HUDCO Reports Q2 Net Profit of ₹709.83 Crore, Declares Second Interim Dividend

HUDCO , a Government of India enterprise, has reported a net profit of ₹709.83 crore for the quarter ended September 30, 2025, compared to ₹688.62 crore in the same period last year. The company also announced a second interim dividend, reaffirming its commitment to rewarding shareholders.

Financial Performance

HUDCO’s unaudited standalone financial results for Q2 FY2025-26 highlight steady growth in income and profitability:

Particulars (₹ in crore)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue from Operations	3,219.03	2,517.72	+27.86%
Profit Before Tax	954.71	1,000.04	-4.53%
Net Profit After Tax	709.83	688.62	+3.08%
Total Income	3,251.02	2,526.14	+28.70%
Total Expenses	2,296.31	1,526.10	+50.47%

The company's revenue from operations rose nearly 28% year-over-year to ₹3,219.03 crore, driven by higher interest income. However, higher finance costs and fair value adjustments led to a moderate decline in profit before tax.

Half-Year Performance

For the half-year ended September 30, 2025:

Total Income: ₹6,196.49 crore (vs ₹4,723.33 crore YoY)
Revenue from Operations: ₹6,156.34 crore (vs ₹4,706.07 crore YoY)
Net Profit: ₹1,340.06 crore (vs ₹1,246.37 crore YoY)

The results demonstrate a consistent performance in lending operations, supported by growth in interest income and prudent cost management.

Dividend Declaration

HUDCO’s Board has declared a second interim dividend of ₹1 per equity share (10% on face value of ₹10) for FY2025-26. The record date for the dividend has been fixed as November 19, 2025. The payment process will be completed within 30 days of declaration.

Operational and Financial Highlights

Raised ₹3,000 crore through non-convertible debt securities during the quarter.
Raised an additional ₹28.23 crore through 54EC Capital Gain Bonds.
Loan Book increased to ₹1,44,209 crore (up from ₹1,24,341 crore as of March 2025).
Maintained 100% security cover on all secured bonds and debentures.
Net Worth stood at ₹18,037.03 crore.
Debt-Equity Ratio: 6.98x.

Asset Quality and Ratios

HUDCO maintained strong asset quality and risk metrics:

Gross NPA: 1.21%
Net NPA: 0.07%
Provision Coverage Ratio: 94.55%
Capital Adequacy (CRAR): 38.03%

Conclusion

HUDCO delivered stable results for the quarter, reflecting its strong loan portfolio and disciplined financial management. The company’s continued dividend payout, improved asset quality, and healthy capital adequacy underscore its resilience in a challenging interest rate environment. With a growing loan book and solid balance sheet, HUDCO remains well-positioned to support housing and infrastructure development across India.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.70%	-4.41%	-7.88%	-11.06%	-15.97%	+436.69%

Housing & Urban Development Corporation Ltd. (HUDCO), a leading provider of housing and urban infrastructure financing, has reported a 7.5% year-over-year increase in net profit for the second quarter. The company also announced an interim dividend of Rs 1 per share.

Financial Performance

For the quarter ended September 30, HUDCO posted a net profit of Rs 709.83 crore, up from Rs 688.62 crore in the same period last year. The company's revenue from operations saw a significant jump, rising to Rs 3,219.03 crore from Rs 2,517.72 crore in the corresponding quarter of the previous year, marking a robust 27.9% increase.

Key Financial Highlights

Particulars (in Rs crore)	Q2 Current	Q2 Previous	YoY Change
Revenue from Operations	3,219.03	2,517.72	+27.9%
Interest Income	3,197.32	2,459.31	+30.0%
Net Profit	709.83	688.62	+7.5%
Total Income	3,251.02	2,526.14	+28.7%

The company's interest income, which forms the bulk of its revenue, grew by 30% to Rs 3,197.32 crore, reflecting HUDCO's strong core operations in housing and urban infrastructure financing.

Dividend Declaration

HUDCO's Board of Directors has declared a second interim dividend of Re 1 per equity share (10% on the face value of Rs 10 each) for the financial year. The company has set Wednesday, November 19, as the record date for determining shareholder eligibility for this dividend.

Operational Performance

During the half-year ended September 30, HUDCO reported the closure of six Non-Performing Assets (NPAs) in its Project Loan portfolio through repayment, legal recourse, or settlement by borrowers. The company also undertook a technical write-off for seven chronic NPA cases, amounting to Rs 12.94 crore, in line with its Board-approved Technical Write-off policy.

Balance Sheet Strength

As of September 30, HUDCO's total assets stood at Rs 1,49,266.01 crore, with loans forming a significant portion at Rs 1,44,209.48 crore. The company's net worth reached Rs 18,037.03 crore, indicating a strong capital base.

Market Position and Future Outlook

HUDCO continues to maintain a strong position in the housing and urban infrastructure financing sector. The company's ability to raise funds through various instruments, including the recent launch of Capital Gain Tax Exemption Bonds under Section 54EC of the Income Tax Act, demonstrates its financial flexibility and market trust.

With a focus on supporting housing and urban development projects across India, HUDCO is well-positioned to benefit from the country's ongoing urbanization and infrastructure development initiatives. The company's consistent dividend payouts also make it an attractive option for investors seeking regular income.

As HUDCO moves forward, it will be crucial to monitor its asset quality, given the technical write-offs and NPA closures reported this quarter. The company's ability to maintain its growth trajectory while managing credit risks will be key to its long-term success in the competitive financial services sector.