Housing & Urban Development Corporation Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,040.42 Cr (+25.52% YoY) and PAT growth of +28.35% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,040.42 Cr (+25.52% YoY) |
| PAT (Q2) | Rs. 911.04 Cr (+28.35% YoY) |
| EPS (Q2) | Rs. 4.55 (+28.17% YoY) |
HUDCO delivered 25.52% revenue growth and 28.35% PAT growth with GNPA improving to 0.71% and no fresh slippages, but roughly half the PAT growth came from a lower ETR (18.84% vs 25.65%) and the non-recurrence of the year-ago forex loss; normalized PAT grew 17.32%. Finance costs rising 33.05% YoY compressed NII growth to 11.06% and operating margin by ~122 bps, while leverage rose to 7.16x against management's sub-6x guidance and CRAR fell 548 bps. Disbursements are on track at 54.42% of the ~Rs.65,000 Cr FY27 target, but the ~2% spread and ~3% NIM guides hinge on a Q3 inflection not yet verifiable, and the Regulation 17(1)(b) governance non-compliance remains unresolved.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Volumes "ahead/in-line with the guided path" | H1 disbursements +36.90%, 54.42% of FY27 target | Loans +16.17% in H1; interest income +25.83% YoY | Played out |
| Forex "smaller drag than year-ago run-rate" | — | FV loss nil in H1 FY27 vs Rs.176.78 Cr | Played out |
| Funding-cost headwind from late-quarter rate hardening | — | Finance costs +33.05% YoY vs +25.83% revenue growth | Played out |
| Asset quality "stable-to-improving" | — | GNPA 0.71%, NNPA 0.04%, no fresh slippages | Played out |
| D/E sub-6x confirmation | — | 7.16x, no perpetual issuance disclosed | Contradicted |
| Governance waiver / ID appointments | — | Non-compliance through 30 Sep 2026; fines contingent — carried forward | Not resolved |
| 2nd interim dividend | — | Rs.1.35/share declared | Played out |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Disbursements ~Rs.65,000 Cr by FY27 | FY27 plan, Q1 FY27 call / H1 business update | H1 Rs.35,371 Cr = 54.42% of target | On Track |
| Borrowing plan ~Rs.70,000 Cr FY27 | Board-approved plan; AGM Rs.70,000 Cr NCD limit | Rs.35,470.05 Cr debt raised in H1 (cash flow) | On Track |
| Interest spread ~2% by end-FY27 (Q3 materialization flagged) | Q1 FY27 earnings call | Q2 spread not disclosed in filing (Q1: 1.83% incl. EBR) | Too Early |
| NIM ~3% (open-ended) | management commentary on prior calls | Q2 NIM not disclosed in filing (Q1: 2.72% incl. EBR) | Too Early |
| D/E below 6x "in the next 2-3 months" (Q3 FY26 call) | Q3 FY26 earnings call | 7.16x at 30.09.2026, up from 6.98x; no perpetual Tier-1 issuance disclosed | Missed |
| Zero NNPA within 18 months | Q4 FY26 materials | NNPA 0.04%; 10 NPAs resolved, no fresh slippages | On Track |
| NPA resolution Rs.700–800 Cr by end FY27 | Q3 FY26 earnings call | 10 NPAs resolved in H1; quantum not disclosed — qualitative | On Track |
| 2nd interim dividend | Board meeting 4 Nov 2026 | Rs.1.35/share declared | Met |
| Metric | H1 FY26 | FY26 | Q1 FY27 |
|---|---|---|---|
| Yield on loans % | 9.12 | 9.13 | 8.78 |
| Cost of funds % | 7.04 | 7.17 | 6.95 |
| Interest spread % | 2.08 | 1.96 | 1.83 |
| NIM % | 2.98 | 2.91 | 2.72 |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.