DLF Limited has announced robust financial results for the first quarter of fiscal year 2026 (Q1 FY26), reflecting strong performance across revenue, profits, and new sales bookings fueled by strategic initiatives and a buoyant housing market.
For Q1 FY26, DLF reported a consolidated profit after tax (PAT) of ₹763 crore, marking an 18% increase year-on-year from ₹646 crore in Q1 FY25. Revenue nearly doubled, surging 99.4% to ₹2,717 crore from ₹1,362 crore during the same period last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose significantly by 59.3% to ₹364 crore. However, compared sequentially to the previous quarter (Q4 FY25), PAT declined by about 17%, reflecting some quarter-to-quarter variability though maintaining a positive annual growth trajectory.
New sales bookings reached a record ₹11,425 crore, representing a remarkable 78% year-on-year increase. This growth was substantially driven by the launch of the DLF Privana ecosystem—a luxury housing project that has been well received in the market. The company's collections stood at ₹2,794 crore with a net cash surplus generation of ₹1,131 crore during the quarter, supporting robust liquidity with a net cash position of ₹7,980 crore as of June 2025. The gross cash balance was reported at ₹10,429 crore, including ₹7,782 crore in RERA accounts, underscoring a strong financial footing.
DLF's rental portfolio maintained high occupancy levels overall at 94%, with the non-SEZ office segment hitting 98%, SEZ offices at 87%, and retail at 98%, indicating stable recurring rental income. Notably, their joint venture with GIC, DLF Cyber City Developers Ltd (DCCDL), posted revenue of ₹1,739 crore and a net profit of ₹593 crore—up 26% year-on-year—bolstered by higher rental income from commercial properties.
Expenses rose sharply by 94% year-on-year to ₹2,466 crore due to increased land purchases, development costs, employee benefits, and finance costs. Despite the rise in expenses causing some margin pressure (operating margin at 13.4% versus 16.8% last year), the overall financial results signal strong operational momentum in a resilient real estate market.
Addressing stakeholders, DLF's leadership expressed confidence in India's economic resilience driven by structural reforms, urbanization, and rising aspirations, all of which position the company well for future growth. Their development pipeline across major geographies and a strong brand reputation underpin their optimism on sustaining healthy margins and cash generation going forward.
In summary, DLF's Q1 FY26 results highlight their market leadership and growth potential, marked by surging revenues, record sales bookings, and solid cash flows despite pressure on margins and sequential profit dips. The emphasis on luxury projects and a robust annuity portfolio of commercial properties has enabled them to capitalize on India's vibrant real estate sector effectively.
This performance sets a positive tone for the rest of fiscal 2026 as DLF leverages economic tailwinds and strategic launches to drive value for shareholders.
Reviewed by Aparna Decors
on
August 06, 2025
Rating:
