Hudco Q2 profit rises by 3% to Rs 710 cr, to become net zero NPA company in next 15 months

New Delhi, Nov 10 (PTI) Housing and Urban Development Corporation Ltd (Hudco) on Monday reported a 3 per cent rise in net profit to Rs 710 crore for the September quarter.

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

The company's total income rose to Rs 3,251 crore in the second quarter of this fiscal year from Rs 2,526 crore in the corresponding period of the preceding year, Hudco said in a regulatory filing.

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 Rs 3,197 crore as against Rs 1,844 crore a year ago.

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

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

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

Kulshreshta added the company will become net zero NPAs in the next 15 months due to its focus on investment-grade projects only.

For the first half ended September 2025, the company earned the highest ever profit at Rs 1,340 crore as against Rs 1,246 crore in H1FY25, registering an increase of 7.52 per cent.

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

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

Asset quality of the company improved with the gross non-performing assets (NPAs) declining to 1.21 per cent at the end of September 2025 from 2.04 per cent at the end of September 2024.

Similarly, net NPA or bad loans fell to 0.07 per cent from 0.31 per cent at the end of the first half of the previous financial year. PTI DP DP MR