Cube Highways Trust Q4 FY26: ₹3.57/unit distribution, 10.8% toll growth

Cube Highways Trust announced a Q4 FY26 distribution of ₹3.57 per unit, bringing the annual distribution to a record ₹13.77 per unit. Since listing, cumulative distributions total ₹34.86 per unit, achieving a 23.7% IRR over three years. The balance sheet remains robust with net debt to AUM at 46.82% and AAA ratings. The weighted average cost of debt improved by 66 basis points to 7.53%. The portfolio showed strong operating performance in Q4, with 9.2% year-on-year traffic growth and 10.8% year-on-year toll revenue growth. For the full year, traffic grew 8.1% and revenue 10.6%, outperforming FY26 projections by 3.2%. Claims for annual passes are stabilizing, with 78% settled by NHAI. For FY27, GDP growth is moderated to 6.5%, and traffic growth is projected at 3% due to geopolitical factors and upcoming corridor diversions, leading to an expected toll revenue growth of 6.4%. However, toll collection through May 25, 2027, shows over 10% year-on-year growth.