Housing and Urban Development Corporation (HUDCO), primarily engaged in financing housing and urban development activities, reported a mixed financial performance for the March-ending quarter, with healthy growth in the top line and a sharp jump in net profit, driven largely by a deferred tax credit. However, pre-tax profitability declined sharply due to losses arising from fair value changes.
The company posted consolidated revenue of ₹3,563 crore, compared to ₹2,845 crore in Q4FY25, reflecting a growth of 25.3%, while net interest income (NII) during the reporting quarter stood at ₹1,149.7 crore, marking a 16.6% increase from ₹958 crore in the corresponding quarter last year.
Meanwhile, the company’s profit before tax stood at ₹621 crore, falling sharply from ₹1,020 crore in the year-ago quarter, impacted by a significant rise in operating expenses, which increased 64% YoY to ₹3,004 crore in Q4FY26.
The higher expenses were primarily driven by a net loss on fair value changes of ₹466.40 crore in Q4FY26, compared to nil in the year-ago quarter and ₹293.45 crore in Q3FY26.
However, the company reported a sharp jump in consolidated net profit to ₹1,981 crore, up 172% from ₹723 crore in the year-ago quarter, mainly due to a large deferred tax credit of ₹1,530.32 crore, which significantly reduced the overall tax outgo.
Excluding the one-time tax credit, earnings performance remained weaker on both a quarter-on-quarter and year-on-year basis.
(more to come)