India's InvITs and REITs Showcase Remarkable Growth in Q2 FY2026

India's Infrastructure and Real Estate Investment Trusts marked substantial growth in Q2 FY2026, with a 34.32% increase in distributions. Boosted by new market entrants and solid performance across sectors like roads, telecom, and real estate, the sector saw enhanced investor confidence and promising momentum.

India's Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) have demonstrated significant growth in the second quarter of FY2026, driven by strong performance across various asset classes. According to ICRA Analytics, distributions from these trusts soared by 34.32% quarter-on-quarter, surpassing Rs 3,300 crore.

The improvements were largely attributed to robust activity in roads, telecom infrastructure, and commercial real estate. In particular, REITs led the charge with a remarkable 49.49% sequential increase, benefitting from healthy leasing and improved rental rates. Road InvITs saw increased traffic and a seasonal boost, resulting in impressive figures.

The ecosystem's maturity is further evidenced by fresh listings, like TVS Infrastructure Trust and Knowledge Realty Trust, which along with Anantam Highways Trust, reflect enhanced investor confidence. This trend is set to continue, with optimism buoyed by ongoing demand in telecom and energy infrastructures, according to ICRA's Madhubani Sengupta.