HUDCO profit rises 28.35% YoY as operating margin rebounds
Revenue growth and lower expenses lifted operating margin to 98.28%, while the lower tax rate added to profit growth.
Filed 04 Nov 2026, 14:08 IST · Housing & Urban Development Corporation Ltd (HUDCO)
Key takeaways
- Consolidated net profit rose 28.35% YoY to Rs 911.04 cr, despite interest expense increasing 33.05%.
- Operating margin expanded 2.83 percentage points YoY to 98.28% as revenue grew 25.52% while expenses fell 52.68%.
- The 18.84% tax rate was 6.81 percentage points lower YoY, helping net profit grow faster than pre-tax profit at 17.57%.
Price around the results
Revenue growth outpaced interest costs
Consolidated revenue grew 25.52% YoY and 8.70% QoQ, while operating profit increased 29.25% YoY and 10.04% QoQ. Interest expense rose faster than revenue YoY at 33.05%, and increased 11.55% QoQ, limiting the improvement in pre-tax profit to 17.57% YoY and 5.28% QoQ.
Lower expenses drove the margin rebound
Expenses fell 52.68% YoY and 36.12% QoQ, so costs did not grow faster than revenue; operating margin consequently widened 2.83 percentage points YoY and 1.20 percentage points QoQ. The margin has now recovered from 83.52% in Q4FY26 to 98.28%, after falling from 96.29% in Q1FY26 to 90.68% in Q3FY26. Other income contributed only 0.98% of pre-tax profit, so it was not a material driver of earnings.
HUDCO stayed well above the reported peer median
HUDCO's 98.28% operating margin was 46.62 percentage points above the 51.66% median for the 93 Financial Services peers that had reported the same quarter. Net profit growth also benefited from the tax rate falling to 18.84% from 25.65% a year earlier, so the earnings increase was stronger than the 17.57% rise in pre-tax profit.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,040 cr | ₹3,717 cr | +8.70% | +25.52% |
| Other income | ₹11 cr | ₹20 cr | -46.01% | -65.71% |
| Expenses | ₹69 cr | ₹109 cr | -36.12% | -52.68% |
| Operating profit | ₹3,971 cr | ₹3,609 cr | +10.04% | +29.25% |
| Operating margin (%) | 98.28% | 97.08% | — | — |
| Interest | ₹2,857 cr | ₹2,561 cr | +11.55% | +33.05% |
| Depreciation | ₹3 cr | ₹2 cr | +50.75% | +6.76% |
| Profit before tax | ₹1,122 cr | ₹1,066 cr | +5.28% | +17.57% |
| Tax | ₹211 cr | ₹215 cr | -1.71% | -13.66% |
| Net profit | ₹911 cr | ₹851 cr | +7.04% | +28.35% |
| EPS (₹) | ₹4.55 | ₹4.25 | +7.06% | +28.17% |
Operating margin of 98.28% compares with a Financial Services sector median of 51.66% across 93 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 98.28% after its recovery from 83.52% in Q4FY26.
- Whether interest expense growth moderates from 33.05% YoY.
- Whether the tax rate remains close to 18.84% rather than returning to 25.65%.