DLF Q2 profit down 15%, revenue falls 17% despite sales performance

Realty major DLF reported a 15 per cent year-on-year (Y-o-Y) fall in consolidated net profit for the second quarter (Q2) of FY26 at ₹1,180.09 crore from ₹1,381.22 crore recorded in the same period last year.

 

According to the company’s consolidated balance sheet, this drop could be attributed to rising overall tax expenses.

 

During the September quarter, the company’s tax expenses stood at ₹276.32 crore on a consolidated basis, compared to ₹466 crore tax reversal reported in the same quarter last year.

 

The country’s largest real estate developer by market capitalisation also saw a 17 per cent Y-o-Y drop in revenue from operations to ₹1,643 crore in Q2 from ₹1,975 crore in Q1.

 

The fall comes despite the developer recording higher new sales bookings in the September quarter this year compared to last year.

 

New sales bookings for Q2 FY26 stood at ₹4,332 crore, compared to ₹692 crore in the same quarter last year.

 

The company said this growth was driven by its successful maiden launch in Mumbai — The Westpark, and continued healthy momentum in the super-luxury segment.

 

“Cumulative new sales bookings for the first half of FY26 (H1 FY26) stood at ₹15,757 crore, in line with our annual guidance,” DLF said in its regulatory filing.

 

The firm is targeting a ₹20,000-22,000 crore sales guidance for FY26.

 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 27 per cent to ₹902 crore, compared with ₹708 crore in the year-ago period.

 

Meanwhile, the firm’s Ebitda margin stood at 40 per cent.

 

DLF added that it will continue to focus on further strengthening of its balance sheet and cash flow generation.

 

“The net cash position stood at ₹7,717 crore at the end of the quarter, despite a higher dividend payout of ₹1,485 crore and debt repayment of ₹963 crore during the quarter,” the company added in its filing.

 

DLF added that the housing sector continues to benefit from a resilient economy, increasing desire towards home ownership and growing demand for branded, credible developers.

 

“We continue to leverage our high-quality land bank by calibrating our new product offerings to leverage this sustained momentum in line with our guided trajectory,” it said.

 

DLF’s annuity business, which includes its rent-yielding office and retail assets, continued to show improvement, with occupancy holding steady at 94 per cent.

 

According to its investor presentation, the company has about 25 million square feet (msf) under planning and development in the segment, including 2.7 msf scheduled for completion in FY26.

 

DLF reported its earnings after market hours. Shares of the company closed a marginal 0.33 per cent lower at ₹776.70 apiece on Thursday.