IRB Infra Targets Rs 1.4-Lakh-Crore Asset Base In Three Years

IRB Infrastructure Developers Ltd. is targeting an asset base of Rs 1.4 lakh crore in three years, backed by the implementation of its newly announced BEST strategy and leveraging deal proceeds from transferring build–operate–transfer highway assets to fund future opportunities.

"We have formulated a policy: BEST, where we bid for the project, execute those projects in the private environment and once the project is executed and stabilised, once the risk is reduced, we then transfer this project to the public InvIT, which is a yield-paying vehicle," Director Anil Yadav told NDTV Profit in a conversation on Monday.

IRB is transferring three BOT highway assets from its private InvIT to the publicly listed IRB InvIT Fund for Rs 4,905 crore. With an enterprise value of Rs 8,500 crore, the equity realised will be reinvested into Rs 15,000 crore worth of new projects, Yadav explained. The proposed acquisition will extend the portfolio's weighted average life from 14 years to about 17 years.

When asked about how IRB plans to utilise the Rs 4,905 crore realised from the asset transfer, Yadav said the funds will be directed toward upcoming infrastructure bids, particularly in the toll-operate-transfer and BOT road projects.

"I think in the road sector, there will be opportunities, which will be coming, and it will be largely utilised for the TOT and BOT projects," he added.

On yields for investors in the public InvIT, Yadav noted that toll assets typically offer strong, inflation-beating returns.

"These are toll assets, and typically toll asset revenue grows and outbids inflation," he said. "Normally, the growth in toll revenue is in the range of 9–10% due to traffic and tariff increases, offering yields 300 to 350 basis points above G-Sec (government security), with consistent payout growth."

For FY26, IRB Infrastructure plans to execute orders with a revenue potential of Rs 3,800 to Rs 4,000 crore, supported by a robust order book of Rs 31,000 crore, Yadav added. The majority of the company's total order is backed by long-term operations and finance contracts, providing strong revenue visibility for the next 10–12 years, he said.

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