Nxt-Infra Trust reports Rs 21.251 crore September loss

Nxt-Infra Trust reported a standalone loss of Rs 21.251 crore for the quarter ended September 30, 2026, compared with a Rs 62.677 crore profit a year earlier, as an Rs 86.351 crore derivative remeasurement loss and higher costs outweighed a rise in revenue from operations to Rs 132.361 crore.

Why did the Trust report a September-quarter loss?

The Trust reported a loss because total expenses of Rs 167.311 crore exceeded total income of Rs 133.738 crore in the quarter ended September 30, 2026. The result was a pre-tax loss of Rs 33.573 crore, compared with pre-tax profits of Rs 75.321 crore in the quarter ended June 30, 2026 and Rs 66.201 crore in the quarter ended September 30, 2025.

A deferred-tax credit of Rs 12.910 crore reduced the impact of the pre-tax loss, while current tax was Rs 0.588 crore. The Trust therefore recorded a post-tax loss of Rs 21.251 crore, reversing profits of Rs 66.800 crore in June 2026 and Rs 62.677 crore a year earlier. Basic and diluted earnings per unit were negative Rs 0.49, against Rs 2.34 in June 2026 and Rs 2.20 in September 2025.

The results are unaudited standalone financial results approved by the Audit Committee and board of Walter Infra Manager Private Limited, the investment manager, on November 5, 2026. The independent auditor reviewed rather than audited the results and highlighted that unit capital is presented as equity to meet Infrastructure Investment Trust regulations, although Indian Accounting Standard 32, Financial Instruments: Presentation, would require a different classification.

How did the Trust's revenue and costs change?

The Trust's revenue from operations rose to Rs 132.361 crore, increasing from Rs 81.652 crore in June 2026 and Rs 107.329 crore in September 2025. Total income, however, was marginally below the Rs 134.972 crore reported in June because other income fell to Rs 1.377 crore from Rs 53.320 crore in the preceding quarter.

The filing says loans made by the Trust to certain subsidiaries are financial assets measured at fair value through profit or loss. Fair-value gains or losses on those loans are included in interest income recognised at the coupon rate and disclosed within revenue from operations, meaning the revenue line includes that accounting mechanism.

Finance costs rose to Rs 76.898 crore in the September quarter from Rs 57.320 crore in June and Rs 59.656 crore a year earlier. Investment-management fees were Rs 2.417 crore, compared with Rs 1.689 crore in June and Rs 0.888 crore in September 2025. Under the investment-management agreement dated October 26, 2023, the investment manager is entitled to annual fees of 5% on a cost-plus basis, plus applicable goods and services tax.

The Trust operates as a single reportable segment under Indian Accounting Standard 108, Operating Segments, according to the filing. Its principal activity is owning and investing in road-infrastructure assets through special purpose vehicles, or SPVs, in India, and the board of the investment manager assesses performance on that single-segment basis.

What was the effect of derivative remeasurement?

The Rs 86.351 crore derivative remeasurement loss was the principal component of other expenses of Rs 87.996 crore in the September 2026 quarter. Other expenses were only Rs 0.642 crore in June 2026 and Rs 0.686 crore in September 2025, showing that the derivative movement accounted for most of the increase in quarterly expenses.

The derivative asset represents the Trust's right to acquire the remaining 51% equity interest in a joint venture under a right-of-first-refusal agreement. The Trust measures this right at fair value, including changes in the contractual consideration payable, and recognises movements in profit or loss. The same instrument generated a Rs 51.944 crore remeasurement gain in June 2026, disclosed in other income.

For the half year ended September 30, 2026, the filing records a Rs 35.007 crore remeasurement loss, compared with a Rs 34.171 crore remeasurement gain in the corresponding half year of 2025. The half-year standalone profit was Rs 45.549 crore, down from Rs 87.688 crore in the prior-year period, with the September-quarter loss following the June-quarter gain on the derivative.

The derivative accounting means the quarterly profit figure and cash generation can move differently. The filing identifies the fair-value loss as a profit-or-loss item, while the Trust's net distributable cash flow calculation is based on operating cash flows, SPV distributions, finance costs, debt repayments, reserves and qualifying capital expenditure.

What did distributable cash flow and funding show?

The Trust reported net distributable cash flow of Rs 444.405 crore for the September 2026 quarter, compared with Rs 61.900 crore in June 2026 and Rs 94.415 crore in September 2025. This was distinct from the Rs 21.251 crore accounting loss because the measure includes cash distributions received from SPVs rather than fair-value movements alone.

Cash flows received from SPVs were Rs 616.807 crore in the September quarter, up from Rs 173.639 crore in June and Rs 205.167 crore a year earlier. Total cash inflow at Trust level was Rs 607.369 crore, after operating cash flow of negative Rs 9.438 crore, while stated cash outflows and retentions included Rs 72.008 crore of finance cost, Rs 55.638 crore of debt repayment and Rs 37.799 crore of capital expenditure on existing assets.

During the quarter, the Trust raised Rs 700.150 crore through a qualified institutional placement of 73.70 million units at Rs 95 per unit. The filing says the proceeds were used to redeem optionally convertible debentures in certain acquired SPVs, repay part of Vadodara Kim Expressway Private Limited's external borrowing, and meet general purposes.

The Trust also raised Rs 312.391 crore through a preferential issue of units to its sponsor, with the proceeds used to redeem optionally convertible debentures in Calicut Expressway Private Limited. Unit capital was Rs 5,524.077 crore as at September 30, 2026, up from Rs 2,838.809 crore as at June 30, 2026, reflecting the capital raised during the period.

Conclusion

The Trust's September-quarter standalone loss primarily reflected an Rs 86.351 crore fair-value loss on its right to acquire the remaining stake in a joint venture, alongside finance costs of Rs 76.898 crore. Revenue from operations rose by Rs 50.709 crore from June 2026, and net distributable cash flow reached Rs 444.405 crore as SPV cash distributions increased to Rs 616.807 crore.

The disclosed item to watch is the acquisition of the remaining 51% equity interest in the joint venture. The Trust said net unutilised proceeds from its earlier private placement were temporarily invested in bank deposits as at September 30, 2026 and are intended to fund that consideration; it also reported no commitments other than the remaining-stake acquisition.