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DLF, the country’s largest listed real estate company, was among the top gainers in the BSE 100 index on Monday, rising 2.7 per cent to ₹776. The gains were led by strong bookings in the September quarter and robust pipeline, going ahead.
Given the momentum in bookings, the company is expected to meet its pre-sales guidance for FY26. Most brokerages are positive on the outlook given its land bank and strong cash flows.
For Q2, the company recorded sales of ₹4,330 crore which was six times higher than the year-ago period.
The robust pre-sales performance over the year-ago period was on account of strong response to its first launch in Mumbai (The Westpark) which was fully booked.
The Mumbai project accounted for over half of the company’s sales in the quarter (₹2,300 crore) while the rest was on account of a healthy demand for its ultra luxury project (Dahlias) in Gurugram.
The Gurugram project (Dahlias) reported sales of 18 units valued at ₹1,600 crore. Over the last three quarters, the company has sold 45 per cent of the overall inventory of this project.
Given the momentum in bookings, sales in the first half of FY26 stood at ₹15,700 crore. This is 122 per cent more than the comparable year-ago period.
The company is expected to surpass its full year pre-sales guidance of ₹20,000 crore. For the second half of FY26, the launches would include its Goa project which has a gross development value of ₹2,500 crore. This coupled with traction for its Dahlias project should help it meet its guidance. Launches in FY27 include the next phase of Privana as well as West Park and new project DLF 5, among others.
Antique Stock Broking continues to remain positive on DLF given its huge monetisable land bank (at historical costs) which is an important competitive advantage.
This coupled with a strong liquidity position and cash surplus visibility as well as strong brand in the NCR region are the other positives. The brokerage has a buy rating with a revised target price of ₹933 and believes that the key monitorable will be its launches.
JM Financial Research, too, is positive on the real estate major. With steady pre-sales in the medium term, DLF — with its stable annuity cash flows and fully paid-up land banks — remains extremely well placed to scale up across segments and newer geographies, say analysts led by Sumit Kumar. They have maintained a buy rating with a sum-of-the-parts target price of ₹1,000.
Its commercial arm, DLF Cyber City Developers Limited (DCCDL) recorded stable occupancy at 94 per cent which was up 100 basis points (bps) over the year-ago quarter.
Rental income and operating profit saw a year-on-year (Y-o-Y) growth of 15 per cent and 12 per cent, respectively. This growth was led by a 6 per cent increase in area to 44 million square feet and 100 bps improvement in occupancy.
Nomura Research expects the company’s rental income (excluding joint venture share) to deliver a healthy 15 per cent annual growth over FY25-FY28 — from ₹5,100 crore in FY25 to ₹8,000 crore in FY28.
In addition, the company plans to spend ₹10,000 crore over FY26-FY27 to create the next line of 20 million square feet of new assets by FY30.
The brokerage has a neutral rating with a target price of ₹740.
“For us to turn positive, we would like to see the management be more aggressive towards pre-sales growth on existing land banks or execute stronger-than-expected business development, driven by its strong cash position,” said Akash Gupta of the brokerage.
