REG - Ashoka India Equity - Half-year Financial Report
26/02/2026 07:00
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RNS Number : 4190U Ashoka India Equity Investment Tst 26 February 2026
LEI: 213800KX5ZS1NGAR2J89
ASHOKA INDIA EQUITY INVESTMENT TRUST PLC
HALF-YEARLY REPORT
Ashoka India Equity Investment Trust plc hereby submits its Half-Yearly Report
for the six months ended 31 December 2025 as required by the Financial Conduct
Authority's Disclosure Guidance and Transparency Rule 4.2.
The Half-Yearly Report is being published in hard copy format and a copy has
been submitted to the National Storage Mechanism and it will shortly be
available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and on the Company's
web pages at www.ashokaindiaequity.com (http://www.ashokaindiaequity.com) .
Enquiries:
NSM Funds (UK) Limited
ashoka@nsm.group (mailto:ashoka@nsm.group)
Investment Objective, Financial Information and Performance Summary
Investment Objective
The investment objective of the Ashoka India Equity Investment Trust PLC (the
"Company") is to achieve long-term capital appreciation, mainly through
investment in securities listed in India and listed securities of companies
with a significant presence in India.
Financial information
As at As at
31 December 2025 30 June 2025
Net asset value ("NAV") per Ordinary Share (cum income) 269.6p 278.9p
Ordinary Share price 272.0p 281.5p
Ordinary Share price premium to NAV(1) 0.9% 0.9%
Net assets £455.5million £476.2million
Performance summary
For the For the
six months ended six months ended
31 December 2025 31 December 2024
(unaudited) (unaudited)
% change(2,3) % change(2,3)
Share price total return per Ordinary Share(1) (3.2%) 5.6%
NAV total return per Ordinary Share(1) (3.1%) 5.7%
MSCI India Investable Market Index ('IMI') total return (sterling terms)(2,3) (2.3%) (2.7%)
(1) These are Alternative Performance Measures.
(2) Total returns in sterling for the 6 month period ended 31 December
2025 and 2024.
(3) Source: Ashoka WhiteOak Capital Pte. Ltd.
Alternative Performance Measures ("APMs")
The disclosures as indicated in the footnote above represent the Company's
APMs. Definitions of these APMs and other performance measures used by the
Company, together with how these measures have been calculated, can be found
in the Half Yearly Report.
Chairman's Statement
On behalf of the Board, I am pleased to present the half-year financial report
of Ashoka India Equity Investment Trust plc for the six-month period ended 31
December 2025.
The period under review saw volatility across the globe, with emerging
markets, including India, influenced by continued geopolitical tensions,
shifts in global monetary policy, currency movements and broader macroeconomic
uncertainty. Despite these external headwinds, the Company's investment team
continued to execute its disciplined investment approach, prioritising
high-quality businesses with sustainable competitive advantages, strong
cashflows and class-leading corporate governance standards capable of
delivering attractive long-term returns for shareholders.
Performance
For the half year to 31 December 2025, the Company's share price and net asset
value (NAV) recorded total returns in sterling terms of (3.2)% and (3.1)% each
respectively compared to the benchmark, the MSCI India IMI Index (the untaxed
benchmark index, in sterling terms) of (2.3)%.
Whilst market sentiment has moderated short-term returns, the Board remains
confident that the Company's focus on fundamental quality, corporate
governance, valuation discipline and long-term compounding will continue to
reward patient shareholders. Since launch, Ashoka India Equity has established
a strong record of relative and absolute performance, building on its strategy
to capture structural growth opportunities across the Indian equity universe,
with a tilt towards the expanding small and mid-cap sectors and a limited
exposure to unlisted companies. Since 31 July 2018 to 31 December 2025, the
share price and NAV total returns are 169.9% and 172.1% against the return
from the benchmark of 88.1%, an impressive outperformance of 81.8% and 84.0%
respectively. Whilst short-term NAV and share price returns may lag in certain
periods of global uncertainty, as we have seen in the period under review, the
Board judges that the Company's investment philosophy remains robust in all
market environments.
During the period, the Investment Manager maintained its preferred sector
allocation tilted, as mentioned, towards the medium and smaller end of the
market, but with a decent weighting in larger companies, where prospects for
sustainable earnings growth remain favourable. Consistent with prior periods,
the Board has engaged with the Investment Manager on portfolio positioning,
risk management and valuation, ensuring alignment with the Company's long-term
investment objective. As a consequence, the Board asked shareholders to
approve a modest change to the Company's investment policy at its AGM on
10 December 2025 that now permits increased exposure to unquoted companies up
to a higher threshold - a maximum 15% of gross assets at the time of
investment - reflecting our belief that selective private company exposure can
contribute meaningfully to long-term returns.
Performance Fee
A performance fee is being accrued for the current three-year period, the
measurement of which runs from 1 July 2024 to 30 June 2027, as a result of
outperformance of the Company's benchmark index to date. As at 31 December
2025, this amounted to £14,721,000 and is fully reflected and accrued in the
Company's daily net asset value announcements.
Operational Developments and Governance
In line with its stated Director succession policy and following a
comprehensive, independently-sourced selection process, the Company has chosen
two new Directors to join the Board.
I am delighted to welcome Sarah MacAulay and Karen Roydon to the Board of
Ashoka India Equity Investment Trust plc. Both have the necessary skills and
experience to complement those of the existing Directors and to help drive the
Company's desire to ensure shareholders' best interests are maintained over
future years. Sarah joined on 24 February 2026 and Karen will be joining on 5
June 2026.
I would also like to record my sincere thanks, and that of my fellow
Directors, to Rita Dhut who retires from the Board on 30 June 2026. Rita has
been with us from the very beginning in 2018 and her contribution and personal
attributes have added a great deal to all Board discussions and decisions as
the Company has grown significantly over the last eight years.
Succession planning will continue over the next two years.
Share issuance
The Board continues to monitor discount control, liquidity, share issuance and
other aspects of capital management to support alignment with shareholders'
interests. These priorities remain central to our oversight of the Company's
affairs as we seek to do our bit to enhance shareholder value over the long
term. During the period under review and up to the date of this Half Yearly
Report, the Company issued 1.125 million new shares, raising additional gross
investment proceeds of £3.1 million. As usual, this demand came from a mix of
existing shareholders and new investors.
Revenue and Dividends
The Company's principal objective is to provide returns through long-term
capital appreciation, with income being a secondary consideration. Therefore,
shareholders should not expect that the Company will pay an annual dividend
under normal circumstances. Whilst the portfolio does generate a small amount
of income, this is used to defray running costs. However, as I mentioned in
the Company's Annual Report, due to the accrual of revenue received by default
from the portfolio's investments, and in order to comply with rules governing
investment trust status, a dividend of 0.5p per share was paid to shareholders
on 31 October 2025. In the period under review, no interim dividend has been
declared.
Outlook
India's domestic economy continues to demonstrate resilience, supported by
robust consumption together with public and private investment. The attraction
of India for investors continues with the structural reforms, digitilisation
and supply chain diversification I have referred to once or twice before all
reinforcing the appeal of the Indian market as a long-term investment
destination.
My hope for a more peaceful world goes on but looking ahead, while near-term
market conditions may remain influenced by global factors beyond India's
control, the Board believes that the country's medium-to-long-term
fundamentals remain compelling.
It is perhaps easy to overlook the fact that India is the world's
fourth-largest economy but, as I said at the AGM, it is hard to imagine world
economic growth over the next decade and beyond without India having a major
role to play. The recent relaxation of US tariffs on trade with India only
adds to and underlines the market's attraction for international investors.
The structural opportunities presented by India's economic growth, expanding
domestic consumption and adoption of the latest technology remain firmly
intact. Within this context, the Company is well positioned to navigate
evolving market conditions and, as ever, your Board has the utmost confidence
in the Investment Manager and Adviser to capitalise on opportunities that meet
our rigorous investment criteria and are most likely to deliver long-term
outperformance.
Thank you, as always, for your support of this Company, and to the Investment
Manager and Adviser for their continued commitment to disciplined investment
stewardship on your behalf.
Andrew Watkins
Chairman
25 February 2026
Investment Manager's Report
Performance Review
During the latter half of 2025, the Company's total NAV return underperformed
the index by 0.8% delivering (3.1%), compared to (2.3%) for the MSCI India IMI
(in sterling terms).
Since 31 July 2018 (the date post IPO when the Company was fully invested),
the Company has delivered 84.0% of net cumulative outperformance, with a
172.1% absolute return compared to the benchmark return of 88.1%, both in
sterling terms. Strong stock selection especially in mid and small caps has
been the major driver of alpha.
Key contributors & detractors
Contributors
Le Travenues Technology (Ixigo) is a leading Online Travel Agent (OTA)
operating in India with ~55% market share in third party railway bookings. It
has established leadership in this segment on the back of a customer-centric
approach, leveraging technology instead of capital to solve problems and
successful monetization of its large user base. The company has been gaining
market share in a duopolistic online bus-ticketing market and an oligopolistic
online air-ticketing market on the back of strong product innovations and
strengthening supplier base. It is now focusing on creating a differentiated
product proposition in the hotels business for its wide customer base. The
stock has performed well as the company continues to deliver market share
gains across air, bus and trains on the back of improved user monetisation and
product feature monetisation.
Lumax Auto Technologies (LATL) is a diversified Indian auto-components
manufacturer with a broad portfolio spanning advanced plastics, structures and
control systems, aftermarket, mechatronics, and newer adjacencies such as seat
frames and alternate fuels. In FY25, the business mix was led by advanced
plastics (~55%) and structures & control systems (~20%), with the
remainder contributed by aftermarket, mechatronics, and alternate fuels,
resulting in a balanced portfolio with multiple growth engines. The stock's
recent outperformance is likely driven by the higher than expected growth
through a healthy mix of inorganic and organic initiatives. Inorganic growth
has been supported by strategic entry into alternate fuels (via Greenfuel) and
deeper consolidation of IAC's India business which was acquired in 2023, while
organic growth is being driven by ramp-up of existing platforms, new program
wins and launches across OEMs, and operating leverage as scale builds.
State Bank of India (SBI) is the oldest public sector bank in India and has a
heritage and legacy of over 200 years. It is the largest Indian bank across
various metrics. The RBI has termed it a Domestic - Systemically Important
Bank, i.e., it is 'too big to fail'. Over the years, it has maintained its
market share, in contrast to its peers. Over the last few years, SBI's loan
book composition has changed meaningfully with a considerable increase in the
share of retail loans, which account for 36% of the loan for FY25 as compared
to 19% in FY14. Asset quality has improved significantly, with gross and net
non-performing asset ratios declining to 1.9% and 0.5%, respectively, in FY25,
resulting in one of the lowest credit costs in the banking sector during the
year. We expect SBI to comfortably deliver above industry level growth of
13-14% CAGR over the next couple of years with an ROA of 1.0% and ROE of
~15.0%. SBI has been an outperformer due to sustained good performance on
growth, margin and asset quality.
Detractors
Trent, part of the Tata Group, is amongst the leading fashion retailers in
India. The company operates two highly successful fashion retail formats -
Westside and Zudio; it also runs a grocery retail chain and a few other
smaller formats in the fashion and accessories space. Trent has carved a niche
by following a highly process-driven operating playbook - its JV with Zara in
India has provided learnings that the company has effectively implemented in
Westside and Zudio. Over the last few years, Trent has delivered significant
improvement in return ratios while also delivering strong growth - a rare feat
in the extremely-challenging fashion retail space. That said, the company has
seen deteriorating same store sales growth momentum in recent quarters, driven
by a slowdown in discretionary consumption as well as sharp increase in
competitive intensity, which could have led to the underperformance.
Computer Age Management Services (CAMS) is India's largest Mutual Fund
Registrar and Transfer Agent (RTA), commanding ~68% market share based on
average mutual fund AUM. CAMS serves most of the largest mutual funds and has
a high client retention rate. While maintaining leadership in the mutual fund
RTA business, it has been able to diversify in Alternatives, KYC services,
Insurance repository, Payments and account aggregation and other digital
business lines, which contribute ~14% to its revenue and going forward and are
likely to reduce the dependence on the RTA business. The revenue yield
compression in recent quarters for the company was higher than what was
expected by the market. This factor, along with SEBI's regulatory action on
Total Expense Ratios (TER), may have contributed to the stock's
underperformance.
Info Edge, founded in 1995, is India's dominant internet classifieds company.
Info Edge owns naukri.com (No.1 online jobs website), 99acres.com (Real
estate listings website), Jeevensathi.com (matrimonial website), Shiksha
(leading educational information website), Zomato (~12% equity stake, leading
food delivery aggregator and quick-commerce player), and Policybazaar (~12%
stake, largest online insurance aggregator). Info Edge derives most of its
value from the Naukri business which is the dominant online jobs website with
~75% traffic share and ~55-60% EBITDA margins. Info Edge has maintained its
dominant market share, exhibited strong profitable growth across cycles while
continuing to enhance its comprehensive ecosystem of offerings. We see the
recent decoupling between Info Edge's recruitment billing and revenue growth
with IT services industry revenue growth as an illustration of the company's
ability to diversify its customer base beyond the traditional IT customers
towards faster-growing segments. The stock has underperformed amid uncertainty
around FY26 IT billing growth, given the softer demand outlook for IT
services.
Investment Outlook
Geopolitical tensions, trade and tariff-related uncertainty, and a shifting
global order were dominant themes through CY2025 and have carried into CY2026.
Divergent monetary policy paths across major economies, alongside elevated
sovereign debt levels, have further weighed on global growth. Persistent
tariff uncertainty has also disrupted supply chains and clouded the outlook
for cross-border trade, undermining business confidence and moderating global
growth momentum.
Despite persistent headwinds from trade and tariff-related uncertainties, the
Indian economy continued to demonstrate resilience, supported by strong GDP
growth, historically low inflation, a stable external balance, and prudent
fiscal management. The government also provided relief through personal income
tax measures and GST rate reductions to support consumption, while continuing
to front-load capital expenditure to sustain the investment cycle.
The government's first advance estimate pegs real GDP growth in FY2026 at 7.4%
(FY2025: 6.5%), implying a growth of ~6.9% in 2HFY26E, after a strong 8%
expansion in 1HFY26. Gross fixed capital formation and government consumption
(both projected at ~8.1% in 2HFY26) remain key drivers. High-frequency
indicators such as auto sales, energy consumption, e-way bills and credit
growth have shown an uptick in November-December, reflecting the impact of
synchronized policy support through GST rate cuts and the RBI's cumulative 125
bps rate reductions since February 2025.
The government's continued focus on Production Linked Incentive (PLI) schemes
should support domestic manufacturing, while recent labour reforms are
expected to ease structural bottlenecks, improve compliance and enhance
productivity over the medium term.
CY2025 was marked by rising global trade tensions, with the US imposing higher
tariffs across multiple trading partners, including India, where the effective
tariff rate on exports rose to 50%, including a 25% penalty linked to India's
energy trade with Russia. Although India remains largely a domestic-driven
economy, with exports to the US accounting for only ~2% of GDP, the tariffs
created near-term headwinds for India's export outlook, especially in
labour-intensive segments such as textiles, gems & jewellery, and certain
agricultural products.
However, following multiple rounds of negotiations, India and the US have
concluded an interim trade agreement in February 2026 that is set to reduce
the effective tariff rate to 18%, which is in line with other Asian economies
( ̴15-20%). The announcement is sentimentally positive for markets, as it
reduces policy uncertainty and de-risks the external trade environment. A more
stable tariff framework can accelerate capex decisions, strengthen FDI intent,
and support private capex/credit growth as corporates gain greater visibility
on export demand and pricing.
The India-US trade agreement adds to a series of trade deals signed over the
past year and reinforces India's positioning within the evolving China+1
global supply-chain framework. India has already concluded trade agreements
with the UK, New Zealand, and Oman, and is set to implement a Free Trade
Agreement with the European Union. Collectively, these initiatives are aimed
at enhancing trade through tariff reductions, improved market access, and
greater regulatory alignment, while also enabling diversification away from
country-centric supply-chain risks.
The Union Budget for FY27 maintains a strong commitment to fiscal discipline,
with the fiscal deficit budgeted at 4.3% of GDP (FY26 RE: 4.4%) and a
continued glide path towards a debt-to-GDP ratio of 50% by FY31. There are no
major changes to direct or indirect tax rates, reinforcing policy stability,
with reforms focused on easing compliance through streamlined withholding tax
procedures, automated approvals, and a trust-based litigation framework.
Sectorally, the Budget provides a strong push to defence (17.6% YoY increase),
roads and railways (8-10% higher outlays alongside new HSR and DFC
announcements), electronics manufacturing and semiconductors, IT services
through higher safe harbour thresholds and data centre incentives, and
healthcare and chemicals via targeted funding to develop India as a biopharma
hub and chemical parks. Overall, the Budget balances debt consolidation with
growth support, reinforcing macro stability while strengthening India's
long-term growth, competitiveness, and employment through sustained public
capex and structural reforms.
Meanwhile in its annual January update, the IMF has revised India's real GDP
growth forecast upward to 7.3% for FY26 (earlier: 6.6%), reflecting the strong
growth momentum seen in 1HFY26. Growth is expected to moderate to ~6.4% over
FY27-28 as some cyclical tailwinds fade. Nevertheless, India is likely to
remain the fastest-growing major economy and is firmly on track to become the
world's third-largest economy by FY29.
With a workforce of nearly 600 million, the need to create enough high
productive jobs to benefit from the demographic dividend would remain India's
key challenge in the long term. To boost productivity, the government has
undertaken a large number of supply-side measures over the last decade,
including (1) labour reforms, (2) reduction in corporate tax rates, (3)
bankruptcy reforms, (4) strengthening financial and corporate balance sheets,
and, (5) incentives for domestic manufacturing through PLI schemes, among
others. These efforts have contributed to a steady rise in manufacturing gross
value added, particularly in new-age sectors such as electronics. Continued
policy support provides India with strong tailwinds to further scale up
manufacturing in multiple sunrise industries, even against the backdrop of
near-term tariff-related uncertainties. At the same time, India has also
achieved a considerable degree of success in leveraging its skilled workforce
to increase its services exports.
India's diversified corporate landscape and steadily improving return ratios
reinforce its position as one of the most attractive emerging markets for
capturing sustained equity outperformance. Also noteworthy has been the
corporate deleveraging and cleaning up of banks' balance sheets with a marked
decline in non-performing loans over the last decade. Near-term tariff-related
headwinds notwithstanding, Indian manufacturing is poised to play an
increasingly important role in global supply chains. Leading multinationals
such as Apple and Samsung continue to expand their production footprint in the
country, reinforcing India's emergence as a strategic hub within the global
manufacturing and supply chain ecosystem. Furthermore, India's services
exports - led by IT services and Global Capability Centers ("GCC") - continue
to grow steadily, providing a key cushion to the external sector. Moreover,
unlike some of its other large EM peers, India's economy is inherently much
more consumption-oriented than investment driven, and the thrust of
policymaking in recent years has been towards capacity building which is
likely to ensure that economic growth is sustainable and broad-based and not
propelled by a rise in leverage.
The Investment Adviser believes that India is at the cusp of realising its
true economic potential with young demographics, superior corporate
profitability and megatrends of digitalisation and formalisation emerging as
the structural drivers of the India growth story. Additionally, the most
attractive aspect of investing in India is what we see as the outsized alpha
opportunity that the market presents compared to any other equity market
globally, particularly as the Indian market is still relatively
under-researched. Such alpha opportunities are present across the large, mid,
and small cap spectrum. All these factors place India as one of the most
promising economies over the medium term and make for a highly compelling
investment proposition.
Backed by the well-resourced team of the Investment Adviser, Ashoka India
Equity Investment Trust plc is well positioned to capitalise, from a bottom-up
perspective, on the investment opportunities on offer within the Indian
equities space.
Acorn Asset Management Ltd
Investment Manager
25 February 2026
Top Ten Holdings
Percentage
of net
Value assets
As at 31 December 2025 Sector £'000 (%)
Bharti Airtel Financials 25,135 5.5
ICICI Bank Healthcare 18,176 4.0
Onesource Specialty Pharma Communication Services 16,706 3.7
Manjushree Technopack Financials 13,373 2.9
Bajaj Fenserv Industrials 13,250 2.9
HDFC Bank Financials 11,909 2.6
Eternal Industrials 10,436 2.3
Bharat Electronics Consumer Discretionary 9,578 2.1
State Bank of India Communication Services 9,552 2.1
Fractal Analytics Industrials 9,084 2.0
-----------------
Top ten holdings 30.1
==========
Other holdings 73.7
-----------------
Total holdings 103.8
==========
Capital gains tax provision plus cash and other assets/liabilities (3.8)
-----------------
Total 100.0
==========
Interim Management Statement
The Directors are required to provide an Interim Management Statement in
accordance with the Financial Conduct Authority's ("FCA") Disclosure Guidance
and Transparency Rules ("DTR"). The Directors consider that the Chairman's
Statement and the Investment Manager's Report of this Half-Yearly Report
provide details of the important events which have occurred during the period
and their impact on the financial statements. The following statement on
related party transactions and the Directors' Statement of Responsibility, the
Chairman's Statement and Investment Manager's Report together constitute the
Interim Management Statement of the Company for the six months ended 31
December 2025. The outlook for the Company for the remaining six months of the
year ending 30 June 2026 is discussed in the Chairman's Statement and the
Investment Manager's Report.
Principal and emerging risks and uncertainties
The principal and emerging risks and uncertainties to the Company are detailed
on pages 13 to 15 of the Company's most recent Annual Report and Audited
Financial Statements for the year ended 30 June 2025 which can be found on the
Company's website at https://www.ashokaindiaequity.com. The principal and
emerging risks and uncertainties facing the Company remain unchanged from
those disclosed in the Annual Report for the year ended 30 June 2025 and the
Board are of the opinion that they will continue to remain unchanged for the
forthcoming six-month period. The principal and emerging risks and
uncertainties facing the Company are as follows:
(i) economic, market and geopolitical risks;
(ii) sectoral diversification;
(iii) operational risks;
(iv) regulatory risks;
(v) financial risks; and
(vi) ESG and Climate Change risks.
Related party transactions
Details of the amounts paid to the Company's Investment Manager and the
Directors during the period are detailed in the notes to the Half-Yearly
Report and unaudited condensed financial statements (the "Financial
Statements").
Going concern
The Half-Yearly Report has been prepared on a going concern basis. The Board
considers this the appropriate basis as they have a reasonable expectation
that the Company has adequate resources to continue in operational existence
for at least the following twelve-month period from the date of this report.
In reaching this conclusion, the Directors have considered the liquidity of
the Company's portfolio of investments as well as its cash position, income
and expense flows. As at 31 December 2025, the Company held £428.8 million
(30 June 2025: £450.6 million) in quoted investments and had cash of
£11.3 million (30 June 2025: £27.4 million).
Directors' Statement of Responsibility for the Half-Yearly Report
The Directors confirm to the best of their knowledge that:
• these condensed set of financial statements contained within the
Half-Yearly Financial Report has been prepared in accordance with IAS 34
Interim Financial Reporting; and
• the Interim Management Report includes a fair review of the
information as required by DTR 4.2.7R and 4.2.8R.
The Half Yearly Report has not been audited or reviewed by the Company's
Auditor.
Signed on behalf of the Board by
Andrew Watkins
Chairman
25 February 2026
Condensed Unaudited Statement of Comprehensive Income
For the six months ended For the six months ended
31 December 2025 31 December 2024
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
Note £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments 3 - (18,206) (18,206) - 58,934 58,934
(Losses)/gains on currency movements - (352) (352) - 116 116
------------- ------------- ------------- ------------- ------------- -------------
Net investment (losses)/gains - (18,558) (18,558) - 59,050 59,050
Income 5 1,880 - 1,880 1,627 - 1,627
------------- ------------- ------------- ------------- ------------- -------------
Total income 1,880 (18,558) (16,678) 1,627 59,050 60,677
Performance fees 7 74 1,159 1,233 (1,223) (19,164) (20,387)
Operating expenses 8 (606) - (606) (626) - (626)
------------- ------------- ------------- ------------- ------------- -------------
Operating (loss)/profit before taxation 1,348 (17,399) (16,051) (222) 39,886 39,664
Taxation 9 (256) 1,263 1,007 (167) (13,614) (13,781)
------------- ------------- ------------- ------------- ------------- -------------
(Loss)/profit for the period 1,092 (16,136) (15,044) (389) 26,272 25,883
------------- ------------- ------------- ------------- ------------- -------------
Earnings per Ordinary Share 10 0.64p (9.48)p (8.84)p (0.24)p 16.33p 16.09p
======= ======= ======= ======= ======= =======
There is no other comprehensive income and therefore the 'Profit for the
period' is the total comprehensive income for the six months ended 31 December
2025.
The supplementary revenue and capital columns, including the earnings per
Ordinary Shares, are prepared under guidance from the Association of
Investment Companies.
All revenue and capital items in the above statement derive from continuing
operations.
Condensed Unaudited Statement of Financial Position
As at As at
31 December 30 June
2025 2025
(unaudited) (audited)
Note £'000 £'000
Non-current assets
Investments held at fair value through profit or loss 3 472,657 482,867
------------------ ------------------
Current assets
Cash and cash equivalents 11,273 27,374
Dividend receivable - 201
Other receivables 1,699 110
------------------ ------------------
12,972 27,685
------------------ ------------------
Total assets 485,629 510,552
========== ==========
Current liabilities
Purchases for future settlement (600) -
Other payables 6 (205) (349)
Non-current liabilities
Performance fee provision 7 (14,721) (15,954)
Capital gains tax provision (14,583) (18,094)
------------------ ------------------
Total liabilities (30,109) (34,397)
========== ==========
Net assets 455,520 476,155
========== ==========
Equity
Share capital 12 1,702 1,720
Share premium account 250,485 248,415
Special distributable reserve 13 37,490 44,276
Capital reserve 164,617 180,753
Revenue reserve 1,226 991
------------------ ------------------
Total equity 455,520 476,155
========== ==========
Net asset value per Ordinary Share 14 269.6p 278.9p
========== ==========
Approved by the Board of Directors on 25 February 2026 and signed on its
behalf by:
Andrew Watkins
Chairman
Ashoka India Equity Investment Trust plc incorporated in England and Wales
with registered number 11356069.
Condensed Unaudited Statement of Changes in Equity
For the six months ended 31 December 2025 (unaudited)
Share Special
Share premium distributable Capital Revenue
Capital account reserve reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Opening balance as at 1 July 2025 1,720 248,415 44,276 180,753 991 476,155
Profit for the year - - - (16,136) 1,092 (15,044)
Issue of Ordinary Shares 12 7 2,136 - - - 2,143
Redemption of Ordinary Shares 12 (25) - (6,786) - - (6,811)
Share issue costs - (66) - - - (66)
Dividends paid 11 - - - - (857) (857)
---------- ---------- ---------- ---------- ---------- ----------
Closing balance as at 31 December 2025 1,702 250,485 37,490 164,617 1,226 455,520
====== ====== ====== ====== ====== ======
For the six months ended 31 December 2024 (unaudited)
Share Special
Share premium distributable Capital Revenue
Capital account reserve reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Opening balance as at 1 July 2024 1,572 206,794 44,276 182,481 316 435,439
Profit for the year - - - 26,272 (389) 25,883
Issue of Ordinary Shares 12 81 23,062 - - - 23,143
Share issue costs - (225) - - - (225)
---------- ---------- ---------- ---------- ---------- ----------
Closing balance as at 31 December 2024 1,653 229,631 44,276 208,753 (73) 484,240
====== ====== ====== ====== ====== ======
The Company's distributable reserves consist of the special distributable
reserve, revenue reserve and capital reserve attributable to realised profit.
Condensed Unaudited Statement of Cash Flows
For the six months For the six months
ended ended
31 December 31 December
2025 2024
(unaudited) (unaudited)
Note £'000 £'000
Cash flows from operating activities
Operating (loss)/profit before taxation (16,051) 39,664
Taxation paid (2,504) (6,453)
Increase in receivables (1,388) (118)
(Decrease)/increase in payables (1,377) 18,100
Adjustment for losses/(gains) on investments 3 18,170 (58,934)
--------------- ---------------
Net cash flow used in operating activities (3,150) (7,741)
======== ========
Cash flows from investing activities
Purchase of investments (76,799) (163,641)
Sale of investments 69,439 154,063
--------------- ---------------
Net cash flow used in investing activities (7,960) (9,578)
======== ========
Cash flows from financing activities
Proceeds from issue of shares 12 2,143 23,143
Redemption of Ordinary Shares 12 (6,811) -
Share issue costs (66) (225)
Dividends paid 11 (857) -
--------------- ---------------
Net cash flow (used in)/from) financing activities (5,591) 22,918
======== ========
(Decrease)/increase in cash and cash equivalents (16,101) 5,599
======== ========
Cash and cash equivalents at start of period 27,374 5,677
--------------- ---------------
Cash and cash equivalents at end of period 11,273 11,276
======== ========
Notes to the Financial Statements
1. Reporting entity
Ashoka India Equity Investment Trust plc is a closed-ended investment company,
registered in England and Wales on 11 May 2018. The Company's registered
office is 4th Floor 46-48 James Street, London, England, W1U 1EZ. Business
operations commenced on 6 July 2018 when the Company's Ordinary Shares were
admitted to trading on the London Stock Exchange ("LSE"). The financial
statements of the Company are presented for the six months from 1 July 2025 to
31 December 2025.
The Company primarily invests in securities listed on any stock exchange in
India and can invest in the securities of companies with a significant
presence in India that are listed on stock exchanges outside India.
2. Basis of preparation
Statement of compliance
These Condensed Unaudited Financial Statements have been prepared in
accordance with International Accounting Standard ("IAS") 34 as required by
DTR 4.2.4R, the Listing Rules of the LSE and applicable legal and regulatory
requirements. They do not include all the information and disclosures required
in Annual Financial Statements and should be read in conjunction with the
Company's last Annual Audited Financial Statements for the period ended 30
June 2025.
The accounting policies applied in these Financial Statements are consistent
with those applied in the last Annual Audited Financial Statements for the
period ended 30 June 2025, which were prepared in accordance with UK-adopted
international accounting standards. Having reassessed the principal risks, the
Directors considered it appropriate to adopt the going concern basis of
accounting in preparing these Financial Statements.
Going concern
The Directors have concluded that there is a reasonable expectation that the
Company will have adequate liquidity and cash balances to meet its liabilities
as they fall due and continue in operational existence for the foreseeable
future and continue as a going concern for at least twelve months from the
date of approval of these financial statements. As such the Directors have
adopted the going concern basis in preparing the financial statements. For
further details of the Directors' consideration of going concern, is detailed
in the Interim Management Statement.
Significant judgements and estimates
There have been no changes to the significant accounting judgements, estimates
and assumptions from those applied in the Company's Audited Annual Financial
Statements for the period ended 30 June 2025.
The Indian capital gains tax provision represents an estimate of the amount of
tax payable by the Company. Tax amounts payable may differ from this provision
depending on when the Company disposes of investments. The current provision
for Indian capital gains tax is calculated based on the long-term or
short-term nature of the investments and the applicable tax rate at the year
end. Currently, the short-term tax rate is 20% and the long-term tax rate is
12.5%. The estimated tax charge is subject to regular review including
a consideration of the likely period of ownership, tax rates and market
valuation movements.
As disclosed in the statement of financial position, the Company made a
capital gains tax provision as at 31 December 2025 of £14,583,000 (30 June
2025: £18,094,000) in respect of unrealised gains on investments held.
Adoption of new IFRS standards
A number of new standards, amendments to standards and interpretations are
effective for the annual periods beginning on or after 1 January 2025. None
of these have a material impact on the measurement of the amounts recognised
in the financial statements of the Company.
3. Investment held at fair value through profit or loss
(a) Investments held at fair value through profit or loss
As at As at
31 December 2025 30 June 2025
(unaudited) (audited)
£'000 £'000
Quoted investments in India 428,833 450,591
Unquoted investments in India 43,824 32,276
------------- -------------
Closing valuation 472,657 482,867
======== ========
(b) Movements in valuation
For the For the
six months ended year ended
31 December 2025 30 June 2025
(unaudited) (audited)
£'000 £'000
Opening valuation 482,867 451,026
Opening unrealised gains on investments (91,843) (121,134)
Opening book cost 391,024 329,892
Additions, at cost 77,258 262,282
Disposals, at cost (62,131) (201,150)
Closing book cost 406,151 391,024
Revaluation of investments 66,506 91,843
Closing valuation 472,657 482,867
Transaction costs on investment purchases for the six months ended 31 December
2025 amounted to £140,000 (30 June 2025: £501,000) and on investment sales
for the six months ended 31 December 2025 amounted to £113,000 (30 June 2025:
£384,000). As at 31 December 2025 £29.6 million (30 June 2025: £32.7
million) of investments were subject to lock in periods.
(c) Gains/(losses) on investments
For the For the
six months ended year ended
31 December 2025 30 June 2025
(unaudited) (audited)
£'000 £'000
Realised gains on disposal of investments 7,421 57,337
Transaction costs (253) (885)
Movement in unrealised gains on investments held (25,337) (29,291)
Movement in unrealised gains on futures held (36) 38
------------- -------------
Total (losses)/gains on investments (18,206) 27,199
======== ========
Under IFRS 13 'Fair Value Measurement', an entity is required to classify
investments using a fair value hierarchy that reflects the significance of the
inputs used in making the measurement decision.
The following shows the analysis of financial assets recognised at fair value
based on:
Level 1
Quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;
Level 2
Inputs other than quoted prices included within level 1 that are observable
for the asset or liability, either directly or indirectly; and
Level 3
Unobservable inputs for the asset or liability.
The classification of the Company's investments held at fair value is detailed
in the table below:
As at 31 December 2025 (unaudited) As at 30 June 2025 (audited)
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investments at fair value through profit and loss
- Quoted investments in India 428,833 - - 428,833 450,591 - - 450,591
- Unquoted investments in India - - 43,824 43,824 - - 32,276 32,276
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
428,833 - 43,824 472,657 450,591 - 32,276 482,867
====== ====== ====== ====== ====== ====== ====== ======
The movement on the Level 3 unquoted investments during the period is shown
below:
As at As at
31 December 2025 30 June 2025
(unaudited) (audited)
£'000 £'000
Opening balance 32,276 2,614
Additions during the year 21,918 29,087
Conversion from level 3 to level 1 investments (9,661) -
Total (losses)/gains for the year recognised in profit or loss (709) 575
------------ ------------
Closing balance 43,824 32,276
======== ========
As at period end, the Company had nine unquoted investments; Veeda Clinical
Research Ltd 680,790 shares, Simpolo Vitrified Private Ltd 156,000 shares,
Manjushree Technopack Ltd 1,497,145 shares, Fractal Analytics Limited 990,995
shares, SEDEMAC Mechatronics Limited 123,000 shares, TVS Motor Company Limited
124,176 shares, Kusumgar Limited 958,904 shares, NSE India Limited
230,392 shares and La Renon Healthcare Private Limited 239,354 shares.
Unquoted investments are valued by the Investment Manager in accordance with
the International Private Equity and Venture Capital Valuation Guidelines 2022
("IPEV") guidelines which are consistent with IFRS. The Investment Manager
applies techniques consistent with the IPEV.
Financial assets and liabilities are held at fair value in the financial
statements with the exception of short-term assets and liabilities where their
carrying value approximates to fair value.
4. Financial risk management
At 31 December 2025, the Company's financial risk management objectives and
policies are consistent with those disclosed in the Company's last Annual
Report and Audited Financial Statements for the year ended 30 June 2025.
5. Income
For the For the
six months ended six months ended
31 December 2025 31 December 2024
(unaudited) (unaudited)
£'000 £'000
Income from investments:
Overseas dividends 1,615 1,309
Overseas income - REIT 253 289
Other income:
Bank interest income 12 29
------------ ------------
Total income 1,880 1,627
======== ========
6. Other payables
As at As at
31 December 2025 30 June 2025
(unaudited) (audited)
£'000 £'000
Accrued expenses 205 349
------------ ------------
Total other payables 205 349
======== ========
7. Performance fees
The Investment Manager does not receive a fixed management fee in respect of
its portfolio management services to the Company. The Investment Manager will
become entitled to a performance fee subject to the Company delivering excess
returns versus the MSCI India IMI Index (in sterling terms) in the medium
term. The performance fee is measured over periods of three years (Performance
Period) with this Performance Period ending on 30 June 2027. The performance
fee in any Performance Period shall be capped at 12% of the time weighted
average adjusted net assets during the relevant Performance Period. The
Investment Manager has the optionality to receive the performance fee in cash,
however, the Investment Manager has given written confirmation of their
intention not to exercise this election and to receive any performance fee in
Ordinary Shares.
The performance fee is calculated at a rate of 30% of the excess returns
between adjusted NAV per share on the last day of the performance period and
the MSCI India IMI Index (in sterling terms) over the Performance Period,
adjusted for the weighted average number of Ordinary Shares in issue during
the Performance Period. The Performance Fee in respect of each Performance
Period will be paid at the end of the three year period.
The performance fee is allocated in accordance with the AIC guidance where
that part of the Performance fee directly attributable to the revenue
performance of the Company (6%) is allocated to revenue and shown in the
revenue column of the Statement of Comprehensive Income, and the part that is
directly attributable to the capital performance of the Company's investments
(94%) is allocated to capital and shown in the capital column of the Statement
of Comprehensive Income.
As at 31 December 2025, there was a £14,721,000 provision for the performance
fee liability to the Investment Manager for the one-and-a-half-year
performance period (30 June 2025: £15,954,000 for the one year performance
period).
8. Operating expenses
For the For the
six months ended six months ended
31 December 2025 31 December 2024
(unaudited) (unaudited)
£'000 £'000
Administration & secretarial fees 127 129
Auditor's remuneration - Statutory audit fee* 48 33
Broker fees 26 20
Custody services 55 48
Directors' fees 76 83
Tax compliance and advice 64 35
Marketing and public relations** (22) 137
Registrar fees 13 18
Legal Fees 25 25
Investment due diligence costs 91 -
Regulatory fees 21 20
Other expenses*** 82 78
------------ ------------
Total 606 626
======== ========
* Auditor's remuneration excludes VAT.
** Marketing and public relations fees includes fees written back from
prior years.
*** Other expenses include Employers National Insurance Contribution, LSE, KID
fees, Distribution fees, other license fees, bank charges and other
miscellaneous fees.
9. Taxation
(a) Analysis of charge in the year:
For the six months ended For the six months ended
31 December 2025 (unaudited) 31 December 2024 (unaudited)
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Capital gains tax provision - (3,511) (3,511) - 7,161 7,161
Capital gains expense - 2,248 2,248 - 6,453 6,453
Indian withholding tax 256 - 256 167 - 167
--------- --------- --------- --------- --------- ---------
Total tax charge for the six months 256 (1,263) (1,007) 167 13,614 13,781
===== ===== ===== ===== ===== =====
The Company is liable to Indian capital gains tax under Section 115 AD of the
Indian Income Tax Act 1961. A tax provision on Indian capital gains is
calculated based on the long term (securities held more than one year) or
short term (securities held less than one year) nature of the investments and
the applicable tax rate at the period end. The short-term tax rates are 20%
and the long term tax rates are 12.5% (31 December 2024: same).
(b) Factors affecting the tax charge for the period.
The standard UK corporation tax rate for the period is 25% (31 December 2024:
25%). The tax charge differs from the charge resulting from applying the
standard rate of UK corporation tax for an investment trust company. The
differences are explained below:
For the For the
six months ended six months ended
31 December 2025 31 December 2024
(unaudited) (unaudited)
£'000 £'000
Operating (loss)/profit before taxation (16,051) 39,664
UK Corporation tax at 25% (2024: 25%) (4,013) 9,916
Effects of:
Indian capital gains tax charge (1,263) 13,614
Losses/(gains) on investments not taxable 4,640 (14,763)
Overseas dividends not taxable (467) (400)
Other income not taxable (3) (7)
Unutilised management expenses (157) 5,254
Indian withholding tax 256 167
---------- ----------
Total tax charge for the six months (1,007) 13,781
====== ======
10. Earnings per Ordinary Share
For the six months ended For the six months ended
31 December 2025 (unaudited) 31 December 2024 (unaudited)
Revenue Capital Total Revenue Capital Total
(Loss) / Profit for the period (£'000) 1,092 (16,136) (15,044) (389) 26,272 25,883
----------- ----------- ----------- ----------- ----------- -----------
Return per Ordinary Share 0.64p (9.48)p (8.84)p (0.24)p 16.33p 16.09p
====== ====== ====== ====== ====== ======
Earnings per Ordinary Share is based on the loss for the six months of
£15,044,000 (31 December 2024: profit £25,883,000) attributable to the
weighted average number of Ordinary Shares in issue during the six months
ended 31 December 2025 of 170,151,048 (31 December 2024: 160,888,287).
11. Dividend
Dividends paid during the period
The Company's objective is to provide shareholder returns through capital
growth with income being a secondary consideration. It should not be expected
that the Company will pay a significant annual dividend, but the Board intends
to declare such annual dividends as are necessary to maintain the Company's UK
investment trust status.
For the six months ended For the six months ended
31 December 2025 (unaudited) 31 December 2024 (unaudited)
Rate £'000 Rate £'000
Final dividend - 30 June 2025 0.5 857 - -
====== ====== ====== ======
12. Share capital
As at As at
31 December 2025 (unaudited) As at 30 June 2025 (audited)
No. of shares £'000 No. of shares £'000
Allotted, issued and fully paid:
Redeemable Ordinary Shares of 1p each 168,942,811 1,689 170,741,893 1,707
('Ordinary Shares')
Non-Redeemable Shares of £1.00 each 50,000 13 50,000 13
('Management Shares')
-------------- -------------- -------------- --------------
Total 168,992,811 1,702 170,791,893 1,720
========== ========== ========== ==========
Ordinary Shares
On incorporation, the issued share capital of the Company was 1 Ordinary Share
of £0.01.
During the six months ended 31 December 2025, 750,000 Ordinary Shares (year
ended 30 June 2025: 14,849,496) were issued, with aggregate gross proceeds of
£2,143,000 (30 June 2025: £42,218,000).
Since the period end, a further 375,000 Ordinary Shares have been issued, with
aggregate gross proceeds of £1,023,525. As at the date of this report, the
total number of Ordinary Shares in issue is 169,317,811 (30 June 2025:
170,741,893).
The Company has a redemption facility through which shareholders are entitled
to request the redemption of all or part of their holding of Ordinary Shares
on an annual basis. At the Redemption Point of 30 September 2025, 2,549,082
Ordinary Shares were redeemed by the Company at a redemption price of 267.19
pence per share.
The Ordinary Shares have attached to them full voting, dividend and capital
distribution rights. They confer rights of redemption. The Company's special
distributable reserve may also be used for share repurchases, both into
treasury or for cancellation.
Management shares
In addition to the above, on incorporation the Company issued 50,000
Management Shares of nominal value of £1.00 each.
The holder of the Management Shares undertook to pay or procure payment of one
quarter of the nominal value of each Management share on or before the fifth
anniversary of the date of issue of the Management Shares.
The Management Shares do not carry a right or attend or vote at general
meetings of the Company unless no other shares are in issue at that time. The
Management Shares have been treated as equity in accordance with
IFRS.
13. Special distributable reserve
As indicated in the Company's prospectus dated 19 June 2018, following
admission of the Company's Ordinary Shares to trading on the LSE, the
Directors applied to the Court and obtained a judgement on 4 December 2018 to
cancel the amount standing to the credit of the share premium account of the
Company. The amount of the share premium account cancelled and credited to a
special distributable reserve was £44,275,898. This reserve may also be used
to fund dividend/distribution payments including the Company's annual
redemption facility.
14. Net asset value ("NAV") per Ordinary Share
Net assets per ordinary share as at 31 December 2025 of 269.6p (30 June 2025:
278.9p) is calculated based on £455,520,000 (30 June 2025: £476,155,000) of
net assets of the Company attributable to the 168,942,811 (30 June 2025:
170,741,893) Ordinary Shares in issue as at 31 December 2025.
15. Related party transactions
The amount accrued in respect of the Performance fees due to the Investment
Manager for the current Performance period is disclosed in Note 7.
The Investment Advisor provides Investment Advisory services to the Investment
Manager and no fees are paid to them from the Company.
From 1 July 2025 Directors fees are payable at an annual rate of £48,000 to
the Chairman, £40,000 to the Chair of the Audit Committee, and £32,000 to
the other Directors.
The Directors had the following shareholdings in the Company, all of which are
beneficially owned.
As at As at
31 December 2025 30 June 2025
(unaudited) (audited)
Andrew Watkins 94,425 94,425
Jamie Skinner 100,933 100,933
Rita Dhut 81,733 81,733
Dr Jerome Booth 85,522 85,522
======== ========
16. Subsequent events
There have been no significant events since the period end which would require
revision of the figures or disclosure in the Financial Statements.
17. STATUS OF THIS REPORT
The information contained in this Half-Yearly Report does not constitute the
Company's statutory accounts for the purposes of section 434 of the Companies
Act 2006. They are unaudited. The Half-Yearly Report will be made available to
the public at the Company's registered office.
The information for the year ended 30 June 2025 has been extracted from the
last published audited financial statements, unless otherwise stated. The
audited financial statements have been delivered to the Registrar of
Companies. Ernst & Young LLP reported on those accounts and their report
was unqualified, did not draw attention to any matters by way of emphasis and
did not contain a statement under sections 498(2) or 498(3) of the Companies
Act 2006.
The Half-Yearly Report was approved by the Board on 25 February 2026.
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