New Delhi: Housing and Urban Development Corporation Ltd. HUDCO announced its financial results for the first quarter of FY26, showcasing robust performance with a notable surge in net interest income and a marked improvement in asset quality.
HUDCO’s Net Interest Income NII, a key indicator of core earnings, grew by a solid 32 percent year on year, reaching ₹961 crore, up from ₹724.7 crore in the same quarter last year. This spike in core income reflects the company’s steady loan book performance, of which a significant 98.59 percent is extended to government bodies and agencies, ensuring lower credit risk.
The company’s net profit also registered double-digit growth, increasing 13 percent to ₹630.2 crore, compared to ₹558 crore in the same quarter of the previous fiscal.
A major highlight of HUDCO’s Q1 results is the notable improvement in asset quality. Gross Non Performing Assets NPAs dropped to 1.34 percent, down from 1.67 percent in March, while Net NPAs were reduced to 0.09 percent, compared to 0.25 percent in the previous quarter. This recovery was significantly aided by the resolution of a long-standing NPA worth ₹277.68 crore, along with the technical write off of four smaller accounts totaling ₹7.27 crore.
HUDCO’s loan activity remained dynamic, with loan sanctions jumping by a remarkable 143 percent year on year to ₹34,224 crore. However, disbursements remained steady at ₹12,812 crore, showing consistent credit delivery.
As of June end, the Provision Coverage Ratio PCR stood impressively at 93.49 percent, reflecting the company’s conservative and cautious provisioning strategy.
Despite the strong financial report, HUDCO’s stock closed 3.2 percent lower at ₹211.65 ahead of the results declaration and remains 33 percent below its 52 week high of ₹312.
The management’s prior pledge to achieve zero net NPAs appears to be steadily materializing, reaffirming investor confidence in HUDCO’s secure and government linked lending model.