HUDCO Posts Strong Revenue Growth, But Profit Takes a Sharp Quarterly Hit
The housing finance company's revenue rose 26.6% year-on-year, but profit fell 57% sequentially from a high base.
HUDCO's Q1 FY27 shows robust annual growth in revenue and profit, but a significant quarterly profit drop highlights volatility. The trailing twelve-month net profit margin remains healthy at 30.5%.
Housing & Urban Development Corporation (HUDCO) started FY27 with a quarter of mixed signals. While the company delivered strong year-on-year growth in both revenue and profit, a sharp sequential decline in profit from the previous quarter's peak tempers the near-term outlook.
The first quarter of FY27 saw revenue rise to ₹3,717 crore, a healthy 26.6% increase from the same period last year. Profit after tax grew even faster, climbing 35% year-on-year to ₹851 crore. This pushed the quarterly net profit margin up by 140 basis points to 22.9%, indicating improved profitability on an annual basis. However, the picture changes when compared to the immediately preceding quarter (Q4 FY26), where profit had surged to ₹1,981 crore. From that high base, Q1 profit fell by 57%, even as revenue grew 4.3% sequentially.
A look at the last five quarters reveals the underlying trajectory and the exceptional nature of Q4 FY26.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 3,717.17YoY +27% | 3,562.86 | 2,937.31 |
| Profit (₹ Cr) | 851.11YoY +35% | 1,981.31 | 630.23 |
| Net Profit Margin (%) | 22.9YoY +6.5% | 55.6 | 21.5 |
The table shows a steady upward climb in revenue over the past year. Profit, however, has been more volatile, with Q4 FY26 standing out as an exceptionally strong period. The trailing twelve-month (TTM) performance provides a more stable view, with a net profit margin of 30.5% on TTM profit of ₹4,255 crore.
Key Points
- The stock has delivered impressive long-term returns, with a 229% gain over the past three years (a 48.7% CAGR).
- Despite recent price weakness over the past year, the stock trades at a significant discount to its industry, with a P/E of 7.9 compared to the sector average of 20.2.
- The company maintains a high return on equity of 20.2%.
The key question for HUDCO is whether it can stabilize quarterly profits closer to the robust levels seen in the full year FY26, while maintaining its strong revenue growth momentum.
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· HUDCO
(BSE)
ISIN: INE031A01017
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