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Housing and Urban Development Corporation (HUDCO) has reported a marginal decline in consolidated net profit for the December quarter of FY26, weighed down by a sharp rise in expenses despite higher income. The state-owned lender posted a profit of INR 713 crore, slightly lower than the year-ago period, even as its total income recorded a strong year-on-year increase. Expenditure during the quarter rose substantially, impacting overall profitability. Alongside its financial performance, HUDCO's board approved a third interim dividend for FY26 and cleared an expansion of the company's annual borrowing programme to support future lending activities. The move reflects sustained demand for funding in housing and urban infrastructure segments, which remain the core focus areas for the public sector financier.
State-owned Housing and Urban Development Corporation (HUDCO) has reported a nearly 3 per cent year-on-year decline in consolidated net profit for the December quarter of FY26, as rising expenses offset the benefits of higher income. The company posted a net profit of INR 713 crore for the October-December period, compared with INR 735 crore in the corresponding quarter of the previous financial year, according to a regulatory filing. Advertisement
Despite the dip in profit, HUDCO recorded a significant increase in total income during the quarter. The company's income rose to INR 3,505.57 crore, up from INR 2,770.14 crore in the same period last year, indicating steady growth in lending and related activities across its core sectors.
However, the improvement in income was accompanied by a sharp escalation in expenditure. HUDCO's total expenses climbed to INR 2,717.08 crore in the December quarter, compared with INR 1,838.48 crore in the corresponding quarter of FY25. The higher cost base had a direct impact on profitability, resulting in the marginal contraction in net profit despite robust revenue growth.
Alongside the quarterly financial results, HUDCO's board approved the payment of a third interim dividend for FY26. The company declared an interim dividend of INR 1.15 per equity share of face value INR 10 each, offering continued returns to shareholders amid stable operational performance.
The board also cleared a proposal to enhance the company's annual borrowing plan for FY26. HUDCO decided to increase its borrowing programme from INR 65,000 crore to INR 80,000 crore, reflecting stronger funding requirements and an anticipated rise in disbursements. The expanded borrowing capacity is expected to support the company's lending activities in housing and infrastructure segments over the remainder of the financial year.
HUDCO plays a key role in providing long-term finance and credit facilities to the housing and infrastructure sectors, with a particular emphasis on urban development projects. The increase in borrowing limits signals sustained demand for funding in urban infrastructure, affordable housing and related sub-sectors, even as cost pressures remain a factor influencing near-term profitability.
Source - PTI
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