New Delhi: Housing and Urban Development Corporation Limited (HUDCO) has reported a 28.3% year-on-year (YoY) increase in consolidated net profit to ₹911 crore for the second quarter of the financial year 2026-27 (Q2 FY27), compared with ₹710 crore in the corresponding quarter of the previous financial year.
The company’s Board of Directors, at its meeting held on November 4, approved the unaudited financial results for the quarter and half-year ended September 30, 2026. The board also declared the second interim dividend of ₹1.35 per equity share for FY 2026-27.
HUDCO’s consolidated total income increased 24.6% to ₹4,051 crore during the July-September quarter, compared with ₹3,251 crore in the year-ago period. For the first half of FY27, the company’s profit after tax (PAT) stood at ₹1,762 crore.
HUDCO Q2 FY27 Financial Performance
HUDCO recorded growth in its income and profitability during the September quarter, supported by an increase in interest and revenue from operations.
The key consolidated financial highlights for Q2 FY27 are:
- Net Profit (PAT): Increased 28.3% to ₹911 crore from ₹710 crore in Q2 FY26.
- Total Income: Rose 24.6% to ₹4,051 crore from ₹3,251 crore.
- Revenue from Operations: Increased to ₹4,040 crore from ₹3,219 crore.
- Interest Income: Rose to ₹4,023 crore from ₹3,197 crore.
- Profit Before Tax (PBT): Increased to ₹1,122 crore from ₹955 crore.
- H1 FY27 PAT: Reached ₹1,762 crore.
The company’s revenue from operations, which primarily comprises interest income, remained the major contributor to its overall income growth.
However, HUDCO’s finance costs also increased to ₹2,857 crore during Q2 FY27, compared with ₹2,147 crore in the corresponding quarter of the previous year. Despite higher finance costs, the company recorded an improvement in profit before tax.
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HUDCO Resolves 10 Non-Performing Project Loans in H1 FY27
HUDCO reported progress in its loan recovery and asset quality management efforts during the first half of FY27.
The company resolved 10 non-performing project loans through various measures during the six months ended September 30, 2026. It also reported that there were no fresh additions to the non-performing asset (NPA) category in its project loan portfolio during this period.
HUDCO’s provision for expected credit losses (ECL) on loans stood at ₹1,278.95 crore as of September 30, 2026, compared with ₹1,680.17 crore a year earlier.
The company also reported a net reversal of ₹4.18 crore in expected credit loss provisions during the September quarter.
However, the auditors highlighted an outstanding recoverable amount of ₹743.16 crore related to the Andrews Ganj Project account.
HUDCO recognised ₹7.80 crore as interest income on this account during Q2 FY27. The company stated that it was in discussions with the Ministry of Housing and Urban Affairs to recover the outstanding amount or obtain reimbursement, including interest.
HUDCO Declares Second Interim Dividend of ₹1.35 Per Share
The HUDCO Board of Directors has declared a second interim dividend of ₹1.35 per equity share for FY 2026-27.
The dividend represents 13.5% of the face value of ₹10 per equity share. The company has fixed November 11, 2026, as the record date to determine the eligibility of shareholders for the dividend.
HUDCO has stated that the dividend payment process will be completed within 30 days of the declaration.
The interim dividend announcement provides an additional highlight alongside the company’s improved quarterly financial performance.
HUDCO Discloses Corporate Governance Compliance Issues
The auditors also highlighted certain corporate governance compliance issues in their observations on the company’s financial results.
According to the disclosure, HUDCO did not meet the regulatory requirement concerning the minimum number of independent directors on its board during the April-September 2026 period.
As a result, the composition of certain board committees was also not in compliance with the requirements of the Companies Act and SEBI’s listing regulations.
The company further disclosed that stock exchanges had imposed fines for earlier instances of corporate governance non-compliance. These fines have been reported as contingent liabilities.
About HUDCO
Housing and Urban Development Corporation Limited (HUDCO) is a public sector enterprise under the Ministry of Housing and Urban Affairs, Government of India. It provides financial assistance and consultancy services for housing and urban infrastructure development, supporting projects related to affordable housing, urban development and essential civic infrastructure across the country.
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