InvIT Sector Growth Driven by Infrastructure Investments

India’s InvITs Expected to Add ₹1 Lakh Crore in Assets in FY26​

New Delhi, March 19 – India’s Infrastructure Investment Trusts (InvITs) are projected to see their assets under management (AUM) expand by approximately ₹1 lakh crore in FY26, according to a report released by CareEdge Ratings on Thursday.

The report highlighted that the AUM of InvITs has doubled over the past three years, rising from about ₹3 lakh crore in FY22 to nearly ₹6.25 lakh crore by FY25. The combined leverage, measured as total external debt to enterprise value, is expected to remain stable at around 49 per cent in FY26, supported by higher valuations from equity raising and lower interest rates.

The number of InvITs has grown from 11 in FY22 to 22 in FY25, with AUM concentrated in telecom at about ₹3.06 lakh crore and roads at ₹2.46 lakh crore. Together, these sectors account for nearly 90 per cent of the industry’s total AUM.

Strong Prospects for Portfolio Expansion​

CareEdge Ratings noted strong medium-term opportunities across roads, transmission, warehousing, and renewable energy sectors. Growth is expected to be driven by the National Monetisation Pipeline-II, operational HAM assets, and rising activity in transmission and warehousing platforms.

Transmission infrastructure presents a particularly large investment opportunity, with planned investments of around ₹4.86 lakh crore until 2030-31, as outlined in the Central Transmission Utility’s Master Rolling Plan. This is expected to create a steady pipeline of operational assets.

“The sector’s credit profile remains robust, supported by diversified, operational asset pools. However, there remains significant potential to enhance creditor protections further and deepen the domestic investor base, particularly given the currently low participation by retail investors, mutual funds, and insurance companies,” said Maulesh Desai, Director at CareEdge Ratings.

Equity and Debt Mobilisation​

InvITs mobilized ₹88,000 crore of equity during FY23–FY25 and are expected to raise an additional ₹16,500 crore in the current fiscal year. Bond market participation is anticipated to remain moderate, with non-convertible debentures forming about 20 per cent of the estimated outstanding debt.

The report also forecasted a sharp increase in India’s installed renewable capacity, which is expected to reach 460 GW by FY30. This growth will generate a substantial pipeline of operational renewable assets, further supporting the expansion of InvIT portfolios.