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.

However, operational profitability faced severe pressure. EBITDA for the quarter stood at ₹223 crore, a sharp decline from ₹2,830 crore in Q2FY26. Consequently, the EBITDA margin contracted significantly to 1.77% from 17.26% in the previous year. This drop occurred alongside a 23.28% fall in revenue from operations 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.

Cash Flow and Business Highlights

Operating cash flow for the quarter stood at ₹1,858 crore, underscoring sustained cash generation capabilities. The company maintained a robust net cash position of ₹15,084 crore, even after accounting for a significant dividend outflow of ₹1,980 crore.

New sales bookings reached ₹3,800 crore during the quarter. The Aureva project in Gurugram, a curated luxury retirement housing address, witnessed a complete sell-out, highlighting strong demand for differentiated offerings. The super-luxury offering, The Dahlias, continues to attract strong demand from discerning customers. The rental portfolio, spanning approximately 50 msf, demonstrated robust operating strength with industry-leading occupancy.

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 stark divergence exists between the collapsing operational profitability and the rising bottom line. While net profit grew by 10.28% to ₹1,301.35 crore, EBITDA plummeted by over 92% to ₹223 crore. 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 and operating margins compressed severely, non-operational gains and JV contributions significantly bolstered profitability.

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.