India’s Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) delivered a strong performance in the September quarter of FY2026, with distributions rising sharply across public and private trusts. This was aided by healthy operating metrics in roads, power and energy, commercial real estate, telecom infrastructure, and logistics assets.

Distributions by public REITs and InvITs jumped 34.32% quarter-on-quarter to cross ₹3,300 crore in Q2 FY26, as per the latest report by ICRA. On a year-on-year basis, this marks a 55.42% increase, indicating improved asset-level performance and contributions from newer trusts entering the market.

REITs emerged as the strongest performers during the quarter, with distributions rising nearly 49.5% sequentially and 68.5% year-on-year. The growth was driven by robust leasing momentum, higher rentals and improved collection efficiencies across commercial office portfolios, the report noted.

As per the report, road InvITs also posted solid gains, recording a 23.6% quarter-on-quarter increase and more than doubling distributions on an annual basis, aided by strong toll traffic and festive season tailwinds.

Power and energy InvITs remained stable, with modest quarter-on-quarter growth of 1.7% and a 5.3% rise over the previous year, reflecting the predictable and annuity-like cash-flow profile of these assets.

Private InvITs, which continue to attract institutional capital, reported distributions exceeding ₹4,700 crore in Q2 FY26, up 13.44% from the previous quarter. Year-on-year, payouts rose 27.53%, underscoring steady growth across asset classes, the report highlighted.

Within the private trust universe, telecommunication InvITs stood out, registering a 15.65% quarter-on-quarter rise and a sharp 59.32% year-on-year increase, driven by higher tower utilisation and continued expansion of digital infrastructure. Road InvITs and warehouse and logistics trusts also recorded healthy sequential growth of 14.36% and 19.47%, respectively, while power and energy assets remained largely stable.

According to ICRA, the momentum in distributions was aided by increased market activity, with the recent listings of TVS Infrastructure Trust and Knowledge Realty Trust in Q2 FY26, followed by Anantam Highways Trust in Q3 FY26. These additions highlight growing investor confidence and point to increasing maturity across both public and private InvIT and REIT platforms.

Looking ahead, the outlook for the sector remains positive, supported by strong underlying demand drivers. “Spurred by traction in leasing in the commercial real estate segment, festive season tailwind on traffic revenue, and expanding requirements in telecom infrastructure, solar power and energy, the outlook for Q3 FY2026 remains positive,” said Madhubani Sengupta, head – Knowledge Services, ICRA Analytics.