DLF Limited board of directors has approved the reclassification of Madhukar Housing and Development Company from the 'Promoter/Promoter Group' category to the 'Public' category. The decision, taken on October 16, 2026, is subject to final approval from stock exchanges.

The move follows a request received by DLF on October 7, 2026. Madhukar currently holds nil equity shares and voting rights in the company. The Board noted that Madhukar has complied with all requisite conditions for reclassification as mandated by Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

No impact on operations or shareholding

The company stated that this reclassification will not have any impact on its operations, financial position, or existing shareholding structure. Public shareholders remain unaffected by this administrative change.

Post-reclassification, the Promoter/Promoter Group will continue to hold 183,36,36,385 equity shares, representing 74.08% of DLF's paid-up equity share capital. This confirms that while the entity's classification changes, the actual ownership stake remains unchanged.

Procedural steps and authorization

The Board authorized Managing Director Ashok Kumar Tyagi, Group CFO Badal Bagri, and Company Secretary R.P. Punjani to finalize and submit applications to BSE and NSE. They are also empowered to appoint advisors and provide clarifications required by the exchanges.

The Stakeholders Relationship Committee recommended the reclassification after verifying compliance. A detailed application will be submitted to the stock exchanges within stipulated timelines.

DLF Limited reported a consolidated net profit of ₹1,301.35 crore for the quarter ended September 30, 2026 (Q2FY27), marking a 10.28% increase from the ₹1,180.09 crore recorded in the corresponding period last year.

The company's Board of Directors approved the unaudited financial results for the quarter and half year ended September 30, 2026, during a meeting held on October 16, 2026. While profitability expanded, top-line performance faced headwinds, with revenue from operations falling 23.28% YoY to ₹1,260.58 crore compared to ₹1,643.04 crore in Q2FY26.

Segment Performance and Operational Metrics

The real estate development segment continued to drive the majority of the group's revenue, although it contracted significantly on a year-on-year basis. Rental income emerged as a resilient component of the portfolio, showing growth despite the broader decline in operational revenue.

Standalone figures also reflected this divergence. Standalone revenue from operations stood at ₹439.08 crore for the quarter, down from ₹646.53 crore in Q2FY26. However, standalone other income surged to ₹947.11 crore, up from ₹935.86 crore in the previous year, helping stabilize total income at ₹1,386.19 crore against ₹1,582.39 crore last year.

Key Litigation Updates and Auditor Observations

The statutory auditor, S.R. Batliboi & Co. LLP, issued an Emphasis of Matter paragraph highlighting significant legal uncertainties pending before the Supreme Court of India. These include:

• A penalty of ₹630.00 crore imposed by the Competition Commission of India (CCI) regarding unfair conditions on buyers, which has been deposited under protest.
• Judgments cancelling sale deeds related to two IT SEZ/IT Park projects in Gurugram, currently stayed by the Supreme Court.
• Restrictions and penalties imposed by the Securities and Exchange Board of India (SEBI), with appeals pending final disposal.

Management stated that based on external legal counsel advice, no adjustments have been made to the financial results for these matters, citing a strong likelihood of success.

What the Numbers Show

A notable divergence exists between the declining operational revenue and the rising net profit. Consolidated revenue fell by over 23%, yet net profit grew by more than 10%. This disconnect is largely driven by a substantial increase in "Other Income," which rose to ₹1,036.72 crore in Q2FY27 from ₹618.76 crore in Q2FY26. Additionally, the share of profit from joint ventures contributed ₹499.28 crore to the bottom line, up from ₹411.56 crore in the previous year. This indicates that while core sales activity slowed, non-operational gains and JV contributions significantly bolstered profitability.