DLF Reports 15% Drop in Q2 Profit Despite Record ₹4,332 Crore Sales Driven by Mumbai Entry

Leading real estate developer DLF Ltd. witnessed a decline in its quarterly profit despite strong sales performance during the second quarter of fiscal year 2026. The company announced that its net profit for the quarter ending September 2025 stood at ₹1,171 crore, marking a year-on-year decrease from ₹1,381 crore recorded during the corresponding period in the previous fiscal.

Financial Performance Overview for Q2 FY26

The real estate major disclosed its consolidated financial results, revealing a net profit of ₹1,171 crore alongside a consolidated revenue of ₹2,262 crore for the second quarter. Despite the profit decline, the company maintained strong new sales bookings worth ₹4,332 crore during the quarter. The firm's net cash position remained robust at ₹7,717 crore, demonstrating financial stability amid market fluctuations. DLF's ambitious residential launch plans continue to drive the company's growth strategy across multiple markets.

Mumbai Debut Powers Strong Bookings

The company's impressive sales bookings were primarily fueled by its strategic entry into the Mumbai real estate market through the launch of 'The Westpark' project. This maiden Mumbai venture, combined with continued demand in the super-luxury residential segment, helped the developer maintain momentum in new bookings. For the first half of FY26, cumulative bookings reached ₹15,757 crore, aligning with the company's full-year guidance. The real estate developer's debut in Mumbai represents a significant geographical expansion strategy.

Balance Sheet Remains Resilient

Despite paying out dividends worth ₹1,485 crore and repaying debt amounting to ₹963 crore during the quarter, DLF maintained a healthy net cash position of ₹7,717 crore. In an official statement, the company emphasized its ongoing commitment to strengthening its balance sheet and enhancing cash flow generation capabilities. This financial discipline positions the developer favorably for future growth opportunities. DLF's investment plans for premium commercial spaces demonstrate the company's long-term vision beyond residential projects.

Credit Rating Enhancement Reflects Strong Fundamentals

Rating agency CRISIL upgraded DLF's credit rating to AA+/Stable, acknowledging the company's solid financial health and consistent operational performance. This upgrade reflects the confidence in the developer's ability to navigate market challenges while maintaining financial discipline. The improved rating is expected to facilitate better access to capital at competitive rates for future expansion plans. Industry observers note that Morgan Stanley's bullish stance on DLF further validates the company's market position.

Luxury Segment Drives Revenue

The super-luxury residential segment continues to be a major revenue driver for DLF, with projects like THE DAHLIAS achieving record-breaking sales in Gurugram. The company's focus on high-end residential developments aligns with the growing demand from India's ultra-wealthy investors in luxury homes, who are increasingly allocating wealth to premium residential assets.

The developer's performance in the second quarter reflects the broader dynamics of the Indian real estate sector, where luxury and premium segments continue to witness strong demand despite overall market moderation. With its strategic Mumbai entry and continued success in existing markets, DLF aims to achieve its annual guidance while maintaining financial prudence.