DLF's shares gained more than 1% on Wednesday as the Street shrugged off Q1 results, encouraged by the company's strong launch pipeline. The real estate major's stock has declined 18% over the past year, but recent developments have provided some optimism for investors. The stock movement comes as investors assess the company's recent financial performance and future prospects, with the market focusing on the company's robust project pipeline despite quarterly challenges.
DLF faced significant challenges in the first quarter of FY27, with pre-sales plunging 94% to ₹660 crore due to the absence of new project launches during the quarter. The weak bookings were compounded by the absence of the ₹11,000 crore contribution from Privana North, an ultra-luxury residential project in Gurugram that had boosted the base quarter. Collections also fell 15% year-on-year to ₹2,300 crore, while operating cash flow declined 12% to ₹1,100 crore. However, consolidated net profit increased 4% to ₹793.90 crore compared to ₹762.67 crore in the year-ago period, demonstrating operational resilience.
Despite Q1 challenges, DLF maintains confidence in its ambitious ₹20,000 crore sales target for FY27. The company has outlined a robust launch pipeline worth more than ₹60,000 crore across existing projects, with balance inventory worth ₹12,400 crore expected to support booking momentum. The launch pipeline includes major projects in DLF City (Gurugram) with revenue potential of ₹8,000-₹9,000 crore, Arbour Senior Living (Gurugram), Westpark Phase 2 (Andheri, Mumbai), and a project in Goa. Most of Q1 presales came from The Dahlias project in Gurugram, where 34 units were sold generating ₹540 crore, taking the proportion of units sold to 65%.
DLF's financial position continues to strengthen with net cash position improving to ₹15,200 crore at the end of Q1 FY27. The company invested ₹210 crore in land acquisition during the quarter and increased its cash position through a net cash surplus of ₹1,100 crore. Multiple brokerages maintain positive ratings on the stock, with Nuvama Research maintaining a 'buy' rating with a revised target price of ₹780, up from ₹722 earlier. JM Financial Research has a 'buy' rating with ₹765 target price, while Antique Research maintains a 'buy' recommendation with ₹870 target price. The company expects exit rentals of ₹7,300-₹7,500 crore in FY27 with mid-teen growth in net operating income over the next four to five years.
