Housing and Urban Development Corporation Limited reported a net profit after tax of ₹851.11 crore for the quarter ended June 30, 2026, marking a 35% year-on-year increase from ₹630.23 crore in Q1FY26. The growth was driven by a 27% rise in revenue from operations, which reached ₹3,717.17 crore compared to ₹2,937.31 crore in the corresponding period of the previous fiscal year. This performance reflects the company’s expanding loan book and stable asset quality.

The company declared its first interim dividend of 12.5%, amounting to ₹1.25 per share, for Q1FY27. The filing was submitted to the BSE Limited and National Stock Exchange of India Limited on July 27, 2026, by Vikas Goyal, Company Secretary & Compliance Officer. The investor presentation accompanying the results highlights HUDCO’s role in financing infrastructure under Government of India programs.

Financial Performance

HUDCO’s total income for Q1FY27 stood at ₹3,737.49 crore, up from ₹2,945.47 crore in Q1FY26. Finance costs increased to ₹2,561.19 crore from ₹1,978.26 crore in the prior year quarter. Other income rose significantly to ₹20.32 crore from ₹8.16 crore. Notably, impairment of financial instruments was minimal at ₹0.06 crore, compared to a credit of ₹102.95 crore in Q1FY26, indicating stable credit conditions.

Asset Quality and Portfolio Growth

The loan portfolio expanded to ₹1,73,123 crore at the end of Q1FY27, up from ₹1,34,410 crore in Q1FY26. This growth includes Expenditure Bearing Responsibility (EBR) loans. Gross NPAs stood at ₹1,668.86 crore with a provision coverage ratio of 95.06%. Net NPAs were reported at ₹82.43 crore. The company maintains zero net non-performing assets in certain segments, reflecting strong credit discipline.

Key operational metrics show a yield on loans of 8.78% and a cost of funds at 6.95% for Q1FY27. The interest spread narrowed slightly to 1.83% from 2.01% in Q1FY26, while the net interest margin decreased to 2.72% from 2.94%. Return on equity (annualized) improved to 14.89% from 14.28% in the previous year.

What the Numbers Show

The divergence between rising finance costs and expanding revenue suggests aggressive portfolio growth. While the net interest margin compressed slightly due to higher funding costs (6.95% vs 7.07% cost of funds in Q1FY26, though yield also dropped), the absolute profit growth indicates volume-driven gains. The significant reduction in impairment charges compared to the prior year underscores improved asset quality management, allowing the company to retain more earnings despite margin pressures.

Housing and Urban Development Corporation Limited will discuss its unaudited financial results for the quarter ended June 30, 2026, during an earnings conference call scheduled for July 28, 2026. The meeting provides a platform for the management to review the company's performance for Q1FY27 with stakeholders and analysts. No unpublished price sensitive information is proposed to be shared during the proceedings.

The call is scheduled to begin at 11:00 AM IST. DAM Capital Advisors Ltd is facilitating the event, inviting participants to join the post-results discussion. The meeting complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Management Speakers

The discussion will feature key executives from Housing and Urban Development Corporation Limited , including:

• Mr. Sanjay Kulshrestha – Chairman & Managing Director
• Mr. M. Nagaraj – Director (Corporate Planning)
• Mr. Daljeet Singh Khatri – Director (Finance)
• Mr. Achal Gupta – Executive Director (Finance) & IRO

Sanket Chheda, Analyst at DAM Capital Advisors Ltd, will serve as the call leader.

Dial-in Details

Participants can join the conference call using the universal access numbers provided below. International attendees can utilize specific lines based on their region.

Attendees are advised to dial in at least 5-10 minutes prior to the scheduled start time to ensure timely connection. For further information, participants may contact DAM Capital Advisors Limited.