Earnings Miss: DLF Limited Missed EPS By 16% And Analysts Are Revising Their Forecasts

DLF Limited (NSE:DLF) just released its latest quarterly report and things are not looking great. Earnings fell badly short of analyst estimates, with ₹14b revenues missing by 11%, and statutory earnings per share (EPS) of ₹2.61 falling short of forecasts by some -16%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on DLF after the latest results.

View our latest analysis for DLF

Taking into account the latest results, the current consensus from DLF's 18 analysts is for revenues of ₹75.0b in 2025. This would reflect a meaningful 18% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 17% to ₹13.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹74.5b and earnings per share (EPS) of ₹14.25 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹898, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values DLF at ₹1,107 per share, while the most bearish prices it at ₹670. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that DLF's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 24% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.0% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 22% annually. So it looks like DLF is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for DLF. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹898, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for DLF going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for DLF that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com