HUDCO

Company Profile & Business

Business Model HUDCO provides finance to: State Governments, Housing Boards, and Urban Local Bodies for infrastructure projects. Individuals and cooperative societies under “HUDCO Niwas” for housing loans. It earns through interest spreads on the funds lent for these projects. Being a public financial institution, it plays a vital role in India’s affordable housing and smart city missions. Key Strengths Government-backed PSU: 100% security on sovereign support and guaranteed project demand. Diversified Portfolio: Covers housing, roads, water, sanitation, and social infrastructure. Stable Earnings: Operates on a cost-plus model similar to other infrastructure financiers. Strong Asset Quality: Low NPAs compared to peers due to government borrowers. Dividend-paying and consistent profits over the years. Financial Snapshot (FY25) Revenue: Approx ₹2,800 crore (Q4 FY25 up ~38% YoY). Net Profit: ₹728 crore (4% YoY growth). Net Worth: ₹17,000+ crore. Loan Book: Around ₹90,000 crore. Debt/Equity: Around 6x (typical for a lender). Dividend Yield: ~2%.