Housing & Urban Development Corporation (HUDCO) Q2 FY26 Concall Decoded: – ₹93,000 crore sanctions, but forex played spoilsport

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1. Opening Hook

While most PSU financiers were busy celebrating falling rates, HUDCO discovered that currencies don’t read RBI press releases.
Q2 FY26 was a strange mix: record sanctions, fat pipelines, ultra-low NPAs—and a ₹176 crore forex punch straight to the P&L.

HUDCO is lending like there’s no tomorrow, talking about ₹3 lakh crore loan books like it’s a grocery list, and dreaming of zero NPAs.
But the market only heard one thing: “What happened to profits?”

Between urban infra dreams, private sector re-entry after 12 years, and Swiss franc nightmares, this concall had everything.

Stick around—because beneath the PSU calm, HUDCO is quietly reshaping itself into a growth NBFC with government backing and private ambition.

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2. At a Glance

• Sanctions ₹93,000 crore (H1) – Highest ever; HUDCO clearly skipped the caution memo.
• Disbursements ₹26,000 crore – Steady, boring, and exactly how lenders like it.
• Loan book ₹1.44 lakh crore – Up ~30% YoY; growth addiction confirmed.
• Cost of funds 6.32% – Borrowed cheap while others were still negotiating.
• Gross NPA 1.21% – PSU banker behaving suspiciously well.
• Forex loss ₹176 crore – Swiss franc decided to test HUDCO’s patience.

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3. Management’s Key Commentary

“₹93,000 crore sanctions is the highest ever in HUDCO’s history.”
(Translation: We broke records, please clap 😏)

“We are growing at around 30% consistently.”
(Translation: Slow growth is for mortals.)

“Weighted average borrowing cost is 6.32%.”
(Translation: PSU privilege used wisely.)

“Net NPA is only 0.07%.”
(Translation: Yes, we checked twice.)

“We aim to become a zero NPA company in 15 months.”
(Translation: Ambitious, but not delusional.)

“Forex losses came from FCNR borrowings.”
(Translation: Swiss franc woke up angry.)

“Private sector lending will resume after 12 years.”
(Translation: We’re entering the jungle… with armor.)

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4. Numbers Decoded

Metric	Q2 / H1 FY26	What It Really Says
Sanctions	₹93,000 cr (H1)	Pipeline bursting
Disbursements