New Delhi: Housing and Urban Development Corporation Limited (HUDCO) has received a long-term credit rating of ACUITE AAA with a stable outlook for its Proposed Perpetual Additional Tier 1 Bonds worth ₹4,500 crore, according to a press release by Acuite Ratings & Research.
The rating reflects Government of India ownership (75% stake), HUDCO’s strategic role in national housing and urban development programs, and a strong financial performance, including:
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PAT growth of 28% from ₹2,116.74 crore in FY24 to ₹2,709.14 crore in FY25.
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Assets Under Management (AUM) increased ~35% to ₹1,24,828 crore in FY25.
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Moderate asset quality, with GNPA at 1.67% and NNPA at 0.25% for FY25.
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Adequate capitalisation, gearing at 5.97x and CAR at 46.6%.
HUDCO’s growth plans include financing 25 smart cities over the next five years, with loan disbursements expected to reach ₹52,000 crore in FY26, up from ₹40,038 crore in FY25. The rating outlook remains stable, underpinned by robust liquidity, government support, and diversified funding sources via bonds, banks, and financial institutions.
Investors should monitor HUDCO’s loan book growth, asset quality, and capital adequacy, as well as any changes in government support or strategic role, which could impact future rating revisions.