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.
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.
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.)
4. Numbers Decoded
| Metric | Q2 / H1 FY26 | What It Really Says |
|---|---|---|
| Sanctions | ₹93,000 cr (H1) | Pipeline bursting |
| Disbursements | ₹26,000 cr | Controlled execution |
| Loan Book | ₹1.44 lakh cr | Scale game strong |
| NIM | ~3% (ex-EBR) | Stable despite volatility |
| Gross NPA | 1.21% | Cleaner than peers |
| Net NPA | 0.07% | Almost mythological |
| Forex Loss | ₹176 cr | One-time headache |
Key point: Core business fired on all cylinders; forex alone ruined the party.
5. Analyst Questions
- Private sector
