Japan Credit Rating Agency (JCRA) has reaffirmed HUDCO 's BBB+ rating for both Foreign Currency and Local Currency Long-term Issuer Ratings, maintaining a stable outlook. This affirmation underscores HUDCO's strong government ties and its strategic importance in India's housing and urban development sectors.

Key Highlights

• HUDCO's ratings reflect its role as a nodal agency for government housing schemes
• Robust loan portfolio growth of 35% year-on-year
• Record financial performance with consolidated revenue of INR 103.48 billion and net profit of INR 27.09 billion

Financial Performance

HUDCO's financial performance has shown significant improvement, as evidenced by its latest income statement data:

The company's EBITDA for FY 2025 stood at INR 10,394.80 crore, representing a substantial increase of 33.03% from the previous year.

Balance Sheet Strength

HUDCO's balance sheet reflects its growing operations and strong financial position:

The significant increase in total assets and investments highlights HUDCO's expanding role in the housing and urban development sectors.

Strategic Importance and Government Support

JCRA's rating affirmation is based on several key factors:

1. Strong government ties: HUDCO maintains close integration with the Government of India, underpinned by its designation as a de facto implementing agency for government-led projects.

2. Critical role in policy implementation: The company plays a highly significant role in the government's housing promotion policy and urban development initiatives.

3. Nodal agency status: HUDCO serves as a nodal agency for PMAY-U (Pradhan Mantri Awas Yojana-Urban), a key government housing scheme.

4. Navratna status: In 2024, HUDCO was granted Navratna status, the second-highest category among public-sector enterprises, providing greater autonomy for strategic investments.

Loan Portfolio and Credit Quality

HUDCO's loan portfolio has shown robust growth, driven by strong demand for housing and urban development:

• Outstanding loans increased by 35% year-on-year in FY 2025
• Approximately 90% of the portfolio is guaranteed by central and state governments
• Non-performing loan ratio has been declining, standing at 1.67% on a gross basis and 0.25% on a net basis as of FY 2025

Outlook

The stable outlook on HUDCO's ratings reflects JCRA's expectation that the company will maintain its strategic importance to the government and continue its strong financial performance. With numerous urban development projects ongoing across India, HUDCO's business expansion is expected to persist in the coming years.

As HUDCO continues to play a crucial role in India's housing and urban development sectors, its financial strength and government support position it well for future growth and stability in its credit ratings.

HUDCO (Housing and Urban Development Corporation Limited) has taken a significant step towards enhancing India's urban sector capabilities by signing a Memorandum of Understanding (MoU) with IDFC Foundation. The non-binding agreement, inked on November 21, 2025, sets the stage for a three-year collaboration focused on capacity development initiatives for the country's urban landscape.

Key Highlights of the Partnership

• Duration: Three-year non-binding MoU
• Signing Date: November 21, 2025
• Primary Focus: Capacity development for India's urban sector

Objectives of the Collaboration

1. Strengthen technical, financial, and leadership capabilities across urban institutions
2. Provide training and support for:
   • National urban programmes
   • HUDCO's Urban Invest Window (UiWIN)

Potential Impact

This strategic partnership between HUDCO, a prominent techno-financing agency, and IDFC Foundation, known for promoting inclusive growth, is poised to make significant contributions to urban development in India. By combining their expertise and resources, the two organizations aim to address the growing complexities of urban challenges and enhance the professional capabilities of various stakeholders in the urban sector.

The collaboration is expected to foster innovation, promote climate action, and improve inclusive service delivery in cities across India. As urban areas continue to play a pivotal role in the country's economic growth, this initiative could prove crucial in building resilient and efficient urban ecosystems.

While the MoU is non-binding, it represents a shared commitment to improving India's urban landscape. The success of this partnership could potentially set a new benchmark for public-private collaborations in the urban development sector.