HUDCO raises ₹1,905 crore via bonds; check details and recent updates

In a statement on Thursday, as reported by news agency PTI, the company said the amount was raised through a 7-year bond issuance at a competitive coupon of 6.98% on the SEBI-mandated electronic bidding platform.

Sanjay Kulshrestha, Chairman, HUDCO, said the company is "committed to optimising its cost with an objective to ensure the creation of bankable, sustainable and resilient infrastructure, thereby supplementing the efforts of the Government of India for Viksit Bharat at 2047".

HUDCO finances housing and urban infrastructure projects.

HUDCO to raise $1 billion for infra projects

In November 2025, state-owned infra financing institution HUDCO said it was in talks with multilateral development banks, including ADB, and institutions to mobilise $1 billion to fund infra projects in the country.

"We are in advanced discussion with KfW (Germany's state-owned development bank) to raise USD 200 million," Kulshreshta told PTI.

Besides, the company is in talks with multilateral development banks like the Asian Development Bank for a loan of $500 million and $200-300 million from the Asian Infrastructure Investment Bank in the current financial year, Kulshreshta said.

"We are hoping to finalise these fundraises of about $1 billion during the current financial year for on-lending to infrastructure projects," Kulshreshta added.

Foreign funding will not only diversify the resource-raising stream but also bring down the cost of funds, the chairman said.

Further elaborating on the company's initiative to achieve better cost efficiencies, Kulshreshta said, the company has been authorised by the government to issue 54 EC Capital Gain Bonds, and it has mobilised ₹50 crore so far during the year.

The maiden 54 EC Capital Gain Bonds issued by the company carried a coupon rate of 5.39%.

HUDCO Q2 FY26 Results

HUDCO reported a 3% rise in net profit to ₹710 crore for the September quarter of the current fiscal year (Q2 FY26).

The state-owned company had earned a net profit of ₹689 crore in the year-ago period.

The company's total income rose to ₹3,251 crore in the second quarter of this fiscal year from ₹2,526 crore in the corresponding period of the preceding year, HUDCO said in a regulatory filing.

HUDCO is a premier techno-financing public sector enterprise in the field of housing and infrastructure development.

The company earned interest income in the second quarter at ₹3,197 crore as against ₹1,844 crore a year ago.

During the quarter, the expenses also rose to ₹2,296 crore against ₹1,526 crore in the same period a year ago.

Commenting on quarterly numbers, Kulshreshta said that the company expects its CAGR to grow by over 25% during the year, owing to the government's strong emphasis on infrastructure development and the recent announcement regarding PMAY 2.0.