Company Update : DLF by Motilal Oswal Financial Services Ltd
Westpark launch and Dahlias incremental sales drive bookings
Robust pipeline
Residential performance
* In 2QFY26, DLF reported bookings of INR43b, up 6x YoY and down 62% QoQ (55% above our estimate). In 1HFY26, bookings were at INR157.6b, up 2x YoY.
* This impressive performance was fueled by healthy sales from its maiden launch ‘The Westpark’ in Mumbai in 2QFY26 which contributed ~53% of sales. ~37% of sales came from Dahlias in the quarter.
* Collections increased 13% YoY while it declined 4% QoQ to INR27b (40% below estimates). Consequently, OCF increased 12% YoY while it declined 15% QoQ to INR14b. Net cash stood at INR77b in the quarter vs. INR80b in 1QFY26.
* After the Westpark launch, the medium-term launch pipeline stands at INR602b. The company guided for launches worth INR172b+ in FY26, of which DLF has already achieved 80% in 1HFY26.
Rental performance (DCCDL)
* The overall occupancy in DCCDL’s office portfolio was stable at 93% (98% - non-SEZ / 86% - SEZ / 97% Retail).
* Rental income increased 15% YoY to INR13.6b, driven by steady growth across the portfolio.
* Net debt increased to INR174b from INR173b in 1QFY26, with net debt to GAV of 0.20x. Cost of debt declined to 7.3% in the quarter from 7.67% in 1QFY26.
P&L highlights
* In 2QFY26, DLF’s revenue came in at INR16.4b, down 17%/40% YoY/QoQ (33% below estimates). In 1HFY26, revenue came in at INR43.6b, up 31% YoY.
* EBITDA was down 44%/22% YoY/QoQ to INR2.8b (61% below estimates). EBITDA margin stood at 17.3%. In 1HFY26, EBITDA came in at INR6.5b, down 11% YoY.
* PAT stood at INR11.8b, -15%/+55% YoY/QoQ (8% above estimates) with margin at 72% due to one off reversal of impairment loss towards JV business and one time receipt of interest recognised under extra-ordinary item and other income respectively. In 1HFY26, PAT stood at INR19.4b, down 4% YoY with 45% margin.
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