Mumbai: Housing and Urban Development Corporation Limited (HUDCO), a Government of India enterprise, has announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, posting robust growth across key metrics. The company achieved a Profit After Tax (PAT) of ₹4,034.37 crore, marking a 49% year-on-year increase, while earnings per share (EPS) rose to ₹20.15, and net worth touched an all-time high of ₹21,977 crore.
Strong Financial Performance in FY26
HUDCO’s FY26 standalone results reflect a strong upward trajectory in profitability and operational performance:
- Profit After Tax (PAT): ₹4,034.37 crore – up 48.9% from ₹2,709.14 crore in FY25
- Total Income from Operations: ₹13,150.40 crore – up 27.5%
- Basic EPS: ₹20.15 – up from ₹13.53
- Total Assets: ₹1,66,839.79 crore – up 29.9%
- Net Worth: ₹21,977.20 crore – up 22.3%
Q4 FY26 Highlights:
- Total Income: ₹3,562.86 crore
- Profit Before Tax: ₹621.01 crore
- Profit After Tax: ₹1,981.31 crore
- EPS: ₹9.90
HUDCO also recommended a final dividend of ₹1.50 per equity share, bringing the total dividend for FY26 to ₹6.05 per share, subject to shareholder approval.
Record Loan Sanctions and Disbursements
FY26 was a landmark year for HUDCO in terms of lending and infrastructure financing:
- Loan sanctions: ₹1.65 lakh crore – 29% growth from FY25
- Loan disbursements: ₹51,194 crore – 28% growth
- Outstanding loan book: ₹1,60,724 crore
These achievements reinforce HUDCO’s role as a key financier of affordable housing and infrastructure projects across India.
Robust Asset Quality and Risk Management
HUDCO maintained excellent asset quality with low NPAs and strong provisioning:
- Gross NPA: 1.04%
- Net NPA: 0.05%
- Provision Coverage Ratio: 94.90%
Nearly 99% of the loan book is directed to Government entities and agencies, ensuring financial stability. Impairment provisions under the ECL method stood at ₹1,621.21 crore, while the RBI-directed impairment reserve reached ₹688.32 crore.
Key Strategic Initiatives and Capital Raising
During FY26, HUDCO undertook several strategic initiatives to strengthen its capital base and funding capabilities:
- 54 EC Capital Gain Bonds raised: ₹121.12 crore
- Perpetual Tier-1 Debt Securities: ₹1,422 crore
- Loan exposure acquired: ₹477.09 crore (outstanding ₹446.69 crore)
The company has maintained timely repayment of all debt securities and borrowings and holds strong credit ratings: AAA with stable outlook (domestic) and BBB-/BBB+/Baa3 (international).
HUDCO is actively pursuing new financing models for Public-Private Partnership (PPP) projects, optimizing its cost of funds, and scaling operations to achieve a ₹3 lakh crore balance sheet target by FY2030.
Auditor’s Opinion and Compliance
The audited results were unmodified (clean) for both standalone and consolidated accounts, with key audit matters relating to Expected Credit Losses (Ind AS 109) and derivative instruments valuation.
Some disclosures included:
- Pending recoverables of ₹685.64 crore from MoHUA
- Compliance shortfalls with independent director requirements (Regulation 17(1)(b))
- Extension sought from RBI for JV investments not divested by March 31, 2026
CMD Highlights Strategic Reforms and Expansion
Speaking on the performance, Sanjay Kulshrestha, Chairman and Managing Director of HUDCO, said the company had already surpassed its FY26 market guidance of a ₹1.5 lakh crore loan book during the third quarter itself.
He said the company continues to undertake organisational and policy reforms to sustain long-term growth momentum and strengthen operational resilience. CMD said, he is working on Rented Housing Projects too. He said, Hudco is in touch with West Bengal New Government to expand its business.
According to the CMD, several strategic initiatives contributed to the strong performance, including diversification of funding sources, issuance of HUDCO’s first-ever perpetual bonds, focused stressed asset resolution mechanisms, ESG initiatives, succession planning and digital transformation projects such as ERP and e-office implementation.
He also highlighted improvements in governance standards and financial controls as key contributors to operational efficiency.
Focus on Urban Infrastructure and PPP Financing
As part of its developmental roadmap aligned with the Government of India’s Urban Challenge Fund and Viksit Bharat mission, HUDCO has launched the Urban Invest Window (UiWIN) initiative to support Urban Local Bodies in planning and executing sustainable and financially viable infrastructure projects, especially in Tier-2 and Tier-3 cities.
The company has also widened its lending portfolio by opening financing support for Public-Private Partnership (PPP) projects across five major sectors roads, real estate, energy, airports and seaports.
The expansion is expected to strengthen HUDCO’s presence in India’s rapidly growing infrastructure financing ecosystem and support large-scale capital expenditure initiatives being undertaken by the government.
About HUDCO
Housing and Urban Development Corporation Ltd (HUDCO) is a Navratna NBFC under the Ministry of Housing and Urban Affairs, India. Established to support urban development across the country, HUDCO provides financial assistance, technical expertise, and advisory services to cities and Urban Local Bodies for sustainable infrastructure development. Through initiatives like UiWIN, HUDCO aims to strengthen project preparation, mobilize investments, and facilitate modern, resilient urban growth in India.
