Cube Highways Trust has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
Cube Highways Trust has disclosed an NHAI circular dated September 13, 2025, which revises the Wholesale Price Index (WPI) linking factor used in toll fee computations from 1.641 to 1.561. This linking factor is applied to convert WPI from the 2011-12 base year to the 2004-05 base year, directly affecting annual toll escalations on national highway projects. A lower linking factor means smaller inflation-linked toll hikes, which reduces revenue for toll road operators. The Trust, through its underlying project SPVs, is evaluating the implications of this circular and has reserved all legal rights and remedies available under concession agreements. NHAI justified the change based on revised data from the Office of Economic Advisor.
This is a material negative development — lower WPI-linked toll escalations will reduce future revenue and distributable cash flows for the InvIT's unit holders. Investors should expect pressure on the units until the Trust clarifies the estimated financial impact and any potential legal recourse.