HUDCO is setting ambitious goals for its future growth while also preparing for its upcoming Annual General Meeting (AGM). The company's executive has expressed confidence in achieving substantial expansion in its Assets Under Management (AUM) in the coming years.

Projected Growth and Increased Guidance

A HUDCO executive has stated that a 25% growth in Assets Under Management is achievable in the coming years. This optimistic outlook is accompanied by an expected increase in the company's guidance to 1.50 trillion rupees. The completion of this target is anticipated by the third quarter.

55th Annual General Meeting Announcement

HUDCO has released details of its upcoming 55th Annual General Meeting. The AGM is scheduled for Monday, 15th September, 2025, at 11:30 A.M. (IST). In line with current practices, the meeting will be held virtually through Video Conferencing (VC) or Other Audio-Visual Means (OAVM).

Key Dates for Shareholders

HUDCO has outlined several important dates for shareholders:

The company has stated that the final dividend on equity shares, as recommended by the Board of Directors and if declared at the AGM, will be paid to members within 30 days of declaration.

Conclusion

As HUDCO sets its sights on significant AUM growth and prepares for its 55th AGM, investors and stakeholders will be keenly watching the company's performance in the coming quarters. The ambitious growth targets, coupled with the upcoming AGM, highlight HUDCO's focus on expansion and shareholder engagement in the urban development and housing finance sector.

HUDCO has delivered a strong performance in the first quarter of fiscal year 2026, with significant growth in its loan book and improved asset quality.

Loan Book Growth and Financial Performance

HUDCO's loan book grew by an impressive 30% year-on-year, reaching Rs 1.34 lakh crore. The company reported a 34% increase in revenue and a 13% rise in net profit compared to the same quarter last year. This growth trajectory puts HUDCO on track to potentially exceed its previously set target of Rs 1.5 lakh crore loan book by Q3 FY26.

Asset Quality Improvement

The company's asset quality saw notable improvement, with gross non-performing assets (NPAs) declining from 1.67% to 1.34%. More significantly, net NPAs reduced to slightly less than 0.1%, positioning HUDCO close to its goal of becoming a zero net NPA company within the next 16 months.

Sanctions and Disbursements

Sanctions surged by 143% quarter-on-quarter to Rs 34,000 crore, while disbursements reached an all-time high of Rs 12,800 crore. The company maintains a strong sanction pipeline of over Rs 1.5 lakh crore, which is expected to support disbursements over the next 3-4 years.

Financial Metrics

The company expects NIM to cross 3% in the upcoming quarter. HUDCO's healthy debt-to-equity ratio provides ample room for further growth.

Borrowing Strategy and Cost of Funds

HUDCO has successfully reduced its cost of funds, with recent borrowings of around Rs 20,000 crore at an average rate of 6.32%. The company's strategic approach to borrowing, including a mix of bank loans, bonds, and international commercial borrowings, has contributed to this cost efficiency.

Expansion into New Sectors

HUDCO is expanding its focus beyond housing to infrastructure financing, including:

• Metros
• Water projects
• Roads
• Private sector funding (with guidelines for roads and real estate)

The company is also preparing to engage in urban infrastructure projects under the recently announced Urban Challenge Fund.

Future Outlook

Management expressed confidence in overachieving its FY26 guidance, with a long-term target of reaching a Rs 3 lakh crore loan book by FY30. The company is well-positioned to capitalize on the growing infrastructure needs across various states and sectors in India.

Challenges and Opportunities

While HUDCO faces challenges such as potential forex volatility and the need for careful treasury management, the company sees significant opportunities in the infrastructure and urban development sectors. The implementation of PMAY 2.0 and the Urban Challenge Fund are expected to provide additional growth avenues in the coming quarters.

HUDCO's strong Q1 FY26 performance and strategic initiatives position it well to capitalize on India's growing infrastructure and urban development needs, with management expressing optimism about exceeding their previously set targets for the fiscal year.