DLF Limited Earnings Summary — Q4 FY2026
DLF Reaches Near Debt-Free Status as Quarterly Net Profit Hits 1,269 Cr
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 29.4% sequentially in Q1 FY2027.
- Revenue of ₹1,280 Cr is 52.9% lower year-on-year.
- Revenue has compounded at -20.3% annualised over the last 10 quarters.
- Net profit of ₹794 Cr is 4.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -6.4% annualised across the period.
- Operating margin stands at 11.7% in Q1 FY2027.
- Operating margin compressed by 166 bps year-on-year.
- Over the last two years operating margin has contracted by 504 bps.
- PBT margin is 33.0%.
- Expenses grew -52.0% against revenue growth of -52.9%.
- Operating profit of ₹150 Cr is 58.7% lower year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 28/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,280 | 1,814 | 2,020 | 1,643 | 2,717 | 3,128 | 1,529 | 1,975 | 1,362 | 2,135 |
| Expenses | Improving | 1,130 | 1,403 | 1,630 | 1,359 | 2,353 | 2,150 | 1,129 | 1,473 | 1,134 | 1,381 |
| Operating Profit | Volatile | 150 | 411 | 390 | 284 | 364 | 978 | 400 | 502 | 229 | 754 |
| Operating Margin | Stable | 11.7% | 22.6% | 19.3% | 17.3% | 13.4% | 31.3% | 26.2% | 25.4% | 16.8% | 35.3% |
| Other Income | Volatile | 325 | 308 | 399 | 854 | 264 | 220 | -94 | 206 | 367 | 182 |
| Interest | Declining | 18 | 21 | 36 | 63 | 79 | 109 | 94 | 94 | 101 | 98 |
| Depreciation | Accelerating | 35 | 48 | 30 | 30 | 34 | 37 | 39 | 38 | 37 | 37 |
| Profit Before Tax | Volatile | 423 | 649 | 723 | 1,045 | 515 | 1,053 | 174 | 577 | 458 | 802 |
| Tax | Volatile | 115 | -92 | -7 | 276 | 133 | 181 | -267 | -467 | 118 | 171 |
| Net Profit | Volatile | 794 | 1,269 | 1,203 | 1,180 | 763 | 1,282 | 1,059 | 1,381 | 646 | 921 |
| Net Margin | Volatile | 62.0% | 69.9% | 59.6% | 71.8% | 28.1% | 41.0% | 69.3% | 69.9% | 47.4% | 43.1% |
Key Takeaways
- DLF has successfully completed a massive deleveraging cycle, reducing borrowings to just ₹306 Cr from ₹4,103 Cr a year ago.
- Quarterly net profit rose significantly to ₹1,269 Cr, though this was aided by negative tax expenses (-14% tax rate) and high other income.
- Sales revenue experienced a year-on-year contraction of 15% in Q4 compared to the same period last year.
- Operating margins show signs of pressure, settling at 23% in Q4 FY26 down from 35% in Q4 FY24.
- Cash flow generation remains exceptionally strong with Free Cash Flow reaching ₹6,231 Cr for the full year.
- Inventory build-up is substantial, standing at ₹33,785 Cr, reflecting a strategy focused on high-ticket luxury project banks.
- Interest costs have plummeted from ₹98 Cr in Q4 FY24 to just ₹21 Cr in the latest quarter due to debt repayment.
Management Guidance
Management is shifting focus toward professionalized management and premiumization of the Indian real estate market, targeting robust rental income through the DCCDL partnership.
Sentiment Shift
Improving
The transition to a near debt-free balance sheet significantly de-risks the investment profile despite inconsistent revenue growth.
Outlook
The outlook remains optimistic regarding cash flow and net profitability due to lower interest burdens and a strong luxury pipeline, though top-line growth and margin consistency remain areas for observation.
From the Annual Report (Key Quotes)
“DLF has transitioned from a debt-heavy cyclical player to a leaner, more disciplined entity.”
“The underlying balance sheet is at its healthiest in a decade.”
“Vision is focused on the 'premiumization' of Indian real estate and strengthening the annuity income stream.”
Official Quarterly Documents
This summary is AI-generated from DLF Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.