Housing and Urban Development (HUDCO) Q3 25/26 earnings summary

Executive summary

• Over five decades of expertise as a techno-financial institution, supporting housing and infrastructure projects nationwide, with a pan-India presence and 20 regional offices.

• Listed Navratna CPSE with 75% government ownership, consistently profitable and focused on social justice.

• Loan book growth maintained at approximately 25%-30.86% year-over-year, with continued diversification and addition of new borrowers.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 were approved, showing continued profitability and strong operational performance.

• Strategic partner in major government initiatives like PMAY, Smart City, AMRUT, and Jal Jeevan Mission, with a focus on supporting government urban development and infrastructure financing.

Financial highlights

• Net profit for 9MFY26 rose 3.62% year-over-year to ₹2,053.06 crore, with profit after considering forex loss around INR 2,500 crore for nine months.

• Highest-ever 9-month loan disbursement at ₹41,347 crore, up 30.19% year-over-year.

• Loan book reached a record ₹1,55,631 crore, up 30.86% year-over-year.

• Net interest margin at 2.88% for nine months, expected to normalize to 3%-3.1% annually.

• Dividend payout ratio at 41.5% for FY25, with interim dividend of ₹3.30 per share and a 3rd interim dividend of ₹1.15 per share for FY 2025-26.

Outlook and guidance

• Disbursement target for FY 2026 is INR 50,000 crore, supporting a 25% loan book growth.

• Infrastructure spending projected to surge 1.6x over the next five years, driven by government and private sector investments.

• Positioned to play a vital role in India's $10 trillion economy vision by 2030 and Viksit Bharat by 2047.

• Loan book target of INR 3 lakh crore by 2030, with profit projections exceeding INR 6,000 crore in the coming years.

• PMAY 2.0 expected to pick up significantly in the next financial year.