HUDCO Reports Strong H1FY26 Performance with ₹1.45 Lakh Crore Loan Book

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:

Metric	H1FY26	H1FY25	YoY Change
Net Profit	₹1,340.06 Cr	₹1,246.37 Cr	7.51%
Operational Income	₹6,156.34 Cr	₹4,706.07 Cr	30.81%
Loan Sanctions	₹92,985.00 Cr	₹76,472.00 Cr	21.59%
Disbursements	₹25,838.00 Cr	-	Highest Ever Half Yearly

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:

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.
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.
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.
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.

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

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.