HUDCO FY26 Net Profit Rises to ₹4,034 Cr; Loan Sanctions at ₹1,64,758 Cr
HUDCO posted a strong FY26 performance with net profit rising 48.92% YoY to ₹4,034.37 crore and revenue growing 27.54% to ₹13,150.40 crore. Loan sanctions surged 29% to ₹1,64,758 crore and disbursements rose 28% to ₹51,194 crore, reflecting robust lending activity. The board recommended a final dividend of ₹1.50 per share, with total dividends for the year at ₹6.05 per share.
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Housing and Urban Development Corporation Limited has published its audited financial results (standalone and consolidated) for the quarter and year ended March 31, 2026, in compliance with Regulation 47 of the SEBI (LODR) Regulations, 2015. The company recorded a standalone net profit of ₹1,981.31 crore for the quarter ended March 31, 2026, compared to ₹727.74 crore in the same period last year. For the full year, standalone net profit stood at ₹4,034.37 crore, an increase of 48.92% from ₹2,709.14 crore in the previous year. The newspaper publication confirming these results was filed on May 15, 2026.
Financial Performance
Total income from operations for the full year rose 27.54% to ₹13,150.40 crore from ₹10,311.29 crore in the prior year, while Q4 revenue came in at ₹3,562.86 crore compared to ₹2,844.99 crore in the same period last year. The consolidated financial results are identical to standalone figures. The board, in its meeting held on May 14, 2026, approved the audited financial results, with statutory auditors M/s SARC & Associates issuing an unmodified opinion.
| Metric: | FY26 | FY25 |
|---|---|---|
| Total Income from Operations: | ₹13,150.40 crore | ₹10,311.29 crore |
| Net Profit for the Year: | ₹4,034.37 crore | ₹2,709.14 crore |
| Earnings Per Share (Basic): | ₹20.15 | ₹13.53 |
Business Highlights
HUDCO's operational momentum was reflected in strong lending activity during FY26. Loan disbursements grew 28% year-on-year to ₹51,194 crore, while loan sanctions surged 29% to ₹1,64,758 crore, underscoring the company's expanding role in financing infrastructure for Viksit Bharat.
| Operational Metric: | FY26 | YoY Growth |
|---|---|---|
| Loan Disbursement: | ₹51,194 crore | +28% |
| Loan Sanctions: | ₹1,64,758 crore | +29% |
Key Financial Ratios
The investor presentation disclosed a comprehensive set of financial ratios reflecting the company's operational and balance sheet health. Net Worth stood at ₹21,977.20 crore in FY26 compared to ₹17,969.79 crore in FY25. The Debt Equity Ratio as per the financial results extract stands at 6.43 times for FY26 versus 5.72 times in FY25.
| Particulars: | FY26 | FY25 |
|---|---|---|
| Yield on Loan (Incl. EBR): | 9.13% | 9.50% |
| Cost of Funds (Incl. EBR): | 7.17% | 7.44% |
| Net Interest Margin (Incl. EBR): | 2.91% | 3.22% |
| Return on Assets (Annualized): | 2.73% | 2.44% |
| Return on Equity (Annualized): | 18.36% | 15.08% |
| Book Value per Share (₹): | ₹109.78 | ₹89.76 |
| CRAR: | 39.93% | 46.60% |
| Provision Coverage Ratio: | 94.90% | 85.44% |
Asset Quality and Loan Portfolio
The company maintained strong asset quality with a Gross NPA of ₹1,673.84 crore and a Net NPA of ₹85.35 crore, with a provision coverage ratio of 94.90%. The loan portfolio grew to ₹1,60,724 crore in FY26 from ₹1,24,828 crore in FY25.
| Particulars (₹ in Crores): | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Urban Infrastructure: | 36,982 | 49,143 | 76,333 | 1,18,673 |
| Affordable Housing: | 43,761 | 43,511 | 48,495 | 42,051 |
| Total: | 80,743 | 92,654 | 1,24,828 | 1,60,724 |
Dividend Declaration
The Board of Directors recommended a final dividend of ₹1.50 per equity share, i.e., 15% on the face value of ₹10 each, for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. This is in addition to four interim dividends already declared and paid during the year, totaling ₹6.05 per share for the year.
Historical Stock Returns for HUDCO
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.62% | -0.15% | -7.04% | -7.38% | -16.81% | +303.39% |
With HUDCO's urban infrastructure loan book nearly tripling over three years while affordable housing lending has stagnated, how might this portfolio imbalance affect the company's alignment with government housing-for-all mandates going forward?
Given that HUDCO's CRAR declined sharply from 46.60% to 39.93% alongside a rising debt-equity ratio, will the company need to raise fresh capital to sustain its aggressive 28-29% loan growth trajectory without breaching regulatory thresholds?
As net interest margins compressed from 3.22% to 2.91% despite strong loan book growth, what pricing or funding strategy could HUDCO adopt to arrest further NIM erosion in a potentially rate-cut environment?
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