CARE

State-owned construction firm, NBCC (India) Ltd said it has entered into a memorandum of understanding (MoU) with Housing & Urban Development Corporation Ltd (HUDCO) for the development of a 10-acre institutional plot in Noida Sector 62. NBCC will act as the project management consultant. The project has an estimated cost of ₹600 crore. NBCC's net profit for the quarter increased 52.8% YoY to ₹125.1 crore from ₹81.9 crore. Revenue for the period increased to ₹2,458.7 crore from ₹2,085.5 crore during the year-ago period, up 19.4%. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at ₹100 crore, which was 4.6% higher than the same quarter last year. EBITDA margin, however, narrowed on a YoY basis by 50 basis points to 4.1% from 4.6% during the same period last year.

NBCC signs MoU with HUDCO for ₹600-crore project in Noida

The Housing and Urban Development Corporation (HUDCO) has approved a loan of Rs 11,000 crore to accelerate the construction of Andhra Pradesh's capital city, Amaravati. Minister Narayana announced the decision following a HUDCO board meeting in Mumbai, emphasizing that the funds will expedite ongoing infrastructure projects in the capital. The loan approval marks a significant step in Amaravati's development journey. Minister Narayana highlighted that the funds would provide a much-needed boost to various projects, including the construction of the Secretariat, Assembly, and High Court. Negotiations for this loan began last October when Minister Narayana met HUDCO CMD Sanjay Kulshreshtha to discuss the financial requirements for Amaravati's development.

HUDCO Approves Rs 11,000 Crore Loan for Amaravati Development

HUDCO has signed its annual Memorandum of Understanding (MoU) with the Ministry of Housing and Urban Affairs (MoHUA) for the financial year 2025-26, The MoU sets key financial and non-financial targets—like procurement via GeM, MSE support, and CSR—aligned with DPE’s ‘Excellent’ benchmarks. It was signed by Mr. Srinivas Katikithala (MoHUA Secretary) and Mr. Sanjay Kulshrestha (HUDCO CMD), with senior officials from both MoHUA and HUDCO present. This MoU aligns HUDCO’s goals with national urban development priorities.

HUDCO Signs MoU with MoHUA for FY 2025-26, Targets ‘Excellent’ Performance Benchmarks

Asset quality improved with GNPA at 1.21% and NNPA at 0.07% (Sept 2025), supported by 94.5% provision coverage. Despite government guarantees, risk remains high due to extreme concentration—the top 20 exposures comprise 98% of loans. A ₹7,774 crore Stage 2 increase in FY25 is the primary monitorable for potential slippage.


The issuer has made timely interest payments.

Shri Sanjay Kulshrestha, Chairman & Managing Director

HUDCO is a GoI-owned (75%) Central Nodal Agency driving critical missions like PMAY, AMRUT, and Jal Jeevan. It finances the National Infrastructure Pipeline through lending and consultancy, utilizing government backing to secure low-cost capital and refinancing. With direct GoI oversight, it remains the primary financial engine for India’s urban development.


Operating for 50+ years, HUDCO’s AUM hit ₹1.44 lakh crore (Sept 2025), a 30% YoY rise fueled by national infrastructure missions. As a new NBFC-IFC, it is shifting to a 75% infrastructure lending target by March 2026. The portfolio is highly secure, with 98.7% government exposure and 88% backed by guarantees, bypassing standard RBI concentration limits.




HUDCO’s total borrowings grew from ₹87,281 crore (March 2025) to ₹1,26,035 crore by September 2025. During this period, the funding mix shifted as taxable bonds increased to 39% while bank loans dropped to 32%, supplemented by tax-free bonds (10%) and foreign borrowings. Despite this growth, HUDCO maintained a stable average cost of funds at 7.44%.


HUDCO’s capitalization remains strong with a CAR of 38.03% (Sept 2025), comfortably exceeding regulatory norms. While increased borrowing raised gearing to 7.0x, its capital is protected by a low 20% risk weight on government-guaranteed projects. CARE Ratings expects its profile to stay stable, supported by a low-risk lending book.


HUDCO’s FY25 net profit rose to ₹2,709 crore (2.4% RoTA), with H1FY26 adding ₹1,340 crore. Profitability remains strong, with RoNW rising to 15.7% driven by higher gearing and improved lending spreads. Lower opex and negative credit costs (from stressed asset recoveries) have further stabilized earnings. Sustaining these low credit costs is key to future growth.

Rating agency	Rating	Needle position
CARE	AAA Stable	near High Safety
IND	AAA Stable	near High Safety

Security Name: 8.20% (8.35% For Retail) Housing And Urban Development Corporation Limited (Tax Free) 05 Mar 2027

ISIN: INE031A07840

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