HUDCO profit rises 35% as margin rebounds sharply from Q4
Revenue grew 26.55% year on year, while a lower tax rate supported profit despite interest costs rising 29.57%.
Filed 27 Jul 2026, 15:13 IST · Housing & Urban Development Corporation Ltd (HUDCO)
Key takeaways
- Consolidated net profit rose +35.05% year on year to Rs 851.11 cr as the tax rate fell 6.31 percentage points.
- Operating margin recovered 13.56 percentage points sequentially because expenses fell -81.50% while revenue grew +4.33%.
- HUDCO's shares rose +3.00% after the results, an unusually positive reaction after six declines in the last eight result sessions.
Price around the results
Profit growth outpaced revenue in Q1FY27
HUDCO reported consolidated revenue growth of +26.55% year on year and net profit growth of +35.05% to Rs 851.11 cr. Interest costs rose +29.57%, faster than revenue, but expenses declined -0.39%, helping profit before tax rise +24.38% to Rs 1,066.20 cr. Other income contributed only 1.91% of pre-tax profit, so it was not a material driver of earnings quality.
Margin recovered after four quarters of deterioration
Operating margin expanded 0.79 percentage points year on year and 13.56 percentage points sequentially. The sequential improvement reflected a -81.50% fall in expenses against +4.33% revenue growth, reversing the margin decline from 100.99% in Q4FY25 to 83.52% in Q4FY26. The 97.08% margin remains below the level recorded in Q4FY25, but is well above the 63.72% median for the 28 Financial Services peers that had reported.
Lower tax rate helped the year-on-year profit comparison
The tax rate was 20.17% in Q1FY27, down 6.31 percentage points from Q1FY26, which supported the +35.05% net-profit growth. The sequential comparison is distorted by Q4FY26's -219.05% tax rate and tax credit, which had lifted reported profit to Rs 1,981.31 cr. Q1FY27 profit therefore fell -57.04% sequentially despite the recovery in operating margin.
Market reaction was atypically positive for HUDCO
The stock rose +3.00% on the results session, with a +2.04% move relative to the market. That was larger than the recent median absolute reaction of 1.76% and contrasted with the stock's record of two rises versus six declines across the last eight result reactions. Trading volume was 1.36 times the reference level.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,717 cr | ₹3,563 cr | +4.33% | +26.55% |
| Other income | ₹20 cr | ₹62 cr | -67.34% | +149.02% |
| Expenses | ₹109 cr | ₹587 cr | -81.50% | -0.39% |
| Operating profit | ₹3,609 cr | ₹2,976 cr | +21.26% | +27.59% |
| Operating margin (%) | 97.08% | 83.52% | — | — |
| Interest | ₹2,561 cr | ₹2,413 cr | +6.11% | +29.57% |
| Depreciation | ₹2 cr | ₹4 cr | -47.35% | -32.31% |
| Profit before tax | ₹1,066 cr | ₹621 cr | +71.69% | +24.38% |
| Tax | ₹215 cr | ₹-1,360 cr | — | -5.25% |
| Net profit | ₹851 cr | ₹1,981 cr | -57.04% | +35.05% |
| EPS (₹) | ₹4.25 | ₹9.90 | -57.07% | +34.92% |
Operating margin of 97.08% compares with a Financial Services sector median of 63.72% across 28 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.00% | +2.04% |
Volume on the results session was 1.36× its 20-day average.
What to watch
- Whether operating margin holds above 97.08% after the sequential rebound.
- Whether interest-cost growth moderates from +29.57% year on year.
- Whether the tax rate remains near 20.17% rather than reverting to the Q4FY26 tax credit.