DLF Ltd Q2 FY27 Results Analysis: Normalized PAT Slips 29%, Rental Revenue Grows 17%

DLF Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,260.58 Cr (-23.28% YoY) and PAT growth of +10.28% YoY. Here's a quick read of what worked, what to watch, and what management said.

Key Investment Insights

Key Positives

• Rental segment revenue grew 17.31% YoY to Rs.164.57 cr, with rental JV profit share of Rs.502.43 cr in the quarter
• Finance costs fell 71.13% YoY to Rs.18.22 cr; borrowings of Rs.44.95 cr against equity of Rs.45,587 cr leave the company effectively debt-free
• H1FY27 operating cash flow of Rs.1,953.37 cr (+2.9% YoY) and free cash flow of Rs.1,931.11 cr on capex of Rs.22.26 cr
• Dividend of Rs.8 per share (Rs.1,980.25 cr) paid in H1FY27 vs Rs.1,485.66 cr in H1FY26
• Total liquid assets of ~Rs.15,011 cr at Sep 2026 vs ~Rs.14,222 cr at Mar 2026; FY27 rental guidance of Rs.7,300–7,500 cr on track with DCCDL annualized at ~Rs.7,668 cr
• Reported PAT grew 10.28% YoY to Rs.1,301.35 cr with EPS of Rs.5.25 vs Rs.4.77

Risk Factors

• Revenue from operations declined 23.28% YoY to Rs.1,260.58 cr; real estate segment revenue fell 26.92% YoY
• Real estate segment margin compressed from 59.60% to 22.18% YoY (−3,742 bps) and from 34.96% in Q1FY27; segment result fell 72.80% YoY
• Reported PAT growth of 10.28% is driven by a one-time CCD fair-value gain of Rs.738.71 cr; normalized PAT declined 29.42% YoY to Rs.710.81 cr
• Employee benefits expense rose 22.63% YoY to Rs.179.07 cr while revenue declined 23.28%, pressuring segment margins
• Pending litigations include a Rs.630 cr CCI penalty (deposited under protest), a SEBI SAT appeal pending in the Supreme Court, and a Punjab & Haryana High Court IT SEZ land order stayed by the Supreme Court