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The Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) in India together saw robust growth in distributions in the second quarter of FY2026. The growth was attributed to the strong operating performance in sectors like roads, power and energy, commercial real estate, telecom infrastructure, and warehouse and logistics, as per the data released by ICRA Analytics.

The public InvITs and REITs distributions experienced a substantial quarter-on-quarter (QoQ) increase of 34.32 per cent, surpassing Rs 3,300 crore in Q2 FY2026. Year-on-year (YoY) distribution growth was 55.42 per cent compared to the same quarter of the previous fiscal year. The performance of the sector was also supported by new market players who added extra momentum to the sector, along with the existing trusts.

REITs among public trusts were the ones who led the growth, recording a phenomenal 49.49 per cent sequential and 68.52 per cent YoY increase in their distributions. The rise in leasing activities, higher rental prices, and better collection efficiencies within the commercial real estate portfolios were all responsible for the growth.

Similarly, Road InvITs also benefited from strong growth by upping their distributions by 23.57 per cent compared to the previous quarter and more than doubling them yearly, thanks to the strong volume of toll traffic and seasonal uplift. Power and energy InvITs kept steady, reflecting the cash flow predictability of these assets.

Although private InvITs also announced consistent growth, their cumulative distributions in the quarter crossed Rs 4,700 crore. The QoQ growth of 13.44 per cent compared to Q1 FY2026 and the YoY growth of 27.53 per cent were the results of this allocation.

The assets for the infrastructure of telecommunication within the private trusts were the ones that kept on shining due to the higher tower usage and the digital infrastructure that is being constantly expanded. The InvITs working in the area of warehouse and logistics also attracted investors with their performance, while the road assets kept the same stable demand as before.

In terms of a sequential measure, power and energy assets almost did not change, but they scored a moderate increase YoY.

The period also recorded a lot of market activity, with the listing of TVS Infrastructure Trust and Knowledge Realty Trust in Q2 FY2026, which was followed by the listing of Anantam Highways Trust in Q3 FY2026. These occurrences show that there is a rise in investor confidence and also indicate that the InvIT and REIT ecosystems in India are becoming more mature and are now ready for both public and private platforms.

Commenting on the outlook, Madhubani Sengupta, Head, Knowledge Services, ICRA Analytics, said that traction in commercial real estate leasing, festive season tailwinds boosting traffic revenues, and rising demand for telecom infrastructure, solar power, and energy assets are expected to support a positive outlook for Q3 FY2026.

With ANI inputs