HUDCO – Q3FY26

• Net interest income (NII), below estimates, rising by 4.2% y-o-y and falling by 2.4% q-o-q to Rs. 1,025 crore. NIM dropped by 67 bps y-o-y and 27 bps q-o-q to 2.63% (of AUM) due to sharp rise in cost of borrowings.
• PPOP, below estimates, fell by 22.3% y-o-y and down by 24.2% to Rs. 711  crore was dropped due to muted NII growth and net value changes in fair value.
• Credit cost stayed benign, below than estimates. It came in at -0.2% of AUM Vs. 0.06% (yoy) and 0.05% for supporting profitability. 
• PAT grew by -3.0% y-o-y to Rs. 713 crore and was flat on sequential basis.
• Asset quality saw continued improvement, with GNPA reduced by 80 bps y-o-y and 13 bps q-o-q to 1.08%. NNPA reduced by 54 bps y-o-y and 4 bps q-o-q to 0.2%.
• AUM up by 30.9% y-o-y and 7.7% q-o-q to Rs. 155,631 crore, disbursements were at Rs. 15509 crore up 54.1% yoy and 19.1 q-o-q.
• The company’s PAT was below estimates however posted strong quarter in terms of AUM and disbursement growth and improvement in asset quality.  We have positive view on come out with detail note soon.     

Results Table

Key Metrics

Asset Quality