DLF Ltd’s stock closed 4% lower on Friday, also sliding to a new 52-week low of ₹586.65 during trading hours. The sharp drop in the December quarter (Q3FY26) pre-sales disappointed investors. Pre-sales or bookings slumped over 90% year-on-year and sequentially to ₹419 crore, hurt by the absence of new launches and reduced inventory in existing projects.
DLF also temporarily halted bookings for its uber-luxury The Dahlias project during the quarter to undertake a redesign aimed at enhancing customer experience.
There were some positives as well. Collections surged 52% year-on-year and 78% sequentially to ₹4,750 crore, beating analysts’ estimates. Construction delays had kept collections muted in H1FY26, but they bounced back significantly in Q3, leading to a year-on-year jump in cash flows. This helped DLF achieve its long-term vision of becoming gross debt–free. It expects a 10-15% year-on-year growth in collections.
Launch pipeline
To maintain a healthy pre-sales trajectory now, DLF needs a steady stream of launches, given the Q3 plunge and limited inventory in existing projects. This could help soothe investor anxiety. DLF’s launch pipeline is solid. The second phase of the Arbour project with gross development value or revenue potential of around ₹2,000 crore is likely to be unveiled in Q4. In FY27, other likely launches are one group housing project in DLF City, second phase of the Mumbai project, Goa project; and a project in Panchkula. DLF has inventory in The Dahlias project and is also working on another phase of The Privana. Further, bookings in The Dahlias project resumed in January. While there will be a marginal increase in construction cost due to design upgrades, the management expects project margins to remain intact, supported by continued price appreciation at The Dahlias, which are up by nearly 25% over the past year. The company has planned projects valued at ₹60,200 crore in the medium-term of 3-4 years.
Housing demand remains strong in Gurugram, driven by a growing preference for quality residential options, both for ownership and rental, the management said. DLF is seeing healthy demand from the non-resident Indian (NRI) community, which is now contributing 25% to overall sales. But Nuvama Research analysts caution that housing volumes/price growth in Gurugram may cool as affordability comes under pressure.
Pre-sales for 9MFY26 stood at ₹16,176 crore. DLF has sales visibility of around ₹80,000 crore. This includes completed and ongoing inventory and upcoming launches which the management anticipates could help the company clock around ₹20,000-22,000 crore bookings annually for the next couple of years. However, HDFC Securities estimates DLF’s FY26 pre-sales at ₹21,000 crore, flat year-on-year and 10% below its estimates due to the shift in Goa launch to FY27. “With limited visibility on pre-sales growth (DLF needs broad-based launch numbers versus concentrated launches currently), we cut our residential net asset value premium from 30% to 15%,” added the HDFC report on 24 January.
On the commercial side, its office portfolio occupancy was around 94% in Q3FY26. Within this, special economic zone (SEZ) occupancy was 88% while non-SEZ occupancy was 98%. DLF expects its exit rental to reach ₹7,400 crore by FY26, with further growth in FY27 driven by contributions from Atrium Place and rentals from three malls. Yet, DLF’s success in navigating evolving dynamics in the residential segment will determine the stock's trajectory, said the Nuvama report dated 23 January. The DLF stock is down 15% in the last one year.