HUDCO Q1 FY27 Profit Climbs 35% To ₹851 Crore, Announces ₹1.25 Interim Dividend

Housing and Urban Development Corporation Ltd. (HUDCO) opened FY27 with a strong quarterly performance. Consolidated net profit rose 35.05% year-on-year to ₹851 crore for the quarter ended June 2026. The state-owned housing and urban infrastructure finance company also declared its first interim dividend for FY27 after reporting growth in both revenue and net interest income (NII).

Revenue from operations reached ₹3,717.17 crore during the quarter, up 26.55% from ₹2,937 crore a year earlier. Better lending income and stronger interest earnings supported the increase.

The market responded positively. HUDCO shares ended the session more than 3% higher after the earnings announcement.

Q1 FY27 Financial Performance

Growth was visible across the company's key financial numbers.

Higher earnings from lending remained the biggest contributor to quarterly profit. Net interest income was also stronger as the company’s core business improved its returns.

Asset Quality Shows Further Improvement

The loan book also moved in the right direction. Four project loan NPAs were resolved after borrowers made full repayments. No new project loan accounts slipped into the NPA category during the quarter. The company also avoided any technical write-offs for chronic NPA accounts.

HUDCO said technical write-offs are only accounting adjustments. Recovery proceedings against those borrowers continue as usual.

The latest update points to a more stable project loan portfolio while recovery efforts remain in place.

Interim Dividend Declared

The board approved the first interim dividend for FY27.

The share price still trades below its 52-week high and remains lower on a year-to-date basis. Even so, investors welcomed the stronger earnings and the interim dividend announcement.

Lending Business Drives Strong Start To FY27

Profit, revenue and net interest income all posted double-digit growth in the June quarter. Asset quality improved. Fresh project loan NPAs were absent, and the interim dividend added to the positive quarterly update.

The lending environment remains challenging. Even so, the latest numbers suggest steady progress in the company's core financing business and continued attention to asset quality. The coming quarters will show whether this pace of growth can be maintained.

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