Housing and Urban Development (HUDCO) Q2 26/27 earnings summary

Executive summary

• H1 FY27 PAT rose 31.50% to ₹1,762.15 crore and operating revenue increased 26.01% to ₹7,757.59 crore.

• Loan book grew 28.75% to ₹1,86,111 crore; H1 disbursements reached a record ₹35,371.54 crore and sanctions ₹1,04,592 crore.

• Asset quality remained strong: gross NPA was 0.71%, net NPA 0.044%, and provision coverage 93.76%.

Financial highlights

• Q2 FY27 revenue from operations was ₹4,040.42 crore and PAT ₹911.04 crore; H1 revenue was ₹7,757.59 crore and PAT ₹1,762.15 crore.

• H1 PBT was ₹2,188.66 crore versus ₹1,811.94 crore; finance cost rose to ₹5,420.29 crore from ₹4,125.31 crore.

• H1 sanctions were ₹1,04,592 crore, up 12.48% YoY; loan outstanding was ₹1,86,111 crore, up 28.75%.

• H1 recoveries were ₹32 crore and resolved assets ~₹359 crore; FY26 recoveries were ~₹403 crore and resolutions ~₹660 crore.

Outlook and guidance

• FY27 loan-book target is ~₹2 lakh crore, with a longer-term ₹3 lakh crore target by 2030; management prioritizes growth that preserves financial ratios.

• FY27 internal disbursement target is ₹65,000 crore; more than ₹35,000 crore was completed in H1, with the remaining ₹30,000 crore dependent on project progress.

• Management targets ~2% spreads, at least 3% NIM and 2%–2.2% ROA; provision reversals and negative credit costs may continue for one to two years.

• Lower-cost ECB funding and the 15 bps MCLR increase are expected to benefit Q3; tax-rate guidance is ~21%.