FY27 Outlook: Consistent cash generation

Research evidence excerpt

FY27 Outlook: Consistent cash generation

India | India Property

DLF EquityMayResearch14, 2026

TARGET | ESTIMATE CHANGEFY27 Outlook: Consistent cash generation

DLF management maintained its medium-term path of consistent margin / RATING BUY

FCF generation of ~Rs80-100bn/annum. Pre-sales should be flat YoY PRICE INR574.15^

at ~Rs200bn, with large launches likely in mid-FY27. Lease income and PRICE TARGET | % TO PT INR815 (INR800) | +42%

portfolio GAV jumped ~20% in FY26, and medium-term mid-teens rise is on 52W HIGH-LOW INR887.50 - INR489.30

track. Cash, ongoing projects, and lease biz explain ~90% of today's stock FLOAT (%) | ADV MM (USD) 25.9% | 28.70

price, leaving DLF's quality 200msf+ land bank significantly undervalued. MARKET CAP INR1.4T | $14.9B

Maintain Buy with Rs815 PT. TICKER DLFU IN

^Prior trading day's closing price unless otherwise

noted.

Cash and margin focus. DLF generated Rs71bn FCF in FY26 and now has Rs141bn (~10%

of market cap) of net cash on the devco balance sheet. Management said focus remains on

generating c.Rs90bn margins from the pre-sales annually (implying ~45% margins), and as FY (Mar) CHANGE TO JEFe JEF vs CONS

such, pre-sales growth is not the goal. Additionally, FCF generation of ~Rs80bn/annum (6-7% 2027 2028 2027 2028

FCF yield) is targeted. REV -5% -3% -27% -8%

EPS -5% -3% -16% -10%

Project pipeline appears midyear-heavy. Management guided for Rs200bn+ pre-sales in

FY27, sticking to its medium-term path of Rs200bn-220bn. We estimate pre-sales of Rs200bn, 2027 (INR) Q1 Q2 Q3 Q4 FY

flat YoY. Of the Rs602bn medium-term launch pipeline, the company expects launches EPS -- -- -- -- 16.30

of ~Rs200bn in FY27 (Rs137bn in FY26; we expect c.Rs160-180bn). Another Rs171bn of PREV 17.21