According to The Financial Express, HUDCO delivered impressive dividend returns with a 3.6% dividend yield for FY26, declaring a total dividend of ₹1,211.2 crore that included four interim dividends of ₹910.9 crore and a final dividend of ₹300.3 crore. The company's dividend per share increased significantly from ₹3.50 in FY22 to ₹6.05 in FY26, representing nearly double the previous amount. As reported by The Financial Express, the company has maintained a consistent payout ratio above 30% while its stock price returned 31% CAGR over the same period.
As reported by The Financial Express, HUDCO's net profit demonstrated robust growth with a 20% CAGR over the last five years, while the company's revenue expanded 27.5% year-on-year to ₹13,150.4 crore in FY26. In Q1FY27, the company continued this momentum with revenue growing 26.6% year-on-year to ₹3,717 crore and net profit surging 35.1% to ₹851 crore. The company's yield on loan assets stood at 8.78% in Q1FY27, while the Net Interest Margin (NIM) reached 2.72%.
According to The Financial Express, HUDCO maintains strong asset quality with gross NPAs at 0.96% and net NPAs at 0.048% in Q1FY27, supported by a high provision coverage ratio of 95.06%. The company's Capital to Risk-Weighted Assets Ratio (CRAR) stood at 39.4% in Q1FY27, significantly above the mandated 15% threshold. As reported by The Financial Express, the company's net worth reached ₹22,867.3 crore as of Q1FY27, providing substantial financial cushion for dividend distributions.
As reported by The Financial Express, HUDCO operates under the Central Public Sector Enterprise (CPSE) framework, requiring a minimum annual dividend of 30% of net profit or 4% of net worth, whichever is higher. The company has set an ambitious target to expand its infrastructure loan portfolio to ₹3 lakh crore by 2030, up from ₹1.7 lakh crore as of Q1FY27, supported by an outstanding sanction pipeline of approximately ₹2.5 lakh crore. The company maintains a diversified borrowing mix with domestic funding sources supplying over 70% of total borrowings, with the overall cost of funds declining to 6.95% in Q1FY27.
