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Housing and Urban Development Corporation Ltd (HUDCO) reported a 35% year-on-year increase in its net profit to INR 851 crore for the first quarter of FY27, supported by higher interest income and growth in total income. The state-owned housing and infrastructure financing company also announced its first interim dividend of INR 1.25 per equity share. During the quarter, HUDCO raised INR 2,140 crore through privately placed listed non-convertible debt securities, while its loan impairment provisions declined sharply under the expected credit loss framework, reflecting an improvement in its overall credit provisioning position.
Housing and Urban Development Corporation Ltd (HUDCO) has reported a 35% year-on-year increase in its consolidated net profit to INR 851 crore for the first quarter of FY27, compared with INR 630 crore recorded during the corresponding period of the previous financial year.
According to the company's regulatory filing released earlier this week, HUDCO's total income increased to INR 3,737 crore during the April-June quarter of FY27 from INR 2,945 crore in the same quarter a year ago. The growth was primarily supported by a rise in interest income, which stood at INR 3,710 crore against INR 2,925 crore reported during the corresponding period of the previous financial year.
The company's expenditure also increased during the quarter, rising to INR 2,561 crore from INR 1,976 crore in the year-ago period. Despite higher expenses, stronger income growth helped the public sector lender deliver improved profitability.
HUDCO's board also approved the first interim dividend for FY27 at INR 1.25 per equity share, representing 12.50% of the face value of INR 10 per share.
The regulatory filing further stated that the company made provisions for loan impairment under the Expected Credit Loss (ECL) method amounting to INR 621 crore as of June 30, 2026. This was significantly lower than the provision of INR 1,702.89 crore recorded as of June 30, 2025, indicating a substantial reduction in impairment provisioning compared with the previous year.
During the reporting quarter, HUDCO also mobilised INR 2,140 crore by issuing listed non-convertible debt securities through a private placement. The fund raising is expected to support the company's lending activities across the housing and infrastructure sectors.
HUDCO is a government-owned techno-financing public sector enterprise that provides long-term finance for housing and urban infrastructure projects across India. Over the years, the company has played a key role in funding affordable housing, urban transport, water supply, sanitation, smart city projects and other infrastructure initiatives, while continuing to strengthen its lending portfolio through regular capital market borrowings.
Source PTI
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