Budget 2025 Impact: HUDCO shares tumble nearly 9.5%; here is why

Shares of Housing and Urban Development Corporation (HUDCO) tumbled nearly 9.5% on Monday after the government allocated ₹19,794 crore for Pradhan Mantri Awas Yojana (PMAY)-Urban in the Union budget for 2025-26.

According to reports, this allocation is nearly a 34.4% cut compared to ₹30,171 crore in last year’s budget. The latest allocation is lower than the actual expenditure of ₹21,684 crore in 2023-24. However, PMAY-Urban received a 36% increase in funding, up from the revised estimate of ₹13,670 from last July's Budget.

During the intraday trade, HUDCO shares plunged 8.86% to ₹198.7 apiece on BSE. On the 50-share Nifty, the firm was trading at ₹197.65, falling 9.08%.

The new iteration of PMAY is meant to provide one crore houses to people with low-to-middle incomes over a five-year period, while the government has also extended to the rural version of the scheme, PMAY-Gramin, allocating ₹54,232 crore for FY26. In FY25, the budgeted estimate for the rural housing scheme was ₹54,500 crore.

In the Budget 2025, the government also allocated an Urban Challenge Fund of ₹1 lakh crore to implement the proposals for ‘Cities as Growth Hubs’. It also allocated ₹10,000 crore for ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’ in 2025-26.

Shares of Can Fin Homes Ltd declined 2.09% to ₹646.70. The stock touched a fresh 52-week low of ₹638.25 on the NSE during the intraday trade. Another affordable housing stock NBCC slipped 4.81% during the day's trade on BSE to ₹90.78 apiece.

HUDCO Q3 The NBFC-IFC firm posted a net profit of ₹735 crore for the December quarter of FY25, up 41.6% year-on-year (YoY).

The non-banking financial company-infrastructure finance company (NBFC-IFC) also reported a 37.14% rise at Rs 2,760.23 crore in revenue YoY from operations.

For the first nine months of FY25, Hudco’s net profit advanced 39.87% YoY to ₹1,981.40 crore. Revenue during the same period rose by 30.55% on year, to ₹7,466.13 crore. The company attributed this performance to growth in its loan book and a reduction in non-performing assets (NPAs).

During 9M FY25, HUDCO’s net NPAs reduced from 0.44% to 0.27% YoY.