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Privana-led sales surge amid margin and collection drag

Robust pipeline

Residential performance

* In 1QFY26, DLF reported bookings of INR114b, up 78% YoY/5x QoQ (11% below our estimate).

* This impressive performance was fueled by healthy sales from the luxury project ‘DLF Privana North’ launched in 1QFY26, which contributed a total of INR110b (~96% of total pre-sales), whereas the balance 4% came from Dahlias.

* Collections declined 6% YoY/16% QoQ to INR28b (45% below estimates). Consequently, OCF declined 14% YoY/37% QoQ to INR16b. Net cash stood at INR80b vs. INR68b in 4QFY25.

* After the DLF Privana North launch, the medium-term launch pipeline stands at INR629b. The company guided for launches worth INR172b+ in FY26, of which DLF has already achieved 64% in 1QFY26.

Rental performance (DCCDL)

* The overall occupancy in DCCDL’s office portfolio was stable at 94% (98% - non-SEZ / 87% - SEZ / 98% Retail).

* Rental income increased 15% YoY to INR13.3b, driven by steady growth across the portfolio.

* Net debt declined to INR173b from INR175b in 4QFY25, with net debt to GAV of 0.20x. Cost of debt declined to 7.67% in the quarter from 8.06% in 4QFY25.

P&L highlights

* In 1QFY26, DLF’s revenue came in at INR27.2b, up 2x YoY and down 13% QoQ (62% above estimate).

* EBITDA increased 59% YoY but fell 63% QoQ to INR3.6b. EBITDA was 41% below estimates due to a 30% hit on gross margin. Employee and other expenses were largely stable vs. our expectations. EBITDA margin stood at 13.4% (down 3.4pp YoY).

* However, this gap was reduced in PAT due to a higher contribution of other income leading to a PAT of INR7.6b, up 18% YoY (18% below estimate).

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