Anzen India Energy Yield Plus Trust Updates Asset Valuation

NAV per unit: ₹129.61
Total Fair Enterprise Value: ₹9,500.4 crore

Reader Takeaway: Stable cash flows from long-term contracts support valuation, while ongoing land litigation and tax disputes persist as risks.

What just happened

Anzen India Energy Yield Plus Trust has released its independent valuation report and updated NAV for the period ending September 30, 2026. The trust manages a portfolio of 16 Special Purpose Vehicles (SPVs), consisting of three transmission assets and 13 solar power generation assets. The valuation was performed using the Discounted Cash Flow (DCF) method, considering the assets as "going concerns" with an effective tax rate of 28.6%.

Why this matters

For InvIT investors, the NAV is the primary metric for assessing the underlying value of the trust's holdings. The report highlights the inclusion of "Change in Law" revenue for its SOUPL solar asset, which is expected to be recovered through monthly annuity payments over 15 years. This provides visibility into future cash flows. However, the valuation also incorporates a contingent capital expenditure adjustment of ₹2.6 crore specifically for ongoing land litigation involving the SSPPL SPV.

The backstory

The InvIT continues to rely on long-term contracted revenues from its solar and transmission projects. The methodology assumes a five-year extension for most solar assets beyond their initial 25-year Power Purchase Agreement (PPA) terms, which is a common practice to account for residual asset value.

Risks to watch

While the management views the legal and tax-related risks as low-to-medium, investors should note several areas of uncertainty. These include:

• Ongoing land-related disputes at SSPPL and NSPPL.
• Various pending tax notices across several SPVs.
• The fact that unapproved portions of "Change in Law" claims remain excluded from the current valuation due to regulatory uncertainty.

Context metrics

The total effective Enterprise Value (EV) of the InvIT’s stake is reported at ₹8,648.5 crore. The transmission assets represent a total fair enterprise value of ₹4,614.9 crore, while the solar portfolio is valued at ₹4,885.5 crore, reflecting the combined size of the trust’s operational footprint.