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Informist, Monday, Jul. 27, 2026

By Vaishali Tyagi

NEW DELHI – Housing and Urban Development Corp. Ltd. posted a sharp year-on-year jump in net profit for the June quarter, driven by growth in revenue from operations. On a sequential basis, it was the steepest fall since December quarter of 2019. A significant rise in total expenditure limited the rise in bottom line of the company. 

The state-owned company's net profit for the quarter rose over 35% on year to INR 8.51 billion from INR 6.30 billion in corresponding quarter a year ago. Sequentially, the bottom line fell over 57%. The company's revenue from operations grew nearly 27% on year and above 4% on quarter to INR 37.17 billion in the June quarter. 

The company's net profit came in marginally above Nirmal Bang's estimate. Nirmal Bang was the only brokerage to provide estimates for HUDCO's June quarter earnings, and had pegged net profit at INR 8.21 billion, down nearly 59% sequentially but up over 30% year-on-year.

The state-owned company released its June quarter earnings during market hours. Monday, shares of the company ended at INR 202.16 on the National Stock Exchange, over 3% higher from Friday. Shares of HUDCO, which opened at 199.90, rose to a high of INR 205 post release of June quarter result.  

Its total income for the June quarter rose nearly 27% on year and over 3% on quarter to INR 37.38 billion. HUDCO's total expenses rose nearly 28% on year to INR 26.71 billion for the June quarter. However, it fell over 11% on quarter. Of this, finance costs rose to INR 25.61 billion in the quarter ended June from INR 19.76 billion a year ago. 

HUDCO will pay an interim dividend of INR 1.25 per share and announced Jul. 31 as the record date. 

On account of the Reserve Bank of India's new norms on expected credit loss, the company has made a provision of INR 16.21 billion as of Jun. 30, unchanged from INR 16.21 billion as of Mar. 31, however, it was marginally lower from INR 17.03 billion set aside in the June quarter last year.

During the reporting period, four non-performing assets in the project loan portfolio were resolved through full repayment by the borrowers, the company said in the exchange filing. It added that there were no fresh slippages to NPA in project loans during the period. The company also stated it has not undertaken any technical write-off for chronic NPA cases, in line with its board-approved technical write-off policy.

The provision coverage ratio was at 95.06% as of Jun. 30, up from 94.9% as on Mar. 31, up from 93.49% a year ago. As on Jun. 30, the gross credit impaired assets ratio of HUDCO was 0.96%, down from 1.34% at the end of corresponding quarter ago. Its net credit impaired assets ratio was 0.05% at the end of June quarter, down from 0.09% reported in year ago quarter. 

During the quarter ended Jun. 30, the company has raised funds amounting to INR 21.40.00 billion through issue of listed non-convertible debt securities on private placement basis. 

As. of Jun. 30., HUDCO's loan disbursement was at INR 163.77 billion, up 28% from June 2025. The company's loan outstanding at the end of June quarter was at INR 1.73 trillion, up from INR 1.34 trillion in the corresponding quarter a year ago. 

The company's net interest margin was at 2.72% as of Jun. 30, down from 2.94% in the June quarter a year ago. The company's cost of funds fell to INR 6.95% in the June quarter from 7.07% reported a year ago.

On the borrowing side, the state-owned financier has raised INR 1.53 trillion as of Jun. 30. Of which, HUDCO has raised INR 18.06 billion through external commercial borrowing under the Reserve Bank of India concessional forex swap window, according to investor presentation.

On cost optimisation, the company said in its investor presentation that it will pursue a judicious mix of borrowings from both domestic and international sources, based on its asset liability management profile. It has also set up a global medium-term note programme to raise funds from the international capital markets through its maiden bond offering. The company is further exploring other geographies, including the possibility of raising dollar, euro, and Japanese Yen-denominated loans or bonds, according to company's profile. End

Edited by Akul Nishant Akhoury

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