HUDCO's Q1 net profit jumps 35% to ₹851 cr, NPAs shrink further
Interest income up 27% and lower provisions drive earnings; board declares ₹1.25 interim dividend; gross NPAs fall to 0.96%.
— 6 earlier stories on Housing & Urban Development Corporation Ltd. →What's new
- Net profit ₹851 cr, up 35% YoY on higher interest income and lower provisions.
- Gross NPAs fell to 0.96% from 1.34% a year ago; net NPAs at 0.05%.
- Board declared first interim dividend of ₹1.25 per share for FY27, record date 31 July.
Why this matters
The profit growth is broad-based—interest income rose 27% to ₹3,709.57 cr and credit costs dropped as asset quality hit its best in years. The dividend confirms management's confidence, but the real signal is the NPA cleanup: four accounts resolved with no fresh slippages.
What we're watching
- Whether the massive ₹65,485 cr of Q1 loan sanctions sustain into Q2 and flow through to interest income.
- If finance costs creep higher—they rose even as credit costs fell.
- The trajectory of gross NPAs below 1% and the ability to hold them there.
The full read
HUDCO's Q1 profit surged 35% to ₹851 crore. Interest income jumped 27% to ₹3,709.57 crore, reflecting the ₹65,485 crore in loan sanctions the company booked earlier in the quarter, up 93% YoY. Asset quality improved sharply, with gross NPAs sliding to 0.96% from 1.34% and net NPAs to 0.05%. Four project loans were resolved with zero fresh slippages. The board declared an interim dividend of ₹1.25 per share. The combination of strong loan growth and falling NPAs is rare in housing finance. The open question is whether HUDCO can sustain sanction momentum and keep credit costs down as the base catches up.
Questions answered
- How much did interest income grow and why?
- Interest income rose 27% to ₹3,709.57 crore, driven by a growing loan book—HUDCO sanctioned ₹65,485 crore in Q1 itself, up 93% YoY.
- What is the gross NPA ratio now?
- Gross NPAs fell to 0.96% from 1.34% a year earlier, while net NPAs eased to 0.05%. The company resolved four NPA accounts with no fresh additions.
- What dividend did the board declare?
- The board declared a first interim dividend of ₹1.25 per equity share for FY27, with a record date of 31 July 2026.
- Did the company manage to reduce provisions?
- Yes, provisions dropped as credit costs improved, partly due to the NPA resolution and no new slippages, though finance expenses were higher.
Housing & Urban Development Corporation Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on HUDCO →- 27 Jul 2026 · 3:26 PM IST HUDCO's Q1 net profit jumps 35% to ₹851 cr, NPAs shrink further
- today HUDCO guides ₹65,000 cr disbursements in FY27, legacy NPAs in sight
- 1d ago HUDCO Q1 net profit ₹851 cr, NPAs shrink to 0.96%
- 17d ago HUDCO signs third ₹1 lakh cr MoU in a month, this time with Odisha
- 25d ago HUDCO signs second ₹1 lakh crore MoU in a month, this time with Bihar