India's InvIT, REIT Payouts Surge 55%: How Infrastructure Trusts Are Booming

The report from ICRA Analytics said that distributions by public trusts rose 34.32 per cent quarter‑on‑quarter, crossing Rs 3,300 crore in Q2 FY26.

The cash payouts to clients by public trusts were up 55.42 per cent year‑on‑year, the report said.

REITs led the gains with a 49.49 per cent QoQ increase and 68.52 per cent YoY growth, followed by InvITs in the road segment posting a 23.57 per cent QoQ rise and 108.01 per cent YoY jump.

Power and energy based InvITs showed modest 1.71 per cent surge sequentially and 5.33 per cent YoY growth.

Fresh entrants contributed additional momentum, amplifying the gains delivered by seasoned trusts, the report noted.

Private InvITs recorded distributions of over Rs 4,700 crore, up 13.44 per cent QoQ and 27.53 per cent YoY, led by gains from telecommunication and warehouse trusts.

Telecom InvITs rose 15.65 per cent QoQ and 59.32 per cent YoY, while warehouse and logistics trusts surged 19.47 per cent QoQ and 22.52 per cent YoY.

“Spurred by traction in leasing in the commercial real estate segment, festive season tailwind on traffic revenue, and expanding requirements in telecom infrastructure, solar power and energy, the outlook for Q3FY26 remains positive,” said Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics.

"Telecommunication assets continued to perform strongly, with better tower usage and digital infrastructure expansion. Roads and logistics trusts saw healthy QoQ increases, while Power & Energy remained largely stable," the report said.

The ratings agency attributed the momentum in REITs to healthy leasing, higher rentals, improved collections, while InvITs benefited from strong toll traffic and seasonal uplift.

Power & Energy assets remained stable, consistent with predictable cash-flow behaviour, the report said.

- IANS