DLF Ltd., India's largest listed real estate developer, reported a 10.3% year-on-year rise in consolidated net profit to Rs 1,301 crore for the September quarter of the financial year 2026-27, even as revenue and operating profitability came under pressure.
The company's net profit stood at Rs 1,180 crore in the corresponding quarter last year, according to its financial results. Revenue from operations declined 23.3% year-on-year to Rs 1,261 crore in the second quarter, compared with Rs 1,643 crore a year ago.
The fall in revenue was accompanied by a sharp decline in operating earnings. DLF's earnings before interest, tax, depreciation and amortisation (EBITDA) plunged 91.9% to Rs 23 crore from Rs 284 crore in the year-ago period.
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Consequently, the EBITDA margin contracted to 1.8% in the September quarter from 17.3% a year earlier, highlighting the pressure on the company's operating performance.
A sharp increase in other income helped support DLF's bottom line despite the weakness in revenue and operating earnings.
Other income rose to Rs 1,037 crore in the quarter under review from Rs 619 crore in the corresponding period last year.
The increase in other income came alongside the rise in net profit, even as the company's core operating performance weakened. The reported figures point to a divergence between DLF's bottom-line performance and its operating earnings during the quarter.
The company did not provide a detailed explanation for the movements in revenue and EBITDA in the regulatory disclosure cited here.
Separately, DLF's board of directors approved a request from Madhukar Housing and Development Company, an entity belonging to the promoter group, to be reclassified from the promoter/promoter group category to the public category.
In a regulatory filing dated October 16, DLF said the approval followed a recommendation from its Stakeholders Relationship Committee and was subject to approval from the BSE and the National Stock Exchange of India.
The company said Madhukar currently holds no equity shares or voting rights in DLF and has met the applicable conditions under Regulation 31A of the Securities and Exchange Board of India's listing regulations.
DLF added that the proposed reclassification would not affect its operations, financial position or existing shareholding structure, including the public shareholding.
Following the reclassification, subject to regulatory approval, the promoter and promoter group would continue to hold 1,83,36,36,385 equity shares, representing 74.08% of DLF's paid-up equity share capital. The company said it would submit a detailed application to the stock exchanges within the stipulated timelines.
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