DLF (DLF) Q2 26/27 earnings summary

Executive summary

• Q2FY27 bookings were ₹3,800 crore; The Aureva sold out and The Dahlias continued to see strong demand and price increases.

• Collections were ₹2,780 crore, operating cash flow after interest and tax was ₹1,858 crore, and reported net cash was ₹15,084 crore after a ₹1,980 crore dividend payout.

• Consolidated net profit was ₹1,301.35 crore versus ₹1,180.09 crore YoY, supported by JV earnings and a fair-valuation gain despite lower revenue.

Financial highlights

• Consolidated revenue from operations was ₹1,260.58 crore, down from ₹1,643.04 crore YoY; EBITDA was ₹1,060 crore, up 18%, with a 46% margin versus 40%.

• Q2 profit before exceptional items, tax and JV/associate earnings was ₹1,003.32 crore versus ₹809.66 crore YoY; H1 net profit was ₹2,095.25 crore versus ₹1,942.76 crore.

• A ₹738.71 crore CCD fair-value gain was recorded in Q2; Q2 share of JV and associate profit was ₹499.28 crore.

• Standalone Q2 revenue was ₹439.08 crore and net profit was ₹800.32 crore, versus ₹646.53 crore and ₹1,012.51 crore YoY.

• Gross margin was ₹667 crore, down 23% YoY, with a 47% margin rate versus 48%.

Outlook and guidance

• Revenue recognition is expected to inflect from FY28 as Arbour and subsequent projects are completed; current pre-Arbour revenue softness was described as temporary.

• Mumbai launch is targeted for Q3 and a Gurugram luxury launch for Q4, subject to approvals; The Dahlias sales continue.

• Medium-term development launch pipeline is estimated at ₹58,230 crore; launch potential from FY25 onward totals ~₹1,14,500 crore, subject to market conditions.

• Surplus cash potential from launched products was ~₹42,460 crore, including ~₹14,975 crore from launched but unsold inventory; residual gross margin potential was ~₹39,525 crore.

• Medium-term rental income target is ~₹10,000 crore; the annuity portfolio is projected to grow from ~50 msf to ~76 msf.