Total income increases nearly 25% to ₹4,051 crore, while interest earnings rise 26% amid higher financing costs
Housing and Urban Development Corporation Limited (HUDCO) reported a 28.35% year-on-year increase in standalone net profit to ₹911.04 crore for the second quarter of FY2026–27, compared with ₹709.83 crore in the corresponding quarter of the previous financial year.
The government-owned housing and infrastructure financing company’s revenue from operations increased 25.52% to ₹4,040.42 crore during the quarter ended September 30, 2026, against ₹3,219.03 crore in Q2 FY26.
Total income rose 24.62% to ₹4,051.39 crore from ₹3,251.02 crore a year earlier, largely supported by higher interest income.
HUDCO’s interest income increased to ₹4,023.09 crore from ₹3,197.32 crore in the corresponding quarter last year, reflecting growth in its lending-related earnings.
However, the company’s total expenses also increased significantly, rising 27.55% to ₹2,928.93 crore from ₹2,296.31 crore.
Finance costs, the largest component of expenditure, climbed 33.05% to ₹2,856.58 crore compared with ₹2,146.94 crore in Q2 FY26.
Despite higher financing costs, HUDCO’s profit before tax increased to ₹1,122.46 crore from ₹954.71 crore in the year-ago quarter.
The company also reported a net reversal of ₹44.18 crore in impairment provisions on financial instruments during the September quarter.
According to its financial disclosures, HUDCO’s gross credit-impaired assets ratio improved to 0.71% as of September 30, 2026, from 1.21% a year earlier. The net credit-impaired assets ratio declined to 0.04% from 0.07%.
The provision coverage ratio stood at 93.76%, compared with 94.55% in the corresponding period last year, while the capital adequacy ratio was 32.55%, against 38.03% a year earlier.
Alongside its quarterly results, HUDCO’s Board of Directors approved the second interim dividend of ₹1.35 per equity share with a face value of ₹10 each for FY2026–27.
The company has fixed November 11, 2026, as the record date to determine shareholders eligible for the dividend. Payment is expected to be completed within 30 days of the declaration.
For the first half of FY27, HUDCO reported a standalone net profit of ₹1,762.15 crore, an increase of approximately 31.5% from ₹1,340.06 crore in the corresponding period of the previous year.
Revenue from operations during April–September 2026 increased to ₹7,757.59 crore from ₹6,156.34 crore, representing growth of around 26%.
HUDCO also reported that 10 non-performing project loan accounts were resolved during the first half of FY27, with no fresh slippages into the non-performing category in its project loan portfolio.
The company’s financial performance highlights continued growth in lending income, although the rise in borrowing costs remains an important factor in its profitability.
HUDCO operates as a government-owned financing institution focused on housing and urban infrastructure development across India.
