NEW DELHI, May 14 -- Housing and Urban Development Corporation Ltd (HUDCO) reported its highest-ever financial performance for FY26, posting a record net profit of Rs 4,034.37 crore along with all-time high loan sanctions, disbursements and loan book growth.

According to the company, loan sanctions during FY26 rose 29 per cent year-on-year to Rs 1,64,757.79 crore, while loan disbursements jumped 28 per cent to a record Rs 51,194.21 crore. Total loan book also expanded by 29 per cent to Rs 160,724.30 crore, reflecting strong growth momentum while maintaining asset quality.

Revenue from operations in FY26 stood at Rs 13,150.40 crore. The company also reported a reduction of 27 basis point in its overall cost of borrowings & approved an annual borrowing plan of Rs 70,000 crore. HUDCO announced its highest-ever total dividend payout of 60.50 per cent, amounting to Rs 6.05 per share, including a final dividend of Rs 1.50 per share, subject to shareholders' approval.

The company further said its net non-performing assets (NPAs) declined significantly to 0.05 per cent in FY26 from 0.25 per cent in FY25, moving closer towards its goal of becoming a zero net NPA company.

Sanjay Kulshrestha said HUDCO had already achieved its FY26 market guidance of a Rs 1.50 lakh crore loan book by the third quarter of the financial year. He said the company's performance was supported by policy reforms, diversification of funding sources, issuance of its first perpetual bonds, stressed asset resolution measures, ESG initiatives, succession planning, digital transformation, and improved governance mechanisms.

Highlighting HUDCO's developmental initiatives, Kulshrestha said the company has launched the Urban Invest Window (UiWIN) in line with the Government's Urban Challenge Fund and the vision of Viksit Bharat 2047. The initiative aims to support Urban Local Bodies in developing sustainable and bankable urban infrastructure projects, especially in Tier-2 and Tier-3 cities.

He also said HUDCO has expanded its public-private partnership financing portfolio across roads, real estate, energy, airports and seaports to support India's growing infrastructure needs.

Published by HT Digital Content Services with permission from Millennium Post.