Cube Highways Trust

India Ratings and Research has withdrawn its rating for Cube Highways Trust’s (CHT) Commercial Paper program, announced in a letter dated August 17, 2026. The rating action concerns a INR 13,500 million program initially issued on September 10, 2025, and the withdrawal is due to the program being fully paid off. The rating agency relies on information from the issuer and other credible sources, conducting investigations and seeking verification, though accuracy cannot be guaranteed. India Ratings notes that ratings are based on forward-looking assumptions and are not investment recommendations, while also including standard risk disclosures and contact information for inquiries.

Cube Highways Trust announced Rs 1,127 crores in revenue for Q1 FY27, a 19.3% year-over-year increase, alongside a total consolidated income of Rs 1,157 crores and Rs 532 crores in Net Distributable Cash Flow, up 57% year-over-year. The trust distributed Rs 531 crores to unitholders, equivalent to Rs 3.95 per unit, representing 99.8% of its NDCF. A recent amendment to taxation laws is expected to benefit investors by largely exempting dividends from taxation, although it will slightly increase the surcharge for Special Purpose Vehicles. The trust’s Net Asset Value rose to Rs 149.6 per unit, and its debt, including deferred payments, stands at Rs 17,645 crores. The company has 27 SPVs within its portfolio and is focused on sustainable distributions and long-term value creation.

Cube Highways Fund Advisors Private Limited, acting as the investment manager to Cube Highways Trust, reported no deviations in the use of proceeds from a private placement of Rs 6,370,000,000.00 in Senior, Secured, Rated, Listed Redeemable, Non Convertible Debentures raised on June 29, 2026, according to a filing with the BSE Limited on August 14, 2026.

Cube Highways Trust, managed by Cube Highways Fund Advisors Pvt. Ltd., announced a Distribution Per Unit (DPU) of Rs 3.95 for the quarter ended June 30, 2026, totaling a distribution of Rs 531 crore, and revised its full-year FY27 DPU guidance to Rs 14.50 per unit from Rs 14.00 previously, citing strong traffic performance; the company reported revenue from operations of Rs 1,127 crore, up 19.3% year-over-year, and a net asset value of Rs 149.6 per unit as of June 30, 2026.

Several entities, including GAEPL, KSPPL, KSIPL, and KTIPL, are facing ongoing disputes with tax authorities related to income tax, goods and services tax (GST), and legacy value-added tax (VAT) matters. A recurring point of contention involves the taxability of “utility shifting work,” which tax authorities are classifying as a “deemed sale” subject to GST, a classification disputed by the companies. Numerous cases have escalated to the GST Tribunal and High Court, with some requiring pre-deposit of disputed tax amounts before appeals can proceed; KSPPL, for example, faces a significant INR 815.02 dispute resulting in a High Court writ petition. While management maintains that these disputes are unlikely to result in material liabilities impacting overall valuation, the ongoing assessments, appeals, and potential for further scrutiny represent contingent liabilities and highlight a level of disagreement with tax authorities.

Cube Highways’ listed non-convertible debentures are adequately secured, according to a recent certificate detailing asset cover. The certificate, referencing Debt Security Trust Deeds dated between June 14, 2023, and June 19, 2026, reveals a Pari Passu Security Cover Ratio of 1.72 times, indicating the value of securing assets is 1.72 times the outstanding debt. The debentures hold a first-ranking pari passu charge on a portion of the issuer’s assets, alongside other lenders, and are also backed by exclusive charges on certain assets. The security package includes pledges of moveable assets, receivables, loans to project special purpose vehicles, bank accounts, bonds, equity shares, and immovable assets, though certain SPVs are excluded. Cube Highways does not have any unsecured listed debentures.

Cube Highways’ asset cover for its listed non-convertible debentures was reported at 1.72 times as of June 30, 2026, according to a recent certificate. The coverage, which is a regulatory requirement, reflects a first-ranking pari passu charge on a broad range of assets including receivables, loans, dividends, and equity shares related to the company’s Project Special Purpose Vehicles. Certain Project SPVs, such as Mahua Bharatpur Expressways Limited, are excluded from the security. The certificate also includes a pledge of the Debt Service Reserve Account and a negative lien preventing additional encumbrances. The figures are based on unaudited records and are determined in accordance with multiple Debt Security Trust Deeds, with annual testing of financial covenants planned based on audited financials.

Cube Highways Fund Advisors Private Limited, the investment manager to Cube Highways Trust, will host an investors' conference call on Monday, August 17, 2026, at 4:00 PM IST to discuss the financial information of the InvIT for the quarter ended June 30, 2026.

Cube Highways Fund Advisors Private Limited, acting as the investment manager to Cube Highways Trust, will hold meetings of its Audit Committee and Board of Directors on August 14, 2026, to approve the unaudited standalone and consolidated financial information for the quarter ended June 30, 2026, and consider a declaration of distributions to unitholders for the same period. The InvIT also plans to avail financial assistance, potentially through rupee facilities from banks and/or financial institutions, issuance of non-convertible debt securities, and interest rate derivatives. The record date for the proposed distribution is August 19, 2026, and the trading window for the InvIT units has been closed since July 1, 2026.

Cube Highways Trust informed the BSE Limited and National Stock Exchange of India Limited that it is disclosing the unitholding pattern as of July 31, 2026, following the conversion from a privately listed infrastructure investment trust to a publicly listed InvIT through an Offer for Sale (OFS). According to the filing, corporate bodies, including foreign bodies, held 25,05,11,454 units, representing 18.64% of the total outstanding units, while the total public unit holding amounted to 1,09,35,58,308 units, which is 81.36% of the total outstanding units of 1,34,40,69,762.