, 2026, compared with 81.75% a year earlier. Its debt-equity ratio was 2.33 against 2.13, while the current ratio was 0.55 versus 0.52 and the interest service coverage ratio was 1.08.

NHIT’s fair-value net asset value was ₹160.72 per unit at September 30, 2026, compared with ₹137.32 per unit at September 30, 2025. The trust said its revenue-generating assets were valued using the discounted cash flow method and that it holds 100% beneficial equity interest in its SPVs.

Conclusion

NHIT’s half-year results show higher revenue and a rise in profit before tax to ₹210.30 crore, but the ₹351.56 crore deferred-tax benefit was central to the reported ₹558.84 crore profit after tax. Operating cash flow of ₹2,160.92 crore and trust-level NDCF of ₹1,180.16 crore provide separate cash-based measures alongside accounting profit.

The next matter to watch is the distribution relating to July 1, 2026 to September 30, 2026, which was not included in the September 2026 equity statement. NHIT also disclosed balance distributable cash flow of ₹540.95 crore and deferred-tax assets of ₹1,054.93 crore, making future movements in both figures relevant to subsequent disclosures.