Housing and Urban Development Corporation Limited outlined a clear growth trajectory for FY27 during its Q1FY27 earnings conference call on July 28, 2026, targeting disbursements of ₹65,000 crore and maintaining net interest margins (NIMs) around 3%. Chairman and Managing Director Sanjay Kulshrestha emphasized that the company is transitioning from subsidy-based schemes to bankable urban infrastructure projects, supported by recent Memorandums of Understanding (MOUs) worth over ₹2 lakh crore with Gujarat and Bihar. The management also highlighted significant progress in non-performing asset (NPA) resolution, aiming to clear most legacy assets during the current financial year.

The call revealed that HUDCO has secured a tie-up of up to USD2 billion under the Reserve Bank of India’s forex window, having already borrowed approximately USD700 million. This facility allows the company to access long-term foreign currency loans at an all-in cost of 5.5% to 6.5%, with RBI covering most hedging costs. Management stated that the company aims to maintain a spread of around 2% on its loan book, driven by disciplined project selection and reduced cost of funds. The Board has approved a borrowing plan of ₹70,000 crore for FY27 to support the targeted disbursements.

Asset Quality and Resolution Strategy

HUDCO reported gross NPAs slightly above ₹1,600 crore, with net NPAs at ₹82 crore. Of the gross NPA book, ₹1,100 crore involves assets under the National Company Law Tribunal (NCLT), dating back to pre-2013 financing. Management expressed confidence in resolving these advanced-stage cases within FY27, noting that revenues are already trickling in from liquidated projects. The remaining ₹34 crore outside NCLT and ₹29 crore in non-consortium NCLT cases are also expected to be resolved soon through mutual understanding with promoters rather than purely adversarial legal routes.

Strategic Partnerships and Pipeline

New MOUs signed with Gujarat and Bihar represent a pipeline exceeding ₹2 lakh crore, focusing on metro systems, ring roads, and satellite towns. In Gujarat, projects linked to upcoming international sporting events and regional connectivity are prioritized. In Bihar, the focus is on creating 12 satellite towns and urban infrastructure under the 'Viksit Bihar' initiative. While the total sanction pipeline stands at ₹2.5 lakh crore, management cautioned that disbursement timelines for such capital-intensive projects typically span five years due to land acquisition and regulatory hurdles.

What the Numbers Show

The shift towards bankable projects and the utilization of the RBI forex window indicate a strategic move to optimize funding costs while scaling the loan book. With a target loan book of ₹3 lakh crore by 2030, the current ₹65,000 crore disbursement target for FY27 serves as a critical stepping stone. The maintenance of 2% spreads despite aggressive growth suggests effective pricing power and cost management. However, investors should monitor the actual conversion rate of the ₹2 lakh crore state MOUs into disbursed loans, as execution risks remain inherent in large-scale urban infrastructure development.

Housing and Urban Development Corporation Limited has formally notified its 56th Annual General Meeting (AGM), scheduled to be held on Monday, August 24, 2026 at 11:30 a.m. IST through Video Conferencing (VC)/Other Audio-Visual Means (OAVM). The notice was dispatched to stock exchanges on July 30, 2026, pursuant to Regulation 30 and Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and is accompanied by the Annual Report for Financial Year 2025-26. The AGM notice and Annual Report are available on the company's website at www.hudco.org.in and on the websites of BSE Limited and National Stock Exchange of India Limited.

Key AGM Dates and Shareholder Action Items

Shareholders must note the following critical dates ahead of the 56th AGM:

The Board of Directors has recommended a final dividend of ₹1.50 per equity share (15%) for FY 2025-26, subject to shareholder approval at the AGM. Shareholders holding equity shares as of August 17, 2026 will be eligible for the dividend. All dividend payments will be made exclusively through electronic modes, with no physical warrants issued. Shareholders are urged to update bank account details and ensure KYC compliance. Tax-sensitive investors must submit documents for TDS exemption to dividend.tax@hudco.org on or before August 19, 2026.

AGM Agenda: Key Resolutions

The ordinary and special business to be transacted at the 56th AGM includes the following key resolutions:

FY 2025-26 Financial Performance

HUDCO's Annual Report for FY 2025-26 reveals a landmark year of financial performance. The company reported a historic high Net Profit After Tax (PAT) of ₹4,034.37 Crore, registering a growth of approximately 49% over the previous year's PAT of ₹2,709.14 Crore. Total Income rose to ₹13,327.13 Crore from ₹10,348.38 Crore in the previous year, a growth of 29%.

Net Worth strengthened to ₹21,977.20 Crore, a growth of 22.30% from ₹17,969.79 Crore in FY 2024-25. The Capital Adequacy Ratio (CRAR) stood at a healthy 39.93%, comfortably above the regulatory requirement of 15%.

Dividend Details for FY 2025-26

HUDCO declared a highest-ever total dividend of ₹6.05 per equity share (60.50%) for FY 2025-26, amounting to ₹1,211.15 Crore. The dividend comprised four interim tranches and a proposed final dividend:

Operational Highlights

HUDCO achieved record operational performance in FY 2025-26, with loan sanctions reaching ₹1,64,757.79 Crore, a 29% growth over the previous year's ₹1,27,952.49 Crore. Disbursements reached an all-time high of ₹51,194.21 Crore, a 28% growth over ₹40,037.51 Crore in the previous year. The All-Time High Loan Book stood at ₹1,60,724 Crore, an impressive 29% increase from ₹1,24,828 Crore.

Asset quality remained robust with Gross NPA at 1.04% and Net NPA at an industry-leading 0.05%, supported by a strong provision coverage ratio of 94.90%. The overall cost of borrowings declined by 27 basis points to 7.17% during the year.

Credit Ratings and ESG

HUDCO maintained the highest domestic credit ratings of 'AAA' with a 'Stable' outlook from India Ratings, ICRA, CARE, and Acuite (for perpetual debt). International ratings from Fitch, Moody's, and Japan Credit Rating Agency remained mapped to Sovereign Rating. ESG ratings stood at 'Adequate' from CRISIL and 'Low Risk' from Sustainalytics, reflecting the effectiveness of the company's ESG practices.

Remote E-Voting and Participation

NSDL has been appointed as the e-voting service provider for the 56th AGM. Remote e-voting will be available from August 20, 2026 (9:00 a.m. IST) to August 23, 2026 (5:00 p.m. IST). Shareholders wishing to speak at the AGM may register as a speaker by sending a request to investors.agm@hudco.org not later than 5:00 p.m. on August 17, 2026. The Annual Report for FY 2025-26 has been sent electronically to shareholders with registered email addresses, and a web-link letter has been sent to those without registered email addresses.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE031A01017/1fdcbf11-ff29-41f8-9a3d-ff06586d2b83.pdf