As a pan-India real estate developer with an especially-strong presence in the Gurugram and Delhi markets, DLF has operations across the realty segment. A material subsidiary DCCDL (DLF Cyber City Developers Ltd) run as a JV with Singapore’s GIC, runs the commercial and retail portfolios.
From residential housing to commercial areas leasing to office spaces to hospitality, the consolidated entity is a sturdy large player in the real estate segment.
In recent years, the company is also developing spaces for data centres, opening up potentially new revenue streams.
From the highs of ₹920 made in March 2024, the stock of DLF has undergone a time-wise and a price correction over the past couple of years.
At ₹629, the stock trades at 32 times its likely per share earnings for FY27.
On a price-to-book basis, the multiple comes to a little over three times. Though not that inexpensive, on a relative basis compared to historical valuations, DLF provides a reasonable opportunity for long-term investors.
Over the past five years, the stock’s median PE multiple has been north of 53 times. The BSE Realty index trades at a PE of almost 41 times.
The median price-to-book ratio over the past three years is around 4.4 times (Screener data).
Investors with a perspective of more than three years can consider accumulating the stock at current levels and on declines linked to the broader market.
Over the FY22-25 period, DLF’s revenues grew at 13.6 per cent compounded annually to ₹8,996 crore in FY25, while net profits rose at a rate of 42.8 per cent to ₹4,367 crore.
During 9MFY26, while total revenues rose 36.7 per cent year on year to ₹7,722 crore, net profits rose 2 per cent to ₹3,144 crore.
The relatively-mild growth in profit was due to a sharp rise in the cost of land, plots, constructed properties and development rights, and higher tax expenses. DLF’s large land parcel, when it gets monetised, would result in higher profit growth over the long term though there could be lumpiness as is characteristic of the segment.
Luxury category
DLF has a track record of over 80 years. In addition to Gurugram and Delhi, the company has presence in Noida, Mumbai, Hyderabad, Chennai, Goa, Panchkula, Chandigarh among a few other cities.
Broadly, DLF has two businesses. The development business spans residential and commercial properties. High-rise condominiums, low-rise independent floors, plotted development and shop-cum-offices are the offerings.
The company operates only in the super luxury, luxury and premium segments of the market as far as the residential offerings are concerned. Considerable NRI demand exists for most of its properties.
This business accounts for about two-thirds of the consolidated revenue. There is a minor annuity business in this segment as well.
DLF’s commercial arm (with 66.67 per cent stake) DCCDL is into the annuity business. This includes development and leasing of offices, renting out mall spaces, asset management and hospitality (hotels, clubs, food & beverages etc.).
This annuity business delivers steady revenue streams for the company. The business has around 49 million sq ft of rental assets. The occupancy levels are at 94 per cent, among the highest in the industry.
Over the medium term of around three years, the company hopes to generate as much as ₹10,000 crore revenue from the annuity business alone, up from ₹6,400 crore expected in FY26.
In 9MFY26, DLF launched 5.6 million sq ft of luxury segment projects worth ₹13,400 crore and 0.1 million sq ft of commercial business worth about ₹300 crore.
In the coming years, another 25-million-sq-ft worth of residential and commercial projects, valued at over ₹60,000 crore are expected, lending considerable revenue visibility. The company has a solid land bank.
It has 14-million-sq-ft worth of projects under construction, another 13 million sq ft in the pipeline and a balance 60 million sq ft to be tapped for the future across Gurugram and a few other cities.
An Anarock report throws up an important insights.
Of the top seven cities, the National Capital Region (NCR), which includes Gurugram, saw the highest average flat size growth of 30 per cent in the last two years. The size has risen from around 1,890 sq ft in 2023 to 2,466 sq ft in 2025.
Also, the NCR region has witnessed a significant increase in new luxury supply (homes priced more than ₹1.5 crore) in this period. In 2023, the luxury homes segment accounted for a 40 per cent share of the total launches. This share has doubled to 80 per cent in 2025.
The key risk is a broader economic slowdown or heavy retrenchment in high-income segments such as IT, which could impact housing demand. This could be offset by NRIs buying high-priced homes for letting out.
Healthy financials
DLF has a solid balance sheet. It has a net cash position of ₹11,660 crore, including ₹10,433 crore in RERA (real estate regulatory authority) accounts. DCCDL (a AAA-rated entity, which is higher than the parent’s AA+) has a net debt of ₹16,976 crore. It is a profitable company and is witnessing rapid growth.
When we take net debt to the GAV (gross asset value) of DCCDL it is at very comfortable levels at just 0.18 times as of December 2025, down from 0.3 times in FY22. DCCDL’s net debt to EBITDA was at 3 times, down from 5.5 times in FY22. The cost of debt is moderate at 7.2 per cent as of Dec ember 2025.
Published on February 21, 2026
