Housing and Urban Development (HUDCO) Q3 25/26 earnings summary

Executive summary

• Loan book continues to grow at approximately 25%-30.86% year-over-year, with diversification into infrastructure finance and new borrower segments.

• Net NPA reduced to 0.06%, reflecting strong asset quality and successful resolution efforts.

• Strategic focus on supporting government urban development initiatives, collaborating with urban local bodies, and participating in major schemes like PMAY, Smart City, AMRUT, and Jal Jeevan Mission.

• Launch of the Urban Invest Window platform to streamline project creation, financing, and investor engagement, aiming to double urban investments in five years.

• Over five decades of expertise as a techno-financial institution, with pan-India presence and 75% government ownership.

Financial highlights

• Net profit for 9MFY26 rose 3.62% year-over-year to ₹2,053.06 crore, with record loan disbursements of ₹41,347 crore, up 30.19% year-over-year.

• Loan book reached a record ₹1,55,631 crore, up 30.86% year-over-year.

• Net loss on fair value changes due to FCNR borrowings was INR 470 crore for the nine months of FY 2026; this is a one-time impact and will not recur from next quarter.

• Net interest margin (NIM) for nine months of FY 2026 is 2.88%, with cost of funds at 7.13%.

• Dividend payout ratio at 41.5% for FY25, with interim dividend of ₹3.30 per share and a 3rd interim dividend of ₹1.15 per share for FY 2025-26.

Outlook and guidance

• Loan book target of INR 3 lakh crore by 2030, with expectations to reach this milestone earlier due to strong growth.

• Infrastructure spending projected to surge 1.6x over the next five years, driven by government and private sector investments.

• Positioned to play a vital role in India's $10 trillion economy vision by 2030 and Viksit Bharat by 2047.

• Enhanced borrowing capacity to ₹80,000 crore for FY 2025-26 to support business growth.

• Focus on expanding urban investments, PPP project financing, and supporting state and municipal infrastructure.