Housing and Urban Development Corporation Ltd (HUDCO), a leading public sector enterprise in housing and urban infrastructure financing, has reported robust growth in its loan book and sanctions for the first quarter.

Record Loan Book and Sanctions

HUDCO achieved a milestone with its loan book reaching ₹1.34 lakh crore, marking a significant expansion in its lending portfolio. The company also reported impressive sanctions of ₹34,224 crore in Q1, showcasing a strong start to the fiscal year.

Strategic Partnerships and Future Growth

The company has signed Memorandums of Understanding (MOUs) worth ₹3.5 lakh crore for infrastructure and housing projects, indicating a robust pipeline for future growth. These agreements underscore HUDCO's commitment to supporting India's urban development and housing needs.

Focus on Government Initiatives

HUDCO is aligning its strategy with key government programs to drive lending growth in the coming years. The company is particularly focusing on:

1. PMAY 2.0 (Pradhan Mantri Awas Yojana 2.0)
2. Smart Cities Mission
3. Urban Challenge Fund initiatives

These initiatives are expected to create significant opportunities for HUDCO in the housing and urban infrastructure sectors.

Financial Performance

For the quarter ended June 30, HUDCO reported the following financial highlights:

Note: Earnings per share is not annualized

Asset Quality and Capital Adequacy

HUDCO maintained a strong asset quality with:

The company's Capital to Risk-weighted Assets Ratio (CRAR) stood at a robust 41.72%, indicating a strong capital position.

Dividend Declaration

The Board of Directors declared a first interim dividend of ₹1.15 per equity share (11.50% on the face value of ₹10 each) for the financial year.

HUDCO's strong performance in Q1 reflects its pivotal role in India's urban development landscape. With its focus on government initiatives and a healthy project pipeline, the company is well-positioned for sustained growth in the coming years.

HUDCO , a leading public sector enterprise in housing and urban infrastructure financing, has reported a robust financial performance for the first quarter of fiscal year 2025-26. The company's profit after tax surged by 13% to Rs 630.23 crore, compared to Rs 557.75 crore in the same period last year.

Financial Highlights

• Total income increased by 34% to Rs 2,945.47 crore from Rs 2,197.19 crore year-on-year.
• Interest income rose significantly to Rs 2,924.64 crore from Rs 2,174.60 crore in the previous year quarter.
• The company's loan portfolio expanded by 29% to Rs 1,34,410 crore as of June 30, 2025.

Operational Performance

HUDCO demonstrated strong operational performance during the quarter:

• Loan sanctions more than doubled to Rs 34,224 crore from Rs 14,097 crore in Q1 FY25.
• Disbursements saw a marginal increase to Rs 12,812 crore, marking the highest ever quarterly disbursement for the company.

Asset Quality

The company maintained a robust asset quality:

• Gross Non-Performing Assets (GNPA) ratio improved to 1.34% from 2.42% in the previous year.
• Net Non-Performing Assets (NNPA) ratio decreased to 0.09% from 0.33%.
• Provision Coverage Ratio strengthened to 93.49% from 86.61%.

Capital Adequacy

HUDCO's Capital to Risk-weighted Assets Ratio (CRAR) stood at a healthy 41.72% as of June 30, 2025, well above regulatory requirements.

Dividend Declaration

The Board of Directors has declared a first interim dividend of Rs 1.15 per equity share (11.50% on face value of Rs 10 each) for the financial year 2025-26. The record date for dividend eligibility is set as August 14, 2025.

Fund Raising

During the quarter, HUDCO raised Rs 5,370 crore through the issuance of non-convertible debt securities on a private placement basis. The company also launched its maiden issue of 54EC Capital Gain Tax Exemption Bonds on May 7, 2025, raising Rs 2.22 crore during the quarter.

Outlook

With a strong financial position and growing loan portfolio, HUDCO is well-positioned to support India's housing and urban infrastructure development needs. The company's focus on maintaining asset quality while expanding its operations bodes well for its future growth prospects.

Sanjay Kulshrestha, Chairman & Managing Director of HUDCO, commented on the results, stating, "Our robust Q1 performance reflects HUDCO's strong foundation and commitment to supporting India's urban development. We remain focused on sustainable growth and creating value for all our stakeholders."

As HUDCO continues to play a crucial role in financing housing and urban infrastructure projects across India, its solid financial performance in Q1 FY26 sets a positive tone for the rest of the fiscal year.