The shares of Housing and Urban Development Corporation (HUDCO) crashed more than 8% on Friday, even after the company reported a strong 172% surge in its consolidated net profit to Rs 1,981 crore in Q4 FY26 from Rs 728 crore in the corresponding quarter of the previous financial year.While net profit surges sharply, profit before tax declined 39% YoY to Rs 621 crore in the January-March quarter of the financial year 2026, from Rs 1,020 crore reported in the year-ago period. The sharp rise in net profit despite a fall in pre-tax profit was largely driven by a deferred tax gain of Rs 1,530 crore during the quarter under review.HUDCO’s revenue from operations increased 25% to Rs 3,563 crore in Q4 of the financial year ended March 31, 2026, compared with Rs 2,845 crore reported in the same period last year. Interest income, which is the company's primary revenue source, rose 26% YoY to Rs 3,555 crore from Rs 2,821 crore in the corresponding quarter last year.Along with the Q4 results, HUDCO announced that its board of directors, during its meeting, recommended a final dividend of Rs 1.5 per equity share for the financial year 2026, subject to shareholder approval at the upcoming annual general meeting (AGM).HUDCO’s other income jumped sharply to Rs 62.21 crore in Q4 FY26 from Rs 10 crore reported in Q4 FY25. On the expenditure side, total expenses rose 63% YoY to Rs 3,004 crore during the quarter under review.Finance costs increased 30% YoY to Rs 2,413 crore, while the company reported a net loss on fair value changes of Rs 466 crore during the quarter, compared with a marginal loss of Rs 2.18 crore in Q4 FY25.For the entire financial year 2026, HUDCO reported consolidated net profit of Rs 4,034 crore, up 49% from Rs 2,709 crore in FY25. Annual profit before tax declined 11% to Rs 3,221 crore from Rs 3,637 crore in the previous financial year.Revenue from operations rose 27% to Rs 13,150 crore compared with Rs 10,331 crore a year earlier, while annual interest income climbed 28% to Rs 13,096 crore from Rs 10,200 crore.HUDCO share priceHUDCO shares have fallen more than 10% in one week but gained 10% in one month. The stock has fallen nearly 9% in 2026 so far and 6% in one year. In the longer term, the stock has gained 278% in three years and 360% in five years. The company has a market capitalisation of nearly Rs 41,690 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
HUDCO shares crash 8% despite 172% YoY surge in Q4 net profit. What's spooking investors?
HUDCO shares plunged over 8% despite the company reporting a sharp rise in Q4FY26 net profit, driven mainly by a deferred tax gain. While revenue and interest income improved strongly, profit before tax declined and expenses rose sharply, raising concerns over the sustainability and quality of earnings growth.
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