Housing & Urban Development Corporation Ltd (HUDCO)
🎯 Key Takeaways
- HUDCO is transitioning from a mature infrastructure financier to a growth-oriented player capitalizing on India's public infrastructure push, with a strategic focus on scaling its loan book to INR3 lakh crore by 2029-30. Despite near-term NPA pressures and governance compliance gaps, profitability has improved significantly, driven by strong order inflows, stable financing costs, and expanding green financing initiatives.
- Revenue grew 4.3% QoQ to ₹3,717 in Q1FY27.
- ⚠️ Ongoing governance issues, including unresolved SEBI penalties and compliance gaps with Independent Director norms, may affect long-term investor trus
- Market Cap
- ₹33,202
- P/E Ratio
- 7.8
- P/B Ratio
- 1.62
- ROE
- 20.7%
- ROCE
- 8.0%
- Debt/Equity
- 6.90
- Div Yield
- 3.65%
- Promoter
- 75.0%
📖 The Story
HUDCO is transitioning from a mature infrastructure financier to a growth-oriented player capitalizing on India's public infrastructure push, with a strategic focus on scaling its loan book to INR3 lakh crore by 2029-30. Despite near-term NPA pressures and governance compliance gaps, profitability has improved significantly, driven by strong order inflows, stable financing costs, and expanding green financing initiatives.
📰 What's Happening
In Q1 FY27, HUDCO secured a ₹2 lakh crore institutional finance push and signed over ₹1 lakh crore in MOUs, particularly in Gujarat and Bihar, while finalizing a ₹2 billion USD foreign loan facility at 1.5% hedging cost. The board approved a ₹70,000 crore fundraise via non-convertible bonds and a 15% final dividend (Rs.1.50 per share) at the 56th AGM. Management highlighted advancing Olympic 2036 infrastructure projects and expanding private sector participation in metro and RRTS developments.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 2,937 | 3,219 | 3,431 | 3,563 | 3,717 |
| Operating Profit | 851 | 923 | 714 | 559 | 1,046 |
| OPM % | 29.0% | 28.7% | 20.8% | 15.7% | 28.1% |
| Net Profit | 632 | 710 | 713 | 1,981 | 851 |
| EPS | ₹3.14 | ₹3.55 | ₹3.56 | ₹9.90 | ₹4.25 |
Profitability has shown sharp improvement, with Q1 FY27 net profit rising to ₹851.11 crore from ₹632 crore in Q2 FY26, supported by ₹3,742.79 crore total income and stable asset quality. Operating margins remain robust at 28.1%, though they fluctuated slightly quarter-on-quarter. Despite a temporary dip in operating profit in Q1 FY26 (₹559 crore), the company maintained strong net income, reflecting improved cost and income management amid rising infrastructure demand.
🔮 Management Outlook & What's Next
Management emphasized a conservative INR3 lakh crore loan book target by 2029-30, with INR65,000 crores planned for disbursement in FY27, underpinned by stable financing costs and expanding green financing (₹2390 crore in renewable energy loans). They reiterated confidence in the Olympic 2036 infrastructure pipeline and private sector participation in urban development, while noting ongoing efforts to resolve governance gaps and maintain regulatory compliance.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 2,002 | 2,002 | 2,002 | 2,002 |
| Reserves | 15,966 | 15,121 | 18,532 | 16,033 |
| Borrowings | 1.07 L Cr | 93,565 | 1.42 L Cr | 1.27 L Cr |
| Total Liabilities | 1.28 L Cr | 1.14 L Cr | 1.67 L Cr | 1.49 L Cr |
| Fixed Assets | 76 | 73 | 67 | 75 |
| Investments | 1,318 | 834 | 2,247 | 1,701 |
| Total Assets | 1.28 L Cr | 1.14 L Cr | 1.67 L Cr | 1.49 L Cr |
Equity remains stable at ₹2,002 crores, but reserves have grown from ₹15,966 crores (Mar 2025) to ₹18,532 crores (Mar 2026), indicating retained earnings growth. Borrowings have risen steadily from ₹1.07 lakh crore to ₹1.42 lakh crore over the same period, reflecting capital mobilization for expansion. The company maintains a high debt-to-equity ratio of 6.90, but this is typical for infrastructure finance and supported by strong asset backing and AAA credit rating.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -33,912 |
| Investing | -884 |
| Financing | +34,793 |
| Net Cash Flow | -3 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 75.0% | 75.0% | 75.0% | 75.0% |
| FII | 1.9% | 2.0% | 2.2% | 2.4% |
| DII | 10.9% | 11.5% | 11.0% | 10.1% |
| Public | 10.8% | 10.3% | 10.4% | 10.3% |
| # Shareholders | 8,43,084 | 8,02,766 | 7,90,412 | 7,57,055 |
Promoter holding remains steady at 75%, but institutional investor interest is rising, with FII shareholding increasing from 1.94% (Q2 FY26) to 2.4% (Q1 FY27) and DII from 10.92% to 10.1%. The number of shareholders has slightly declined to 7,57,055, suggesting consolidation, while public holding remains stable. No signs of promoter selling or significant institutional exit, indicating sustained confidence from key investor groups.
⚖️ Peer Comparison — Finance
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BAJFINANCE | 6.06 L Cr | 29.8 | 10.4% | — | 3.82 |
| BAJAJFINSV | 2.79 L Cr | 27.4 | 11.4% | — | 5.50 |
| SHRIRAMFIN | 2.29 L Cr | 17.2 | 11.5% | — | 3.80 |
| ICICIAMC | 1.60 L Cr | 32.1 | 111.5% | — | 0.00 |
| JIOFIN | 1.44 L Cr | 67.7 | 2.3% | — | 0.17 |
| TATACAP | 1.41 L Cr | 25.7 | 8.4% | — | 5.28 |
| CHOLAFIN | 1.39 L Cr | 24.1 | 9.3% | — | 6.93 |
| BAJAJHLDNG | 1.19 L Cr | 13.4 | 12.4% | — | 0.00 |
| MUTHOOTFIN | 1.10 L Cr | 9.7 | 14.4% | — | 3.88 |
| PFC | 1.07 L Cr | 4.1 | 9.8% | — | 7.62 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Ongoing governance issues, including unresolved SEBI penalties and compliance gaps with Independent Director norms, may affect long-term investor trust. 2. Near-term NPA resolution pressure persists despite low gross NPAs of INR1,600 crores, with resolution expected within the financial year. 3. Rising borrowings could strain balance sheet if disbursements underperform or asset quality deteriorates. 4. Dependence on government infrastructure spending and MOU execution risks could delay revenue recognition.
📋 Recent Filings
- Announcement2026-09-25HUDCO announced the extension of Chief Compliance Officer Ms. Nishi Rani's tenure by one year effective 29 September 2026, ensuring continuity in regu…
- Announcement2026-09-25HUDCO announced that its trading window will close on 1 October 2026 and remain shut until 48 hours after the quarter and half-year results for Septem…
- Announcement2026-09-22HUDCO disclosed that the Ministry of Rural Development transferred its 20.73% stake to the Ministry of Housing and Urban Affairs, consolidating the Go…
- 🔴 Announcement2026-09-18HUDCO announced it received an ESG rating of 65.13 Performer from Niche Ninety Nine Capability and Certifications Private Limited, based on public inf…
- 🔴 Announcement2026-09-16HUDCO announced it received an ESG rating of 64 (Strong) from CRISIL ESG Ratings & Analytics Limited, based on publicly available information, as requ…
- 🔴 Announcement2026-09-15HUDCO announced it received an ESG rating of 61.5 B from SES ESG Research Pvt. Ltd. under SEBI Regulation 30, based solely on publicly available infor…
- 🔴 Announcement2026-09-10HUDCO announced the appointment of S A R C & Associates as its statutory auditor for the financial year 2026-27 following a formal letter from the Com…
- 🔴 Announcement2026-09-03HUDCO disclosed on September 3, 2026, that ESG Risk Assessments and Insights Limited assigned it an ESG rating of 62 Strong, based solely on publicly …
- 🔴 Announcement2026-09-03HUDCO received a credit rating upgrade from Japan Credit Rating Agency, moving its Foreign and Local Currency Long-Term Issuer Ratings from BBB+ to A-…
- Announcement2026-09-02HUDCO disclosed that the Ministry of Rural Development will transfer its 20.73% stake to the Ministry of Housing and Urban Affairs, maintaining the go…
🧠 Analyst's Read
HUDCO is positioned to benefit from India's infrastructure boom with strong order visibility and stable financing, but investors should monitor NPA resolution progress and governance improvements closely. The success of its ₹70,000 crore fundraise and execution of green financing initiatives will be critical to sustaining growth momentum.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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