HUDCO Shares Drop Despite Strong Q4 Profit Surge
HUDCO shares crash 8% despite 172% YoY surge in Q4 net profit. What's spooking investors?
The Economic TimesImage: The Economic Times
Shares of Housing and Urban Development Corporation (HUDCO) fell over 8% despite a 172% year-on-year increase in Q4 net profit to ₹1,981 crore. The decline in stock price follows a significant drop in profit before tax and concerns over rising expenses, including a 30% increase in finance costs.
- 01Profit before tax decreased by 39% year-on-year to ₹621 crore in Q4 FY26.
- 02Deferred tax gain of ₹1,530 crore contributed to the net profit surge.
- 03Total expenses rose 63% year-on-year to ₹3,004 crore during the quarter.
- 04HUDCO's board recommended a final dividend of ₹1.5 per equity share, pending shareholder approval.
- 05The company's market capitalization stands at nearly ₹41,690 crore.
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Shares of Housing and Urban Development Corporation (HUDCO) saw a sharp decline of over 8% on Friday, despite reporting a remarkable 172% year-on-year increase in consolidated net profit to ₹1,981 crore for the fourth quarter of FY26, up from ₹728 crore in the same period last year. This surge in net profit was primarily driven by a deferred tax gain of ₹1,530 crore. However, the profit before tax fell 39% to ₹621 crore, raising concerns among investors. Revenue from operations grew 25% to ₹3,563 crore, with interest income rising 26% to ₹3,555 crore. The company's total expenses increased 63% year-on-year to ₹3,004 crore, largely due to a 30% rise in finance costs. Additionally, HUDCO's other income surged to ₹62.21 crore, compared to ₹10 crore in Q4 FY25. The board has proposed a final dividend of ₹1.5 per equity share, subject to approval at the upcoming annual general meeting. Despite the recent stock decline, HUDCO's shares have appreciated significantly over the longer term, gaining 278% over three years and 360% over five years.
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The decline in HUDCO's share price may affect investor confidence and could influence future funding and project approvals.
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