InvITs & REITs Post Robust Growth in Distributions in Q2 FY2026 Backed by Strong Operating Metrics Across Assets

Mumbai, December 17, 2025: India’s InvIT and REIT market delivered robust growth in distributions for Q2 FY2026, driven by strong operating metrics across roads, power & energy, commercial real estate, telecom infrastructure, and warehouse & logistics, ICRA Analytics has said. Fresh entrants contributed additional momentum, amplifying the gains delivered by seasoned trusts.

Distributions by public trusts surged significantly, recording a quarter-on-quarter growth of 34.32 per cent, crossing INR 3,300 crore in Q2 FY26. Compared to the same period last year, this marks a robust 55.42 per cent year-on-year increase.

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 behaviour.

Private InvITs recorded distributions of over INR 4,700 crore, reflecting a 13.44 per cent quarter-on-quarter growth over Q1 FY26. Year-on-year, distributions expanded by 27.53 per cent relative to Q2 FY25.

Telecommunication assets continued to perform strongly, with better tower usage and digital infrastructure expansion. Roads and logistics trusts saw healthy QoQ increases, while Power & Energy remained largely stable.

The recent listings of TVS Infrastructure Trust and Knowledge Realty Trust in Q2 FY 2026, followed by Anantam Highways Trust in Q3 FY 2026, underscore the growing investor confidence and signal increasing market maturity across both public and private platforms.

“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 outlook for Q3 FY2026 remains positive,” Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics, said.