DLF Q2 FY27 Profit Rises 10% to ₹1,301 Crore as Revenue from Operations Falls 23%

What happened

DLF's board met on 16 October 2026 and approved unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. The results were released after market hours on Friday, 16 October 2026.

Consolidated net profit rose to ₹1,301.35 crore from ₹1,180.09 crore a year earlier. Some reports round the increase to 11% and others to 10%; the precise figure is 10.28%.

The headline profit growth came from other income rather than from operations. Revenue from operations fell to ₹1,260.58 crore from ₹1,643.04 crore, a decline of 23.28%. Other income rose to ₹1,036.72 crore from ₹618.76 crore, and the share of profit from joint ventures was ₹499.28 crore against ₹411.56 crore a year earlier.

Why revenue and profit moved in different directions

DLF follows the completed contract method of accounting. Under this method, revenue from a project is recognised only when it receives its occupancy certificate. Sales booked in a quarter therefore do not show up as revenue until construction is complete and the project is handed over for occupancy.

Management said this timing explains why revenue has lagged sales. Other expenses rose in the quarter, including brokerage and marketing costs.

Reported EBITDA figures differ between reports. Some put EBITDA at about ₹23 crore, down about 92%; others put it at about ₹223 crore, down 92.12%; and reports based on the earnings call cite about ₹1,060 crore. Some reports also cite consolidated revenue of ₹2,298 crore. That figure is close to total income of ₹2,297.30 crore and includes a one-time fair-value gain of ₹738 crore, so it is not revenue from operations.

Bookings and cash

New sales bookings were about ₹3,800 crore in the quarter, down 12% from ₹4,330 crore in Q2 FY26, according to a brokerage note. Analysts said the figure was ahead of Street estimates. One brokerage had modelled about ₹2,500 crore.

Collections in the quarter were ₹2,780 crore. Half-year bookings were about ₹4,460 crore.

Operating cash flow was about ₹1,858 crore. Net cash stood at about ₹15,084 crore at quarter end, after a dividend outflow of ₹1,980 crore. Management put net cash at about ₹15,100 crore on its earnings call.

Cumulative sales booked across the projects in the company's presentation were ₹87,471 crore as of 30 September 2026. Of this, ₹27,337 crore has been recognised as revenue, leaving ₹60,134 crore still to be recognised.

Projects in Gurugram

The Aureva, Sector 63, Golf Course Extension Road. DLF launched this 4.17-acre senior-living project of 172 luxury homes in the first week of August 2026. Management said the project sold out during the quarter. A brokerage note put the sales value at about ₹1,900 crore.

The Dahlias, DLF Phase 5. The ultra-luxury project was launched in October 2024 with 420 flats and penthouses. DLF's investor presentation shows sales booked of ₹20,887 crore to date and balance margins of ₹14,410 crore still to be recognised. Aakash Ohri, joint managing director and chief business officer, said prices at The Dahlias rose about 10% in the quarter. A brokerage note said realisations are now above ₹1 lakh per square foot. Management said the Dahlias experience centre has been delayed, with a meaningful pickup expected only by the fourth quarter.

The Camellias. This project is nearing completion, with sales booked of ₹12,335 crore and balance margins of ₹120 crore.

Shareholding change: Madhukar Housing

On 16 October 2026, DLF informed the stock exchanges that it had applied for no-objection approval to reclassify Madhukar Housing and Development Company from the 'Promoter and Promoter Group' category to the 'Public' category. Madhukar's request was received on 7 October 2026. According to DLF's earlier filing, Madhukar belongs to the promoter group but holds no equity shares or voting rights in the company.

The company said the reclassification will not change its existing shareholding structure. The promoter and promoter group held 74.08% of paid-up capital.

Brokerage view

Four brokerages kept positive ratings after the results, with targets between ₹740 and ₹830. Jefferies has a Buy rating with a target of ₹830, CLSA an Outperform rating with a target of ₹810, JP Morgan an Overweight rating with a target of ₹800, and Nomura a Buy rating with a target of ₹740. Brokerages treated the sales book as the main signal rather than the fall in revenue.

The stock traded at about ₹670 around the time of one analysis, which put it at about 21 times its FY28 sales.

What comes next

• Revenue recognition: management expects revenue to improve from FY28, when it says about ₹75,000 crore of launched projects will reach the recognition stage. Recognition would then run over the following four to five years.
• Sales guidance: the FY27 sales guidance is ₹20,000 crore. Analysts at JM Financial said timely execution of the Gurugram and Mumbai launches will be critical to meeting it, given pre-sales of about ₹4,500 crore in H1 FY27.
• Mumbai: DLF expects to launch the next phase of The Westpark in the December quarter of FY27, subject to regulatory approvals.
• Gurugram: DLF is preparing a luxury housing launch in Gurugram in the second half of FY27.
• Dahlias experience centre: management hopes it will be complete by December.
• Medium-term pipeline: the company plans to launch about 24 million sq ft with a sales value above ₹58,000 crore.
• Construction: management flagged a possible slight slowdown in construction outflows in the current and previous quarters due to labour migration and GRAP guidelines, which could affect timelines.

What it means for buyers and investors

For buyers in Gurugram: Management said Dahlias prices will keep rising with each sale. The Aureva has sold out, so new buyers would need to look at future launches. Buyers should check the RERA registration and the possession date for any project directly with the developer and the regulator before committing.

For investors: The quarter shows a gap between bookings and recognised revenue. Profit in this quarter was supported by other income and joint-venture income, while operating revenue fell. Future earnings will depend on launches being delivered and on construction timelines holding.

Rental arm: DLF Cyber City Developers, the rental subsidiary, reported consolidated revenue of ₹2,014 crore and EBITDA of ₹1,537 crore, up 9%. Its net profit rose 17% to ₹752 crore. DLF said its rental portfolio of about 50 million sq ft continued to show strong occupancy. Cyber City and Indian Place revenues are not consolidated into DLF's numbers because of minority partner rights.