Earnings Miss: DLF Limited Missed EPS By 22% And Analysts Are Revising Their Forecasts

Last week, you might have seen that DLF Limited (NSE:DLF) released its first-quarter result to the market. The early response was not positive, with shares down 3.1% to ₹765 in the past week. Revenue came in at ₹27b, beating expectations by a remarkable 27%, while statutory earnings per share (EPS) were ₹3.08, missing estimates by an equally remarkable 22%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, DLF's 22 analysts currently expect revenues in 2026 to be ₹92.7b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 2.3% to ₹17.71 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹93.0b and earnings per share (EPS) of ₹17.64 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for DLF

There were no changes to revenue or earnings estimates or the price target of ₹946, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic DLF analyst has a price target of ₹1,060 per share, while the most pessimistic values it at ₹740. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2026. This indicates a significant reduction from annual growth of 7.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 22% per year. It's pretty clear that DLF's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for DLF going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for DLF that you need to be mindful 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.