H U D C O Q1 FY27 Results (NSE: HUDCO)
Signal: Earnings grew
The read
Q1FY27 shows robust underlying performance: revenue +27% YoY, PAT +35% YoY, NIM expansion, zero fresh NPA slippages, and ECL provision slashed. The QoQ dip in PAT is entirely due to the one-off deferred tax credit in Q4FY26. Key concerns remain governance (independent director shortfall) and a large No Lien AGP receivable (₹735 Cr).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,737.49 Cr | 26.9% | 3.1% |
| Net profit | ₹851.11 Cr | 35.0% | |
| EPS | ₹4.25 | 34.9% | |
| EBIT margin | 0% |
P&L walk
Total income grew 26.9% YoY, driven by 26.8% growth in interest income. NII rose 21.1% YoY as finance costs grew slower (+29.6%) than interest income. Credit cost near zero vs large reversal a year ago. PAT growth of 35% reflects operating momentum and lower tax provision.
Segments
No reportable segments; single business of infrastructure lending.
Key positives
- Total income grew 26.9% YoY to ₹3,737 Cr, driven by interest income growth.
- PAT up 35.0% YoY to ₹851 Cr, EPS ₹4.25.
- NII improved 21.1% YoY to ₹1,149 Cr, with NIM stable.
- Asset quality improving: four NPAs resolved, zero fresh slippages; ECL provision down to ₹621 Cr from ₹1,703 Cr a year ago.
- Interim dividend declared ₹1.25/sh (12.5% payout).
Key concerns
- Auditor emphasis on non-compliance with independent director requirement (Reg 17(1)(b)) for extended period.
- No Lien AGP account deficit of ₹735 Cr (recoverable from MoHUA) remains unresolved.
- QoQ PAT decline of 57% due to base effect from Q4FY26 deferred tax credit; operational trend is strong.
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