Half-year results: softer NAV, stronger share price, tighter discount
Aberdeen New India Investment Trust PLC has posted a mixed set of half-year numbers to 30 September 2025. The share price delivered a total return of +1.1%, but the net asset value (NAV) fell -4.3% in sterling terms. On the company’s preferred basis – adjusted NAV, which adds back Indian capital gains tax so it’s comparable with the MSCI India index – the total return was -3.8% versus the benchmark at -1.8%.
The market rotated towards value and away from quality through the period, India’s currency weakened against sterling, and foreign selling picked up. Against that backdrop, the discount narrowed materially, from 15.0% to 10.2%, which helped the share price finish ahead despite the NAV fall.
Key numbers investors should know
| Metric | 30 Sep 2025 | Change/Context |
|---|---|---|
| Share price (mid) | 764.00p | +1.1% total return in the half |
| NAV per share | 851.07p | -4.3% total return |
| Adjusted NAV per share | 904.16p | -3.8% total return |
| MSCI India Index (GBP) | – | -1.8% total return |
| Discount to NAV | 10.2% | Narrowed from 15.0% |
| Net gearing | 4.2% | Modest, up from 3.9% |
| Ongoing charges | 1.00% | Was 0.95% in FY25 |
| INR/GBP rate | 119.53 | Rupee weakened vs sterling (-8.3%) |
Conditional tender offer: tracking ahead of the hurdle
The trust operates a five-yearly performance-related conditional tender. If the NAV total return underperforms the benchmark over 1 April 2022 to 31 March 2027, shareholders would be offered the chance to realise up to 25% of their holding at a level close to NAV. Performance is judged on “Adjusted NAV” (adds back Indian CGT) so it’s like-for-like with the index.
As at 30 September 2025, the Adjusted NAV total return since 1 April 2022 was +29.7%, ahead of the benchmark at +25.0%. That is a helpful buffer, though there are still 18 months to run.
Portfolio moves and what drove performance
The team’s quality tilt and some cyclical exposure lagged as the Indian market favoured value names. Several prior winners saw profit-taking. Currency also bit: a weaker rupee against sterling reduces sterling-reported returns.
Stock and sector standouts
- Positives: Uno Minda (auto components) delivered robust results; Mahindra & Mahindra outperformed; KEI Industries (cables) and Siemens Energy India benefited from strong power transmission demand; SBI Life Insurance grew value of new business.
- Detractors: Not holding Maruti Suzuki and Zomato-owner Eternal hurt relative returns; Indian Hotels was soft amid weaker tourism sentiment; large-cap IT, including Tata Consultancy Services, faced margin pressure and slower orders.
Buys, sells and IPOs
- New and increased positions: MakeMyTrip (online travel), Trent (retail), Karur Vysya Bank (regional lender), Kotak Mahindra Bank (re-introduced), and Bajaj Finance (retail lending). The tilt remains towards domestic demand and quality balance sheets.
- Switches and reductions: Switched Syngene International into Rainbow Children’s Medicare; reduced exporters most at tariff risk (textiles/apparel) and trimmed IT services exposure.
- IPOs: Participated in Aegis Vopak Terminals (LPG and chemicals logistics) and Siemens Energy India (high-voltage transformers); also subscribed to LG Electronics India at listing in October.
- Exits: Godrej Properties (cycle concerns, higher debt), Apar Industries (tariff risk to export-led strategy), Havells India.
Gearing, buybacks and costs: small but helpful tailwinds
Gearing is modest, with £22.5 million drawn on the £30 million BNP Paribas facility at 30 September 2025. The interest margin has improved after the June renewal, with an all-in rate of 5.27% on the latest rollover. A measured level of gearing (borrowing to invest) can enhance returns through the cycle – and the Board continues to support that approach.
Buybacks remained active: 2,265,564 shares were bought into treasury during the half, enhancing NAV per share by 0.5%. Shares in issue with voting rights stood at 45,590,229 at period end, with a further 13,479,911 in treasury. The buybacks, coupled with improved sentiment, helped the discount tighten from 15.0% to 10.2%.
A fee tweak helps too. From 1 April 2025, management fees are charged on market capitalisation rather than NAV, at 0.8% on the first £300 million and 0.6% thereafter. That contributed to lower ongoing costs (1.00%).
Financial results at a glance
The trust reported a total loss of £19.8 million for the six months, driven by £19.3 million of capital losses as markets rotated and the rupee weakened. Revenue came in at £2.9 million, more than offset by expenses and finance costs, leaving a small revenue loss of £147,000. Remember, the objective is capital growth; income is secondary.
Portfolio snapshot: top holdings and themes
The portfolio stays aligned to India’s long-term growth drivers – financial inclusion, urbanisation, premiumisation of consumption, digitalisation and energy transition – with a quality bias.
Top 10 positions (49.5% of assets)
- HDFC Bank – 10.2%
- ICICI Bank – 8.4%
- Bharti Airtel – 6.5%
- Mahindra & Mahindra – 4.8%
- Infosys – 3.7%
- SBI Life Insurance – 3.6%
- Aegis Logistics – 3.2%
- Ultra Tech Cement – 3.1%
- Indian Hotels – 3.0%
- Vijaya Diagnostic Centre – 3.0%
There is an evident domestic tilt: banks and insurers, telecoms, consumer names, power infrastructure and building materials. That positioning is deliberate given tariff uncertainty on exports and a resilient home economy.
Investment policy change: more room for high-conviction ideas
On 25 September 2025 the Board lifted the limit on exposure to a single company to the higher of 10% of net assets or the stock’s benchmark weight plus 3.5% at the time of purchase. The overall 20% cap per holding is unchanged. This should allow the managers to express conviction more fully where they see compelling quality and returns potential.
Macro and outlook: short-term noise, long-term runway
The macro picture is mixed. The RBI has cut policy rates by 1% since January; GST has been simplified and reduced on essentials; and the monsoon and inflation backdrop are benign. On the flip side, US tariff risks linger, foreign flows have been fickle, and the rupee has softened as the RBI preserves flexibility while GST receipts bed in.
The managers expect near-term growth to be uneven – with festive demand helping H2, autos and jewellery improving, and investment activity solid – but they remain selective, especially in mid-caps where valuations are still elevated. IPO activity has been robust in 2025, creating new opportunities, and the portfolio’s bias to domestic growth and quality balance sheets should cushion volatility.
Why this update matters for shareholders
- Discount momentum: a move from 15.0% to 10.2% is meaningful. Continued buybacks and delivery could tighten it further.
- Tender offer scorecard: adjusted NAV is running ahead of the benchmark (+29.7% vs +25.0%) since April 2022, keeping the five-year tender risk in check – for now.
- Cost and capital discipline: lower fee basis, cheaper debt and ongoing buybacks are shareholder-friendly levers.
- Policy flexibility: higher single-stock limit empowers the team to back winners more decisively, which could lift long-term returns.
Housekeeping: name change noted
On 28 November 2025 the company changed its name to Aberdeen New India Investment Trust PLC, aligning with the manager’s parent brand.
My take
This is a classic “two steps forward, one step back” half. The NAV gave ground amid market style shifts and currency, but the discount tightened, costs fell, and the longer-term tender metric remains ahead. The portfolio has been nudged further towards domestic demand and away from tariff risk, which is sensible.
If you believe in India’s structural story – financial inclusion, infrastructure, premium consumption and the energy transition – this trust remains a quality-tilted way to get exposure. Watch the discount, the rupee, and progress on US-India tariff talks. If volatility coughs up another wobble, that could be an attractive entry point.
