Indigrid Infrastructure Trust (540565) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Indigrid Infrastructure Trust's Q3 FY '26 Earnings Conference Call hosted by Ambit Capital Private Limited. [Operator Instructions] Please note that this conference has been recorded. I now hand the conference over to Mr. Satyadeep Jain from Ambit Capital. Thank you, and over to you, sir.

Good afternoon, everyone, and welcome to the Q3 earnings call for Indigrid Infrastructure Trust. Today from the management, we have with us Mr. Harsh Shah, Managing Director; Ms. Meghana Pandit, Chief Financial Officer; and Mr. Sanil Namboodiripad, Chief Operating Officer. We'll begin the call with the opening remarks from the management, after which we'll have the forum open for interactive Q&A session. And now I hand over the call to the management. Thank you, and over to you, sir.

Thank you. So I will walk through the presentation for quarter 3 and me and team will discuss certain aspects of that. And subsequently, we question on start with on Slide 3, I'll just retake our vision and our vision to admire the most maybe vehicle focused with the local business model, value accretive growth, [indiscernible] risk solution and optimal capital structure. We [indiscernible] we are informing these 4 principles over the last 7 years. On the next slide, Slide 4, just to reiterate today is approximately INR 32,800 crores. We are present in 20 states and 2 UTs, so almost entire country with about 90 different generating elements. It includes 53 lines, 16 substations 1.5 gigawatt of solar projects and several products. Our transmission and solar assets have substantially along the life and average receiving contracts over 20 years with transmission -- most of the transmission assets are on perpetual it. Going to Slide #6, with quarterly updates of FY'26. We signed SPA to acquire Gadag Transmission Limited from the new . It's 87 kilometers, how you in capacity and IT project in Karnataka for approximately INR 372 crores. We're expecting to close this transaction in this quarter. We also raised INR 1,500 crores of equity through institution replacement, issue was subscribed -- oversubscribed by 2x. And we saw widespread participation across new long only and global institutional investor.

Ladies and gentlemen, we have the management line disconnected. Please stay on the call while we reconnect the management. Ladies and gentlemen, we have the management line reconnected.

Sorry, sorry for the disruption. I would repeat, I was talking about the QIP introduction placement where you raised INR 1,500 crores and both are existing as well as new investors participated over the -- in this issue. We also signed definitely agreements to acquire 2 of the underconstruction projects after 1 year of commissioning its day 1 during the quarter. One of them was project of 500-megawatt of capacity in EP with a counterparty as NVVN for approximately INR 957 crores. And under the ISTS project in Madhya Pradesh with 180 ckilometers and 4500 MVA of the transformation capacity for an EV of approximately INR 1,577 crores. This is the project which in every won in this quarter, which is located in MP and of the lease by agri and transferred to us after COD. This overall the latest way an overall under construction portfolio across individual average stands at approximately INR 500 crores which offers a pipeline that we see from our current AUM of INR 32,000 crores to approximately INR 40,000 crores. On the financial performance for the quarter, our revenue growth was at 11.7% on a year-on-year basis on account of the new projects that we added in the portfolio over the last year. Same also flows through our EBITDA with EBITDA growing approximately 13%. Our AUM, as I mentioned earlier, is at INR 32,000 crores with the quarter ended at 61% net debt to AUM. And post the institutional placement, which happened in quarter 4, our net at approximately 56.5%. Collections in quarter 3 was 90% for transmission and 98% for solar assets. However, the receivable is substantially lower owing into that more collection that we have received by. On the distribution front, we are maintaining a GP at INR 4 a unit, which is 6.7% higher versus same quarter last year and in line with our full year guidance. Our weighted of the availability for the entire portfolio remains at 99% and CES for a solar capacity is 21.6%. With the industry update for quarter 3 on Slide 7. I think the growth in the power sector remains on a good trajectory. You've seen the peak demand that we could meet our countries to about 241 gigawatt which is decisively higher, not just over the last few quarters, but if one looks at a few years ago, where the peak demand was in 200. So we are clearly seeing an uptrend in terms of the ability to meet peak deman which will eventually translate into the overall consumption of electricity going up anyhow. For our installed capacity, also cases to approximately 514 gigawatts and more than 50 of the new capacity. You feel that this both overall consumption electricity as well as focus on renewable is going to put impetus in transmission capacity. That needs to be added or linked, including battery capacity over the next 5 to 10 years. The draft NEP-2026, which is at consultation level is focused on more transmission planning and cemented reliability for the coming decades. I think that the importance of energy storage is consistently going up over the last few years, starting from the first week to now, there have been a sizable amount of it almost 13 gigawatt or bids under VEGF otherwise have come up and India is all targeting more than 100 gigawatss storage. So we think that overall storage market is going to mean to grow over the next. We feel that the RPOs and the grid and the battery capacity will consistently going up and that would throw reasonably good opportunities for us to continue to participate and grow our portfolio and increase. On Slide 8, we see very active with activity in the transmission and BESS sector. We've seen overall INR 157,000 crores of transmission in grid over the period of next few quarters. which includes the few HVDC bids as well as smaller state bids and battery bids. So we are hopeful that we would continue to be to participate in this bid and abate and grow the portfolio. On Slide #9, we have a quarterly operational performance. I would request Sanil, our Chief Operating Officer, to take you the same.

Thank you, Harsh. Good evening, everyone. We are on Slide #9, regarding the quarter performance. First is the safety update. We had 0 medical treatment cases, first aid cases unless an incident, maintaining our health and wellbeing. Performance-wise, the power transmission business operated with an availability of 99.77%, maintaining a stable availabilities. And the solar generation, the Q3 was 551.5 million units at 21.6% a year. With regard to the reliability, the fixed per line, we have maintained by 0.07 maintaining a steady reliable performance. Major of the treating that happened were due to foreign materials lightning and thunderstorm, which were beyond our control. Substation clips per element outages were at 0.01 per element, which is better than the average benchmark. And solar availability was 98.5%, the plant availability. And some of this was due to various breakdowns and which will recover some of them were recorded under insurance coverage. If you look at the right side, the Q3 availability was of the transmission assets were beyond the normative, most of them except 1 asset, we operated much well beyond normative availability as of the transition service agreements. And if you look at the key indicators, we are better or at the par with regards to the Q3 of the last year. Number of trips per line last year was 109% in the same quarter. Today, we were this quarter, we were at 0.07. Training manhours remains steady. Lack of time incidents were better this year. Unsafe condition reporting, we encourage always that reports should be there so that we are able to take corrective actions. So this has improved and yearly reporting also has been in a steady way. The utility solar generation was 551 million units, so it's slightly better than last year's, and the plant availability remained steady with 21.6% and 98.5% availability. So the next slide, may I request Meghana to take over.

Yes. Thanks Sanil. Good afternoon, everyone. I'm on Slide #10 on the Q3 FY '26 financial performance. Starting from the reported revenue where we clocked an increase of 11.7% over Q3 FY '25 and recorded to revenue at INR 862 crores. On the EBITDA side, consequently clocked an increase of 13% at INR 784.3 crores. Both these increases were on the back of the acquisitions that we did in Q1 of this fiscal, the ReNew assets that we acquired on the transmission and solar side, almost about INR 200 crores, INR 300-odd crores of acquisitions that came through. And this we have generated for the quarter showed a muted performance at around INR 328 crores, largely on the back of changes in the working capital, on the collections bit because FY '26, we had much larger collections. So comparatively, on Q3, there has been an adjustment that happened. DPU for the quarter is declared at INR 4 in line with the guidance for this fiscal of INR 16. On the collection and receivable days, the transmission assets portfolio had collections of 90% in Q3, FY '26 versus 100% year-on-year basis. But the days outstanding, DSOs stood at a very healthy of 38 days as on December 2025 compared to 48 in December '24. On the solar side, our collections remained very robust at 98%, with DSOs again at 32 compared to 50 days in December '24, a marked improvement on the collections and DSOs which we have seen in the sector itself. Moving on, on the distribution update on Slide 11. As I said, the distribution per unit stands at INR 4 for Q3, breakup of which between interest dividend, capital repayment and other income stands in line with the trend every quarter. The total outstanding units for the -- as on date at INR 95.26 crores. This is after the institutional placement where we raised INR 1,500-odd crores at the beginning of January. The gross distribution for this quarter stands at INR 381 crores with a record date of Feb 17 and tentative distribution around February 24. The NAV per unit stands at INR 146.4. This is the diluted capital after taking into account the institutional placement. So the total distribution stands at INR 113.32 per unit, amounting to INR 72.7 billion, which is being distributed to the investors since the time we got listed in 2017. The annual distribution trend again looks very healthy with a 6% CAGR over the last 5 years, and we are on track on delivering the guidance for the year at INR 16. Moving on to Slide #12 on the consolidated EBITDA to NDCF waterfall, the EBITDA generated at SPV level stood at INR 756-odd crores and with all the adjustment in terms of the working capital movements, CapEx, the NBCF consolidated at SPV level. stood at INR 678 crores. After that, adjusting the debt servicing requirements of finance cost, [indiscernible] working capital movement, the NBCF have generated during the quarter stood at INR 328 crores, and the distribution for the quarter stands at INR 381 crores, so to the extent of about INR 52.7 crores, we will be utilizing it from the reserves. And after the utilization of this INR 53-odd crores from the reserve, the reserve balance, will stand at INR 520.7 odd crores, which is almost 1, 1.5 quarters of distribution on the diluted capital as we speak. Moving forward on Slide #13 on the balance sheet position. We continue to remain triple A rated by all the 3 rating agencies. The average cost of debt stands at 7.41% as on December 31, with to AUM leverage ratio at 61% in December. And after the institutional placement, it was at 56.5%, leaving a significantly healthy debt headroom for future acquisitions. On the borrowing front, the total fixed rate borrowing between the overall book stands at about 88-odd percent with floating borrowings at about 12-odd percent. Cash balance, again, including DSRA, including the distribution for the quarter stands at around INR 16.59 billion and an interest coverage ratio of 1.92x. On the gross borrowing of around INR 21,000-odd crores, the mix between NCDs and bank loans stands at 72% and 28%, with a diversified debt investor across mutual funds, banks, corporates, provident funds and a mix of PSUs as well as private banks. The refinancing schedule that we see at the bottom of the chart shows a diversified and termed out borrowing profile, ensuring that we do not bunch up any maturities in any particular year and do not cross more than 12%, 13% of gross borrowing, which comes up for refinancing in any particular year. And for this -- for the remainder of the quarter in this fiscal, almost everything is already refinanced, barring about INR 200-odd crores of refinancing, which will come up now. Moving on to Slide #14 on the total returns to investors, total returns depicted by the distribution till date and the price change. As you can see, Indigrid has clocked a total return of 181% and an annualized return of 13% since the time we got listed. And if we compare this with pure debt on 1 hand, which is depicted by the 10-year and 30-year lease bond, and with pure equity, which is depicted by various indices, you can see that on a risk-adjusted basis, Indigrid has outperformed both pure debt and pure equity indices Risk being depicted through the EBITDA, which is very close to 0 at 0.06. Moving on to the business outlook on Slide #15. So on the portfolio strategy, we continue to ensure that our focus remains on ensuring the operations remain stable with predictable and sustainable distribution, while at the same time, looking at value-accretive acquisitions. The greenfield development projects which are there between Indigrid and EnerGrid, our focus is ensuring that execution of the augmentation work as well as the under-construction projects of INR 7,500 crores continue to remain on track and we deliver on time. In addition to that, through EnerGrid, we will proactively participate in further greenfield opportunities on battery and transmission projects. Similarly ensure that we delivered DPU guidance of INR 60 for FY '26, supported by disciplined capital employment. On the balance sheet side, again, our focus remains on how to optimize the interest cost and ensure how we can elongate the tenor profile through the upcoming acquisitions and refinancing opportunities that come about. And with the kind of leverage ratio that we have achieved ensure that the prudent leverage is also maintained when we look at acquisitions. Resilient asset management, again, remains an important pillar where we focus on sustaining at least 99.5% of availability from the operational transmission portfolio. In addition to that strengthened on O&M capabilities basis of digital and predictive analytics, both on the transmission side as well as on the solar side. Underpinning that, to ensure that EHS and ESG practices remain at the forefront. Industry stewardship again continues to be on the forefront, wherein we participate actively on policy shaping industry dialogues through of power, CERC, et cetera, on the power sector side and on the other hand, on the InvIT side through various forums and through the association also that is found. I'll take a pause here, and we can get into the Q&A session for any specific queries.

[Operator Instructions] The first question is from the line of Shirish Singhania from Singhania Technical Services Private Limited.

Am I audible? Hello.

Yes, you are audible.

I'm Shek Singhania from Singhania Technical Services Private Limited. I had 2 questions. Firstly, why have the collections in the transmission business reached 90% from 100% last year, considering like we had some collections in the previous quarter as well, but we have constantly like observed the dip in the reserves? So what have you like want to say about that? And secondly, we've observed falling tariffs across the renewable sector as the technology improves, so companies like JSW Energy, the initial project that these companies had are facing a little bit of legal issues as well. So how are we prepared to face similar situations?

I think on your first question on Slide #10, if you can have a look at it, you have to average on an annual basis. So the last quarter was 108%. Before quarter before that was 93% and before that, was 115%. So if you really look at last 12 months, we are honestly collected more than 100%. I think so -- so on a quarterly basis, that collection fluctuates between 90% to 115%. That's how we have monitored. I think when we look at the balance sheet, which is the DSO days is an easier way to figure out. So we have 38 days. which was 48 days at December '24, which practically shows you that the receivable days have improved rather we have collected more cash flow from last year. So I think it's just the quarterly changes that keep trapping, we don't see there is anything negative or materially wrong in that. It's rather we are seeing it's receivable days are substantially lower than history, which means that the collections have been well done till now. On the draw of the DPU, I think we raised 2 capital rounds this year, approximately INR 1,900 crores, which means that we are diluted. And deployment of those capital immediately goes over repayment of our debt and then when we acquire assets with that headroom is where the GPU grows. So immediately, the next quarter, for example, even this quarter, when we raised the capital, the dilution impact is 1 which reduced the indicated therefore, we've drawn on our reserves. As we deploy that on the assets is acquired, that will come back to normally what we do. So we don't see, again, negative on that. The question on JSW. I'm not sure which 1 you refer, but none of our projects have been renegotiated down. All of them are consistently paid and we do not see any -- I would say, we haven't felt or even slightly felt any of our projects in coming year, any kind of dispute issues on this front. Most of the at least renewable are operating for over a year to 10 years. So I think they have stabilized that.

Right. And if there is any color that you could give me on like when the equity proceeds raised will be realized as project cash flows, which I believe shall support NDCF as you are mentioning?

I mean, it depends on the acquisition and as sedges and is it to use the proceeds to repayment of debt, which we've already done. And we have a pipeline, as I mentioned earlier, of INR 7,500 crores, which we'll be acquiring over the next -- starting from 3 months to 2 years' timeframe, a 3 month to 3-year timeframe, which is known. So clearly, those cash flows will add into NDCF over the period of next 3 months to 3 years. There's a different cycle for each project.

The next question is from the line of Deep Vakil from Bandhan AMC.

Am I audible?

Yes.

Sir, you used to give the DPU slide in Q1 FY '26 and you've been giving that historically. But since last quarter and this quarter, I think it has been stopped. So can you please give that side, it helps us understand what the existing asset will give and what is the expansion plan? It was a chart with multiple indicative DPU profile.

Understood. We will start with quarter 4.

Yes. Congratulations on a good set of numbers. But 1 thing, I mean the DPU guidance stays intact 3% to 5% growth that you have been mentioning?

So we don't give growth guidance. We give DPU guidance, which is intact by INR 16. So that will continue. Growth that comes in the quarter 4 annual Board meeting is what we do. And even the DPU projection typically, we have done annually. So if you look at our last DPU like you would have given in quarter 4 of '25. Now we'll give in quarter in '26. So signing change quarter-on-quarter, and we will add that in the.

Okay. and sir, I think there is 1 asset which was nonoperational Godavari Green due to some transformer and generator failure. So I mean we have recognized the revenue for that. I mean we have not recognized a revenue loss for that. If I'm not mistaken, there was a similar asset where there was some generator failure last quarter or last quarter. So where ideally, I think we did not recognize the revenue. So is there some change in the policy in the revenue recognition because there also, I think there was a INR 40 crore, INR 50-odd crore revenue loss and a INR 30 crores, INR 35 crores EBITDA loss and for which we have filed insurance. And the second question is that, I mean, any update on that insurance claim.

I don't know where you're seeing this quarter. The Godavari Green project is operational. There is no disruption on that. And we only recognize revenue when the electricity is generated and sold. So if the asset is not working, we cannot recognize revenue. So I'm not sure where there is coming. Can you check that any level?

Yes, it's in the -- it's in your note #3 of your unaudited consol financial result, I mean, December and the latest result only I'm talking. Note #3, point, bullet point number 4, where I think the project was not operating from 21st March, 21 July. And I think in there, it has mentioned that management has not recognized revenue loss. So I'm just trying to...

As a matter of fact, it is a factual position that we share and subsequently in July, the assets has started back on tax. So there is no second case. It is the same case which is repeated in the balance sheet for -- Yes. There's nothing else that has happened. I think it's an ongoing proceed. We are considering that we'll receive in the positive development. As and when we receive fully, we'll be recognizing that in the books of accounts. So you will get to realize that.

Okay. And sir, 1 last point. I mean we have been seeing there have been, I mean, great availability issues in multiple states, including Rajasthan, Gujarat. So any sense on where -- I mean, the sector nuance, so how can Indigrid benefit out of this or the transmission charges might increase in new projects? Any sense around that?

No, I don't -- first, I don't call it grid availability issue. It is with connectivity issue. Grid availability issues are only on assets once they are available. So that is about grid connectivity for new projects. I think fundamentally, there are -- the gap is coming because the transmission capacity takes time to build 2 to 3 years and solar PPA takes probably much, much lesser to announce and sign. So what happens is that it's easier to sign a PPA announce. And unfortunately, our planning work that we can put in a plant anywhere. So connectivity is always going to be slower and it takes time. So I wouldn't say they are short or they are delayed. It's just that the way the country has been planning, we are planning generation first connectivity later, which needs to reverse and having connectivity first generation PPA later. So -- and I think you -- there is a lot of appreciation of this fact now. And you see that's the reason we are seeing new bids coming in a new pipeline for transmission assets coming in more. I don't think that has anything to do with transmission rates because that is a competitively bid. But we are seeing a lot more bids on account of this. So we -- that's where the whole INR 150,000 crores item that we showed that we see that new assets will come.

The next question is from the line of Sachin Jog, an individual investor.

Can all of you hear me?

Yes, please.

Congrats on another quarter of excellent performance. My first question relates to the acquisition of JR infra assets. So we had some kind of MOU with them a few years back, but haven't heard anything on that.

They decided not to sell assets to us. So the MOU got expired. That did not translate into an acquisition or signed definitive agreement. MOU agreement on good faith to work towards closure. However, subsequently, you could not reach an alignment on key terms, so it did not take place.

And what about the plant and assets that you were supposed to acquire from them?

See, it is their assets, it belongs to them. They basically own the asset.

From our end, has there been any follow-up?

No, the agreement expired because if it was an MOU, it is not a binding agreement. So if somebody does not monetize, we cannot really do anything about it, right?

Okay. Fair enough, Mr. Harsh. But we didn't hear about this agreement expiring and so maybe that is something that was a necessary communication to be sent out to stakeholders? Because you did amount...

Yes. I mean we'll have to consider that because see, the framework agreements are typically nonbinding agreements and a nonbinding agreement I think when you think about it, if it makes sense to really announce, we will think about it.

Because as I look at it, once you announce that you have an MOU and other specific assets that you're going to acquire once it is commissioned, and if that is not happening, I would say, at least as individual investor of about it from Indigrid.

Fair enough. So I think it's just a point of view. We respect that. We will consider obviously the disclosures are typically we have to see in line with the terms of the agreement. So we'll go back and see if we are able to do it.

Okay. The second point was also about. I think it has already been raised about this DPU accretive that slide, I think someone have already mentioned it before. Should we get it from the next quarter in the presentation?

No, we do it. If you check last couple of years of slides, you only shared this slide in quarter 4 of the year. So you can look at -- I mean, next quarter, you will obviously see that slide on an annual presentation. And then subsequently, you can refer is the same slide because honestly, quarter-on-quarter, things don't change in that slide. So we -- anytime we can go to last quarter 4 slide of '25, you'll get the same flag, Quarter 3 of '25, you'll get '24, you get the same slide. So next quarter, you will see it and then again, you'll see it in 12 months from then.

Okay. So you're making it up early maybe end of the year at?

Annual, yes, exactly.

Okay. Yes. So I wanted to understand, we have after your presentation, close to INR 7,500 crores of projects in the pipeline and CapEx. And our net AUM is about INR 32,000 crores. Am I right?

Yes.

I'm going by your slides. So typically, are we sort of getting into too much of a risk on where my understanding was that only 10% of our projects to be -- of the total asset value would be under construction. So I think this is far in excess of that. So is there a risk that we are taking on here?

No, good point. So first, the INR 7,500 crores includes EnerGrid assets. So we do not have -- this entirely is not our assets. So EnerGrid build these assets and subsequently sells to us after it is revenue-generating in operations. So under InVIT regulation, we are not allowed to cross 10%. We will not cross 10%. INR 7,500 crores is over a period of 3 years, and Indigrid buys it when it is completed in revenue generating. So we do not see reaching closer to 10% or reaching 10% in the future. We are not adding INR 7,500 crores of under construction risk. This portfolio is and EnerGrid and we will acquire when it's operated. We are sharing it to success that we have signed the agreement. For example, we signed 2 agreements this quarter for -- 1 for NVVN for INR 957 crores and other for NPE, which is INR 1,577 crores, which is put together approximately INR 2,600 crores. This is including INR 7,500 crores. This INR 2,600 crores will come to Indigrid when assets are revenue generating and for 1 year. So it is probably going to come 3 years from now, and for these that are binding agreements, and that's why we the definitive agreements are signed. So this is not a INR 2,600 crore risk for Indigrid. I hope I was able to explain that.

No, I understand that because in a way assets is -- I mean, technically, it's a separate entity, but I guess we still own 33% of EnerGrid, right? Am I right in that?

Correct, correct. So we will have 1/3 of it, which is was been -- much less than 10%.

Okay. So it's an indirect risk, anyway, I mean because have to buy those assets.

We want to buy those assets, not have to. That's why we are signing agreement, but we buy those assets when they are complete.

I understand. But I mean, as an investor, we should keep it in mind that those assets are supposed to come to Indigrid. And then if I look at that as a percentage, then I think we are close to somewhere around 20% of assets under construction. Okay.

But why? When they come to Indigrid, they are completed. The way you're calculating the percentage is wrong.

Previously, whenever there was an acquisition because I have been investing in Indigrid for a long, long time, there always used to be a very clear figure as to how much the acquisition will be accretive. So why is it that we don't have that figure in the later acquisition, the past 2 acquisitions that you had?

I think a few reasons, right? One, we have found it sometimes an asset-specific accretion misleading because an individual asset, whether we show as funded in what manner, right? So what debt equity. So it becomes, I would say, extremely complicated for unitholders to make interpretation. However, in the press release, we still mentioned how much is the NDCF coming for that acquisition. So that data is still available.

So Mr. Harsh, I think that is exactly the point. I remember that in the press release, previously there was to be a very clear number that this many crores accretive. I don't think that...

It is still there. It is still there, which see, these are not the acquisitions which are done. The acquisition are signed when we come...

I'm not talking about the...

ReNew acquisitions, please check. We said we still disclose interpose the acquisition. So we do mention when we acquired the NEC when we acquired the new asset in this financial year. You mentioned over INR 100 crores in that we acquired. These are the agreements that we have signed. So when we acquired , we do mention.

Okay. Maybe my bad, I will check once again. Whenever you make an acquisition, are our acquisitions in some way related to the prevailing interest costs? I mean because the NAV is wearing after the prevailing interest or maybe?

Yes.

So in that case, this CapEx, is it -- why is it that we have signed an agreement so much in advance? Or is it that at the time of the actual signing of the agreement that will be a consideration that are interest rate variation?

So there is no arise different types of agreements we signed. This agreement is such that where we have fixed the value of the agreement and we have synergies on that asset. So sometimes, we find framework. And if you find framework, as you also mentioned, we are not sell the asset to us. where the value was open, right? So we prefer to locking the assets where we send the agreement and for buttock in the value as well. So that's the way we have transacted on TechnoElectrica.

So if there is a change in interest rate at that point of time that would actually go against us?

Yes, it can go against us, it can go for us as well. It can go either way.

Okay. Previous year, I think in 2018, 2019, 1 of the things that Indigrid aspired to be was best in class corporate governance. And this is specifically mentioned as a part of the presentation. Somewhere around 2020, I think we removed that, so any specific reason? We added more vehicle and we removed best-in-class corporate governance. Any thoughts that went into it at that point of time?

I think it's -- I'll will have to defer back 6-year-old notes. I think what I can tell you, we do follow best in class corporate governance day in day out. And therefore, we don't need to mention it, I would say, it is part of our ingrained nature. So we don't need to be mention it as a strategy. I think all our unitholders or investment managers and sponsor expect us to do that as a matter of fact instead of as a strategy. So I think that's the reason 1 can really take home to do it. I don't recollect.

So my point is that sometimes when you put it there, it makes you more conscious. I understand I have been a long-term investor, I think have invested for more than 7, 8 years now. So I understand that, but I sometimes feel that you put in the presentation, every quarter, you have to look at it and maybe ask youself some questions, so it makes more conscious.

I think there are enough things to remind us to do that. We' don't need to put it in a we have annual reports or semiannual reports, so you can look at that. There are semi compliances, regulations that follows. I think there is enough, but I think we take input. We'll see.

Why this bias towards institutional investors when you are raising funds and recently funds has been raised. Have you ever thought of the right issues like retail investors also could benefit, now that 30% of your investors, which you have a proudly stated in the presentation of our retail investors?

No, there is a bias of retail versus institutional or otherwise. I think it is a pure strategy, for example, we have done a rights issue, if I'm not wrong, 4 years ago. So it's not that we have not done rights issue. We have done it in 2021. However, what happens is for rights issue to succeed, you need to have 90% subscription. And that requires us to give discount to ensure that 90% subscription happened, which I don't think is the right business decision for the business itself. So if there are unitholders who are valuing the unit, I'd say our institutional placement was 163. We would rather do institutional placement at 166 rather than do a rights issue at 155 for the business, that is the right decision. So I think for us, what is right for the business is right for everyone. So we try to follow that. So that's the first rationale of doing institutional placement. And the second rationale is that over a longer period of time, we are an acquisitive business. We will continue to grow it will be important for both retail or shareholders that there are institutional shareholders who are ability to contribute large capital. Yes, the retail shareholders' ability over the last several years have increased massively. The liquidity has increased massively. Having said so, if we were to do a INR 1,500 crore or other today, but let's say we acquire a larger projects going to do INR 3,000 crores of price issue or INR 3,000 crores of capital days. I don't think the liquidity is reached to the extent that 1 can safely assume that INR 3,000 crores will come, right, just from retail market. So I think we have to maintain a balance of long-term large pocket investors as well as the first decision is that if the retail comes at a substantial discount, unitholders may feel that they've got a better deal, but over a longer period of time for business, it's a raw deal. So I think we have to balance both. That's why we take decision of institutional placements.

Yes. So rights issue is anyway for existing investors, right? So I don't think there should be any reason for existing investors to see short changed if they have the rights?

No, no. It's not about investors getting short changed. For example, a INR 1,500 crore capital gives us, say, INR 7,000 crores of acquisition pipeline, right, on a 70-30 basis. If rights issue happen at a discount, the accretive result goes out because now you don't -- now for those INR 7,500 crores, you need a higher yield to make it accretive. If you acquire those assets if you -- so instead of issuing 5 crores units, you'll have to raise 6 crore units, which means you need to deliver growth on 6 crore units. So mathematically, we expect the assets have to yield much higher to be accretive. So it's not about 1 unitholder. As a business, when you raise capital dilutes, so the new project that we win need to be more profitable to meet the growth requirements for. So it puts stress on the business if we dilute at a deeper discount.

Okay. So my next question is related to operational availability of the assets. So this data PPL. I see that again this quarter, again, it is not able -- so does that mean that we're going to lose some revenue this year on that asset?

We might do some incentives on that asset, yes. That asset is a very small percentage of our overall assets. But it's -- yes, we have issue on that asset. So that's we restored the issue, but I think it's a very small asset that is an over currently, we have taken applied planned outage. So it will be back to normal availability in quarter 4.

No. But I think even before in Q1, there was a lot of assets which were very below the 98%. So now, of course, I see that most of them are above 98% this asset sales to be down. So any other aspects where we will lose revenue this year because of non availability?

So you have to read our annual report for that. I'm not sure for this quarter. has the last 3 quarters, which assets have changed, I won't remember exactly. We've got 50 lines. But on this asset, as I mentioned, it's less than 1% of our size or rather less than 0.75% of our size. So I don't see this asset having a material impact on our overall revenue for that. Second, we calculate our year-to-date availability. So at least this quarter, as you can see, 1 of the asset even this is impacted. For next quarter, you share how it goes.

Okay. Last question, you mentioned that you started using AI. What are the domains is being used? And are we going to see impacts in the years ahead in terms of reduced maintenance cost?

I think for AI for us, it's more of a productivity increase in terms of ability to manage our shutdowns better, ability to manage our productivity of labor on ground for inspection data, to predict for pretty much those kind of things. And we have been using it is not really all AI, it's very basic fundamental digitization that has helped us to improve our productivity. We're already seeing that impact. I don't think that's going to materially change over the next 5 years. Since inception, which is 10 years, our EBITDA percentages remain in the range of 88% to 89% to 90%. So our core goal is to beat inflation, right? On availability on land cost, and we have been consistently done that over the last 10 years. We would like to push the envelope and continue to do for next 10 years. But it's not suddenly next year, we will have 2% higher EBITDA because of AI. I don't see that kind of change or a material impact on our business today. There's an incremental impact to ensure that we keep our productivity well.

The next question is from the line of Sunil, an Individual Investor.

So I have 2 questions. One is since most of the solar or probably even wind take a lot less time than transmission assets to complete. Have you considered even bidding for solar projects in your -- through grid? And my second question is about when is your first transmission asset that would expire -- the contract will expire because I'm more curious to know how the renegotiations happen? And 1 request is if you could limit 2 plus one questions to the callers that would be helpful because I've been waiting for 25 minutes on the call.

To answer your second question first, it's an asset called ENICL, which was 1 of the first assets that was build in 2014. So that's November 2014 is a built of that asset. So we will see somewhere extension discussion happening in 25 years from there because the first asset it has a 25-year contract, everything else was 75. So maybe 2030, on 2030, few years away. Not 2030, actually 2040, sorry. So it's quite far 2039. So at least 15 years from now, so a fairly away. Sorry, I missed your first question, if you can...

The first question is about whether you are open to bidding for solar.

Yes, we Indigrid is exclusive arrangement between integrated not funding DII for transmission and best projects. We are not exclusive on solar. And at this point in time, we have not bid for any solar or wind project. And I don't think there is anything in plan that we will expand in the next quarter or 2 and start bidding solar projects. Many a times, we have thought about it, but we have not taken that initiative.

The next question is from the line of Deep Vakil from Bandhan AMC.

Yes, sir, it has already been answered, sorry.

Thank you. Ladies and gentlemen, as there are no further questions from the participants in the conference, that was the last question. I now hand the conference over to the management for closing comments.

Thank you. Thank you, everyone, for joining on the quarterly call. This quarter has been at least large of -- I mean, a fairly transformative quarter, we raised capital, which gives us pipeline till INR 42,000 crores, INR 45,000 crores of assets. Our EnerGrid initiative has been yielding results. So we have signed agreements of INR 2,600 crores with EnerGrid. Acquired assets from -- so we are hopeful that the growth journey continues and we are able to deliver on a promise of predictable DPU and growing that. So thank you for investing in us and trusting us with the capital. Looking forward to see you next quarter.

Thank you. On behalf of Ambit Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you.