Raajmarg Infra Investment Trust (RIIT) Q2 FY27 Profit Jumps 32% on Strong Toll Revenue
The NHAI-backed InvIT posted a 32% sequential profit rise, driven by toll revenues from its operational road assets and a significant margin expansion.
Raajmarg Infra Investment Trust reported a consolidated net profit of ₹75 crore for Q2 FY27, up 32% from the previous quarter. Revenue grew 6% to ₹246 crore, with net profit margin expanding 600 basis points to 30.5%.
For a public Infrastructure Investment Trust (InvIT), the story is written in toll collections and distribution payouts. Raajmarg Infra Investment Trust, backed by the National Highways Authority of India (NHAI), delivered on both fronts in its second full quarter since listing, with profit growth far outpacing a steady rise in revenue.
Revenue for the September 2026 quarter reached ₹246 crore, up 5.9% from the June quarter. Net profit surged 31.9% to ₹75 crore, lifting the net profit margin to 30.5% from 24.5% three months earlier.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 |
|---|---|---|
| Period | Sep 2026 | Jun 2026 |
| Revenue (₹ Cr) | 246.0 | 232.39 |
| Profit (₹ Cr) | 75.0 | 56.87 |
| Net Profit Margin | 30.5% | 24.5% |
The primary driver was toll revenue from its five operational road projects, as noted by scanx.trade. A sharp 107% jump in other income, though a smaller base, also contributed to the bottom-line beat. This performance marks a decisive turnaround from the trust's pre-operational phase earlier in the year.
The accounting reality behind the profit
While the consolidated profit grew, it remains a fraction of the standalone entity's earnings. According to scanx.trade, a gap of ₹2,445.51 crore in depreciation and amortization expenses between the consolidated and standalone accounts explains this divergence. The trust's core cash-generating ability is better reflected in its declared distribution of ₹2.43 per unit for the quarter.
The trust’s financial health is stable, with a debt-to-equity ratio of 0.62. Flashfinance.news reported the interest service coverage ratio improved to 1.50 times, indicating sufficient cash flow to service debt. Scheduled repayments also helped reduce the net borrowings ratio.
A pipeline for the next growth phase
The outlook is tied to asset expansion. NHAI has granted in-principle approval for Raajmarg to acquire 10 new road stretches spanning about 910 km, as reported by Construction World. This potential acquisition, part of NHAI's FY27 monetization plan, could more than triple the trust's road portfolio from its current 260 km.
This pipeline aligns with a broader government push to recycle infrastructure capital through InvITs. The Union Budget 2026-27 has introduced measures to strengthen these instruments, aiming to channel more long-term investment into the sector.
Key Points
- Consolidated net profit rose 32% quarter-on-quarter to ₹75 crore on a 6% revenue increase.
- The trust declared a distribution of ₹2.43 per unit, supported by toll revenues from its five operational road projects.
- NHAI has offered the trust 10 new highway stretches for potential acquisition, which could significantly expand its asset base.
- The interest service coverage ratio improved to 1.50 times, reflecting stable debt-servicing capacity.
Hexa Perspective
Raajmarg’s quarter confirms its transition into a steady, cash-generating vehicle. The core narrative is no longer about startup losses but about the yield from existing roads and the capital ready for new ones. The 600-basis-point margin expansion, while partly aided by other income, shows operating leverage beginning to work.
The trust now trades on execution of its growth pipeline. The market will weigh the terms of the proposed 910 km acquisition against the need to maintain distribution yields. For now, the combination of a rising NAV—reported at ₹110.12 per unit—and a clear asset roadmap provides a tangible foundation for the quarters ahead.
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