Motilal Oswal raises DLF target price to ₹780 after Q2 update

Motilal Oswal Financial Services reiterated its Buy rating on DLF and raised its target price to ₹780 in a report dated 18 October 2026, following the developer’s September-quarter results announced on 16 October. The brokerage’s valuation is based on DLF’s assets across its Gurugram-led residential business and rental portfolio.

The new target compares with the ₹674 share price cited in the brokerage note and implies a potential increase of about 16%. Motilal Oswal had set a target of ₹755 in an earlier note. Its latest report values DLF at net asset value, or NAV—the estimated value of its assets after liabilities—with no premium added.

Presales beat the brokerage’s estimate

DLF recorded presales of ₹3,800 crore in Q2 FY27, down 12% year on year but above Motilal Oswal’s ₹2,600 crore estimate. The brokerage attributed sales to the sell-out of The Aureva, a senior living project in Gurugram, which generated about ₹1,900 crore, and continued sales at The Dahlias, which contributed about ₹1,800 crore.

The brokerage said adjusted profit rose 38% to ₹1,301 crore, including a ₹738 crore fair-value gain on a joint-venture investment. It said profit excluding that gain missed expectations. The gain is an accounting valuation change and does not represent cash generated from property sales.

Motilal Oswal raised its residential weighted average cost of capital, a discount rate used to estimate future value, to 11% and its capitalisation rate for rental assets to 8%. It also rolled the residential valuation forward to FY28. The note’s equity valuation is ₹1,92,951 crore, divided by 247.5 crore shares to reach the ₹780 target.

Launch execution is a key watch point

The brokerage’s call depends in part on DLF delivering its planned launches. The company expects to launch the second phase of The Westpark in Andheri West, Mumbai, in the December quarter of FY27, subject to regulatory approvals. It has also indicated a luxury housing launch in Gurugram in the second half of FY27.

DLF has said its residential launch pipeline has sales potential of more than ₹58,000 crore over two to three years and is targeting about ₹20,000 crore in bookings for FY27. The pipeline includes Westpark Phase 2. Timely launches will therefore matter to the company’s sales outlook as well as to the assumptions behind the brokerage’s valuation.

Motilal Oswal also flagged risks from approval delays to two FY27 launches, construction disruption from pollution curbs and labour migration, and higher capitalisation rates reducing NAV. It expects core earnings before interest, taxes, depreciation and amortisation to remain thin until FY28. For investors tracking the results, the next indicators are approvals and launch timing in Mumbai and Gurugram, alongside progress towards DLF’s FY27 bookings target.