InvITs and REITs Report Strong Q2 FY2026 Distributions: ICRA Analytics

India's InvIT (Infrastructure Investment Trusts) and REIT (Real Estate Investment Trusts) markets have reported robust growth in distributions for Q2 FY2026. The strong performance is attributed to solid operating metrics across roads, power & energy, commercial real estate, telecom infrastructure, and warehouse & logistics. Fresh entrants have also contributed significantly to this momentum, amplifying the gains delivered by seasoned trusts.

Distributions by public trusts surged by 34.32 percent quarter-on-quarter, reaching Rs 3,300 crore in Q2 FY2026. This marks a robust 55.42 percent year-on-year increase compared to the same period last year. REITs led the performance, driven by healthy leasing momentum, higher rentals, and improved collections. Road InvITs also posted robust growth, supported by strong toll traffic and seasonal uplift. Power & Energy assets remained stable, consistent with predictable cash-flow behavior.

Private InvITs recorded distributions of over Rs 4,700 crore, reflecting a 13.44 percent quarter-on-quarter growth over Q1 FY2026. Year-on-year, distributions expanded by 27.53 percent relative to Q2 FY25. Telecommunication assets continued to perform strongly, with better tower usage and digital infrastructure expansion. Roads and logistics trusts saw healthy quarter-on-quarter increases, while Power & Energy remained largely stable.

The recent listings of TVS Infrastructure Trust and Knowledge Realty Trust in Q2 FY2026, followed by Anantam Highways Trust in Q3 FY2026, underscored the growing investor confidence and signal increasing market maturity across both public and private platforms. According to Madhubani Sengupta, Head of Knowledge Services at ICRA Analytics, the outlook for Q3 FY2026 remains positive, 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 robust growth in distributions is a testament to the resilience and adaptability of the InvIT and REIT markets in India. These trusts continue to attract investors with their stable and growing cash flows, making them an attractive investment option for those seeking consistent returns. The positive outlook for the coming quarters is expected to further bolster investor confidence and drive additional investments in these sectors.

Overall, the InvIT and REIT markets in India are poised for continued growth, driven by strong fundamentals and a supportive regulatory environment. This growth is not only beneficial for the investors but also for the broader economy, as it contributes to the development of critical infrastructure and real estate assets.