DLF delivered strong bottom-line performance in Q2 FY27 with consolidated net profit rising 10.17% year-on-year to ₹1,300 crore, significantly outperforming analyst estimates of ₹1,000 crore. However, revenue from operations declined 23.31% to ₹1,260 crore from ₹1,643 crore in the previous fiscal year, reflecting temporary moderation in top-line execution. EBITDA dropped substantially to ₹22.3 crore from ₹283 crore year-on-year, with EBITDA margin contracting 15.49 percentage points to 1.77% from 17.26%. The stark contrast between net profit growth and revenue decline points to structural shifts in profit contribution across development phases, with the company demonstrating profit resilience driven by underlying project recognition and joint venture contributions.
DLF's pre-sales recovered to ₹3,800 crore in the September quarter, up 478% sequentially but down 12% year-on-year, significantly outperforming analyst estimates of ₹2,500 crore. As per JPMorgan, the Aureva project was sold out at around ₹1,900 crore, while the Dahlias and Camellias projects contributed another ₹1,900 crore. Collections increased 4% year-on-year to ₹2,780 crore, while net operating cash flow rose 37% to ₹1,860 crore. Net free cash flow before dividends increased 27% year-on-year to ₹1,440 crore, with the development business maintaining a net cash position of ₹15,084 crore after dividend payments. For the first half of FY27, net profit rose to ₹2,095.25 crore from ₹1,942.76 crore year-on-year, with total income declining to ₹3,902.86 crore from ₹5,242.68 crore. DLF has sold properties worth ₹4,457 crore in the first half of this fiscal and is targeting sales bookings of around ₹20,000 crore for FY27.
The Dahlias, DLF's 17-acre super-luxury project in Gurugram, continues to drive premium housing sales with around 275 units sold by September 2026. The project recorded a high-value transaction in August with a 17,200 sq ft penthouse sold for ₹271 crore. The Aureva luxury senior-living development in Gurugram achieved complete sellout with ₹1,985 crore in sales during the September quarter, comprising 172 homes across 4.17 acres. DLF spent ₹353 crore on land acquisition-related payments during Q2, following ₹210 crore in the June quarter, as part of its expansion strategy. DLF Home Developers Ltd MD and Chief Business Officer Aakash Ohri highlighted that The Dahlias is doing well and has witnessed a sharp price appreciation in the last two years, with the project launched in October 2024 comprising 420 flats and penthouses.
DLF plans to launch residential projects with a combined sales potential of more than ₹58,000 crore over the next two to three years, as reported by Business Standard. The pipeline includes upcoming projects in Mumbai and Gurugram, alongside continued sales at its super-luxury development, The Dahlias. The next phase of The Westpark Mumbai project is expected to launch in Q3 FY27, subject to regulatory approvals, following the ₹2,300 crore sellout of the first phase in less than a week. Additionally, DLF is preparing a luxury housing launch in Gurugram during the second half of FY27, with management indicating that timelines depend on requisite approvals. In its latest investor presentation, DLF revealed it has launched 14 million sq ft area in the last two and a half years with revenue potential of more than ₹56,000 crore, with 50% launched in the first 2.5 years and a healthy pipeline for the medium term (₹58,000+ crore).
DLF shares traded higher on Monday, October 19, as global investment banking firms turned increasingly bullish on the real estate major. HSBC sees up to 41% upside with a ₹950 target price, maintaining its 'Buy' rating after raising the target from ₹920. Multiple brokerages issued bullish targets, with Jefferies at ₹830 (23% upside), CLSA at ₹810 (20% upside), JPMorgan at ₹800 (19% upside), and Nomura at ₹740 (10% upside). According to CNBC TV18, 24 analysts cover DLF with 22 having 'buy' ratings, while the consensus of price targets implies upside potential of more than 22% from Friday's closing price. The company's net cash position of ₹15,084 crore and sustained quarterly pre-sales booking numbers above ₹3,500 crore continue to support investor confidence, despite the temporary revenue and margin volatility caused by accounting timing differences. Nomura expects DLF to meet its FY27 pre-sales target of ₹200 billion, with key launches including Westpark in Mumbai with ₹30 billion GDV in Q3 FY27 and Hamilton Court in NCR with ₹80 billion GDV in Q4 FY27.
