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State-run Housing and Urban Development Corporation Ltd (Hudco) reported a moderate rise in profit for the September quarter, supported by robust income growth and improved loan performance. The firm witnessed increased interest income and loan disbursements, while maintaining a healthy asset quality with reduced NPAs. Management indicated optimism for continued expansion through the government's infrastructure focus and the upcoming PMAY 2.0 initiative, projecting a healthy CAGR and steady margins for the remainder of the fiscal year.
During the past week, Housing and Urban Development Corporation Ltd (Hudco) announced a 3 per cent rise in its net profit, reaching INR 710 crore for the September quarter. The public sector enterprise had reported a profit of INR 689 crore during the same quarter in the previous financial year. Advertisement
Hudco's total income for the second quarter of the current fiscal stood at INR 3,251 crore, up from INR 2,526 crore recorded during the corresponding period a year earlier. Interest income rose significantly to INR 3,197 crore, compared with INR 1,844 crore in the previous year's second quarter. However, total expenses for the quarter also increased, reaching INR 2,296 crore as against INR 1,526 crore a year earlier.
Hudco's Chairman and Managing Director, Sanjay Kulshreshtha, stated that the company anticipated its compound annual growth rate (CAGR) to exceed 25 per cent during the year, supported by the government's strong emphasis on infrastructure development and the recently announced PMAY 2.0 scheme. He attributed Hudco's growth momentum to the consistent trust and backing of its stakeholders and conveyed confidence in achieving a net interest margin of 3 per cent during the current financial year.
Kulshreshtha further noted that the company aimed to achieve net zero non-performing assets (NPAs) within the next 15 months by maintaining a strategic focus on investment-grade projects.
For the first half ended September 2025, Hudco achieved its highest-ever half-yearly profit of INR 1,340 crore, compared with INR 1,246 crore in the first half of the previous fiscal, marking a 7.52 per cent increase. Loan sanctions during the period reached INR 92,985 crore, a rise of 22 per cent over INR 76,472 crore in the corresponding half of the prior year. Loan disbursements also improved to INR 25,838 crore from INR 21,699 crore during the same period last year.
Asset quality continued to strengthen, with gross NPAs declining to 1.21 per cent by the end of September 2025 from 2.04 per cent a year earlier. Net NPAs also reduced to 0.07 per cent from 0.31 per cent recorded at the end of the first half of the previous financial year.
Hudco's financial performance during the September quarter highlighted consistent profit growth, strengthened asset quality, and increased lending activity. The management's focus on investment-grade projects, coupled with government-backed infrastructure programmes, is expected to sustain growth momentum through the ongoing fiscal. With a positive outlook and a targeted improvement in margins, Hudco appears well-positioned to maintain profitability and operational stability in the coming quarters.
Source - PTI
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