Housing and Urban Development Corporation Limited (HUDCO) has received comprehensive credit rating reaffirmation from CARE Ratings Limited, covering instruments worth over ₹2.09 lakh crore. The rating agency reaffirmed its 'CARE AAA; Stable' rating across multiple facilities and bonds, underscoring HUDCO's strategic importance and robust financial position.

Rating Reaffirmation Details

CARE Ratings has maintained its highest credit ratings across HUDCO's diverse funding instruments. The comprehensive reaffirmation covers bank facilities, bonds, perpetual debt instruments, and commercial paper programs.

Strategic Importance and Government Support

The rating reaffirmation reflects HUDCO's strategic importance to the Government of India, which holds a 75.00% stake as of September 2025. HUDCO serves as the central nodal agency for the government's 'Housing For All' scheme and actively participates in key initiatives including Jal Jeevan Mission, AMRUT, and Pradhan Mantri Awas Yojana.

Financial Performance Highlights

HUDCO's financial metrics demonstrate strong operational performance and asset quality improvements:

Business Transformation and Growth

HUDCO successfully transitioned from a Non-Banking Financial Company - Housing Finance Company (NBFC-HFC) to NBFC-Infrastructure Finance Company (NBFC-IFC) in August 2024. This transition has enabled increased infrastructure financing, with urban infrastructure now comprising 65% of the loan book compared to 35% for housing as of September 2025.

The company's loan portfolio maintains strong credit quality with 98.70% lending to the government sector and 87.76% of gross loans secured by government guarantees, significantly reducing credit risk exposure.

Outlook and Market Position

CARE Ratings expects HUDCO to maintain its strategic importance to the Government of India while continuing to demonstrate healthy profitability, capitalization, and asset quality. The stable outlook reflects confidence in HUDCO's role in implementing national infrastructure initiatives under the National Infrastructure Pipeline.

With over five decades of operational experience and strong government backing, HUDCO remains well-positioned to capitalize on India's infrastructure development opportunities while maintaining its leadership position in housing and urban development financing.

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.