New Delhi, May 22 -- Vertis Infrastructure Trust, an infrastructure investment trust (InvIT) sponsored by private equity firm KKR, recorded a steep jump in its revenue and profits during the last financial year, as it added heft to its portfolio of highway assets and as it gears up for a public listing later this year.

The privately listed InvIT's consolidated revenue from operations surged almost 80% in 2025-26 to Rs 3,819.3 crore from Rs 2,127.2 crore the year before, its latest financial statement shows. Consolidated net profit went up 21% to Rs 659.7 crore from Rs 544.8 crore.

This increase in revenue and profits was driven by a sharp 44% rise in the InvIT's assets under management. As of the end of March this year, Vertis reported that the fair value of its total assets had risen to Rs 30,783 crore, up sharply from Rs 21,330 crore a year earlier.

To be sure, this happened even as the InvIT's net liabilities more than doubled over the same period, rising to Rs 13,276 crore from Rs 6,382 crore between March 2025 and March 2026. Further, as of the end of March, Vertis' intangible assets, primarily toll collection rights and service concession receivables, stood at Rs 17,745 crore.

The trust declared a distribution of Rs 3.6289 per unit for the quarter ended March 31, 2026, payable by early June 2026. The payout, comprising interest, return of capital and other components, continues the InvIT's track record of steady cash returns to unitholders from predictable toll and annuity revenues.

These results underscore the KKR-sponsored InvIT's rapid scaling over the past 12-18 months, as it integrated multiple batches of road assets to build one of the larger platforms in India's roads InvIT space.

Portfolio expansion fuels performance

Vertis, rebranded from Highways Infrastructure Trust in mid-2025, now manages 28 operational road projects across nine states, spanning roughly 8,300 lane km. The portfolio maintains a balanced mix - approximately 69% toll assets offering traffic upside and 31% annuity/HAM projects for cash flow stability - supporting resilient yields amid rising vehicle movement on national highways.

Key acquisitions, including 10 so-called hybrid-annuity model (HAM) assets from highway developer PNC Infratech in May 2025 and other toll and HAM projects, have driven this growth.

Revenue trends showed healthy year-on-year increases in recent quarters, backed by traffic growth.

IPO plan

The strengthened balance sheet comes as Vertis prepares to file its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) soon for an initial public offering that could raise up to Rs 3,000 crore.

The issue is expected to be largely an offer for sale, enabling existing investors - including KKR-linked entities and partners such as Canadian pension fund Ontario Teachers' Pension Plan - to partially monetise holdings while broadening the investor base.

This would add to recent InvIT IPOs, including the listing of state-run NHAI-backed Raajmarg Infra Investment Trust earlier in 2026. Peers like IRB InvIT Fund and National Highways Infra Trust have also shown steady distributions and institutional interest, though secondary market liquidity and valuation multiples vary.

Strategy, sector context

Vertis has focused on operational and near-operational assets with long concession periods. The strategy balances traffic-linked revenue potential with annuity stability, while using leverage for growth. The trust has also explored sustainability-linked financing, raising Rs 900 crore in 2025 to support acquisitions.

India's highway sector provides tailwinds through continued government spending, logistics improvements and traffic growth. However, like competitors, Vertis faces execution risks around debt refinancing, maintenance costs, regulatory approvals for extensions and macroeconomic impacts on volumes.

Having said this, the proposed IPO comes at a time when markets have been sluggish. The upcoming IPO will gauge investor appetite for Vertis' yield profile, asset quality and acquisition pipeline in a competitive roads InvIT landscape. Long-term outperformance will depend on disciplined leverage management, traffic realisation and navigating sector challenges.

Published by HT Digital Content Services with permission from VC Circle.