ICICI Securities has maintained its 'Buy' rating on DLF with a target price of Rs 943. Although Q1 FY27 sales bookings were soft at Rs 657 crore due to a lack of new launches, the brokerage points to a strong project pipeline for the rest of the year. The company stands by its Rs 20,000 crore sales booking guidance for FY27.
ICICI Securities has reiterated its 'Buy' rating on DLF Limited, keeping the target price at Rs 943. The brokerage determined this target by applying a 15% premium to the real estate developer's March 2026 net asset value of Rs 820 per share. This report comes after the company declared its financial results for the first quarter of the 2027 fiscal year.
DLF reported sales bookings of Rs 657 crore for the quarter ended June 2026. This figure is significantly lower than some market expectations, primarily because the company did not have any major project launches during these three months. However, the management has not changed its annual sales booking target of Rs 20,000 crore for the full fiscal year. The company plans to launch multiple projects in the coming months, which are expected to generate a gross development value exceeding Rs 200 billion.
Rental Business and Financial Health
Beyond residential projects, the company’s rental arm, DCCDL, is showing consistent growth. In FY26, the rental business recorded an EBITDA of Rs 57 billion, representing a 16% year-on-year increase. Projections from the brokerage indicate that this rental income could climb to Rs 64 billion in FY27 and further to Rs 73 billion by FY28, providing a steady stream of income that is less dependent on new property sales.
Financially, DLF maintains a solid position with a net cash surplus of Rs 15,200 crore as of the end of the first quarter. This strong liquidity helps the company manage its expansion plans and capital spending without taking on excessive debt.
Risks to Monitor
While the brokerage remains positive, there are important factors for investors to watch. The company’s ability to reach its Rs 20,000 crore sales booking target depends heavily on its ability to execute the large pipeline of new project launches on time. Any delays in receiving regulatory approvals or securing necessary clearances could push these launches into the next quarter, affecting sales performance.
Furthermore, the real estate sector is sensitive to market demand and macroeconomic conditions. Changes in interest rates or overall economic sentiment could influence buyer interest in upcoming projects. Investors should track the pace of these project launches and whether the company can sustain the demand needed to meet its ambitious full-year targets.