Earnings Outlook
DLF Q1 net profit seen up 33% YoY on robust presales
This story was originally published at 21:15 IST on 1 August 2025
Register to read our real-time news.Informist, Friday, Aug. 1, 2025
By Ketaki Patil
MUMBAI – DLF Ltd. is expected to report a substantial on-year rise in consolidated net profit for the June quarter on the back of strong presales. However, the net profit is likely to be down sharply from the trailing quarter due to a high base and lower sequential launches.
The company's consolidated net profit for the June quarter is estimated at INR 8.61 billion, according to the average of estimates from five brokerages. This will be a 33% rise from the INR 6.45 billion profit it had reported in the year-ago quarter but a 33% fall from the trailing quarter. The highest estimate for net profit is INR 9.78 billion from JM Financial Institutional Securities Pvt. Ltd. while the lowest is INR 7.71 billion from HDFC Securities Ltd.
The company's consolidated revenue is estimated at INR 18.94 billion, up 39% from INR 13.62 billion in the year ago quarter but down 40% sequentially. The highest estimate for revenue is INR 24.16 billion from JM Financial Institutional Securities while the lowest is INR 14.98 billion from HDFC Securities.
The expected year-on-year growth in earnings is largely attributed to robust sales in DLF's luxury residential segment in the Delhi-National Capital Region, especially the launch of Privana North, which fetched INR 110 billion in presales.
Steady sales momentum in previously launched projects such as Privana West and The Camellias also likely boosted revenue. While the National Capital Region continues to be the company's stronghold, its recent foray into the Mumbai Metropolitan Region with its West Park project is expected to act as a key diversification and growth lever going forward.
Several brokerages estimate presales in the June quarter at INR 125 billion to INR 128 billion. This would be a two-fold rise from a year ago quarter, Motilal Oswal Financial Services said. "4QFY25 (Jan-Mar quarter of 2024-25) saw a pickup in launches, although most of the planned launches of the top 10 developers would spill over to FY26. Hence, FY26 is expected to be a year of launches," Motilal Oswal Financial Services said.
The sharp sequential decline expected in revenue and profit, is seen because of a high base effect from the previous quarter, timing mismatch of new launches and spillovers, and construction-linked payment from West Park that might not have kicked in yet. The company accounts for revenues and costs only on the completion of its projects.
"With significant embedded potential from its existing land bank, DLF continues to generate healthy margins, targeting 45%+ gross margins in the medium term," HDFC Securities Institutional Equities said. The company has continued to command significant pricing premiums in NCR and is adopting a similar strategy in Mumbai metropolitan region, albeit at a competitive entry price of INR 42,500 per square feet plus taxes for its Andheri West project, West Park.
The company's earnings before interest, tax, depreciation, and amortisation is expected to be INR 5.28 billion in the June quarter. The highest EBITDA estimated is INR 6.68 billion from JM Financial Institutional Securities and the lowest is INR 3.63 billion from HDFC Securities. "DLF is expected to report EBITDA of INR 6.2 b (billion), with a 37% margin," Motilal Oswal Financial Services said. Analysts cite sustained buyer demand despite affordability concerns as key margin driver.
"DCCDL (DLF Cyber City Developers Ltd.) likely to report 10% yoy (year on year) growth in rentals of INR 12.7 bn (billion) owing to the recent commissioning in Chennai and healthy overall occupancy of 94%," Kotak Institutional Equities said. DLF Cyber City Developers is a joint venture between DLF and the Government of Singapore Investment Corp., primarily focusing on developing and managing commercial and retail real estate assets in India. DLF owns 67% of this joint venture.
DLF will report its earnings for the June quarter Monday. Investors will closely track commentary on new launches, especially the performance of West Park in Mumbai, pricing trends in NCR, and the outlook for presales in the second half of FY26.
Friday, shares of DLF closed at INR 777.40 on the National Stock Exchange, down 0.87%. The shares are up 3% since the company announced its March quarter earnings. Of the 13 brokerage recommendations available with Informist, 11 have a 'buy' or equivalent rating with an average target price of INR 977. Two have a 'sell' or equivalent rating.
Following are the Apr-Jun earnings estimates, in INR million, for DLF, based on reports from five brokerages in the descending order of net profit:
Brokerage | Net sales | Net profit | EBITDA |
JM Financial Institutional Securities Pvt Ltd | 24,164.00 | 9,786.00 | 6,689.00 |
Motilal Oswal Financial Services Ltd | 16,750.00 | 9,263.00 | 6,170.00 |
Nuvama Wealth Management Ltd | 19,627.00 | 8,533.00 | 5,387.00 |
Kotak Institutional Equities | 19,165.00 | 7,762.00 | 4,569.00 |
HDFC Securities Ltd | 14,986.00 | 7,718.00 | 3,626.00 |
Average | 18,938.40 | 8,612.40 | 5,288.20 |
End
Edited by Ashish Shirke
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