Anantam Highways Trust claims to operate in a sector that has seen steady growth in government spending. As per industry reports, road sector capital expenditure grew at a CAGR of 14 percent between fiscal 2018 and 2023, supported by programmes like Bharatmala and the National Infrastructure Pipeline.
The trust claims that it will have a sizeable initial portfolio of completed and revenue-generating assets, comprising seven operational projects with a total length of 1,086.60 lane kilometres, spread across five states and one Union Territory. These projects are backed by concession agreements with the National Highways Authority of India (NHAI), with residual concession periods ranging from 12.65 to 13.42 years as of June 30, 2025.
The trust claims to benefit from the involvement of Dilip Buildcon Ltd (DBL), which was the original developer and engineering, procurement, and construction (EPC) contractor for its projects. DBL has also been engaged as the operations and maintenance (O&M) contractor, providing continuity of expertise in managing and maintaining these assets.
Through right of first offer (ROFO) agreements, the trust claims to have access to a pipeline of future road assets from DBL, Alpha Alternatives, and their affiliates. This arrangement is presented as a potential opportunity for portfolio expansion in the coming years.
The company’s profit after tax (PAT) has shown consistent improvement, narrowing from a loss of Rs 178.48 crore in FY23 to a loss of Rs 160.05 crore in FY24, before turning profitable at Rs 410.62 crore in FY25.
Any adverse outcome from the acquisition of Project SPVs from Alpha Entities, DBL, DBL Infraventures, or third parties could negatively impact the trust. The trust may not be able to recover losses arising from such acquisitions under the relevant contractual arrangements.
Any defects or deficiencies in the acquired project SPVs or future third-party assets may result in additional capital expenditure or obligations to concessioning authorities. Such unforeseen requirements could adversely affect the trust’s earnings, cash flows, and distributions to unitholders.
Any adverse changes in government policies, incentives, or budget allocations in India could negatively affect the trust. The trust’s operations and future growth are dependent on relationships with central and state government entities, including NHAI, and shifts in policy or focus could hinder new project opportunities.
Any failure to identify or acquire new infrastructure assets generating comparable revenue, profits, or cash flows may adversely impact the trust’s financial condition. The trust’s growth strategy depends on timely and viable acquisitions of road infrastructure assets.
Any adverse restriction on fund utilisation due to escrow arrangements may limit the flexibility of project SPVs. Funds deposited into escrow accounts must be used strictly as per the concession agreements, potentially constraining the trust’s ability to respond to operational needs.
Any reduction or delay in annuity income or interest payments from NHAI could adversely affect the trust’s distributions. The projected revenue from operations for FY26 to FY29 is Rs 798.45 crore, Rs 765.53 crore, Rs 755.48 crore, and Rs 743.11 crore, respectively. Failure to receive expected annuities would impact cash flows.
Any adverse fluctuation in routine or major maintenance costs could negatively affect the trust’s operations. Maintenance obligations, including repair of road wear and tear, depend on raw material prices, fuel costs, and labour, which are beyond the Trust’s control.
The company reported negative cash flows from operating activities, which amounted to Rs 958.89 crore in FY25, Rs 1,889.20 crore in FY24, and Rs 230.05 crore in FY23. It also reported a negative cash flow from investing activities of Rs 825.16 crore in FY23. It also reported a negative cash flow from financing activities of Rs 108.30 crore in FY25. It is important that the company balances its cash inflow and outflow to avoid the need to raise additional external financing, which could impact its financial condition and operations.
As of June 2025, the company reported total indebtedness of Rs 3,571.78 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.