Capital Infra Trus has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
The Board of Gawar Investment Manager (Investment Manager to Capital Infra Trust) met on August 6, 2025 and approved the unaudited standalone and consolidated financial results for Q1 FY26 (quarter ended June 30, 2025). On a consolidated basis, the Trust reported revenue from operations of ₹1,886.96 million (up from ₹1,590.63 million in Q4 FY25) but posted a loss after tax of ₹737.18 million, with an EBITDA margin of negative 33.42%. Standalone results showed a loss after tax of ₹781.40 million, largely driven by an exceptional impairment loss of ₹3,302.83 million on investments in subsidiaries and loans to SPVs. The Board declared a distribution of ₹1.00 per unit (totalling ₹275.40 million) as return of capital, with record date August 11, 2025 and payment on or before August 19, 2025. Importantly, the Trust's Net Borrowing to Enterprise Value ratio stood at 54.97%, breaching the SEBI-mandated 49% threshold, which the Investment Manager has informed the Trustee about and is working to remedy within six months.
Short-term: Unitholders will receive ₹1.00 per unit distribution, but the underlying financials show losses, a sharp rise in debt-equity ratio (1.28x vs 1.03x), and negative debt service and interest coverage ratios, signalling stress. The regulatory breach of the Net Debt/EV threshold and the large impairment loss are negatives that could weigh on unit price sentiment, even though quarterly revenues are growing on a consolidated basis.