H U D C O H1FY27 Results (NSE: HUDCO)
Signal: Earnings grew
The read
The H1FY27 inflection is credit-cost driven rather than spread-led: total income grew 25.7% to ₹7,788.88 crore, but the implied NII grew only 15.8% to ₹2,315.35 crore as finance costs rose 31.4%; PAT nevertheless grew 31.5% to ₹1,762.15 crore because net ECL moved to a ₹44.12 crore reversal from a ₹119.94 crore charge and ten project-loan NPAs were resolved.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,788.88 Cr | +25.7% | N/A |
| Net profit | ₹1,762.15 Cr | +31.5% | |
| EPS | ₹8.8 | +31.5% | |
| EBIT margin | 0 |
P&L walk
Consolidated H1FY27 total income rose 25.7% to ₹7,788.88 crore and PAT rose 31.5% to ₹1,762.15 crore; NII growth of 15.8% was supplemented by a ₹44.12 crore net ECL reversal versus a ₹119.94 crore charge last year.
Key positives
- PAT rose 31.5% YoY to ₹1,762.15 crore, outpacing total-income growth of 25.7% to ₹7,788.88 crore.
- Credit costs improved materially: H1 net ECL was a ₹44.12 crore reversal versus a ₹119.94 crore charge in the year-ago period.
- Ten project-loan NPAs were resolved during H1FY27 and the company reported zero fresh project-loan NPA slippages during the period.
- EPS rose 31.5% from ₹6.69 to ₹8.80, tracking PAT without a dilution divergence.
- The company raised ₹140.00 crore through listed non-convertible debt securities during H1FY27 and reported timely servicing of debt obligations.
Key concerns
- Finance costs rose 31.4% YoY to ₹5,417.31 crore, faster than interest income growth of 26.3%, limiting implied NII growth to 15.8%.
- The ₹44.12 crore net ECL reversal supported H1 PAT growth and creates a high comparison base for future credit-cost performance.
- The filing does not disclose NIM, AUM growth, GNPA, NNPA, PCR or cost-to-income, limiting assessment of underlying lending profitability and asset quality.
- The ₹743.16 crore Andrews Ganj Project recoverable balance remains dependent on recovery or reimbursement discussions with the Ministry of Housing and Urban Affairs.
Research and educational content only. Not investment advice.