DLF shares surge 5% in subdued market; here's why

Shares of the Gurugram-based real estate developer, DLF, rose as much as 4.83% to hit an intraday high of ₹773 in an otherwise subdued market.

Here's why DLF shares are surging:

Its revenue from operations jumped 47% to ₹3,128 crore as against ₹2,135 crore in the year-ago period.

The Gurugram-based real estate developer posted stable operational performance in fourth quarter of financial year 2024-25 as its operating profit also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 30% to ₹979 crore.

However, EBITDA margin contracted by 410 basis points to 31.30% from 35.26% in the corresponding period last year.

The company's board recommended dividend of ₹6 per share.

The company informed exchanges that it has appointed Vinati Kastia Kilambi as an independent director for a period of five years while AS Minocha has completed her five-year term.

DLF's latest super-luxury offering - The Dahlias - received encouraging demand and generated ₹13,744 crore in new sales bookings during the fiscal, DLF said in a press release.

"The humbling response to our latest offering underscores our brand’s strength and our commitment to customer centricity. This has resulted in the monetization of approximately 39% of the estimated total sales potential of this project within the first year of its launch," DLF said.

"We also launched the next phase of our luxury project - DLF Privana West, which garnered strong interest and witnessed complete sell out within a few days of the soft launch clocking approximately Rs 5,600 crore of new sales bookings," the Gurugram-based company added.

DLF's annuity business delivered steady performance in March quarter. DLF Cyber City Developers Limited clocked revenue of ₹6,448 crore and EBITDA came in at ₹4,949 crore.

"Occupancy levels across our rental portfolio saw gradual improvement and remained healthy at 94%. We expect sustained demand momentum across our annuity business and hence continue to judiciously invest towards growing our portfolio across geographies. Rental income is expected to further grow with rent commencement of recently completed office block at DLF Downtown, Gurugram admeasuring approximately 2 msf," DLF said.

"We believe that our business is well poised to leverage this structural upcycle backed by a significant land bank having high embedded potential, a robust pipeline of new products across both development and rental business, strong balance sheet and consistent cash flow generation. We remain committed to deliver consistent and profitable growth," DLF added.

As of 9:55 am, DLF shares traded 4.77% higher at ₹772.60, outperforming the BSE100 index which was trading with a negative bias.