Hudco Shares Decline 8% Amid Profit Drop and Rising Expenses

Housing and Urban Development Corporation Shares Plummet 8% Amid Decline in Profit

Shares of Housing and Urban Development Corporation (HUDC) saw a significant drop of more than 8% on Friday, following the state-owned firm's quarterly earnings report. The decline was triggered by a substantial 39% decrease in pre-tax profit and a sharp rise in expenses.

Total Expenses Reach Rs 3,004 Crore

Total expenses for the company rose to Rs 3,004 crore in the latest quarter, up from Rs 1,835 crore in the corresponding period last year. This significant increase in expenses contributed to the decline in pre-tax profit.

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Net Profit Shows Two-Fold Jump

Despite the decline in pre-tax profit, the company's net profit for the quarter ended March 2026 showed a more than two-fold jump, supported by a deferred tax gain. Net profit stood at Rs 1,981 crore, compared to Rs 728 crore in the year-ago period.

Financial Performance Comparison

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Highest-Ever Net Profit in FY 2025-26

For the financial year ended March 31, 2026, HUDC reported its highest-ever net profit of Rs 4,034 crore, marking a 49% increase from Rs 2,709 crore in the previous financial year.

Board Chairman's Statement

The company continues to focus on organisational reforms and monitoring market conditions to sustain growth momentum. The board has recommended a final dividend of Rs 1.50 per equity share (15% on face value of Rs 10), subject to shareholder approval at the annual general meeting.

Loan Sanctions and Disbursements

During the year, loan sanctions reached Rs 1,64,758 crore, up 29% from the previous year. Disbursements also saw a rise of 28% to Rs 51,194 crore.