Housing and Urban Development Corporation (Hudco) reported a sharp rise in fourth-quarter profit, supported by strong growth in interest income and a large deferred tax gain. The state-run housing and infrastructure financing company posted consolidated net profit of Rs 1,981 crore for Q4, compared with Rs 728 crore in the corresponding quarter last year, registering growth of 172%.
Profit before tax, however, declined 39% YoY to Rs 621 crore from Rs 1,020 crore reported in Q4FY25.
The sharp increase in bottomline despite lower pre-tax profit was largely due to a deferred tax gain. Hudco reported deferred tax income of Rs 1,530 crore during the quarter compared with a deferred tax expense of Rs 102 crore in the year-ago period.
Revenue from operations increased 25% to Rs 3,563 crore compared with Rs 2,845 crore a year ago. Interest income, 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.
The company's board recommended a final dividend of Rs 1.5 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting.
Other income also jumped sharply to Rs 62.21 crore from Rs 10 crore reported in Q4FY25. On the expenditure side, total expenses rose 63% YoY to Rs 3,004 crore compared with Rs 1,835 crore in the year-ago quarter.
Finance costs increased 30% to Rs 2,413 crore from Rs 1,859 crore. The company also 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.
Employee benefit expenses declined 6.8% YoY to Rs 59.80 crore from Rs 64.19 crore.
For the full financial year FY26, 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.
