Road Companies to Use INVITs for ₹40,000 Cr Funding, Boosting Toll Revenue Share

A fresh analysis by Brickwork Ratings indicates that road infrastructure companies in India plan to channel about ₹40,000 crore of asset value into Infrastructure Investment Trusts during FY 2026‑27. The move is designed to generate capital, cut down debt levels and secure financing for future highway expansions. The report highlights that, backed by ongoing government investment, roughly 10,000 km of fresh highways, expressways and high‑speed corridors are slated for allocation this fiscal year. Strong toll collections, a healthy backlog of projects and the swift adoption of new financing models are expected to keep the sector's credit outlook steady through FY 2027. Revenue is projected to grow by 8.6 percent in FY 2027, while operating margins could edge up to 25.1 percent from 24.3 percent. Lower input costs for steel and bitumen, along with speedy completion of current works, will further support profit margins. However, the study warns that payment lags and implementation challenges may continue to pressure debt‑service capacity, with the debt‑service coverage ratio estimated at around 0.5x and interest‑coverage improving modestly to 1.5x.