According to reports from CNBC TV18, Business Standard, The Economic Times, and NDTV Profit, Housing and Urban Development Corporation (HUDCO) delivered robust financial results for the June quarter of FY27, with consolidated net profit rising 35.05% year-on-year to ₹851.11 crore. The housing finance company's consolidated sales rose 26.55% to ₹3,717.17 crore during the quarter, compared to ₹2,937.31 crore in the corresponding period of the previous year. The company's Operating Profit Margin (OPM) improved to 97.08% from 96.29% in Q1 FY26, demonstrating enhanced operational efficiency. The company also reported Profit Before Depreciation and Tax (PBDT) of ₹1,068.19 crore, representing a 24% increase from ₹860.17 crore in the previous year. As per NDTV Profit, the strong performance was supported by higher net interest income and total income growth during the quarter, with the company delivering healthy earnings growth through improved business volumes and operational performance despite rising interest costs.
Speaking to Mint, HUDCO's Managing Director and Chairperson Sanjay Kulshrestha announced the company's ambitious target to eliminate non-performing assets by FY27-end, stating "We are well on track to bring down NPA to zero. We should achieve it within this fiscal." The company's gross NPA ratio improved significantly to 0.96% from 1.34% in the previous year, while net NPA declined to 0.048% from 0.053%. The Provision Coverage Ratio (PCR) stands at 95%, indicating that most bad loans have already been fully provided for and are unlikely to materially affect the company's books. During the quarter, four NPA accounts in Project Loans were resolved through full repayment, with no fresh slippages observed, further strengthening the asset quality profile. The company's remaining stressed assets are under resolution procedure and expects early resolution under the Insolvency and Bankruptcy Code, with ₹1,060.37 crore exposure accounting for 63.54% of outstanding stressed assets.
According to Mint, HUDCO's loan sanctions in the first quarter of FY27 rose 91% year-on-year to ₹65,485 crore, compared with ₹34,224 crore in the corresponding period last year. The company's total loan book has now reached ₹1.73 trillion, demonstrating strong momentum in infrastructure financing. Speaking to NDTV Profit, Kulshrestha expressed confidence in achieving loan disbursements of around ₹65,000 crore in FY27, driven by sustained demand for funding in the urban infrastructure segment. The company is targeting a ₹2 trillion loan book while diversifying beyond traditional housing finance into urban infrastructure, renewable energy, and rental housing. HUDCO is working with the governments of Maharashtra and Odisha to finance rental accommodation projects in industrial corridors, with plans to expand further. The company's green power portfolio stands at ₹2,390 crore, with plans to expand this as part of India's energy transition, while its sustainability portfolio totals ₹20,783.67 crore, including green power projects.
According to NDTV Profit, HUDCO's cost of borrowing has moderated to some extent, helped in part by the company's participation in the Reserve Bank of India's swap window facility. The lender's superior asset-liability management continues to support profitability. The company expects its net interest margin to improve from 2.72% to around 3% over time, aided by better funding costs and an improving loan mix. This margin expansion strategy, combined with the company's strong operational performance, positions HUDCO well for sustained profitability growth in the coming quarters.
As reported by CNBC TV18, Business Standard, The Economic Times, and NDTV Profit, HUDCO's board declared the first interim dividend of ₹1.25 per equity share for FY27, representing 12.5% on the face value of ₹10 per equity share. The dividend will be subject to deduction of tax deducted at source (TDS), as applicable. The company has fixed Friday, July 31, 2026, as the record date for determining the eligibility of shareholders to receive the interim dividend. At around 12.50 pm, HUDCO shares on the BSE were trading at ₹197.75, up 1.67% from the previous close, reflecting positive market sentiment towards the company's strong quarterly performance and growth prospects.
