DLF

solid execution driven by luxury launches

reported a significant 78% year-on-year jump in pre-sales to ₹11,425 crore in Q1 FY26, largely driven by its luxury residential launch, Privana North (Phase 3), which accounted for a staggering 96% of bookings. This strong performance allowed the company to meet about half of its full-year pre-sales guidance of ₹20,000–22,000 crore. Despite a robust pre-sales figure, the Ebitda margin hit a multi-year low of 13.4%, which was below market expectations. This was primarily due to a higher share of lower-margin projects and construction delays caused by unfavorable weather, which also led to a 6% decline in cash collections. DLF's expansion into the Mumbai Metropolitan Region (MMR) with The West Park project was a success, generating ₹2,300 crore in pre-sales and selling out its launched inventory. The company plans to scale up its presence in MMR and has a strong medium-term launch pipeline valued at ₹62,900 crore. New projects in Goa and the next phase of The Dahlias are also in the pipeline for FY26 and FY27. The company's focus remains on its existing land banks in key regions like the NCR, Tri-City, MMR, and Goa, with less emphasis on new land acquisitions. This, combined with a competitor like Lodha showing more aggressive growth, has led some analysts to suggest that DLF's management needs to be more proactive. Analysts believe that DLF's long-term growth potential is already priced into its current valuation, which trades at a 20% premium to its net-asset-value. For DLF to maintain its pre-sales momentum and deliver on its guidance, timely new project launches and more aggressive business development will be crucial, given that its unsold inventory has decreased.