DLF’s share price surged 6% in the intraday trading session today, riding high on the back of a strong earnings report for the March 2025 quarter. Moreover, the brokerage firm Jefferies has also given an optimistic outlook for the stock.
This stock momentum came after the real estate major posted a 39% jump in its consolidated net profit and recorded its highest-ever annual sales bookings.
DLF Q4 performance
DLF in its fourth quarter of the financial result (Q4FY25) reported a net profit of Rs 1,282 crore, a 39% YoY growth. The was driven by higher revenues, which rose 47% YoY to Rs 3,130 crore, primarily due to revenue recognition from the One Midtown project and faster-than-expected delivery of independent floors in Gurgaon.
Let’s take a look at what the brokerage firm Jefferies say on DLF-
Jefferies on DLF: Buy with a target price of Rs 1,000
The brokerage firm Jefferies has given a buy rating to DLF stock, setting a target price of Rs 1,000. This suggests a upside of nearly 40% from its current market value. According to the latest brokerage report, this optimistic call is backed by DLF’s strong financial performance and growth prospects.
As per the brokerage, DLF delivered a stellar performance in the fourth quarter of FY25. The company’s net profit soared to Rs 12.8 billion, marking a 39% increase compared to the same period last year. This figure not only exceeded Jefferies’ own estimates but also surpassed market consensus.
Growth prospects bright for FY26
The brokerage firm in its report highlighted that DLF has a sizable pipeline worth Rs 739 billion for FY26 and beyond. Of this, over Rs 110 billion is expected to be launched in FY26, including the anticipated Privana Phase-3 in the first quarter. Additionally, the company holds inventory worth Rs 236 billion, primarily from the Dahlias project, ready for sale.
The brokerage believes that even with a large base of Rs 212 billion in pre-sales for FY25, DLF can continue to grow its pre-sales numbers given the strong pipeline and upcoming launches. The upcoming investor conference call on May 20 is highly awaited for further pre-sales guidance.
Cash flow and rent business: Key strengths
Strong operational cash flows have been another highlight. Customer collections jumped 54% year-on-year to Rs 32.7 billion, setting a new record. Operating cash flow stood at Rs 20.1 billion, leading to a free cash flow of Rs 23.1 billion in the quarter.
“Growth is likely in FY26,” Jefferies added, citing a launch pipeline worth Rs 73,900 crore, with Rs 11,000 crore worth of projects expected to roll out in FY26 alone.
Furthermore, the brokerage highlighted of the company’s “strong cash flows, robust pre-sales momentum, and healthy pipeline” as reasons to maintain a buy rating.
As per the brokerage report, “DLF’s delivery of projects ahead of estimates and continued luxury segment strength position it well for growth in FY26.”