Housing and Urban Development (HUDCO) Q4 24/25 earnings summary

Executive summary

• Achieved record loan sanctions of INR 1.27 lakh crores in FY25, up 55% YoY, and disbursements of INR 40,038 crores, up 123% YoY.

• Maintains strong asset quality with net NPA at 0.25% and a commitment to resolve all NPAs within 18 months.

• Strategic partner in major government initiatives and infrastructure projects, with MOUs and pipeline exceeding INR 8 lakh crores.

• Accorded Navratna status in April 2024, with 75% government ownership and consistent profitability.

• Audited financials for FY25 received unmodified opinions, confirming compliance with SEBI and Indian Accounting Standards.

Financial highlights

• Revenue from operations for FY25 was ₹10,311.29 crore, up from ₹7,784.29 crore YoY; net profit reached ₹2,709 crore, up 28% YoY.

• Net Interest Margin improved to 3.22%, with guidance to maintain around 3.25%; yield on advances increased to 9.5%.

• Cost of funds reduced to 6.75% in FY25, down from 7.10% in FY24.

• Dividend payout ratio at 41.5% for FY25, with an all-time high dividend of ₹830.79 crore.

• Market capitalization rose over 4.5 times since Mar'23, reaching ₹39,928 crore.

Outlook and guidance

• Loan book target of INR 1.5 lakh crores for FY26, with a long-term goal of INR 3 lakh crores by 2030.

• Positioned to benefit from India's $10 trillion economy vision by 2030 and Viksit Bharat 2047.

• NIM expected to remain stable at 3.25–3.3% over the next two years.

• Further reduction in cost of funds anticipated, leveraging new funding avenues like 54EC and zero-coupon bonds.

• No defaults in debt servicing or borrowings during the year.