Shares of Housing and Urban Development Corporation fell more than 8 percent on Friday following the release of mixed quarterly results. According to reports from Moneycontrol, the stock dropped 8.18 percent to an intraday low of ₹205.07 on the NSE, after two straight sessions of gains. The decline came despite the company's record annual performance, highlighting investor concerns over quarterly profitability trends and operational efficiency concerns. As per latest reports, the stock closed at ₹223.70 on May 15, 2026, up 1.94% from the previous close of ₹219.45, with an intraday trading range of ₹214.15 to ₹226.90.
The company reported a 172.2% increase in net profit to ₹1,981.31 crore for Q4 FY26, primarily driven by a ₹1,530.32 crore deferred tax reversal. However, profit before tax fell 39.12% to ₹621.01 crore, down from ₹1,020.26 crore in the corresponding period last year. Total expenses surged 63.7% to ₹3,004.06 crore, with a significant ₹466.40 crore net loss on fair value changes compared to minimal impact in the prior year. This operational reality masked by the tax gain spooked investors and contributed to the stock's decline. However, the latest results reveal a PBT less other income of ₹558.80 crore, the lowest in recent quarters, indicating that core operational profitability has weakened despite strong headline numbers.
For the quarter ended March 2026, Hudco achieved record net sales of ₹3,562.86 crore, marking the highest quarterly revenue in the company's recent history. Earnings per share reached ₹9.90, the peak level in the last several quarters, signaling improved profitability on a per-share basis. This robust top-line growth is complemented by the ₹1,981.31 crore PAT, also the highest recorded for a single quarter, underscoring the company's ability to convert revenue into bottom-line gains effectively. The company's financial trend parameter has shifted from flat to positive in the latest quarter, with the financial performance score improving markedly from 2 to 16 over the past three months, signalling a meaningful uptick in operational momentum.
For the financial year ended March 31, 2026, Hudco achieved its highest-ever net profit of ₹4,034 crore, representing a 49 percent increase from ₹2,709 crore in 2024–25. Total revenue reached ₹13,150.40 crore, a 27.5% increase from FY25, while the company's loan book expanded by 28.76% to ₹1.60 trillion. Interest income rose to ₹3,555 crore from ₹2,821 crore a year earlier, with loan sanctions reaching ₹1,64,758 crore, up 29 percent. The board has recommended a final dividend of ₹1.50 per equity share (15 percent on face value of ₹10), contributing to a total FY26 payout of ₹6.05 per share.
Despite strong top-line growth, Hudco's financial metrics raise concerns about operational efficiency and leverage. The company's debt-to-equity ratio stands at 6.43 as of FY26, a significant increase from 5.72 in the previous year, substantially higher than some peers. Net interest margins have also narrowed to 2.88% in the first nine months of FY26. While the positive shift in financial trend score from 2 to 16 over the past quarter signals improving operational momentum, the Mojo Score remains at 47.0 with a Mojo Grade of Sell, downgraded from Hold as of May 11, 2026. This rating reflects cautious market sentiment, likely influenced by the mixed profitability metrics and the mid-cap status of the company, which often entails higher volatility and risk. When compared to the benchmark Sensex, HUDCO outperformed significantly over longer horizons with returns of 315.1% and 394.36% over three and five years respectively, versus the Sensex's 21.56% and 54.72% in the same periods.
