Housing and Urban Development Corporation Limited submitted its Business Responsibility and Sustainability Report for FY26 to the Bombay Stock Exchange and National Stock Exchange on July 30, 2026, revealing a growing focus on sustainable financing with ₹21,238 crore in green assets. The filing, mandated under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, underscores the lender’s alignment with national development goals while disclosing operational metrics such as ₹1,64,757 crore in sanctioned loans and ₹51,194.21 crore in disbursements during the year. This disclosure matters to investors as it signals HUDCO’s strategic pivot toward environmentally responsible lending, which now constitutes 13.21% of its total loan outstanding, alongside a 28% increase in interest income to ₹13,096 crore.

The report was signed by Vikas Goyal, Company Secretary & Compliance Officer, and includes reasonable assurance from M/s. Mehta & Mehta on core sustainability parameters. HUDCO’s Board-approved ESG Policy guides these disclosures, with Shri M. Nagaraj, Director (Corporate Planning), overseeing implementation. The company reported zero complaints related to human rights violations or sexual harassment, maintaining a diverse workforce with 29% female employees and 12.5% women representation on the Board. However, the filing also notes regulatory fines totaling ₹3,69,81,200 from NSE and BSE for corporate governance non-compliances between September 2019 and March 2026, of which ₹2,92,22,700 remains outstanding.

Financial and Operational Highlights

HUDCO’s operations span 33 locations across India, serving 28 states and 8 union territories. The financial year saw significant activity in housing and infrastructure finance, which accounts for 99.59% of turnover. Key financial and operational metrics from the report are detailed below:

The company mobilized resources amounting to ₹67,503 crore through bonds, term loans, short-term borrowings, and external commercial borrowings, reducing borrowing costs by approximately 27 basis points. Recoveries reached ₹402.96 crore through enhanced mechanisms including centralized monitoring of NCLT cases.

ESG Performance and Environmental Impact

HUDCO identified sustainable financing as a key opportunity, aligning with India’s commitment to Sustainable Development Goals. The company financed renewable energy projects worth ₹2,390 crore as of March 31, 2026. Environmental disclosures show total energy consumption of 4,968.2 Giga Joules, with energy intensity per rupee of turnover at 0.38. Greenhouse gas emissions totaled 37.135 metric tonnes of CO2 equivalent for Scope 1 and 882.3 metric tonnes for Scope 2. Water withdrawal stood at 52,571.4 kilolitres, primarily from third-party sources.

The company disposed of 46.021 metric tons of waste, including 1.81 metric tons of e-waste, through authorized vendors. HUDCO also highlighted initiatives such as rooftop solar installations and paperless operations to reduce its environmental footprint. Despite these efforts, the report acknowledges challenges in measuring environmental metrics like GHG emissions and water usage due to limited robust mechanisms for tracking in a financing entity.

Governance and Social Responsibility

HUDCO’s governance framework includes policies for anti-corruption, whistleblower protection, and equal opportunity. The company spent ₹60.06 crore on CSR initiatives in FY26, focusing on health, education, and infrastructure in aspirational districts. Procurement from Micro, Small and Medium Enterprises constituted 62.21% of total procurement. The report also discloses that two employees faced disciplinary action related to bribery/corruption charges, though no convictions were recorded during the period. Data privacy risks were managed through an Information and Cyber Security Policy, with one data breach instance reported that had no business impact.

What the Numbers Show

The divergence between high sanction volumes (₹1,64,757 crore) and lower disbursements (₹51,194.21 crore) suggests a pipeline-heavy approach, potentially indicating cautious deployment amid regulatory or project-specific delays. Meanwhile, the 28% surge in interest income contrasts with a modest reduction in borrowing costs, implying improved net interest margins driven by operational efficiency rather than volume expansion alone. The substantial green asset base of ₹21,238 crore represents a material shift in portfolio composition, signaling long-term resilience against climate-related financial risks but also exposing the lender to sector-specific volatility in renewable energy and 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/INE031A01017/0399550a-be8a-499f-8752-22807a3b670c.pdf