Housing & Urban Development Corporation Limited Earnings Summary — Q1 FY2027
HUDCO Reports Strong Q1 Growth as Net Profit Surges 35% YoY to ₹851 Crore
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹3,717 Cr is 26.6% higher year-on-year.
- Revenue has compounded at 29.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹851 Cr is 35.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 9.1% annualised across the period.
- Operating margin stands at 97.1% in Q1 FY2027.
- Operating margin expanded by 79 bps year-on-year.
- Over the last two years operating margin has contracted by 78 bps.
- PBT margin is 28.7%.
- Expense growth of -0.4% remained below revenue growth of 26.6%.
- Operating profit of ₹3,609 Cr is 27.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 78/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,717 | 3,563 | 3,431 | 3,219 | 2,937 | 2,845 | 2,760 | 2,518 | 2,188 | 2,065 |
| Expenses | Volatile | 109 | 587 | 320 | 147 | 109 | -28 | 73 | -138 | 47 | 8 |
| Operating Profit | Improving | 3,609 | 2,976 | 3,111 | 3,072 | 2,828 | 2,873 | 2,687 | 2,656 | 2,142 | 2,057 |
| Operating Margin | Stable | 97.1% | 83.5% | 90.7% | 95.5% | 96.3% | 101.0% | 97.3% | 105.5% | 97.9% | 99.6% |
| Other Income | Volatile | 20 | 62 | 74 | 32 | 8 | 10 | 10 | 8 | 9 | 129 |
| Interest | Improving | 2,561 | 2,413 | 2,394 | 2,147 | 1,976 | 1,859 | 1,762 | 1,662 | 1,464 | 1,240 |
| Depreciation | Stable | 2 | 4 | 3 | 3 | 3 | 4 | 3 | 3 | 2 | 2 |
| Profit Before Tax | Improving | 1,066 | 621 | 788 | 955 | 857 | 1,020 | 932 | 1,000 | 685 | 943 |
| Tax | Volatile | 215 | -1,360 | 75 | 245 | 227 | 293 | 197 | 311 | 127 | 243 |
| Net Profit | Volatile | 851 | 1,981 | 713 | 710 | 630 | 728 | 735 | 689 | 558 | 700 |
| Net Margin | Volatile | 22.9% | 55.6% | 20.8% | 22.1% | 21.5% | 25.6% | 26.6% | 27.4% | 25.5% | 33.9% |
Key Takeaways
- Net profit grew significantly by 35% YoY to ₹851.11 crore, supported by robust interest income growth of 26.8%.
- Asset quality remains stable with no fresh slippages to Non-Performing Assets (NPA) in Project Loans during the quarter.
- Four major NPA project loans were fully resolved through total repayment during the reporting period.
- The Board declared a first interim dividend of ₹1.25 per equity share for FY 2026-27.
- Liquidity remains strong with ₹2,140 crore raised through listed non-convertible debt securities on a private placement basis.
- The company acquired new loan exposure of ₹2,059.18 crore during the quarter, reflecting continued credit expansion.
- Statutory auditors highlighted ongoing non-compliance regarding the requisite number of Independent Directors on the Board.
Management Guidance
Management emphasizes a strategic alignment with national urban development missions like PMAY and Smart Cities. They indicate a shift towards aggressive growth and digitalization while maintaining their 'AAA' credit rating to leverage low-cost borrowing advantages.
Sentiment Shift
Stable
Core operational income remains strong with expanding revenue and stable asset quality, though quarterly profit was lower than the outlier Q4 result due to deferred tax credit normalization.
Outlook
The company expects a steady pipeline of loan opportunities driven by government-sponsored urban infrastructure projects. Management maintains a focus on high-growth trajectory supported by its near-sovereign credit profile.
From the Annual Report (Key Quotes)
“No fresh slippages to NPA in Project Loan were observed during the period.”
“The Company has sufficient liquidity as well as adequate undrawn lines of credits from various banks to take care of its operational requirements.”
“The Company is in discussion with MOHUA for recovery/reimbursement of outstanding amount (including interest) in the No Lien AGP Account.”
Official Quarterly Documents
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This summary is AI-generated from Housing & Urban Development Corporation Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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