HUDCO has announced the opening of a special window for transfer and dematerialisation requests of physical securities, providing investors with a one-year period to convert their physical holdings into electronic form. The special window will remain open from February 5, 2026 to February 4, 2027, as disclosed to the stock exchanges on April 28, 2026.

Regulatory Compliance

The announcement was made in compliance with Regulation 47 of SEBI (LODR) Regulations, 2015. Company Secretary and Compliance Officer Vikas Goyal submitted the required documentation to both BSE Limited and National Stock Exchange of India Limited. The disclosure references SEBI Circular No. HO/38/13/11(2)2026-MIRSD-POD/I/3750/2026 dated January 30, 2026, which provides detailed guidelines for the special window process.

Investor Information

Investors and transferees holding physical securities of HUDCO can utilize this special window to submit their transfer and dematerialisation requests. The initiative aims to facilitate the conversion of physical share certificates into dematerialised form, aligning with the broader market trend towards electronic holdings. The one-year window provides adequate time for shareholders to complete the necessary formalities.

The company, operating as a Navratna Central Public Sector Enterprise under the Government of India, maintains its registered office at Core 7A, HUDCO Bhawan, India Habitat Centre, Lodhi Road, New Delhi. This initiative demonstrates HUDCO's commitment to regulatory compliance and shareholder convenience.

hudco has received credit rating affirmation from India Ratings and Research Limited, maintaining its strong IND AAA/Stable rating across all financial instruments. The rating agency's comprehensive review covers multiple debt instruments totaling over ₹2.70 lakh crore, reflecting the corporation's robust financial position and strategic importance in India's housing and urban infrastructure sector.

Rating Actions and Instrument Details

India Ratings has taken multiple rating actions across HUDCO's diverse borrowing portfolio:

The ₹70,000 crore proposed bonds include a sub-limit of ₹7,000 crore for subordinated debt, providing HUDCO with enhanced financial flexibility for its expansion plans.

Strong Financial Performance Drives Rating Affirmation

The rating affirmation reflects HUDCO's continued strong financial performance in 9MFY26, characterized by significant growth across key metrics. The corporation's loan book expanded substantially to ₹1,556.31 billion at 9MFYE26, compared to ₹1,189.31 billion in 9MFYE25 and ₹1,248.28 billion at FYE25. This growth trajectory demonstrates HUDCO's expanding role in financing India's infrastructure development.

HUDCO's disbursement activity reached ₹413.47 billion in 9MFY26, substantially higher than ₹317.60 billion in 9MFY25 and ₹400.38 billion in FY25. The proportion of urban infrastructure financing in the loan book increased to 66.07% at 9MFYE26 from 59.83% in 9MFYE25, indicating the corporation's strategic focus on infrastructure development.

Asset Quality and Capital Adequacy Improvements

HUDCO demonstrated notable improvement in asset quality metrics during the review period. The gross non-performing asset ratio improved to 1.08% in 9MFY26 from 1.88% in 9MFY25, while the net NPA ratio declined to 0.06% from 0.27%. The provision coverage ratio remained robust at 94.70% in 9MFY26, compared to 85.60% in 9MFY25.

The capital adequacy ratio moderated to 38.28% in 9MFY26 from 48.27% in 9MFY25, primarily due to sharp growth in the loan book, while remaining well above regulatory requirements.

Strategic Importance and Government Linkages

India Ratings emphasized HUDCO's continued systemic importance to the Government of India, particularly in financing housing and urban infrastructure projects. The corporation serves as the nodal agency for the 'Housing for All' scheme and actively participates in key government initiatives including Jal Jeevan Mission, Atal Mission for Rejuvenation Urban Transformation, and Pradhan Mantri Awas Yojna.

HUDCO's loan portfolio remains predominantly focused on state government agencies, with their share reaching 98.85% in 9MFY26. The majority of outstanding loans are backed by state government guarantees, with over 80% of the asset book supported by such guarantees, significantly mitigating credit risk.

Profitability and Operational Efficiency

Despite competitive pressures, HUDCO maintained healthy profitability metrics. The net interest margin stood at 2.88% in 9MFY26, while the interest spread remained stable at 1.97%. Net income for 9MFY26 reached ₹20.53 billion, with return on average assets at 1.90%. The corporation's pre-tax profit stabilized at ₹26.0 billion in 9MFY26.

India Ratings expects HUDCO's profitability to remain above 2.5% in the near-to-medium term, supported by continued loan book growth and strategic positioning in the infrastructure financing sector. The rating agency noted that HUDCO's classification as an infrastructure finance company in August 2024 may lead to increased private sector lending opportunities while maintaining focus on public-private-partnership schemes.