HUDCO Earnings Skyrocket: Profit Jumps 3%, Loan Book Hits Record High, Investors Await Dividend Payout!

Housing and Urban Development Corporation Ltd (HUDCO) announced robust financial results for the second quarter of the fiscal year ending September 2025. The state-owned company posted a net profit of ₹709.8 crore, marking a 3% increase compared to ₹688.6 crore in the same period last year. Net interest income (NII) saw a significant jump of 31.8%, reaching ₹1,050 crore from ₹797 crore in Q2 FY25. For the first half of FY26 (half-year ended September 2025), net profit grew by 7.51% to ₹1,340.06 crore. The company's lending operations expanded considerably, with sanctions rising by 21.59% to ₹92,985 crore and achieving its highest-ever half-yearly disbursement of ₹25,838 crore. The total loan book expanded by 30% year-on-year to a record ₹1,44,554 crore. HUDCO maintained excellent asset quality, reporting a gross non-performing assets (GNPA) ratio of 1.21% and a net NPA (NNPA) of 0.07%. The capital adequacy ratio (CRAR) stood strong at 38.03%. Adding to investor returns, HUDCO declared a second interim dividend of Re. 1 per equity share, with November 19, 2025, set as the record date.

Impact This news is highly positive for HUDCO and its investors, indicating strong financial health, effective lending strategies, and good asset management. The dividend announcement further enhances shareholder returns. The growth in the loan book and disbursements signals expansion and potential for future revenue. The stock market may react positively to these results, especially given the robust growth figures and maintained asset quality. Rating: 8/10

Difficult Terms: Net Profit: The profit remaining after all expenses and taxes have been deducted from revenue. Net Interest Income (NII): The difference between the interest income generated by a bank or financial institution and the interest it pays out to its lenders. Sanctions: Approval or authorization granted for a loan or financial facility. Disbursement: The act of paying out money or making funds available. Loan Book: The total amount of loans issued by a financial institution. Gross Non-Performing Assets (GNPA): Loans on which the borrower has defaulted on payments for a specified period (e.g., 90 days). Net Non-Performing Assets (NNPA): Gross NPAs minus the provisions made by the bank for loan losses. Capital Adequacy Ratio (CRAR): A measure of a bank's capital in relation to its risk-weighted assets. Provision Coverage Ratio (PCR): The percentage of non-performing assets that a bank has covered with provisions.