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.