Execution delays in asset acquisitions
Acquisition of KNR assets may slip to next quarter due to lender and NHAI approvals, impacting growth timeline.
INDUSINFRATRUST / bear-case history
Track the concerns that keep returning.
Indus Infra Trust · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
Interest rate and capital market volatility
Rising interest rates and tight liquidity could increase borrowing costs and affect acquisition funding.
LTV increase and need for equity fundraising
Post-acquisition LTV may rise to 52-53%, requiring equity fundraising which could dilute unit holders.
Intense competition for HAM assets
Multiple new InvITs and funds are chasing a limited supply of quality road assets, potentially driving up acquisition prices and lowering IRRs.
Major maintenance costs for aging assets
Two assets (Gurda Rupag and Barami San) are due for major maintenance in FY27, which could temporarily impact cash flows.
Rising cost of debt
Marginal cost of debt may increase due to yield movements, potentially affecting net distributable cash flows.
Execution risk in asset acquisitions
The KNR acquisition is yet to close pending conditions precedent; any delay could impact FY27 DPU guidance.