Nomura stays 'neutral' on DLF citing muted FY26 outlook

DLF reported a strong Q4FY25 performance driven by one-off revenue recognition from its 'One Midtown' project, but Nomura has maintained a Neutral rating on the stock, citing a lack of fresh triggers in its FY26 guidance and a decline in pre-sales momentum.

In the opening session on May 20, the shares of DLF were trading at a gain of 2 percent.

DLF ended FY25 with a net cash balance of Rs 6,800 crore, providing it a strong foundation to execute its project pipeline. However, given the unchanged launch schedule and lack of major near-term catalysts, Nomura believes a Neutral stance remains appropriate, with a target price of Rs 700.

The realty major posted robust earnings for the March quarter, with revenue, EBITDA and PAT coming in at Rs 13,100 crore (47 percent higher), Rs 10,100 crore (30 percent higher) and Rs 13,000 crore (39 percent higher), respectively. The performance was largely driven by first-time revenue recognition from 'Independent Floors' and the high-margin 'Midtown JV' project. Collections stood at Rs 3,300 crore for the quarter, registering 54 percent YoY growth.