Akash Verma 19 October 2026

DLF Share Price Target at Rs 780: Motilal Oswal Remains Bullish on Real Estate Major

Motilal Oswal Financial Services has reiterated its BUY rating on DLF and raised its target price to Rs 780, implying about 16% upside from the current market price of Rs 674. The Gurugram developer's presales fell 12% year-on-year to Rs 3,800 crore in the September quarter of FY27, yet beat the brokerage's Rs 2,600 crore estimate on the sell-out of its new retirement-living project, The Aureva. Reported earnings were weak, with EBITDA of just Rs 23 crore, but a Rs 738 crore one-time gain lifted adjusted profit 38%. The brokerage values DLF at net asset value, with a Rs 58,200 crore launch pipeline ahead.

BUY · REITERATED
Q2FY27 Results Update
Real Estate

DLF's sold-out launches outrun a thin quarter as Motilal Oswal lifts target to Rs 780

Presales beat estimates, rental occupancy hits a record and net cash stays above Rs 15,000 crore.

Motilal Oswal Financial Services · Report dated Oct. 18, 2026

LOBBY DIRECTORY

DLF LTD · NSE: DLF

PH Target priceRs 780

52 52-week highRs 787

G Current priceRs 674

B1 52-week lowRs 489

Lift Upside~16%

Plan ValuationSoTP / 1x NAV

Market cap about Rs 1,66,840 crore · 247.5 crore shares

A quarter of two ledgers

DLF's September quarter split into a strong commercial story and a feeble accounting one. Presales of Rs 3,800 crore fell 12% but beat Motilal Oswal's Rs 2,600 crore forecast.

Revenue fell 23% and EBITDA collapsed to Rs 23 crore. Adjusted profit still rose 38% to Rs 1,301 crore on a Rs 738 crore fair-value gain on a joint-venture investment; excluding it, profit missed expectations.

Q2 FY27 (Rs crore)	Actual	YoY	MOFSL estimate	Variance
Presales	3,800	-12%	2,600	Beat
Revenue	1,261	-23%	2,124	-41%
EBITDA	23	-92%	414	-94%
EBITDA margin	1.8%	17.3% a year ago	19.5%	-1,764 bps
Adjusted PAT	1,301	+38%	945	+38% (one-off aided)

Source: Motilal Oswal quarterly table; figures converted to crore and rounded.

The sales gallery: two launches that sold the quarter

SOLD OUT

New launch · Gurugram

The Aureva

Luxury retirement-housing project, fully sold out
Bookings of about Rs 1,990 crore, Rs 1,900 crore of it in Q2
Expression-of-interest cheque: Rs 50 lakh per unit

PRICE UP

Sustenance sales · DLF5

The Dahlias

About Rs 1,800 crore of presales; 276 units sold to date
Realisation crossed Rs 1,00,000 per sq ft, prices up about 10%
North-facing units fetched Rs 120-125 crore; a penthouse Rs 270 crore

Under construction: the Rs 58,200 crore launch pipeline

Of Rs 1,14,500 crore of planned launches, DLF has rolled out Rs 56,300 crore. Next up are Westpark Phase 2 in Mumbai in the third quarter and The Magnolias Phase 2 in Gurugram in the fourth, subject to approvals. Launched projects also hold about Rs 15,000 crore of unsold stock. Solid fill below marks launched value; hatching marks what remains.

Super luxury (55 lakh sq ft)Launched Rs 35,000 cr · To launch Rs 2,500 cr

Luxury (2.9 crore sq ft)Launched Rs 21,000 cr · To launch Rs 53,000 cr

Premium / value homes (23 lakh sq ft)Launched Rs 0 cr · To launch Rs 2,000 cr

CommercialLaunched Rs 290 cr · To launch Rs 700 cr

Bar length to scale on a Rs 74,000 crore axis (the luxury segment total). Source: Motilal Oswal Exhibit 1.

Land deals in Sector 61, Gurugram, could create a contiguous plot of about 36 acres. Motilal Oswal expects presales to grow just 2% a year to Rs 20,900 crore by FY28.

The lights are on in the rental towers

Rental joint venture DCCDL lifted rental income 9% to Rs 1,480 crore. Office occupancy hit a record 96% and retail stood at 97%. Each lit window below is one percentage point of occupied space.

96%

Office portfolio

Record high; 99% non-SEZ, 91% SEZ

97%

Retail portfolio

Malls near full

With Summit Plaza and Midtown Plaza commissioned and Promenade Goa due in the second half, DCCDL's exit run-rate should reach about Rs 6,800 crore. The brokerage expects total rentals of Rs 7,100 crore in FY27 and Rs 7,900 crore in FY28.

Cash in the vault, revenue in the pipe

Collections rose 3% to Rs 2,600 crore. Despite a Rs 1,980 crore dividend, net cash slipped only Rs 120 crore to Rs 15,080 crore. DCCDL's net debt stands at Rs 18,400 crore, just 0.18 times asset value.

Reported earnings lag because of timing. Launched inventory carries Rs 39,500 crore of unrecognised gross margin, and management expects revenue to inflect from FY28 as Arbor, the Privana projects and The Dahlias complete.

Estimates trimmed, sales assumptions untouched

Rs crore	FY27E old	FY27E new	Change	FY28E old	FY28E new	Change
Revenue	10,622	9,274	-13%	12,619	11,657	-8%
EBITDA	3,053	2,185	-28%	3,834	3,370	-12%
Adjusted PAT	5,446	5,251	-4%	6,541	6,061	-7%
Presales	20,199	20,199	0%	20,905	20,905	0%
Collections	13,836	13,836	0%	14,878	14,878	0%

Source: Motilal Oswal Exhibit 13, converted to crore.

EPS rises to Rs 24.5 by FY28, or 27.6 times earnings.

Building the target, floor by floor

Motilal Oswal values DLF at net asset value with no premium. It raised the residential WACC to 11.0% and the cap rate to 8.0%, but rolling forward to FY28 lifted the target to Rs 780.

Rooftop: Rs 1,92,951 crore equity value ÷ 247.5 crore shares = Rs 780

Future rental potentialRs 33,543 cr

DLF share of DCCDL (8% cap rate)Rs 41,046 cr

Atrium Place (DLF share)Rs 3,424 cr

DLF rental assets (8% cap rate)Rs 5,623 cr

Future launches on residual landbankRs 65,166 cr

Completed inventory and planned launchesRs 35,493 cr

Basement: net cash used in SoTPRs 8,657 cr (+)

Development NAV: Rs 1,00,659 crRental EV: Rs 83,636 cr

Floor heights roughly proportional to value, with a minimum height for legibility. Source: Motilal Oswal Exhibit 14, converted to crore.

Target for investors

The Rs 780 target implies about 16% upside, just over the house's 15% BUY threshold and a shade below the Rs 787 52-week high. The call rests on delivering the FY27 launches.

Editor's Note

The header reads "2QFY26," but the body covers Q2 FY27; we use Q2 FY27.
CMP is Rs 674 on the cover and Rs 675 in the valuation table.
The valuation uses net cash of Rs 8,657 crore against Rs 15,080 crore reported; the gap is unexplained.
Collections "rose 3%" in the text but "remained flat" in the chart title.

What could go wrong

Launch approvals: delays to the two FY27 launches.
Construction pace: pollution curbs and labour migration.
Earnings quality: core EBITDA stays thin until FY28.
Valuation sensitivity: higher cap rates would trim NAV.

Drawn from the report's commentary; it prints no risk list.

Levels at a glance: DLF · BUY (Motilal Oswal) · CMP Rs 674 · Target Rs 780 · Upside ~16% · 52-week range Rs 489-787 · Basis: SoTP at 1x NAV (FY28 residential, 8% cap rate commercial)

Sources

Motilal Oswal Financial Services, DLF 2QFY27 Results Update, Oct. 18, 2026. Research analysts: Harsh Pathak, Yohan Batliwala and Guru Charan. Charts are TopNews drawings of the report's figures.

Disclaimer: Investment in securities markets is subject to market risks. Read all related documents carefully before investing. This TopNews Story is based on a brokerage research report and is for information only; it is not investment advice.

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