DLF Shares React to Doubled Q1 Revenue & 18% PAT Jump

Market

DLF’s first‑quarter numbers turned heads. The company’s revenue almost doubled to about ₹2,716 crore compared to the same quarter last year, while profit after tax rose 18% to ₹763 crore. These are big jumps for India’s largest listed real estate player.

But why does this matter to us as investors and market watchers? Because such numbers can tell us how strong the demand for premium homes really is, and whether this trend can continue. We also need to see why, despite record sales, the stock price slipped right after the results.

We will analyze the key figures, track what fueled the growth, and see how the market is reacting. We also explore what these results mean for DLF’s next moves and the broader real estate sector.

Financial Performance Highlights

  • Revenue nearly doubled, rising ~99% YoY to ₹2,716–₹2,717 crore. This is nearly double the ₹1,362 crore recorded in Q1 FY25.
  • Profit after tax (PAT) climbed ~18% to ₹762.7–₹763 crore, up from ₹646 crore a year ago.
  • EBITDA climbed to around ₹628 crore, reflecting about a 6% annual rise, while margins dropped to roughly 21% due to higher expenses.
  • Expenses surged about 94% to ₹2,466 crore, largely from land costs tripling and higher development expenses.

Drivers Behind the Numbers

  • Sales bookings reached a record ₹11,425 crore, rising ~78% YoY. The surge was largely driven by the Privana North premium housing project in Gurugram.
  • Collections were healthy at ₹2,794 crore. This rise brought DLF’s net cash surplus to ₹1,131 crore and raised its total net cash position to ₹7,980 crore at the end of June.
  • Market demand remains robust for large, branded homes with modern amenities. Faster government approvals and strong buyer sentiment are lifting the overall real estate sector.

Market Reaction: Why Did Shares Dip?

  • DLF shares fell over 1% (to around ₹784–₹796) despite strong numbers.
  • Margins dropped sharply. Gross margin fell from about 51% a year ago to just ~28% due to steep land and development expenses.
  • Sequential declines also mattered: quarterly PAT fell ~40% from Q4 FY25, and revenue dropped ~13% sequentially.
  • Some analysts hinted that PAT came in below estimates (~₹879 crore), which may have prompted cautious investor reaction.
  • The broader real estate industry is now beginning to show signs of recovery. Sobha more than doubled profits, and Godand Rej Properties grew ~15% YoY in PAT.
  • Branded developers are thriving on the growing demand for luxury and large-format housing.
  • However, increasing land expenses continue to weigh on companies, squeezing margins and making investors more cautious.

Outlook & Strategic Implications

  • DLF is targeting full‑year sales of ₹20,000–₹22,000 crore. With ₹11,425 crore already in Q1 bookings, it’s nearly halfway there.
  • Upcoming phases include new Privana launches and The Dahlias super-luxury project in Gurugram. Mumbai and Goa markets are also part of its expansion plans.
  • Its annuity portfolio (commercial rentals) is showing strength, with 94% occupancy and about 28 million sq ft under development, including ~5 million sq ft closing in FY26.
  • Still, margin stress remains. If land and development costs stay high, profits may not keep pace with revenue growth. That’s a risk for the share price.

Conclusion

We see that DLF delivered stellar numbers in Q1 FY26. Revenue nearly doubled, and PAT rose nearly 18%. But high land costs and compressed margins weighed on sentiment. The dip in share price shows that investors value healthy margins just as much as growth. Going ahead, DLF needs to keep bookings strong, control costs, and execute projects well. If executed right, it can ride the luxury-housing boom. But the real measure will be balancing profitability with growth.

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.