New Delhi: Housing and Urban Development Corporation Limited (HUDCO), a Navratna public sector undertaking (PSU) under the Ministry of Housing and Urban Affairs (MoHUA), has announced its unaudited financial results for the quarter ended June 30, 2026.
The HUDCO Board of Directors approved the Q1 FY27 results and declared the first interim dividend for the financial year 2026-27. The company reported strong growth in profitability, revenue, and loan portfolio, supported by improved asset quality and lower credit impairment levels.
HUDCO’s net profit increased by 35.05% year-on-year (YoY) to ₹851.11 crore in Q1 FY27, compared with ₹630.23 crore in the same quarter of the previous year.
HUDCO Q1 FY27 Financial Performance Highlights
HUDCO recorded healthy growth across major financial parameters during the first quarter.
- Interest Income: Increased to ₹3,709.57 crore in Q1 FY27 from ₹2,924.64 crore in Q1 FY26, registering a growth of 26.84% YoY.
- Total Revenue: Rose to ₹3,717.17 crore from ₹2,937.31 crore, showing a growth of 26.55% YoY.
- Total Income: Increased to ₹3,737.49 crore compared with ₹2,945.47 crore in the corresponding period, up 26.88%.
- Profit Before Tax (PBT): Improved to ₹1,066.20 crore from ₹857.23 crore, recording a growth of 24.38%.
- Net Profit: Jumped to ₹851.11 crore from ₹630.23 crore, marking a 35.05% YoY increase.
- Basic Earnings Per Share (EPS): Increased to ₹4.25 from ₹3.15, rising 34.92% YoY.
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HUDCO Declares First Interim Dividend for FY 2026-27
The HUDCO Board has approved the first interim dividend for the financial year 2026-27.
Key dividend details:
- Interim Dividend: ₹1.25 per equity share.
- Dividend Rate: 12.50% on the face value of ₹10 per share.
- Record Date: Friday, July 31, 2026.
Shareholders whose names appear in the company’s records on the record date will be eligible for the dividend.
HUDCO Asset Quality Improves Further in Q1 FY27
HUDCO continued to strengthen its asset quality during the quarter, with a reduction in stressed assets and improvement in provisioning coverage.
Key asset quality updates:
- Provision Coverage Ratio (PCR): Improved to 95.06% in June 2026 from 93.49% in June 2025, an improvement of 157 basis points.
- Gross Credit Impaired Assets Ratio: Declined to 0.96% from 1.34%, improving by 38 basis points.
- Net Credit Impaired Assets Ratio: Reduced to 0.05% from 0.09%, improving by 4 basis points.
During Q1 FY27:
- Four NPA accounts under project loans were resolved through full repayment.
- No fresh slippages were reported during the quarter.
The improvement in asset quality reflects stronger credit monitoring and disciplined lending practices.
HUDCO Loan Portfolio Expands to ₹1.73 Lakh Crore
HUDCO continued its lending expansion during Q1 FY27.
- The total loan portfolio increased to ₹1,73,123 crore at the end of Q1 FY27.
- In Q1 FY26, the loan portfolio stood at ₹1,34,410 crore.
- The growth includes Expenditure Bearing Responsibility (EBR) loans.
Other portfolio details:
- Gross NPAs: ₹1,668.86 crore.
- Net NPAs: ₹82.43 crore.
- Provision Coverage Ratio: 95.06%.
The company maintains zero net non-performing assets in certain segments, indicating strong credit quality.
HUDCO Key Financial Ratios in Q1 FY27
The company reported stable financial ratios during the quarter.
Important financial metrics:
- Debt Equity Ratio: 6.70x in June 2026 compared with 6.61x in June 2025.
- Net Worth: Increased to ₹22,867 crore from ₹17,656 crore.
- Operating Margin: Stood at 28.68% compared with 29.18% last year.
- Net Profit Margin: Improved to 22.77% from 21.40%.
- CRAR: Stood at 39.41% compared with 41.72% in the previous year.
HUDCO’s capital adequacy remained significantly above regulatory requirements.
HUDCO Operational Performance and Margin Trends
The company reported the following operational performance indicators for Q1 FY27:
- Yield on Loans: 8.78%.
- Cost of Funds: 6.95%.
- Interest Spread: 1.83% compared with 2.01% in Q1 FY26.
- Net Interest Margin (NIM): 2.72% compared with 2.94% last year.
- Annualised Return on Equity (ROE): Improved to 14.89% from 14.28%.
Although margins declined slightly due to funding cost pressures, strong loan growth and improved asset quality supported overall profitability.
HUDCO Raises ₹2,140 Crore Through Debt Securities
During the quarter, HUDCO raised ₹2,140 crore through the issuance of non-convertible debt securities on a private placement basis.
The company stated that:
- The entire amount has been utilised for strengthening long-term resources.
- Funds were used for business operations and lending activities.
- There was no deviation in the utilisation of proceeds.
Auditor Observations on HUDCO Financial Statements
The auditors highlighted certain matters but confirmed that their opinion remains unchanged.
No Lien AGP Account
HUDCO recognised interest income of ₹6.41 crore on the No Lien AGP Account.
- Outstanding balance as of June 30, 2026: ₹734.99 crore (debit).
- The company is in discussions with MoHUA for recovery of the amount.
Independent Directors Compliance Issue
The company reported non-compliance regarding the required number of Independent Directors between:
- April 1, 2023 and June 30, 2026.
Committees were constituted only on April 29, 2025, which resulted in non-compliance with certain committee composition requirements.
The auditors clarified that these matters did not modify their audit opinion.
Other Important HUDCO Disclosures
HUDCO reported the following key updates:
- No default: The company reported zero defaults on debt servicing obligations.
- Investor Complaints: No complaints were pending as of June 30, 2026.
- Exceptional Items: No extraordinary transactions occurred during the quarter.
- Loan Transfers: No loans were transferred during Q1 FY27.
- Loan Acquisitions: The company acquired loan exposure worth ₹2,059.18 crore.
Key Takeaways for HUDCO Investors
Major highlights from HUDCO Q1 FY27 results:
- Net profit increased 35% YoY to ₹851 crore.
- Revenue grew 26.55% to ₹3,717 crore.
- First interim dividend announced at ₹1.25 per share.
- Record date fixed for July 31, 2026.
- Gross NPA ratio improved to 0.96%.
- PCR strengthened to 95.06%.
- Loan portfolio expanded to ₹1.73 lakh crore.
- CRAR remained strong at 39.41%.
- No debt servicing defaults reported.
About HUDCO
Housing and Urban Development Corporation Limited (HUDCO) is a Navratna public sector enterprise under the Ministry of Housing and Urban Affairs, Government of India. Established in 1970, HUDCO provides financial assistance for housing and urban infrastructure development projects across the country. The company plays an important role in supporting affordable housing, urban development and infrastructure financing.
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