Housing and Urban Development Corporation (HUDCO) has reported a 7.51% increase in net profit for the second quarter, alongside an upward revision of its loan book target. The state-owned housing finance company continues to show strong performance in urban infrastructure financing amid robust demand.

Financial Performance Highlights

• Net profit rose to ₹709.83 crore in Q2, up from ₹688.62 crore in the same quarter last year.
• Total income increased to ₹3,251.02 crore, compared to ₹2,526.14 crore in Q2 of the previous year.
• Interest income grew significantly to ₹3,197.32 crore from ₹2,459.31 crore year-on-year.

Loan Book Growth and Future Targets

HUDCO has revised its loan book target upwards to ₹1.6 lakh crore, from the previous target of ₹1.5 lakh crore. This increase is driven by strong demand in urban infrastructure projects and the company's steady financial performance.

Key Financial Metrics

Operational Highlights

• HUDCO aims to disburse ₹50,000 crore, up from ₹40,000 crore in the previous year.
• The company targets a net interest margin of 3.3%.
• Launch of Urban Invest Window (UiWIN) platform to facilitate diversified investments in urban infrastructure.

Strategic Focus

HUDCO is concentrating on Greenfield projects across various sectors including:

• Road infrastructure
• Ports
• Airports
• Energy and power
• Real estate

The company is also selectively lending to well-structured private sector projects, expanding its portfolio beyond government and public sector undertakings.

Market Position

As of the latest trading session, HUDCO's stock was priced at ₹223.60, with a market capitalization of ₹44,762 crore. The stock has seen a 4% gain over the past year, reflecting investor confidence in the company's growth strategy and market position.

Outlook

With its revised loan book target and focus on urban infrastructure financing, HUDCO is well-positioned to capitalize on India's ongoing urbanization and infrastructure development needs. The company's strong financial performance and strategic initiatives suggest a positive outlook for the coming quarters, as it continues to play a crucial role in financing India's urban development projects.

HUDCO's performance indicates a robust demand for urban infrastructure financing in India, aligning with the government's focus on urban development and modernization initiatives.

HUDCO , a key player in India's urban infrastructure and housing finance sector, has reported robust financial results for the first half of fiscal year 2026 (H1FY26), showcasing significant growth in its loan book and operational performance.

Financial Highlights

HUDCO's loan book reached an impressive ₹1,44,554.00 crore as of September 30, 2025, marking a substantial 30% increase from the previous year. This growth underscores the company's expanding role in financing housing and urban infrastructure projects across India.

The company's financial performance for H1FY26 reflects its strong market position:

Asset Quality and Capital Adequacy

HUDCO maintained a strong asset quality with a Gross Non-Performing Asset (GNPA) ratio of 1.21% and a Net NPA ratio of 0.07%, positioning it among the best in the industry. The company's provision coverage ratio stood at an impressive 94.55%, indicating robust risk protection.

The Capital to Risk-weighted Assets Ratio (CRAR) was reported at 38.03%, well above regulatory requirements, demonstrating HUDCO's strong capital position to support future growth.

Strategic Initiatives

HUDCO is actively pursuing several strategic initiatives to strengthen its market position:

1. Diversification into Private Sector Funding: The company has initiated the process to commence lending against private sector projects in key areas such as real estate, seaports, airports, energy, and roads.

2. Memoranda of Understanding (MoUs): HUDCO has signed significant MoUs, including a ₹1.5 lakh crore agreement with MMRDA and a ₹1 lakh crore agreement with the Madhya Pradesh government, to provide financial assistance over the next five years.

3. Launch of Capital Gain Tax Exemption Bonds: The company has introduced 54EC Capital Gain Tax Exemption Bonds, offering a new investment avenue for the market.

4. Focus on Urban Infrastructure: HUDCO is playing a vital role in various government initiatives such as PMAY 2.0, Smart Cities, AMRUT, Jal Jeevan Mission, and Swachh Bharat Mission 2.0.

Outlook

HUDCO's Chairman and Managing Director, Sanjay Kulshrestha, commented on the results: "Our strong performance in H1FY26 reflects HUDCO's pivotal role in India's urban development landscape. We are well-positioned to capitalize on the growing demand for housing and infrastructure financing, targeting a 13-15% loan growth with higher disbursement efficiency."

The company's focus on affordable housing, urban infrastructure projects, and the expansion of PSU and state partnership funding is expected to drive sustained profitability. HUDCO is also leveraging digital underwriting and AI-based monitoring systems to enhance operational efficiency.

As India continues its trajectory towards becoming a $10 trillion economy by 2030, HUDCO's strategic initiatives and strong financial foundation position it well to play a crucial role in the nation's urban development and housing sectors.