Brokerage Call
Motilal Oswal Keeps DLF at Buy, Raises Target to ₹780 on NAV Basis
Motilal Oswal Financial Services reiterated its Buy rating on DLF and raised its target price to ₹780 in a note dated 18 October 2026, after DLF's September-quarter results. The target implies about 16% upside from the share price of about ₹674 cited in the note.
| Brokerage and rating | Motilal Oswal Financial Services, Buy (reiterated), note dated 18 October 2026 |
|---|---|
| New target price | ₹780 (earlier Motilal target of ₹755 in an earlier quarterly note) |
| Share price cited | ₹674 in the note; reports dated 18–19 October cite about ₹670–675 |
| Q2 FY27 presales | ₹3,800 crore, down 12% year on year, against Motilal's estimate of ₹2,600 crore |
| Consolidated net profit, Q2 FY27 | About ₹1,301 crore |
| Dividend declared with Q2 results | ₹8 per share |
| Launch pipeline cited | About ₹58,200 crore |
| FY27 sales bookings target | About ₹20,000 crore |
What happened
On 18 October 2026, Motilal Oswal Financial Services kept its Buy rating on DLF and raised its target price to ₹780. The note followed DLF's results for the September quarter of FY27 (Q2 FY27). DLF announced the results on 16 October 2026, and its management held an earnings call on 17 October.
The brokerage describes the target as implying about 16% upside from the share price cited in the note. Reports dated 18 and 19 October put DLF's share price in a range of roughly ₹670 to ₹675.
How the target was set
Motilal Oswal values DLF at net asset value (NAV) with no premium. For the residential portfolio, the brokerage raised its weighted average cost of capital to 11.0% and its cap rate to 8.0%. It also rolled the residential valuation forward to FY28, which lifted the target to ₹780.
In the equity bridge, an equity value of ₹1,92,951 crore divided by 247.5 crore shares gives ₹780 per share. The sum-of-the-parts breakdown includes future launches on DLF's residual landbank at ₹65,166 crore, DLF's share of the DLF Cyber City Developers rental business at ₹41,046 crore, and future rental potential at ₹33,543 crore. Net cash used in the calculation is ₹8,657 crore.
Motilal listed higher cap rates as a risk to NAV, since they would reduce the valuation.
Q2 FY27 numbers
- Presales: ₹3,800 crore, down 12% year on year, but above Motilal's estimate of ₹2,600 crore. The brokerage attributed the result mainly to the complete sell-out of The Aureva, Gurugram (about ₹1,900 crore in sales) and sustained sales at The Dahlias.
- Profit: Consolidated net profit was about ₹1,301 crore. Reported year-on-year growth varied by outlet, from about 10% to 11%. The note said that excluding a ₹738 crore fair-value gain on a joint-venture investment, profit would have missed expectations.
- Dividend: DLF declared ₹8 per share with its Q2 results.
- Cash: DLF reported net cash of about ₹15,084 crore after a dividend outflow of ₹1,980 crore.
- Rental portfolio: About 50 million sq ft with 96% occupancy by area, up from 95% a year earlier. DCCDL, the rental arm, reported Q2 revenue of ₹2,014 crore.
Reported EBITDA and revenue figures differ across outlets, because of differences in how operating profit and other income are counted. This article does not use a single EBITDA figure.
Launches and pipeline
DLF cites a launch pipeline of about ₹58,200 crore, which includes the second phase of The Westpark in Andheri West, Mumbai. DLF expects to launch that phase in the December quarter of FY27 (October to December 2026), subject to regulatory approvals. Phase 1 of The Westpark launched in July 2025, and all 416 residential units sold within a week.
Management also said a luxury housing launch in Gurugram is planned for the second half of FY27. DLF has set a sales bookings target of about ₹20,000 crore for FY27, and first announced that target on 14 May 2026. JM Financial analysts, cited in press coverage, said timely launches in Mumbai and Gurugram are central to meeting that target. They estimated gross development value of ₹10,000 crore to ₹12,000 crore across the two launches.
What it means for buyers and investors
For buyers, the near-term effect is limited to pipeline visibility. Westpark Phase 2 is still subject to approvals, and no unit prices or possession timelines have been published for it. Buyers considering DLF projects should check the approved project details and registration status directly before committing.
For investors, the call rests on NAV rather than near-term earnings. Motilal's analysis depends on DLF delivering its FY27 launches on schedule and on the cap rate and cost of capital assumptions holding. Other brokerages covering DLF have targets between ₹740 and ₹830, and one separate report cites ₹785.
Risks flagged
- Delays to the two FY27 launches because of approvals.
- Pollution curbs and labour migration slowing construction.
- Core EBITDA remaining thin until FY28.
- Higher cap rates reducing NAV.
What comes next
- Westpark Phase 2, Mumbai: launch expected in the December quarter of FY27 (October to December 2026), subject to regulatory approvals.
- Gurugram luxury housing launch: expected in the second half of FY27.
- Sales bookings: DLF's FY27 target is about ₹20,000 crore.
- Motilal's view: the ₹780 target depends on DLF delivering its FY27 launches.
Frequently asked questions
What is Motilal Oswal's current rating and target on DLF?
Motilal Oswal reiterated Buy on DLF and set a target of ₹780 in a note dated 18 October 2026. Its earlier target, in a prior quarterly note, was ₹755.
How did DLF's Q2 FY27 presales compare with expectations?
Presales were ₹3,800 crore, down 12% year on year. That was above Motilal Oswal's estimate of ₹2,600 crore, and the brokerage attributed the result mainly to The Aureva, Gurugram and sales at The Dahlias.
Has DLF launched Westpark Phase 2 in Mumbai?
Not as of 20 October 2026. DLF expects to launch the second phase of The Westpark in Andheri West in the December quarter of FY27, subject to regulatory approvals.
Why did Motilal Oswal use NAV to value DLF?
Motilal values DLF at net asset value with no premium, adding the value of its residential development, its rental assets and its residual landbank, less net cash used in the calculation.
What could stop the target from being reached?
Motilal lists delays to the FY27 launches because of approvals, pollution curbs and labour migration slowing construction, thin core EBITDA until FY28, and higher cap rates reducing NAV.