DLF Shares Rise on Strong Sales Jump Despite Profit Dip; Analysts Maintain 'Buy' Ratings

On Monday, November 3, 2025, shares of DLF Limited experienced a surge, reaching an intraday high of ₹773.10, up 2.23%. This positive movement occurred despite the company reporting a 15% year-on-year (Y-o-Y) decline in consolidated net profit to ₹1,180.09 crore for the September quarter (Q2FY26). The decrease was primarily attributed to higher tax expenses. Revenue from operations also saw a 17% Y-o-Y fall to ₹1,643 crore.

Contrasting the profit and revenue figures, DLF reported a robust performance in new sales bookings, which jumped more than sixfold to ₹4,332 crore in Q2FY26, compared to ₹692 crore in the previous year. This significant increase was fueled by the successful launch of its first Mumbai project, The Westpark, and strong momentum in the super-luxury property segment. Cumulative sales for the first half of FY26 reached ₹15,757 crore, positioning the company well within its annual sales target of ₹20,000-22,000 crore.

The company's profitability improved on other metrics, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rising 27% Y-o-Y to ₹902 crore, and EBITDA margin expanding to 40%. DLF maintained a healthy net cash position of ₹7,717 crore at the end of the quarter, even after significant dividend payouts and debt repayments.

Brokerage firms expressed optimism regarding DLF's future prospects. Motilal Oswal reiterated a 'Buy' rating with a target price of ₹1,002, highlighting DLF's extensive land reserves and monetization potential. Nuvama Institutional Equities also maintained a 'Buy' rating, adjusting its target price to ₹980. Nuvama noted the surge in pre-sales and rental income, while cautioning about potential moderation in Gurugram's housing demand due to affordability, but expressed confidence in DLF's diversified portfolio and execution capabilities.

Impact The strong sales bookings and positive analyst sentiment are likely to support DLF's stock price, even as the company navigates short-term profit fluctuations due to tax adjustments. Investors are looking at the company's ability to convert its land bank into sales and maintain rental income growth.

Rating: 7/10. This news is significant for the Indian real estate sector and its investors due to the company's market position, strong sales pipeline, and analyst recommendations.

Difficult Terms: * Consolidated net profit: The total profit of a company and all its subsidiaries after deducting all expenses and taxes. * Year-on-year (Y-o-Y): A comparison of financial data from one period to the same period in the previous year. * Revenue from operations: The income generated by a company from its core business activities. * Sales bookings: The total value of properties booked by customers, indicating future sales revenue. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance before considering financing, accounting, and tax decisions. * EBITDA margin: EBITDA divided by revenue, indicating profitability from core operations. * Net cash position: The amount of cash a company has after subtracting its short-term debt. * Dividend payout: A portion of a company's profits distributed to its shareholders. * Debt repayment: Paying back money that was borrowed. * Monetisation: The process of earning revenue or converting an asset into cash. * Occupancy levels: The percentage of a property (like apartments or office space) that is currently rented out or occupied.