Jefferies maintains ‘Buy' on DLF after record profit and strong luxury housing momentum in Q4 results

Business Upturn

20-05-2025

Jefferies has reaffirmed its 'Buy' rating on DLF with a target price of ₹1,000, following a strong Q4FY25 performance driven by robust pre-sales at its luxury projects and better-than-expected execution across the Delhi-NCR portfolio. The brokerage said the company delivered its highest quarterly PAT in over 15 years, backed by timely project deliveries and solid operating cash flow.
DLF reported a 36.3% year-on-year rise in net profit to ₹1,282.2 crore, on the back of a 46.5% YoY increase in revenue to ₹3,127.6 crore. EBITDA stood at ₹978.1 crore, up 29.7% YoY, while margins moderated to 31.3% from 35.3% last year. The company declared a dividend of ₹6 per share, in line with expectations. Luxury housing powers growth; Dahlias leads pre-sales
Jefferies noted that the Dahlias project in Gurugram's super-luxury segment remained a key sales engine, helping DLF post over ₹20 billion in pre-sales for Q4FY25, matching performance in previous strong quarters. Project deliveries in NCR were slightly ahead of estimates, contributing to the quarterly revenue beat.
FY25 pre-sales stood at ₹212 billion — a 44% YoY jump and the highest annual figure in the company's history. With this performance, DLF cements its leadership in the premium residential segment, according to the brokerage. Strong cash flows, office rentals on the rise
The company reported strong operating cash flow, which helped push cash balances significantly higher. Net cash now stands at ₹6,800 crore, up from ₹4,500 crore in Q3, reinforcing the strength of its financial position.
Jefferies also pointed to a gradual but steady improvement in the office segment, with occupancy levels reaching 94%, and additional completions expected in FY26. The brokerage believes this dual engine of high-end residential sales and annuity income from commercial leasing gives DLF a balanced growth profile.
'With best-in-class pre-sales momentum, robust balance sheet, and improving rental dynamics, DLF is firing on all cylinders,' Jefferies wrote in its post-result note.
Disclaimer: This article is based on the brokerage report by Jefferies. It does not constitute investment advice. Investors are advised to consult their financial advisors before making any investment decisions.