DLF Keeps Brokerage Buy Ratings After ₹3,800 Crore Q2 Presales

What happened

DLF filed its results for the quarter ended September 2026 on Friday, 16 October 2026. The board approved the figures that day, and the earnings call was held on 17 October 2026 at 12 noon IST.

The headline numbers were mixed. Consolidated net profit rose about 10% to ₹1,301.35 crore from ₹1,180.09 crore a year earlier. New sales bookings were ₹3,800 crore, down about 12% year on year but well up from ₹657 crore in the June quarter, when launches were deferred.

Profit line versus sales line

Analysts described the quarter as one where the profit and loss account looked weak while the sales book looked strong. Reported revenue fell sharply on a year-on-year basis, and EBITDA dropped steeply from a year earlier. Standalone net profit was ₹800.32 crore, against ₹1,012.51 crore in the same quarter last year.

For the half year, consolidated net profit rose 8% to ₹2,095 crore. Revenue from operations for H1 FY27 was ₹2,341 crore, against ₹4,360 crore in H1 FY26, a decline that reflects the timing of project completions and handovers rather than a change in demand alone.

Revenue figures differ across reports because outlets use different measures. Total income for the quarter was reported at about ₹2,297 crore, and revenue from operations was reported at about ₹1,261 crore, down about 23%.

The Aureva sell-out

DLF announced on 4 October 2026 that The Aureva, its luxury retirement housing project in Sector 63, Gurugram, had sold out. The company's filing put sales at about ₹1,985 crore for 172 residences. Business Standard had estimated the project's contribution at about ₹1,900 crore.

The project is a standalone tower of G+45 floors on 1.687 hectares (4.17 acres). Residences are 4 BHK units with dedicated staff dormitories and private decks. The project includes a clubhouse, an indoor pool, a spa, a yoga pavilion and an on-site medical centre. Average sales value works out to about ₹11.5 crore per home. Reports on the rate per square foot vary, with one putting it at ₹28,000 and another at up to about ₹26,500 per square foot of saleable area.

According to the company, non-resident Indians made up 25% of the buyers. The Aureva is next to The Arbour in the same sector, which DLF sold out in 2026 for over ₹8,000 crore.

Brokerage targets

Four brokerages kept positive ratings after the results:

• Jefferies: Buy, target ₹830, about 23% above the reference price
• CLSA: Outperform, target ₹810, about 20% upside
• JP Morgan: Overweight, target ₹800, about 18.5% upside
• Nomura: Buy, target ₹740, about 9.6% upside

Nomura had modelled presales of about ₹2,500 crore, so the ₹3,800 crore figure was a clear beat on its own estimate. Nomura also noted that revenue and EBITDA were weaker than consensus. CLSA said The Aureva accounted for about 50% of presales. JP Morgan put the quarter-on-quarter rise in presales at 478%.

Jefferies reported net cash of about ₹61 per share on the development business and said the leasing business remains steady, with occupancy above 95%.

Rental and cash position

DLF's rental portfolio covers about 50 million square feet, with 96% occupancy by area, up from 95% a year earlier. Its subsidiary DLF Cyber City Developers reported revenue of ₹2,014 crore, EBITDA of ₹1,537 crore (up 9%) and net profit of ₹752 crore (up 17%).

Operating cash flow rose to about ₹1,858 crore from ₹1,354 crore in the year-ago quarter. Net cash at the development company was broadly stable at about ₹15,100 crore, after a dividend outflow.

What it means for buyers and investors

For home buyers, the quarter shows that demand for DLF's high-end products remains concentrated. A large share of bookings came from a small number of projects, and the June quarter showed how sharply bookings can fall when launches slip.

For investors, the case rests on presales as a forward order book. Revenue reflects homes completed and handed over from earlier years. Management has said revenue growth should accelerate from FY28, as launched projects worth about ₹75,000 crore near completion. The company also holds about ₹15,000 crore of unsold inventory in launched projects, which the CFO said should support future presales. That figure is the unsold sales value, and the margin yet to be recognised on it is about ₹11,000 crore.

Analysts have pointed to execution as the key test. JM Financial said timely execution of both upcoming launches will be critical to the ₹20,000 crore FY27 guidance. The two launches have an estimated gross development value of ₹10,000 crore to ₹12,000 crore.

What comes next

• Mumbai: Phase 2 of The Westpark in Andheri West is targeted for the October–December 2026 quarter, subject to regulatory approvals.
• Gurugram: A luxury-plus project in DLF Phase 4 is targeted for January–March 2027. The project name has not yet been announced.
• Gurugram: Magnolias 2 is scheduled for January–March 2027.
• Sector 61 land: The company expects the latest land transaction to be completed by the end of March 2027. A separate report gives a launch date in FY28.
• Guidance: Management said timelines for the Mumbai and Gurugram launches depend on approvals. Analysts estimate the company needs roughly ₹16,000 crore of presales in the remaining two quarters to reach its ₹20,000 crore target.

As of 20 October 2026, the next test is whether the launches scheduled for the second half of FY27 come to market on time. Management has said it does not intend to chase presales for their own sake.