Record loan sanctions and disbursements, a rapidly expanding loan book, lower borrowing costs and continued improvement in asset quality powered Housing and Urban Development Corporation Ltd (Hudco) to a strong first-quarter performance, with net profit rising 35 per cent year-on-year.Hudco, a Navratna public sector infrastructure financing company (NBFC-IFC) under the Ministry of Housing and Urban Affairs, on Monday reported a 35.05 per cent increase in profit after tax to ₹851.11 crore for the quarter ended June 30, 2026, compared with ₹630.23 crore a year earlier. Revenue from operations rose 26.55 per cent to ₹3,717.17 crore, while the loan book expanded 28.8 per cent to ₹1.73 lakh crore.The company approved loans worth ₹65,485 crore during the quarter, up 91 per cent from the year-ago period, while disbursements touched an all-time quarterly high of ₹16,377 crore, a growth of 28 per cent. The strong lending momentum was supported by a decline in the blended cost of borrowing to 6.95 per cent in Q1 FY27 from 7.17 per cent in the preceding quarter.Asset quality continued to improve, with gross non-performing assets declining to 0.96 per cent from 1.34 per cent a year earlier, while net NPAs fell to 0.048 per cent, among the lowest in the sector. Net worth rose nearly 30 per cent to ₹22,867 crore, while annualised earnings per share increased to ₹17.01 from ₹12.60.Commenting on the performance, CMD Sanjay Kulshrestha said the company had begun FY27 with exceptional financial and operational performance, driven by a diversified lending portfolio, prudent financial management and sustained focus on infrastructure financing. He said the record growth in loan sanctions and disbursements reinforced Hudco’s role in financing India’s urban infrastructure while maintaining industry-leading asset quality.Published on July 27, 2026