According to reports from ET Now, DLF Ltd reported a 1.1% decline in consolidated net profit to ₹1,269 crore during the March quarter, compared to ₹1,282 crore in the year-ago period. The company's total income fell significantly to ₹2,093.82 crore in Q4 FY26 from ₹3,347.77 crore in the corresponding period of the preceding year. Revenue declined 42% year-on-year to ₹1,814 crore in Q4 FY26 versus ₹3,128 crore in Q4 FY25. For the full fiscal year FY26, the company's profit rose to ₹4,414.68 crore from ₹4,366.82 crore in the previous year, while total income increased to ₹9,816.04 crore from ₹8,995.89 crore in FY25.
As reported by ET Now, Elara Capital maintains a buy call on DLF Ltd but has cut the target price to ₹900 from ₹1,050 earlier. The stock has declined 35% in the past year, underperforming Nifty Realty Index by 8% and is currently trading at around 40% discount to March 2027 estimated net asset value. The brokerage values the company at around 1x March 2027 estimated net asset value on a sum-of-parts basis.
According to the report, DLF demonstrated strong operational performance with core residential operating cashflow at ₹78 billion in FY26, up 23% year-on-year. The company's exit rentals reached ₹74 billion, growing at 15% per annum since FY22. The annuity portfolio operates at around 50 million square feet at above 95% occupancy, with FY27 rental income guidance at ₹82 billion and a medium-term target of ₹100 billion. The company maintains DevCo net cash at ₹141 billion and has declared a dividend of ₹8 per equity share for FY 2025-26.
As reported by ET Now, the company faces challenges with growth dependency anchored on Gurugram, where market share has plateaued. New competition from listed players in NCR is driving FY26 presales down 5% year-on-year. However, DLF sees significant opportunities in Mumbai with absorption volumes priced above ₹40,000 per square foot, around 4 times higher than Gurugram. The company's fortress balance sheet remains undeployed for scaling residential pipeline beyond Gurugram, which is viewed as a dampener by the brokerage.
