DLF Shares Dip 2% as Q1 FY27 Revenue Falls 53%, But Brokerages Maintain Buy Ratings
Key Takeaways
- •DLF's revenue from operations fell 53% year-on-year in Q1 FY2027 while net profit showed only minimal growth.
- •The company's shares declined approximately 2% following the release of its muted quarterly financial results.
- •New sales bookings for the quarter were adversely affected by the postponement of planned project launches.
- •Major brokerages including Nomura retained their 'Buy' ratings on DLF, anticipating growth from upcoming project introductions.
- •DLF expects project launch momentum to pick up beginning in the second quarter of fiscal year 2027.
Shares of DLF declined approximately 2% after the real estate developer reported muted financial results for the first quarter of fiscal year 2027. The company's net profit showed only minimal growth, while revenue from operations experienced a significant year-on-year decline of 53%. DLF, India's largest publicly listed real estate developer by market capitalisation, has historically seen quarterly results fluctuate based on the timing of project launches, making individual quarterly performance less indicative of full-year trends.
New sales bookings for the quarter were affected by deferred project launches, which DLF expects to commence from the second quarter onward. In the real estate sector, sales bookings are a closely watched metric as they represent contracted future revenue, and the timing of luxury project launches can heavily skew quarterly booking numbers.
Despite the underwhelming quarterly performance, several major brokerages largely retained their 'Buy' ratings on the stock, citing anticipated growth driven by upcoming project introductions in subsequent quarters.
Nomura described Q1 as a 'non-event' quarter for DLF, noting that launch momentum is expected to pick up beginning in Q2.
Source: Economic Times Markets