Aberdeen New India Investment Trust Half-Year Update: Performance, Tender Offer, and Policy Changes

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.