HUDCO Share Price Declines 8% as Quarterly Earnings and Dividend Announcement Fail to Offset Market Concerns

HUDCO Q4 Results: PSU Stock Falls 8% Despite Strong Financial Results

Housing and Urban Development Corporation (HUDCO) faced sharp selling pressure on Friday, 15 May, with the multibagger PSU stock declining by more than 8% despite reporting strong financial results for the March quarter and announcing a dividend for shareholders. The stock fell despite the state-run housing finance and infrastructure lender posting a sharp jump in profitability during Q4FY26.

HUDCO reported a net profit of ₹1,981 crore for the March quarter, more than doubling from ₹728 crore reported in the corresponding quarter last year. The sharp rise in profit was aided by a deferred tax credit of over ₹1,300 crore during the quarter. The company's Board of Directors also approved a dividend of ₹1.5 per share for FY26, subject to shareholder approval at the upcoming Annual General Meeting.

HUDCO Q4 Highlights

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

HUDCO reported consolidated revenue of ₹3,563 crore for Q4FY26, registering a growth of 25.3% compared with ₹2,845 crore reported in the same quarter last year. Core income, measured through Net Interest Income (NII), rose 16.6% year-on-year to ₹1,149.7 crore from ₹985.7 crore in the year-ago quarter. The company's asset quality remained broadly stable during the quarter, with Gross Credit Impaired Assets Ratio improving marginally to 1.04% from 1.08% reported in the December quarter, while Net Credit Impaired Assets Ratio stood at 0.05% compared with 0.06% in the previous quarter.

Earlier in its business update, HUDCO had reported strong growth in lending activity. Loan sanctions during FY26 increased 29% year-on-year to ₹1.65 lakh crore, while loan disbursements rose 28% to ₹51,194 crore. HUDCO's profitability ratios also improved during the quarter, with Net profit margin rising to 30.27% compared with 26.18% in the corresponding quarter last year. The company also reported improvement in its Provision Coverage Ratio, which increased to 94.9% from 85.44% in the year-ago quarter, indicating stronger provisioning coverage against stressed assets.

FY26 Performance

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

For the full financial year FY26, HUDCO reported total revenue of ₹13,150 crore, reflecting a growth of 27.5% over ₹10,311 crore recorded in FY25. On the bottom line, profit after tax for FY26 increased sharply to ₹4,034.37 crore from ₹2,709.14 crore in the previous financial year, supported by deferred tax benefits and continued growth in lending operations.

HUDCO Stock Performance

HUDCO fell as much as 8.1% to its day's low of ₹205.55 on BSE. It is currently 19% away from its 52-week high of ₹253.80, hit in June 2025. Meanwhile, it touched its 52-week low of ₹158.95 in March 2026. The stock has gained 10% in the last 1 month but shed over 8% in the past 6 months and 6% in the last 1 year. However, in the last 5 years, it has given multibagger returns, surging 360%.