Assets under management (AUM) of Infrastructure Investment Trusts (InvITs) is likely to grow by ₹1 lakh crore during FY26, said CareEdge Ratings.
InvITs have gained momentum with AUM doubling from about ₹3 lakh crore in FY22 to around ₹6.25 lakh crore by FY25, said the ratings major in a note. The number of InvITs in India has also increased from 11 in FY22 to 22 in FY25, reflecting both structural investor appetite and the rapid institutionalisation of operational infrastructure platforms.
However, sectoral dispersion is yet to catch up, it said adding that AUM remains heavily concentrated in two segments — telecom (₹3.06 lakh crore) and roads (₹2.46 lakh crore) — which together account for nearly 90 per cent of the industry’s AUM as of March 31, 2025, signalling diversification opportunities.
CareEdge Ratings expects InvIT AUM to grow led by portfolio expansion across roads, transmission, warehousing and renewable senergy ectors in FY26. “The medium-term trajectory will also benefit from the strong National Monetisation Pipeline-II (NMP-II), the pool of operational HAM assets, and increasing activity on transmission and warehousing platforms.”
InvITs have mobilised ₹88,000 crore equity during the past three years, FY23-FY25, and are expected to further raise ₹16,500 crore in FY26.
Reliance on banks
InvITs on a combined/aggregate basis had an outstanding gross debt of ₹2.82 lakh crore at the end of FY25. The borrowing mix of InvITs continues to show a clear reliance on banks, with term loans accounting for nearly two-thirds of total borrowings as of March 31, 2025. Bond issuances, despite gradual progress, account for only about 20 per cent of the combined debt, highlighting an underpenetrated capital market base even as platforms mature.
“InvITs are expected to witness another year of steady growth in FY26, with nearly ₹1 lakh crore of additional AUM driven by the roads, warehousing, transmission, and renewable energy sectors. 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.
“Leverage levels are expected to remain stable at around 49 per cent in FY26, aided by valuation gains and continued equity issuances. Bond market participation is likely to stay moderate, representing approximately 20 per cent of the estimated ₹3.70 lakh crore in debt as of March 31, 2026,” he added.
Published on March 19, 2026