DLF Q4FY25 Earnings: Strong Growth and a Bright Road Ahead
If you’ve been keeping an eye on the real estate market, you’ll be happy to know that DLF just wrapped up FY25 on a high note. Let’s break down what happened in their latest quarterly update and what it means.
What’s the Big Picture?
DLF had a great year. Their pre-sales—a key measure of future revenue—jumped by a whopping 44% year-on-year to ₹21,200 crore. Even in the last quarter, Q4FY25, pre-sales grew 39% compared to the same quarter last year, hitting ₹2,000 crore.
And the profits? They came in strong too. The company’s gross margins stood at a solid 61%, which means they’re making good money on the sales they close. Plus, DLF has a huge launch pipeline worth ₹73,900 crore waiting in the wings, along with unsold inventory valued at ₹23,600 crore. So, there’s plenty cooking.
In terms of valuation, the stock looks reasonably priced at 7 times adjusted EV/EBITDA for FY26. Not bad at all! We recommend a BUY with a target price of ₹1,020, representing an upside from the current market price of ₹754.
How Did Q4FY25 Go?
Here’s the good news:
| Metric | Q4FY25 Figures | YoY Growth |
|---|---|---|
Revenue | ₹3,100 crore | +47% |
EBITDA | ₹980 crore | +30% |
Profit After Tax (PAT) | ₹1,280 crore | +39% |
DLF’s annuity business (think of it as steady rental income, especially from office spaces) showed solid earnings growth. Occupancy rates went up, meaning more offices are being rented out, which is great news for recurring revenue.
And don’t forget—they still have a massive 14.3 crore sqft of land reserved for residential projects. That’s a big opportunity for future growth.
What’s in the Pipeline?
DLF has some serious plans in the works. Here’s a quick look:
| Category | Value |
|---|---|
Launch Pipeline | ₹73,900 crore |
Unsold Inventory | ₹23,600 crore |
Balance Land Area | 14.3 crore sqft |
With this much inventory and land, DLF is clearly positioned to keep the momentum going for years.
Valuation Snapshot
For investors, valuations matter a lot. Here’s where DLF stands:
| Metric | Value |
|---|---|
Adjusted EV/EBITDA (FY26E) | 7X |
Current Market Price (CMP) | ₹754 |
Target Price (Fair Value) | ₹1,020 |
The stock looks reasonably priced, which supports the BUY recommendation.
Anything to Watch Out For?
Well, the only downside was that DLF didn’t launch any new projects in Q4FY25. While this might raise some eyebrows, the strong sales from existing projects and the pipeline ahead more than make up for it—for now.
What Does This Mean for Investors?
DLF is showing it can keep growing, even without new launches in the last quarter. The steady growth in occupancy in their office assets means they’re securing recurring revenue, which is a huge plus.
With strong sales, solid margins, and a big pipeline, the company looks ready to keep the momentum going. Plus, the stock’s valuation suggests it’s not overpriced, which makes it attractive for investors looking to buy in.
The BUY rating and target price of ₹1,020 suggest the stock may appreciate from its current price.
Final Thoughts
DLF is clearly firing on all cylinders. Despite a quiet quarter on new launches, the company’s core business is booming. Their sales, profits, and pipeline put them in a strong position for FY26 and beyond.
If you’re thinking about real estate stocks, DLF is definitely one to watch.
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