Interise Trust gets NHAI circular restoring higher WPI factor
New circular confirms original 1.641 factor, after court had kept proposed cut in abeyance. For the nano-cap InvIT, this locks in higher toll revenue growth.
What's new
- NHAI issued a circular superseding its earlier proposal to cut the WPI linking factor from 1.641 to 1.561.
- The Delhi High Court had kept the earlier circular in abeyance since October 2025.
- The restoration removes a key regulatory uncertainty on toll revenue growth for Interise Trust's highway projects.
Why this matters
For a nano-cap InvIT like Interise Trust, the WPI linking factor directly determines toll escalation rates. Restoring the higher factor ensures stronger revenue growth, which feeds into distributable cash flows for unitholders. The resolution of this overhang removes a major source of risk that had been hanging over the trust's valuation.
What we're watching
- Whether similar NHAI clarity emerges for other road assets under the trust.
- Traffic volume trends to gauge actual revenue uplift from the higher factor.
- Any further legal challenges to the circular from road user groups.
The full read
NHAI has reversed its proposal to lower the WPI linking factor for toll revisions, restoring the original multiple of 1.641. The earlier circular, which had sought to reduce it to 1.561, was kept in abeyance by the Delhi High Court last October. The new circular, dated July 8, 2026, makes the restoration permanent for all contracts. For Interise Trust, a nano-cap InvIT with highway assets, this is a direct positive — toll escalation drives revenue, and a higher factor locks in stronger growth. The uncertainty that had clouded distributable cash flows is gone. The next move is traffic volume, but the regulatory overhang has been lifted.
Questions answered
- What was the WPI linking factor before NHAI's latest circular?
- The original factor was 1.641. NHAI had proposed reducing it to 1.561, but the Delhi High Court kept that proposal in abeyance. Now the new circular reverts to the original 1.641.
- How does the WPI linking factor affect Interise Trust's revenue?
- The factor determines the annual toll revision percentage. A higher factor means greater toll increases, directly boosting the trust's top line. For a nano-cap InvIT, this change can have a material impact on cash flows.
- Is this NHAI circular final, or can it be challenged again?
- The circular is now in effect and supersedes the earlier one. Unless challenged in court again, it is the operative guideline for toll revisions across all existing and future NHAI contracts.
- What was the uncertainty before this circular?
- The earlier circular had reduced the factor, but the Delhi High Court stayed its implementation. That created ambiguity about which factor would eventually apply. The new circular removes that ambiguity.