HUDCO urban infrastructure share reaches 76% in H1 FY27

HUDCO’s urban-infrastructure lending represented 76.13% of its Rs 1.86111 lakh crore loan portfolio in H1 FY27, rising from 53.04% in FY24, while affordable housing fell to 23.87% from 46.96%. Urban-infrastructure loans stood at Rs 1.41681 lakh crore, compared with Rs 44,430 crore in affordable housing.

How has HUDCO’s sector mix changed?

HUDCO has moved from a near-even split between urban infrastructure and affordable housing in FY24 to a portfolio where urban infrastructure accounted for more than three quarters in H1 FY27. Urban infrastructure represented 53.04% of the Rs 92,654 crore loan portfolio in FY24, while affordable housing represented 46.96%. By H1 FY27, the urban-infrastructure share had increased by 23.09 percentage points to 76.13%, and the affordable-housing share had fallen by the same amount to 23.87%.

The shift was sustained in every reported period. Urban infrastructure rose to 61.15% of loans outstanding in FY25 and 73.84% in FY26 before reaching 76.13% in H1 FY27. Affordable housing moved in the opposite direction, declining from 38.85% in FY25 to 26.16% in FY26 and 23.87% in H1 FY27. These figures measure the composition of outstanding loans rather than sanctions or disbursements.

The numerical change reflected expansion in urban-infrastructure balances alongside a lower affordable-housing balance than in FY25. Urban-infrastructure loans rose from Rs 49,143 crore in FY24 to Rs 1.18673 lakh crore in FY26 and Rs 1.41681 lakh crore in H1 FY27. Affordable-housing loans increased from Rs 43,511 crore in FY24 to Rs 48,495 crore in FY25, then declined to Rs 42,051 crore in FY26 before reaching Rs 44,430 crore in H1 FY27.

What grew in HUDCO’s portfolio during H1 FY27?

HUDCO’s total loan portfolio increased by Rs 41,557 crore year on year to Rs 1.86111 lakh crore in H1 FY27, as urban infrastructure added Rs 47,875 crore of outstanding loans. Urban-infrastructure lending increased from Rs 93,806 crore in H1 FY26 to Rs 1.41681 lakh crore in H1 FY27. Over the same period, affordable-housing loans declined by Rs 6,318 crore, from Rs 50,748 crore to Rs 44,430 crore.

The presentation reports 29% year-on-year growth in total loans outstanding, from Rs 1.44554 lakh crore in H1 FY26 to Rs 1.86111 lakh crore in H1 FY27. That followed a reported 29% increase in FY26, when outstanding loans reached Rs 1.60724 lakh crore from Rs 1.24828 lakh crore in FY25. The additional balance in the latest half-year comparison was therefore concentrated in urban infrastructure, while affordable housing contracted.

Loan sanctions and disbursements also increased in H1 FY27, although HUDCO does not disclose a sector-level split for either measure. Sanctions were Rs 1.04592 lakh crore, 12% above Rs 92,985 crore in H1 FY26. Disbursements rose 37% to Rs 35,372 crore from Rs 25,838 crore, while interest income increased 26% to Rs 7,733 crore from Rs 6,122 crore.

How government-focused is HUDCO’s lending portfolio?

HUDCO classified 99.25% of its loan portfolio by borrower as government exposure in H1 FY27, compared with 97.50% in FY24. Government borrowers accounted for Rs 1.84715 lakh crore of the Rs 1.86111 lakh crore portfolio at H1 FY27. Private borrowers accounted for Rs 1,396 crore, or 0.75%.

The borrower mix became increasingly concentrated in the government category across the disclosed periods. Government exposure was 98.47% in FY25 and 98.90% in FY26 before reaching 99.25% in H1 FY27. In value terms, government loans increased from Rs 90,342 crore in FY24 to Rs 1.58957 lakh crore in FY26 and Rs 1.84715 lakh crore in H1 FY27.

Private exposure declined both as a percentage of the portfolio and in rupee value. It fell from Rs 2,312 crore, or 2.50% of the portfolio, in FY24 to Rs 1,767 crore, or 1.10%, in FY26. At H1 FY27, private loans were Rs 1,396 crore, compared with Rs 1,869 crore in H1 FY26, a year-on-year reduction of Rs 473 crore.

The government and sector classifications are separate measures in HUDCO’s presentation. It reports urban infrastructure at Rs 1.41681 lakh crore and government borrowers at Rs 1.84715 lakh crore in H1 FY27, but does not disclose a sector-by-borrower table. The presentation therefore establishes the scale of both characteristics but not the exact overlap between them.

What does the portfolio shift show about HUDCO’s operating growth?

HUDCO’s reported loan balances, sanctions, disbursements and interest income all rose as urban infrastructure became the larger portfolio segment. Total outstanding loans increased from Rs 92,654 crore in FY24 to Rs 1.24828 lakh crore in FY25, a reported increase of 35%, and then to Rs 1.60724 lakh crore in FY26, a reported increase of 29%. From FY24 to FY26, urban infrastructure added Rs 69,530 crore, while affordable housing was Rs 1,460 crore below its FY24 balance.

The FY26-to-H1 FY27 figures show continued expansion after the fiscal year-end. Total loans outstanding increased by Rs 25,387 crore from Rs 1.60724 lakh crore in FY26 to Rs 1.86111 lakh crore in H1 FY27. Urban infrastructure accounted for Rs 23,008 crore of that change, rising from Rs 1.18673 lakh crore to Rs 1.41681 lakh crore, while affordable housing increased by Rs 2,379 crore from Rs 42,051 crore to Rs 44,430 crore.

Annual disbursements rose 123% from Rs 17,987 crore in FY24 to Rs 40,038 crore in FY25, followed by a 28% increase to Rs 51,194 crore in FY26. Annual loan sanctions increased from Rs 82,387 crore in FY24 to Rs 1.27952 lakh crore in FY25 and Rs 1.64758 lakh crore in FY26. HUDCO does not state in the presentation how those sanctions or disbursements were divided between urban infrastructure and affordable housing.

Conclusion

HUDCO’s figures show a substantial portfolio change between FY24 and H1 FY27. Urban infrastructure increased from 53.04% to 76.13% of loans outstanding, while affordable housing decreased from 46.96% to 23.87%. The Rs 41,557 crore year-on-year expansion in the total H1 FY27 loan book was more than accounted for by the Rs 47,875 crore increase in urban-infrastructure loans because affordable-housing balances declined by Rs 6,318 crore.

The next portfolio update will show whether the H1 FY27 mix continues to change after Rs 1.04592 lakh crore of sanctions and Rs 35,372 crore of disbursements during the half year. HUDCO’s subsequent disclosures may also indicate whether the government-borrower share, which increased from 98.90% in FY26 to 99.25% in H1 FY27, remains at that level and whether a sector-by-borrower breakdown is provided.