According to Business Standard, Harsh Shah, managing director of IndiGrid Infrastructure Trust, revealed that the KKR-backed InvIT expects its assets under management (AUM) to reach ₹45,000 crore over the next 2-3 years. The company currently manages ₹34,041 crore in AUM, focusing on power transmission, renewable generation, and energy storage assets. Shah emphasized that while the company doesn't track AUM as a target number, their focus remains on delivering predictable distributions and growing them through strategic acquisitions. The company has ₹13,000 crore of projects being executed at their asset development platform EnerGrid, which will eventually be acquired by IndiGrid when completed, contributing significantly to the AUM growth trajectory.
As reported by Business Standard, 75% of IndiGrid's portfolio currently comprises transmission projects while 25% consists of renewables, with battery storage classified under transmission. The company maintains a net debt-to-AUM ratio of 58.5% as of Q1 FY27, which Shah described as comfortable given their AAA rating and the Securities and Exchange Board of India's cap at 70%. The company has ₹12,000 crore of headroom for additional acquisitions and expects to add ₹2,000 crore worth of assets to its portfolio this fiscal year. Shah indicated that the company plans to remain within the 25-35% range for renewables, with the rest being transmission, and can potentially increase renewable exposure to 35% of the portfolio.
According to Business Standard, IndiGrid's distribution per unit (DPU) grew 6% in FY26 and has guided for 3% DPU growth in FY27, with expectations to cross ₹16.5 by year-end. Shah indicated that DPU growth will be more pronounced towards the end of the year as they assess their project pipeline and market conditions. The company maintains a target of 3-5% YoY DPU growth going forward, with growth guidance provided on an annual basis based on projects acquired during the year and existing pipeline visibility. Shah noted that DPU growth will be more pronounced towards the end of the year as they assess their project pipeline and market conditions.
As reported by Business Standard, IndiGrid has adopted a strategy of building rather than acquiring battery storage projects due to quality concerns with third-party assets. The company has 0.5 GW already commissioned and another 0.5 GW ready for commissioning over the next 15 days, bringing operational capacity to 1 GW of commissioned projects. Shah noted that aggressive bidding in the battery storage sector has resulted in two out of three projects not being viable, making quality control essential for their investment approach. The company is looking to commission another 0.8 GW, which will make them one of the largest independent battery storage owners in the sector.
According to Business Standard, Shah highlighted concerns about reverse auctions in the transmission sector making projects unviable due to aggressive bidding by inexperienced players. The company is participating in ₹2-3 lakh crore worth of transmission opportunities and ₹1 lakh crore of renewable energy platforms available for sale. Shah emphasized that political will is needed to increase asset monetization, as states currently show reluctance to let go of assets, creating a fiscal burden for the country. Shah noted that the sector is maturing, with better price discovery for assets and improved appreciation of risks within the lender ecosystem.
