India's DLF posts higher first-quarter profit on sustained demand for premium homes

DLF

04/08/2025 13:30

Aug 4 (Reuters) - India's DLF DLF.NS reported an 18% jump in first-quarter profit on Monday as strong demand for premium apartments outweighed higher costs, mainly tied to more land parcels acquired.

The property firm reported consolidated net profit of 7.63 billion rupees ($87.1 million) for the three months ended June 30.

Revenue from operations nearly doubled to 27.17 billion rupees, while expense jumped 94% 24.66 billion rupees as land costs trebled.

KEY CONTEXT

Indian real estate developers have been racing across the country to buy more land and launch new projects to cater to home-buyers who increasingly prefer larger, pricier apartments with more amenities.

Analysts noted that the first quarter signalled a rebound for India's real estate industry due to faster approvals and streamlined policies, leading to increased momentum, after weaknesses in approvals weighed on fresh launches in 2024.

However, land costs weighed on developers' margins, with DLF's gross margins for the reported quarter contracting to 28% from 51% a year ago.

Profits at peer Sobha SOBH.NS more than doubled last month, while that at of Godrej Properties GODR.NS rose 15.4%.

PEER COMPARISON

Estimates (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
DLF
DLF.NS
41.37
52.88
18.29
2.88
Buy
21
0.83
0.77
Max Estates
MAXS.NS
6591.67
96.58
25.66
-361.42
Strong Buy
4
0.66
-
Godrej Properties
GODR.NS
33.30
59.31
37.05
29.68
Buy
19
0.76
-
Signatureglobal
SIGT.NS
25.91
21.80
54.87
167.70
Strong Buy
5
0.67
-

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.6220 Indian rupees

DLF Q1 Performance https://tmsnrt.rs/45iKuG2

 (Reporting by Anuran Sadhu in Bengaluru; Editing by Janane Venkatraman)

 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))