DLF Q2 FY27 results: net profit up 10.3% to ₹1,301 crore, revenue down 23.3%

How did DLF perform in Q2 FY27?

DLF reported consolidated revenue of ₹1,261 crore for Q2 FY27, down 23.3% from ₹1,643 crore in Q2 FY26 and 1.5% from ₹1,280 crore in Q1 FY27. EBITDA was ₹23.02 crore, down 91.9% year on year and 84.7% from ₹150.30 crore in the previous quarter. The EBITDA margin was 1.8%, against 17.3% a year earlier and 11.7% in Q1 FY27.

Profit before tax was ₹1,003 crore, down 4.0% from ₹1,045 crore in Q2 FY26 but up 137.3% from ₹422.76 crore in Q1 FY27. Net profit was ₹1,301 crore, up 10.3% from ₹1,180 crore year on year and 63.9% from ₹793.90 crore sequentially. Basic EPS was ₹5.25, compared with ₹4.77 and ₹3.21 in the respective comparison periods. On a standalone basis, revenue was ₹439.08 crore and profit after tax was ₹800.32 crore.

What changed in DLF's costs and profit?

Total expenses were ₹1,294 crore in Q2 FY27, down 10.9% from ₹1,452 crore in Q2 FY26 but up 9.4% from ₹1,183 crore in Q1 FY27. Cost of materials fell 19.8% year on year to ₹750.18 crore, while employee cost rose 22.6% to ₹179.07 crore, finance costs fell 71.1% to ₹18.22 crore, depreciation rose 29.3% to ₹38.20 crore and other expenses rose 10.7% to ₹308.31 crore.

Other income was ₹1,037 crore, up 67.5% from ₹618.76 crore a year earlier and 218.8% from ₹325.22 crore in Q1 FY27. Tax was ₹201.25 crore, down 27.2% from ₹276.32 crore a year earlier and up 75.5% from ₹114.69 crore sequentially. Q2 FY27 had no exceptional item, compared with an exceptional gain of ₹235.19 crore in Q2 FY26. The filing does not state why the changes in other income and cost lines occurred.

How did the first half of FY27 go?

For H1 FY27, DLF reported revenue of ₹2,540.92 crore, down 41.7% from ₹4,359.74 crore in H1 FY26, while total income was ₹3,902.86 crore, down 25.6% from ₹5,242.68 crore. Profit before tax was ₹1,426.08 crore, down 8.6% from ₹1,560.15 crore.

Profit after tax rose 7.8% to ₹2,095.25 crore from ₹1,942.76 crore, and basic EPS rose 7.8% to ₹8.46 from ₹7.85. The first-half figures are consolidated.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹78,103.97 crore, against ₹74,874.77 crore at 31 March 2026, while total equity was ₹45,587.41 crore compared with ₹45,473.37 crore. Borrowings were unchanged at ₹44.95 crore. Cash fell to ₹992.03 crore from ₹2,273.22 crore, inventories rose to ₹25,452.98 crore from ₹24,717.48 crore, trade receivables rose to ₹903.28 crore from ₹847.38 crore and trade payables fell to ₹1,658.3 crore from ₹1,719.59 crore.

H1 FY27 operating cash flow was ₹1,953.38 crore, compared with ₹1,898.02 crore in H1 FY26. Investing cash flow was negative ₹1,226.93 crore, against positive ₹2,487.73 crore a year earlier, while financing cash flow was negative ₹2,006.34 crore compared with negative ₹4,000.61 crore. Capital expenditure was ₹22.26 crore, against ₹57.13 crore in H1 FY26.

How has DLF done over the last 8 quarters?

Revenue peaked at ₹3,127.58 crore in Q4 FY25 and bottomed at ₹1,260.58 crore in Q2 FY27, following ₹1,280.34 crore in Q1 FY27. Profit after tax was highest at ₹1,301.35 crore in Q2 FY27, while EBITDA margin reached its low of 1.8% from 31.3% at its peak in Q4 FY25.

Profit after tax rose year on year in each of the last two quarters. Revenue has moved lower in the latest two quarters, while the EBITDA margin fell from 11.7% in Q1 FY27 to 1.8% in Q2 FY27. The provided quarterly series shows revenue declining from the Q4 FY25 peak before rising in Q3 FY26 and then falling again.

Which businesses drove the quarter?

Real Estate reported revenue of ₹1,102.98 crore and EBIT of ₹244.67 crore, with an EBIT margin of 22.2%. Rental reported revenue of ₹164.57 crore and EBIT of ₹854.04 crore, with an EBIT margin of 519.0%. Year-ago revenue and EBIT figures for both segments were not provided, so growth rates cannot be stated.

What else did the company announce?

On 16 October 2026, the board approved the reclassification of Madhukar Housing and Development Company from the Promoter/Promoter Group category to the Public category, subject to stock-exchange approval. The company said Madhukar held nil equity shares and voting rights, and the reclassification would not affect operations or the existing shareholding structure; the Promoter/Promoter Group would continue to hold 74.08% of paid-up equity capital.

DLF also submitted applications to the stock exchanges seeking their no-objection to the reclassification. The same-day filings did not announce a dividend, a fund raise or any appointment.

What did the auditors point out?

The independent auditor’s review report on the unaudited standalone results included an Emphasis of Matter paragraph and stated that its conclusion was not modified in respect of the matters described. It drew attention to pending litigation, including the Competition Commission of India’s penalty of Rs. 630.00 crores, which had been upheld by the Competition Appellate Tribunal, with DLF’s appeal pending before the Supreme Court and Rs. 630.00 crores deposited under protest.

The auditor also referred to judgements concerning the IT SE2/IT Park projects in Gurugram, where appeals were pending before the Supreme Court, and to SEBI restrictions and penalties, including a statutory appeal pending before the Supreme Court. Based on external legal advice, management made no adjustment for these matters in the standalone financial results. The excerpt does not state a going-concern qualification or a qualified opinion.

What did DLF's management say?

Management said Q2 new sales bookings were about INR 3,800 crore and that Aureva luxury retirement housing in Gurugram was sold out, with INR 1,900 cr reported in the quarter. It said the rental portfolio covered 50 msf with 96%/97% occupancy and that net cash was INR 15,100 crore despite an INR 1,980 crore dividend payout.

The company expects DLF standalone rental exit run-rate of INR 175–180 crore per quarter, or about INR 750 crore annualised excluding Atrium, and close to INR 6,800 crore for DCCDL exit rental. Management maintained FY28 as the Arbour commissioning and revenue-recognition inflection point; most Downtown Gurgaon blocks 5–8 and Mall of India Gurgaon are expected to become operational between FY29–30, while Mall of India Gurgaon is planned for FY30.

Management identified risks from GRAP guidelines, which may cause a 30–40 day construction slowdown in Gurgaon during the AQI season, and chronic labour migration during Chhath Puja, which may temper Q3 construction outflows. It also said accounting revenue would remain muted until Arbour commissioning in FY28 because of the completed-contract method. Group CFO Badal Bagri said: “It will be in similar range. Average of last two quarters should be looked at for forward guidance as well.”

How did DLF shares react?

The filing appeared after market hours. From the price when it appeared, the stock was unchanged after 5 minutes, down 1.0% after 15 minutes and down 1.1% after 30 minutes. On the reaction day, it closed down 0.3% from the prior close of ₹675.0; by the next day’s close it was down 1.6% from the pre-results close, and by five days it was down 0.6%.

The industry median fell 1.7% on the reaction day, 4.1% by the next day and 5.2% by five days, while the Nifty 100 fell 1.0%, 1.5% and 1.8% over the corresponding closes. DLF therefore moved 1.3 percentage points, 2.5 percentage points and 4.6 percentage points relative to the industry median. Earlier reaction-day moves were down 0.7% on 11 July 2026, up 1.1% on 13 May 2026 and down 4.3% on 22 January 2026.

How did other Residential Commercial Projects companies do?

Thirty-five other Residential Commercial Projects companies had filed for the quarter by 4 November 2026. Their median revenue growth was 27.1%, while six peers grew slower than DLF and 29 peers grew faster than DLF. Profit was higher at 20 of the 35 peers.