DLF, Dixon, Zydus Lifesciences, Petronet LNG, Torrent Pharma, Quess Corp, IRB Infra, Karur Vysya Q4 Review

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HDFC Securities Institutional Equities

DLF - Steady sales driven by healthy demand

DLF Ltd. reported a stable quarter with pre-sales of Rs 20.3 billion (+39.1%/-83.2% YoY/QoQ), largely on the back of sustenance sales from recently-launched Dahilas. Collections improved significantly, led by robust bookings, to Rs 33.2 billion (+50.6%/+6.5% YoY/QoQ). Moreover, it is heading towards the launch of the Mumbai project, along with Privana North in Q1 FY26, following its next uber luxury project DLF 5 at the end of this fiscal, which should further improve margins.

On the back of a strong response from the recent launch of its uber luxury project Dahlias, we believe that demand for this segment is here to stay. Demand remains robust in Gurgaon, supported by NRI investments, and pre-sales are expected to remain steady at Rs 200-220 billion in FY26, with a potential for upside.

Moreover, the first residential launch in Mumbai and timely launches of Downtown commercial projects in Gurugram and Chennai are expected to serve as key growth catalysts, moving forward.

Hence, given-

1. the strong pre-sales momentum supported by price hikes;

2. robust launch plans; and

3. an expected increase in office occupancy levels, we maintain Buy with a target price of Rs 988/share.

Dixon Technologies - Another strong quarter; outlook remains bright

Dixon Technologies India Ltd. reported robust 121% YoY revenue growth to Rs 102.93 billion in Q4, primarily driven by a 194% surge in its Mobile and EMS division, which constituted 88% of total revenue. Despite a 140 bps YoY decline in the gross margin, Ebitdam expanded by 40bps to 4.3%, attributed to reduced employee costs and other expenses.

Consequently, Ebitda increased by 143% YoY, leading to a 111% rise in APAT, despite higher depreciation, capital charges, and lower other income.

The company targets 43-44 million mobile phone sales in FY26 (up ~50% YoY), further rising to 60-65 million by FY27. The Vivo JV is expected to start production in Q4 FY26, targeting 18-20 million mobile units by FY27.

Company intends to expand components production under ECMS. It will spend Rs 9-10 billion in capex in FY26. We upgrade Dixon to Add from Reduce earlier, with a target price of Rs 17,430/share (70x FY27E EPS).

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