By Z A Ansari: New Delhi: In a recent press briefing held at Hudco Bhawan, the CMD of Housing and Urban Development Corporation (Hudco), Mr. Sanjay Kulsreshta, announced the company’s financial results for the first half of fiscal year 2026. Underlining Hudco’s strict adherence to RBI guidelines, Mr. Kulsreshta presented a detailed report showcasing significant growth and financial stability.
**Financial Highlights:**
The company’s total income for the second quarter of FY26 stood at ₹3,251.02 crore, marking an increase from ₹2,526.14 crore in the corresponding quarter of FY25. This rise was primarily driven by a robust revenue from operations, which escalated to ₹3,219.03 crore in Q2 FY26 from ₹2,517.72 crore in Q2 FY25.
Hudco’s net profit after tax also saw an uptick, reaching ₹709.83 crore in Q2 FY26 compared to ₹688.62 crore in the same quarter the previous year. For the half-year period, the net profit after tax stood at ₹1,340.06 crore, showing a healthy growth from ₹1,246.37 crore in H1 FY25.
**Operational Metrics Show Strength:**
The loan portfolio of the company has shown impressive growth, standing at ₹1,44,554 crore in H1 FY26, which includes both EBR and non-EBR figures. This represents a significant increase from ₹1,24,828 crore in FY25. The yield on loans has been reported at 9.12% for the period, slightly down from 9.24% in H1 FY25, reflecting a competitive interest rate environment.
The cost of funds for Hudco has decreased to 7.04% in H1 FY26 from 7.46% in the same period last year, aiding in improving the net interest margin to 2.98% from 3.01%. The company’s interest coverage ratio improved to 1.42 times, and the debt equity ratio was reported at 6.98 times.
**Return Metrics and Shareholder Value:**
The return on assets (annualized) for Hudco has improved to 1.93%, while the return on equity (annualized) stood at a robust 14.86%. The company’s net worth as of H1 FY26 was ₹18,037.03 crore, showing a solid increase from ₹17,124.35 crore in H1 FY25.
The book value per share has also increased to ₹90.10, up from ₹85.54, and the earnings per share (annualized) have risen to ₹6.69 from ₹6.23, indicating enhanced value creation for shareholders.
**Looking Forward:**
Hudco continues to play a pivotal role in financing urban development projects across India, with a focus on sustainable and inclusive growth. The company’s financial health and operational efficiency set a positive outlook for the future, as it remains committed to contributing to the government’s initiative of ‘Viksit Bharat.’
Investors and stakeholders are showing optimism as Hudco’s strategic initiatives and rigorous compliance with financial regulations pave the way for continued success and stability in the challenging economic landscape.
**Conclusion:**
With a solid financial footing and strategic positioning, Hudco is well-equipped to navigate the future, supporting urban development and housing projects that are crucial for India’s growth trajectory. The management’s focus on maintaining high compliance and operational efficiency further reassures stakeholders of the company’s robust governance framework and potential for sustained growth.
