HUDCO Quarterly Results Q1 FY26

The Housing and Urban Development Corporation Limited (HUDCO) has released its Q1 FY26 financial results, showing strong performance across several important metrics. As a government-owned entity focused on financing housing and urban infrastructure development, HUDCO appears to be benefiting from favourable policy tailwinds, increased demand, and efficient operations.

    1. Revenue & Net Profit
       ◦ HUDCO’s revenue (total income) rose to ₹2,945.47 crore in Q1 FY26, up roughly 34% year-on-year from about ₹2,197.19 crore in Q1 FY25. 
   2. Net profit (profit after tax) stood at ₹630.23 crore, representing a 13% YoY increase over approximately ₹557.75 crore earned in the same period last year. Loan Book, Sanctions & Disbursements
       ◦ The outstanding loan book increased to about ₹1.34 lakh crore, a YoY growth of ~30%. 
       ◦ Loan sanctions surged by ~143% YoY, reaching ₹34,224 crore in Q1 FY26 compared to ~₹14,097 crore in Q1 FY25. 
       ◦ Loan disbursements were ₹12,812 crore, marginally higher than in Q1 FY25 (~₹12,625 crore), marking the highest-ever disbursement in a first quarter for HUDCO. 
   3. Asset Quality Improvements
       ◦ Gross NPA (non-performing assets) dropped to 1.34% in Q1 FY26 from around 2.42% a year ago.
   4. Net NPA came down to 0.09% from approximately 0.33% in Q1 FY25. Other Metrics
       ◦ Earnings per share (annualised) increased from ~₹11.16 to ~₹12.60. 
       ◦ Total expenses rose (both YoY and QoQ), but these were offset by the growth in revenue and efficient management of finance costs. 

• HUDCO has a strong pipeline of sanctioned projects, which suggests that revenue and disbursements may continue to grow in coming quarters. 
• The reduction in borrowing cost (fresh funds raised at ~6.32%) is beneficial for the company’s interest spread, especially as it expands its loan book.  
• Asset quality improvements (low NPAs) enhance HUDCO’s financial stability. 

HUDCO continues to strengthen its organisational framework through skilled human resources and incremental research-driven initiatives. While patents are not the company’s primary focus given its financing role, HUDCO emphasises knowledge building and R&D collaborations in urban planning and affordable housing solutions.

This approach underscores HUDCO’s commitment not just to financing projects, but also to strengthening institutional knowledge, creating operational efficiencies, and supporting government initiatives in housing and smart city projects.

HUDCO’s growth trajectory in FY26 is underpinned by a strong pipeline of sanctioned projects and a robust expansion in its loan book. The company is targeting sustained double-digit growth for the year, supported by a favourable borrowing environment where fresh funds have been raised at approximately 6.32%. This lower cost of capital is expected to boost margins, enabling HUDCO to strengthen its interest spread.

In strategic terms, HUDCO has set its sights on achieving a revenue target of nearly $2 billion for FY26. Margin expansion remains a key focus, as the company benefits from efficient capital deployment and disciplined expense management. The consistent improvement in asset quality, reflected in lower NPAs, further enhances financial stability and positions HUDCO well to support India’s growing demand for housing and infrastructure financing. Together, these factors indicate that HUDCO is well-placed to deliver sustainable and profitable growth throughout the financial year.

HUDCO’s Q1 FY26 results reflect robust growth in core financials – revenue, disbursements, and profitability – backed by strengthening asset quality. The company appears well-positioned to benefit from ongoing infrastructure and urban development initiatives. Its strong sanction pipeline and efficient capital deployment suggest a solid foundation for sustainable growth.