Horizon Industrial Parks Limited

Sector: Industrial & Logistics Real Estate (Warehousing / Grade A Infrastructure)

1. Overview

Horizon Industrial Parks Limited ("Horizon") is India's largest industrial and logistics infrastructure developer, owner and operator in terms of Total Network area (Source: JLL Report). The Company develops, owns and operates Grade A quality fulfilment centres (warehouses), industrial facilities and in-city centres across India's major industrial and consumption hubs, offering an end-to-end ecosystem designed to reduce customer time-to-market.

The Company's scale accelerated materially following the change in control to the Blackstone Group (its Promoters are Blackstone-affiliated BREP Asia entities). Prior to May 2021 the platform held only five assets; as of the date of the RHP, the pan-India Network comprised 45 assets across 10 cities totalling 58.58 million square feet ("msf") — subsequently rising to 46 assets and 61.13 msf including a 2.55 msf land parcel in Narsapura, Bangalore.

Geographically, operations are concentrated in India's principal industrial corridors — Delhi-NCR, Mumbai, Bangalore, Chennai, Pune, Hyderabad, Ahmedabad and Nagpur — with Delhi-NCR, Chennai, Bangalore and Pune together contributing 79.00% of restated revenue in Fiscal 2026. The Company is a proxy on India's manufacturing, consumption and e-commerce structural tailwinds, with the broader Grade A warehousing market projected to expand at a 25.3% CAGR from CY2025 to CY2030, potentially reaching 943.6 msf by CY2030 (Source: JLL Report).

Financially, Horizon remains in an investment-heavy, loss-making phase typical of a capital-intensive real estate developer scaling its asset base. Restated Revenue from Operations grew to ₹691.38 Crore in Fiscal 2026 (from ₹390.29 Crore in FY25 and ₹228.86 Crore in FY24), while EBITDA margins are structurally high at ~79% given the annuity-rental model. However, heavy finance costs and depreciation drove a restated loss after tax of ₹203.65 Crore in FY26. The IPO is a pure Fresh Issue deployed primarily toward debt repayment (₹2,250.00 Crore).

2. Business Model and Revenue Streams

Network Architecture

Horizon's portfolio is structured across three development stages, aggregating to its Total Network of 58.58 msf:

• Operational Network — completed, revenue-generating assets: 28.55 msf with a Committed Occupancy of 93.56% (as of May 31, 2026)
• Near Term Deliveries — projects under active development: 7.22 msf
• Planned Projects — projects with legal documentation secured: 22.81 msf

The Development Network of 30.03 msf (Near Term Deliveries + Planned Projects) is expected to be delivered over the next four to five years and represents the Company's growth pipeline. As of May 31, 2026, 2.57 msf had been pre-contracted to customers across eight locations.

Revenue Model

Horizon operates an annuity-style leasing model, deriving recurring rental income from long-term contracts with customers, supplemented by value-added services. Key characteristics:

• Contract structure: Long-term leases with Grade A and Grade A+ specification facilities, including built-to-suit and fully fitted plug-and-play configurations
• Tenant quality: As of May 31, 2026, 54.05% of the committed Operational Network was contracted to Fortune 500 companies (including end-tenants of 3PL clients), reflecting a premium, credit-worthy tenant base
• Value-added services: Turnkey solutions, energy solutions, on-site staff accommodation, skill development centres, cold storage infrastructure, racking & material handling equipment (MHEs) and on-site hospitality — these contribute directly to revenue streams and enhance tenant stickiness

Customer Base and Concentration

The Company serves a diversified & marquee client pool spanning consumption segments (e-commerce, quick-commerce, third-party logistics, FMCG, retail) and manufacturing segments (auto-ancillary, renewables, packaging and other manufacturing). Illustrative anchor relationships include an automotive-components manufacturer expanded across three locations (Delhi-NCR, Chennai, Hosur) and Fosroc's integrated chemical manufacturing and storage campus in Hyderabad.

Client concentration is a monitorable risk: the top 10 customers contributed 42.60% of revenue in Fiscal 2026 (largest customer 11.12%, top 3 20.96%, top 5 28.14%).

Revenue and Operating Performance

3. Products and Service Portfolio

Core Asset Categories

1. Fulfilment Centres (Warehouses): Grade A / A+ warehousing forming the bulk of the Operational Network, serving e-commerce, 3PL and FMCG demand
2. Industrial Facilities: Built-to-suit manufacturing and integrated industrial campuses (e.g., the Fosroc chemical manufacturing and storage campus)
3. In-City Centres: A high-margin, scarcity-driven segment — the Company operates 17 in-city centres totalling 6.91 msf across seven metropolitan cities, described as the largest such network among its peers (Source: JLL Report). These provide access to a ready market of ~20 million end-consumers within a 10-to-30-minute drive and command significantly higher rents

In-City Logistics — The Emerging High-Value Segment

In-city centres serve multiple use cases — last-mile delivery stations, micro-fulfilment centres, dark stores, direct-to-customer businesses, online pharma, cold storage, cloud kitchens, service centres, airline catering and large-format retail. Of the 17 in-city centres, three are operational and 14 are planned for development. The Company has secured 13 in-city sites on a long-term 45-year concession basis through a relationship with the Central Warehousing Corporation ("CWC"), creating a differentiated pipeline with high barriers to entry.

Integrated Value-Added Infrastructure

Facilities are embedded at construction stage with cold storage, compressed air systems, high-capacity electrical infrastructure, energy (including solar) solutions, on-site staff accommodation and material handling equipment, allowing tenants to operate a turnkey, plug-and-play operation.

Operating Metrics Snapshot

4. Key Business Strengths

• Market Leadership & Scale: India's largest industrial and logistics developer by Total Network (58.58 msf across 45 assets in 10 cities), providing unmatched national reach and operating leverage.
• Blackstone Sponsorship: Promoter backing from the Blackstone Group provides global institutional expertise, capital access, corporate governance discipline and deal-sourcing advantage.
• Premium, Grade A+ Portfolio: High-specification assets engineered for efficiency, enabling premium rents and attracting blue-chip tenants.
• Marquee, Diversified Tenant Base: 54.05% of committed Operational Network leased to Fortune 500 companies, spread across consumption and manufacturing segments, reducing sector-specific risk.
• High-Occupancy Annuity Model: 93.56% Committed Occupancy on the Operational Network underpins visible, recurring rental cash flows.
• Structurally High Margins: ~79% EBITDA margin reflects the capital-light operating cost structure of a stabilised rental platform.
• Differentiated In-City Franchise: Largest in-city network among peers (6.91 msf / 17 centres), with a 45-year CWC concession for 13 sites creating a scarce, high-barrier growth engine.
• Embedded Industry Tailwinds: Direct leverage to India's manufacturing push, rising consumption and low (6.1%) e-commerce penetration versus ~37% in developed markets.

5. Future Growth Strategy

• Expand the In-City Logistics Network: Build out the remaining 14 planned in-city centres across major metros, capitalising on last-mile demand, scarcity-driven rental growth and the CWC concession pipeline.
• Execute the 30.03 msf Development Pipeline: Convert 7.22 msf of Near Term Deliveries and 22.81 msf of Planned Projects into operational, revenue-generating assets over the next four to five years.
• Acquisition-Led Growth on Sustainable Debt: Continue accretive asset and land acquisitions supported by strong operating cash flows and a de-levered post-IPO balance sheet (total borrowings reducing from ₹6,884.34 Crore to ₹4,634.34 Crore using Net Proceeds).
• Deepen Fortune 500 Relationships: Grow wallet share through multi-location expansions with existing marquee tenants and cross-sell value-added services.
• Broaden the Value-Added Services Suite: Scale energy solutions, cold storage, staff accommodation and turnkey offerings to lift per-asset yields and tenant retention.
• Capture Structural Market Growth: Position the Development Network to benefit from the projected 25.3% CAGR expansion of India's Grade A warehousing stock through CY2030.
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