NEW DELHI: According to ICRA Analytics, India’s Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) showed remarkable growth in distributions for the second quarter of FY2026, buoyed by robust performance in various sectors such as roads, power, energy, commercial real estate, telecom infrastructure, and logistics.
Distributions from public InvITs and REITs surged by 34.3% quarter-on-quarter, exceeding ₹3,300 crore in Q2 FY26. On a year-on-year basis, distributions saw a 55.4% increase from the previous year.
REITs were the standout performers this quarter, benefiting from steady leasing activity, rental growth, and improved collection rates within commercial office portfolios. Meanwhile, road InvITs experienced significant growth in distributions due to increased toll collections driven by seasonal traffic spikes. The power and energy sectors also provided stable payouts, showcasing their predictable cash-flow characteristics.
Private InvITs recorded distributions surpassing ₹4,700 crore in Q2 FY26, marking a 13.4% increase from Q1 FY26, and a year-on-year growth of 27.5% compared to Q2 FY25.
Sector-wise, telecom infrastructure maintained strong performance, aided by higher tower utilization and ongoing developments in digital infrastructure. Roads and logistics assets also exhibited robust quarter-on-quarter growth, while power and energy assets remained mostly stable during this period.
The quarter welcomed new entrants in the trusts space, including TVS Infrastructure Trust and Knowledge Realty Trust in Q2 FY26, followed by Anantam Highways Trust in Q3 FY26. These new listings signify growing investor confidence and expanding opportunities across both public and private InvIT and REIT platforms.
ICRA Analytics projects a positive outlook for Q3 FY26, backed by continued leasing momentum in commercial real estate, festive-season growth for toll roads, and sustained demand for telecom infrastructure and renewable energy assets.
