Housing and Urban Development (HUDCO) Q2 25/26 earnings summary

Executive summary

• Achieved record six-month sanctions of INR 92,985 crore in H1 FY26, up 22% year-over-year from INR 76,000 crore.

• Disbursements grew 19% to INR 26,000 crore in H1 FY26 compared to INR 21,700 crore last year.

• Loan book expanded 30% year-over-year to INR 1.44 lakh crore, with a strong pipeline for further growth.

• Over five decades of expertise as a techno-financial institution, supporting housing and infrastructure projects nationwide.

• Listed entity with 75% government ownership, recognized as a Navratna CPSE and NBFC-IFC.

Financial highlights

• Net profit for H1 FY26 rose 7.5% year-over-year to ₹1,340.06 crore.

• Revenue from operations increased 31% year-over-year to INR 6,100 crore in H1 FY26.

• Highest ever half-yearly disbursement at ₹25,838 crore and loan book at ₹1,44,554 crore (up 30%).

• Weighted average cost of funds declined from 7.12% to 6.32% year-over-year.

• Dividend payout ratio at 41.5% for FY25, with interim dividend of ₹2.15/share declared up to H1FY26.

Outlook and guidance

• Loan growth guidance maintained at 25%-30% annually.

• Disbursement target for FY26 set at INR 50,000 crore, with 50% already achieved in H1.

• Loan book target revised upward to INR 1.6 lakh crore by March 2026 and INR 3 lakh crore by FY30.

• Positioned to benefit from India's infrastructure capex surge, projected to grow 1.6x over FY26-30.

• Strategic focus on supporting government initiatives like PMAY 2.0, Smart Cities, and AMRUT.