HUDCO September-quarter profit rises 28% to Rs 911 crore

Housing and Urban Development Corporation Limited reported consolidated profit of Rs 911.04 crore for the quarter ended September 30, 2026, up 28% from Rs 709.83 crore a year earlier, as interest income increased 26% to Rs 4,023.09 crore despite finance costs rising 33% to Rs 2,856.58 crore.

How did HUDCO perform in the September quarter?

HUDCO’s consolidated profit after tax for the quarter ended September 30, 2026 was Rs 911.04 crore, against Rs 709.83 crore in the quarter ended September 30, 2025 and Rs 851.11 crore in the preceding June 2026 quarter. Profit before tax rose to Rs 1,122.46 crore from Rs 954.71 crore a year earlier, while earnings per share increased to Rs 4.55 from Rs 3.55.

Total income reached Rs 4,051.39 crore in the September 2026 quarter, compared with Rs 3,251.02 crore a year earlier and Rs 3,737.49 crore in June 2026. Total expenses rose to Rs 2,928.93 crore from Rs 2,296.31 crore year on year, but the increase in income left profit before tax Rs 167.75 crore higher.

What drove HUDCO’s quarterly earnings growth?

HUDCO’s interest income was the main contributor to the increase in total income, rising by Rs 825.77 crore year on year to Rs 4,023.09 crore in the September quarter. Interest income also increased by Rs 313.52 crore from the June 2026 quarter, while total revenue from operations rose to Rs 4,040.42 crore from Rs 3,219.03 crore a year earlier.

Finance costs increased by Rs 709.64 crore year on year to Rs 2,856.58 crore, absorbing most of the interest-income increase. HUDCO recorded a net reversal of impairment on financial instruments of Rs 44.18 crore in the September 2026 quarter, compared with a Rs 16.99 crore reversal in the September 2025 quarter, while fees and commission expense was Rs 2.52 crore against Rs 0.11 crore.

Other income was Rs 10.97 crore in the September 2026 quarter, below Rs 31.99 crore a year earlier and Rs 20.32 crore in June 2026. Rental income declined to Rs 7.11 crore from Rs 12.94 crore a year earlier, while fees and commission income was Rs 0.90 crore compared with nil in the September 2025 quarter.

How did HUDCO perform in the first half of 2026-27?

HUDCO’s consolidated profit after tax for the half year ended September 30, 2026 rose to Rs 1,762.15 crore from Rs 1,340.06 crore in the corresponding half of 2025. Half-year earnings per share were Rs 8.80, compared with Rs 6.69, and profit before tax increased to Rs 2,188.66 crore from Rs 1,811.94 crore.

Interest income for the first half rose to Rs 7,732.66 crore from Rs 6,121.96 crore a year earlier, lifting total income to Rs 7,788.88 crore from Rs 6,196.49 crore. Finance costs increased to Rs 5,417.31 crore from Rs 4,123.25 crore, while total expenses rose to Rs 5,600.22 crore from Rs 4,384.55 crore.

HUDCO acquired loan exposure of Rs 5,230.99 crore during the half year, with Rs 5,216.59 crore outstanding as of September 30, 2026. It transferred no loans in either the half year ended September 2026 or the corresponding 2025 period under the Reserve Bank of India’s Transfer of Loan Exposures Directions, 2025.

What did HUDCO disclose on asset quality and funding?

HUDCO said it resolved 10 non-performing assets, or NPAs, in project loans between April 1 and September 30, 2026, with no fresh project-loan NPA slippages during the period. Its loan impairment provision under the expected credit loss, or ECL, method was Rs 278.95 crore as of September 30, 2026, compared with Rs 1,680.17 crore a year earlier.

The Rs 44.18 crore net ECL reversal in the September quarter brought the half-year net reversal to Rs 44.12 crore. That compares with a Rs 119.94 crore net ECL reversal during the half year ended September 30, 2025, meaning the prior-year half included a larger reversal even though HUDCO reported higher latest-half profit.

HUDCO raised Rs 1,140.00 crore through privately placed listed non-convertible debt securities during the half year, all in the June 2026 quarter and none in the September quarter. It said the proceeds were used for purposes stated in the offer documents, with no deviation, and that it maintained 100% security cover on receivables for secured bonds and debentures outstanding on September 30, 2026.

What other disclosures should readers note in HUDCO’s results?

HUDCO recognised Rs 7.80 crore of interest income in the September 2026 quarter on the No Lien Andrews Ganj Project account, compared with Rs 6.72 crore in the September 2025 quarter. The account had a recoverable deficit of Rs 743.16 crore as of September 30, 2026, including amounts paid on behalf of the Ministry of Housing and Urban Affairs and interest.

The auditor drew attention to HUDCO’s discussions with the Ministry of Housing and Urban Affairs on recovery or reimbursement of the Andrews Ganj Project balance, including interest, but did not modify its review conclusion. The consolidated accounts include Shristi Urban Infrastructure Development Limited, although HUDCO said the associate’s loss was negligible when rounded to crore units, leaving standalone and consolidated results the same.

HUDCO was included in the Reserve Bank of India’s list of upper-layer non-banking financial companies for 2026-27, following the regulator’s August 6, 2026 announcement and an August 7 communication. Separately, the Ministry of Housing and Urban Affairs held the entire 75% promoter shareholding after a 20.73% holding was transferred from the Ministry of Rural Development on September 22, 2026.

Conclusion

HUDCO’s first-half increase in interest income of Rs 1,610.70 crore exceeded the Rs 1,294.06 crore rise in finance costs, supporting profit after tax of Rs 1,762.15 crore. The period also included resolution of 10 project-loan NPAs, no fresh project-loan NPA slippages and Rs 5,230.99 crore of acquired loan exposure.

The disclosed unresolved matter is the Rs 743.16 crore recoverable deficit in the No Lien Andrews Ganj Project account, for which HUDCO is discussing recovery or reimbursement with the Ministry of Housing and Urban Affairs. Readers can also track the performance of the Rs 5,216.59 crore loan exposure outstanding from the acquisition as of September 30, 2026.