HUDCO shares in focus: PSU to become net-zero NPA entity in next 15 months; check key Q2 numbers

The Miniratna company reported a 3% rise in its net profit to ₹710 crore for the September quarter.

The state-owned company had earned a net profit of ₹689 crore in the year-ago period.

The company's total income rose 28.7% YoY to ₹3,251 crore in the second quarter of this fiscal year against ₹2,526 crore seen in the corresponding period of the preceding year.

HUDCO is a premier techno-financing public sector enterprise in the field of housing and infrastructure development.

The company earned interest income in the second quarter at ₹3,197 crore, as against ₹1,844 crore logged a year ago.

During the quarter, the expenses also rose to ₹2,296 crore against ₹1,526 crore registered in the same period a year ago.

HUDCO Q2: What management said

Commenting on quarterly numbers, HUDCO chairman and managing director Sanjay Kulshreshta said that the company expects its CAGR to grow by over 25% during the year, owing to the government’s strong emphasis on infrastructure development and the recent announcement regarding PMAY 2.0.

Kulshreshta attributed the company’s growth to the trust and support of all the stakeholders and exuded confidence that the company aims at a net interest margin of 3% during the year.

The chairman added that the company will become a net-zero NPA in the next 15 months due to its focus on investment-grade projects only.

HUDCO H1FY26 performance

For the first half ending September 2025, the company earned the highest-ever profit at ₹1,340 crore as against ₹1,246 crore in H1FY25, registering an increase of 7.52%.

Loan sanctions stood at ₹92,985 crore as against ₹76,472 crore seen in the first half of the previous year, which is an increase of 22%.

During the period, loan disbursements rose to ₹25,838 crore against ₹21,699 crore seen during H1FY25.

The asset quality of the company improved, with the gross non-performing assets (NPAs) declining to 1.21% at the end of September 2025 from 2.04% at the end of September 2024.

Similarly, net NPA, or bad loans, fell to 0.07% from 0.31% at the end of the first half of the previous financial year.