HUDCO shares plunge 8% even as Q4 net profit jumps 172%—investors worry about profit quality

Net profit surge was mostly a deferred tax mirage

HUDCO shares fell more than 8% after the company posted a 172% year-on-year jump in Q4FY26 consolidated net profit to Rs 1,981 crore. The catch: profit before tax dropped 39% to Rs 621 crore, largely because net profit benefited from a Rs 1,530 crore deferred tax gain. Revenue from operations rose 25% and interest income gained 26%, but total expenses climbed 63%, with finance costs up 30%. Investors now question the durability of earnings growth.