Earnings Review
HUDCO Q3 PAT falls as expenses grow faster than income
This story was originally published at 21:13 IST on 29 January 2026
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--HUDCO Oct-Dec net profit INR 7.13 bln vs INR 7.35 bln year ago
--HUDCO Oct-Dec total income INR 35.06 bln vs INR 27.70 bln year ago
--HUDCO to pay INR 1.15 per share interim dividend
--HUDCO interim dividend record date is Feb 7
--HUDCO Apr-Dec net profit INR 20.53 bln vs INR 19.81 bln year ago
--HUDCO Apr-Dec total income INR 97.02 bln vs INR 74.93 bln year ago
--HUDCO: Provisions as per expected credit loss INR 16.15 bln on Dec 31
--HUDCO: Provision coverage ratio at 94.70% on Dec 31
--HUDCO: Gross credit impaired assets ratio 1.08% on Dec 31 vs 1.88% year ago
--HUDCO: Net credit impaired assets ratio 0.06% on Dec 31 vs 0.27% year ago
--HUDCO increases borrowing limit for FY26 to INR 800 bln from INR 650 bln
--HUDCO loans outstanding INR 1.56 tln on Dec 31, up 30.9% on year
By Shweta
MUMBAI – Housing and Urban Development Corp. Ltd. reported a small on-year decline in its bottom line for the December quarter for the first time after 10 quarters as expenses grew at a much faster pace than the rise in income. While total income rose a healthy 27%, total expenses grew 48% driven largely by a 36% increase in finance costs. This outstripped the gains from a provision reversal of INR 777 million. The on-year growth in the company's total income for the reporting quarter was the slowest in six quarters.
The state-owned company's net profit fell 3% on year to INR 7.13 billion for Oct-Dec. However, the bottom line rose just 0.5% on a sequential basis. HUDCO's revenue from operations grew over 24% on year and nearly 7% sequentially to INR 34.31 billion for the reporting quarter. Its total income rose nearly 27% on year and nearly 8% on quarter to INR 35.06 billion for Oct-Dec.
HUDCO's total expenses swelled nearly 48% on year and over 18% on quarter to INR 27.17 billion for the December quarter. Within this, the employee benefit cost rose nearly 23% on year and nearly 12% sequentially to INR 739 million for the quarter. Its finance cost was INR 23.94 billion for the December quarter, up nearly 36% on year and almost 12% on quarter. The company's tax outgo was INR 755 million for the December quarter, almost 62% lower from INR 1.97 billion in the year-ago quarter.
HUDCO said it will pay an interim dividend of INR 1.15 per share and the record date for this payment will be Feb. 7. HUDCO has made a provision of INR 16.15 billion in the December quarter on account of the Reserve Bank of India's new norms on expected credit loss. The financier had made provisions of INR 19.54 billion in the year-ago quarter.
The financier's loan book grew to INR 1.56 trillion on Dec. 31, up nearly 31% on year. The disbursements for the same period were INR 413.47 billion.
The gross credit impaired assets ratio was 1.08% on Dec. 31, down from 1.88% on Dec. 31, 2024. HUDCO's net credit impaired assets ratio was 0.06% at December end, lower from 0.27% a year ago. The company's gross non-performing assets were INR 16.76 billion, while net NPAs were at INR 888 million for the December quarter. The provision coverage ratio was 94.7% on Dec. 31.
The net interest margin was 2.88% for Apr-Dec, down from 3.19% in the year-ago period.
HUDCO's net profit for the nine months of 2025-26 (Apr-Mar) was INR 20.53 billion, up nearly 4% from INR 19.81 billion in the year-ago period. Its total income for Apr-Dec grew 29% on year to INR 97.02 billion.
The company increased its borrowing limit to INR 800 billion from INR 650 billion for FY26.
HUDCO announced its December earnings after market hours. Thursday, shares of the company closed 0.18% lower at INR 203.97 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
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