DLF Limited (DLF) AI Stock Analysis

• Market Cap: ₹1.27T
• Dividend Yield: 0.86%
• Average Volume (3M): 63.94K
• Price to Earnings (P/E): 35.4
• Beta (1Y): 1.82
• Revenue Growth: 28.92%
• EPS Growth: 18.86%
• Country: IN
• Employees: 2,507
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 4.90
• Shares Outstanding: 2,475,311,500
• 10 Day Avg. Volume: 68,620
• 30 Day Avg. Volume: 63,936
• PEG Ratio: 0.63
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 20.54
• P/FCF Ratio: 31.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹855.00
• Price Target Upside: 20.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 17.6
• Revenue Forecast (FY): ₹92.06B

• Rating: 70 Outperform
• Price Target: ₹566.00 ▼(-20.45% Downside)
• Action: Upgraded Date: 03/24/26
• Date: Action: Upgraded 03/24/26

Score is driven by strong financial performance (high margins, strong cash flow conversion, and a stable balance sheet), but meaningfully tempered by weak technical momentum (below key moving averages with negative MACD). Valuation is also a mild headwind due to a relatively high P/E despite a modest dividend yield.

Positive Factors

High profit margins

DLF’s consistently high gross, EBITDA and net margins indicate durable pricing power and efficient cost control across projects. Such structural profitability supports reinvestment in developments, funds recurring asset management and provides buffer through real estate cycles.

Strong cash flow conversion

Robust cash conversion and large FCF growth signal sustainable internal funding for capex, project execution and distributions. Reliable cash generation reduces refinancing need, improves liquidity during slow cycles and enables disciplined balance sheet management.

Solid balance sheet and low leverage

A strong equity base and low leverage provide financial flexibility to fund new launches and absorb delays without stressing covenants. This structural strength supports sustained project activity and reduces default risk in adverse macro scenarios.

Negative Factors

Cyclical industry exposure

DLF’s core economics are exposed to macro variables—rate moves, demand swings, regulation and construction costs—that persistently affect booking rates, margins and project viability. These structural sensitivities can elongate sales cycles and compress returns over multiple quarters.

Development revenue depends on sales/collections

A material portion of revenue derives from for‑sale development where cash flows and earnings timing depend on bookings, milestone collections and final registrations. This creates durable working‑capital and execution risk, causing cash and profit volatility across project timelines.

Geographic concentration risk

Concentration in the Indian market concentrates regulatory, demand and policy risks. Local macro or policy shifts, land regulation changes or regional demand slowdowns can materially affect occupancy, pricing and approvals, limiting diversification benefits over the medium term.

DLF Limited Business Overview & Revenue Model

Company Description

DLF Limited, together with its subsidiaries, engages in the business of colonization and real estate development in India. Its activities include identification and acquisition of land; and planning, execution, construction, and marketing of projects. The company develops and sells residential properties, such as land, plots, apartments, and commercial units; and commercial and retail properties. It also engages in the lease of developed office space, ITes, and retail properties. In addition, the company owns and operates The Lodhi and the Hilton Garden Inn in New Delhi; and golf and country clubs. Further, it engages in the provision of maintenance services; generation and sale of power; and recreational activities. DLF Limited was founded in 1946 and is based in Gurugram, India. DLF Limited is a subsidiary of Rajdhani Investments & Agencies Private Limited.

How the Company Makes Money

DLF primarily makes money through two broad avenues: (1) development income from selling real estate and (2) recurring income from leasing and operating completed real estate assets. 1) Development (sales) revenue: DLF develops residential (apartments, villas, plotted developments) and, in some cases, other for-sale real estate projects. It recognizes revenue from the sale of units/plots to customers under applicable accounting rules, typically supported by customer bookings and collections tied to construction milestones and final handover/registration. Key earnings drivers include project launches, sales velocity, pricing, construction progress, project mix, and the pace of collections. 2) Rental and annuity income: DLF earns recurring revenue by leasing out completed commercial properties such as office spaces and, where applicable, retail assets. Income is generated through lease rentals, escalations embedded in lease contracts, and recoveries/charges related to property operations (e.g., common area maintenance, facility management, utilities pass-throughs where applicable). This segment’s performance depends on occupancy, lease renewals, new leasing, tenant credit quality, market rentals, and the operating performance of the underlying assets. Additional contributing factors: DLF’s earnings can also be influenced by other real estate-related income streams (such as fees for services connected to property management or maintenance) and by the broader real estate cycle (interest rates, demand conditions, regulatory environment, and input costs). Specific partnership or joint-venture structures contributing to earnings vary by project and are not provided here; null.

DLF Limited Financial Statement Overview

Summary

Strong fundamentals: high profitability (gross margin 48.3%, net margin 54.6%), healthy operating profitability (EBITDA margin 26.4%), and strong cash conversion (operating cash flow and free cash flow both ~1.2x net income) with free cash flow growth of 112.1%. Balance sheet is solid with a 61.2% equity ratio and manageable leverage (debt-to-equity 9.6%).

Income Statement

DLF Limited shows a robust improvement in revenue and profitability. The gross profit margin for the latest period stands at 48.3%, and the net profit margin is an impressive 54.6%, indicating strong cost management and pricing power. Revenue growth is consistent, with a notable increase from the previous year. EBIT and EBITDA margins are healthy at 24.5% and 26.4% respectively, reflecting efficient operations and solid earnings before interest and taxes.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 61.2%, indicating a stable capital structure. The debt-to-equity ratio is moderate at 9.6%, showing a manageable level of leverage. Return on equity is remarkably high at 10.3%, showcasing effective use of shareholder funds to generate profits. Overall, the balance sheet reflects financial stability and prudent financial management.

Cash Flow

DLF Limited demonstrates impressive cash flow management with significant free cash flow growth of 112.1%. The operating cash flow to net income ratio is healthy at 1.2, indicating that the company generates ample cash relative to its net income. The free cash flow to net income ratio is equally strong at 1.2, suggesting efficient conversion of earnings into cash. The cash flow position supports the firm's ability to fund operations and growth initiatives.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	93.48B	79.94B	64.27B	56.95B	57.17B	54.14B
Gross Profit	39.30B	38.62B	36.33B	32.61B	29.72B	25.65B
EBITDA	22.52B	21.10B	21.08B	17.09B	17.27B	14.51B
Net Income	44.85B	43.68B	27.27B	20.36B	15.01B	10.94B
Balance Sheet
Total Assets	0.00	694.75B	602.62B	539.28B	525.03B	548.10B
Cash, Cash Equivalents and Short-Term Investments	109.98B	109.98B	43.22B	27.46B	11.75B	21.26B
Total Debt	0.00	41.03B	48.34B	33.36B	41.82B	67.85B
Total Liabilities	-425.50B	269.25B	208.31B	162.36B	161.22B	194.45B
Stockholders Equity	425.50B	425.50B	394.31B	376.88B	363.62B	353.44B
Cash Flow
Free Cash Flow	0.00	51.39B	24.23B	23.12B	26.83B	14.47B
Operating Cash Flow	0.00	52.35B	25.39B	23.75B	28.32B	14.60B
Investing Cash Flow	0.00	-35.43B	-15.29B	-4.63B	2.63B	1.54B
Financing Cash Flow	0.00	-24.03B	1.77B	-20.13B	-38.28B	-21.84B

DLF Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 711.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DLF, the sentiment is Negative. The current price of 711.5 is above the 20-day moving average (MA) of 572.85, above the 50-day MA of 614.86, and below the 200-day MA of 728.61, indicating a bearish trend. The MACD of -26.31 indicates Positive momentum. The RSI at 29.45 is Positive, neither overbought nor oversold. The STOCH value of 16.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DLF.

DLF Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLF	70 Outperform	₹1.27T	35.36	―	0.86%	28.92%	18.86%
OBEROIRLTY	68 Neutral	₹513.44B	24.40	―	0.48%	2.76%	-3.84%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LODHA	64 Neutral	₹727.59B	27.67	―	0.39%	25.57%	58.31%
PHOENIXLTD	64 Neutral	₹528.51B	60.08	―	0.14%	-1.32%	-4.67%
GODREJPROP	59 Neutral	₹450.86B	77.34	―	―	37.14%	3.92%
PRESTIGE	54 Neutral	₹507.81B	77.12	―	0.11%	-2.28%	5.18%

DLF Limited Corporate Events

DLF Hits Zero Gross Debt on Record Collections as Annuity Portfolio Expands in Q3FY26

DLF Limited reported robust consolidated results for the third quarter of FY26, with revenue of Rs 2,479 crore, EBITDA of Rs 849 crore and net profit of Rs 1,207 crore, supported by record gross collections of about Rs 5,100 crore and 21% year-on-year growth in cumulative net collections to Rs 10,216 crore for the nine-month period. Strong operating cash flows generated a net operating cash surplus of Rs 3,876 crore in the quarter, enabling the company to reach its target of zero gross debt and build a net cash position of Rs 11,660 crore, while new sales bookings of Rs 419 crore and an upgrade of its credit rating to AA+/Stable by ICRA underscore improved financial strength. The annuity business, led by DCCDL, continued to perform strongly, with Q3FY26 consolidated revenue of Rs 1,878 crore, EBITDA of Rs 1,464 crore (up 18% year-on-year) and profit of Rs 707 crore, and the addition of the DLF Summit Plaza retail asset expanded the retail portfolio to about 5 million sq ft within an overall operational annuity portfolio of roughly 49 million sq ft. These results reinforce DLF’s strategy of pairing consistent and profitable growth with balance sheet strengthening, as it leverages sector tailwinds, scales its rental and annuity assets, and seeks to deliver long-term value to shareholders and other stakeholders.