DLF Limited

DLF Limited

663.25
INR
-0.75
(-0.11%)
16.27EPS
38.11P/E
1.53TMarket Cap
Jan 22Next Earn

Q2 FY2027 · Earnings Call TranscriptOctober 17, 2026

Operator

Ladies and gentlemen, good day, and welcome to DLF Limited's Q2 FY27 earnings conference call. We have with us today on the call Mr.

Ashok Tyagi, Managing Director, DLF Limited; Mr. Aakash Ohri, Managing Director and Chief Business Officer; and Mr.

Badal Bagri, Group CFO, DLF Limited. As a reminder, all participant lines will be in the listen-only mode, and there'll be an opportunity for you to ask questions after the presentation concludes.

Please note that this conference and meeting is being recorded. I now hand the conference over to Mr.

Badal Bagri. Thank you, and over to you, sir.

Badal Bagri

Good afternoon, everyone, and thank you for joining us today. We are pleased to report yet another strong performance, reflecting the underlying quality of our assets, disciplined execution, our brand strength, and prudent capital allocation across a well-diversified mix of development and annuity business.

Strong cash generation and robust balance sheet continues to position us well for sustained growth in future. I'll briefly talk about the operating and financial highlights.

New sales booking for the quarter stood at 3,800 crores approximately. We launched Oreva, the luxury retirement housing address, which received an extremely strong response with the complete sell-out.

We continue to see absolutely strong demand for our super-luxurious project, Dahlias, in the current quarter as well. Overall collections stood at 2,780 crores in the current quarter, resulting in operating cash flow of approximately 1,858 crores.

Net cash position stood at approximately 15,100 crores despite an very, very strong dividend payout in the current quarter of close to 1,980 crores. Our rental portfolio stood at 50 million square feet.

The portfolio has now achieved its ever-highest occupancy levels, 96% in terms of area and 97% by value. This continues to be amongst the highest in the industry.

The rental business maintained strong momentum, delivering healthy top-line growth and high-teen growth in profitability. Moving on to financial numbers.

Overall consolidated revenue stood at 22,000 2,298 crores. This includes a one-time gain of 738 crores, which is accounted for as other income, which is due to valuation of one of the investments which we have made in one of our JV companies as per accounting standards.

EBITDA stood at 1,060 crores, resulting in a net profit of over 1,300 crores. The gross margin potential of our development business continues to stand at an approximately 40,000 crores with a potential of cash generation of over 42,500 crores.

For DCCDL, our consolidated revenue stood at 2,014 revenue stood at 2,014 crores, EBITDA at 1,537 crores, resulting a net profit of over 750 crores for the current quarter, reflecting an year-over-year growth of 17%. With this, I would like to hand over back to all of you for Q&A.

Operator

Thank you very much. We will now begin the question-and-answer session.

Participants connected through the audio call may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two.

Participants are requested to use handsets while asking a question. Participants connected through the webcast may click on Ask a Question tab, accept the prompt, connect via Zoom, post which you may click on Raise Hand icon to ask your question.

The operator will announce your name to proceed with your question. Kindly accept the prompt, unmute your audio, turn on your video while asking your question.

Please note participants are requested to announce your company name before proceeding with your question. We will wait for a moment while the question queue assembles.

First question is from the line of Puneet. Kindly accept the prompt, unmute your audio, and proceed with your question.

Kindly announce your company name before proceeding with your question, sir.

Puneet Gulati

Sure. This is Puneet from HSBC.

Congratulations on good launch of Oreva. My first question is, are you happy with the time it took to launch and sell?

Because typically you guys sell out much faster. This time, it got extended into a couple of days into October.

Any thoughts on that?

Badal Bagri

Couple of days into October? I thought that the entire sale concluded by September 30th, but Aakash

Aakash Ohri

yeah. No, Puneet.

The sales concluded see, what we do is that we take the first initial booking and that's a substantial amount, as you know. That's 50 lakh rupees.

Everything concluded before 30th of September. The paperwork and all that obviously sometimes takes time.

Here, so, we report once the money is in the account and the forms and KYCs are done. We don't report otherwise.

Puneet Gulati

Understood. That's very clear.

Puneet,

Badal Bagri

out of 1,985 total potential, close to 1,900 crores was reported in the current quarter. There were just six or se- six units or so which kind of spilled over, which has got subsequently recorded in the system.

We report what is recorded in our financial system

Aakash Ohri

from That's because of some NRI money. As I said, we only account for moneys which have come in.

Verbal confirmations, written confirmations, even the codes that came in, the SWIFT code sometimes the tallying takes time because the bank holidays and all were there, weekend.

Puneet Gulati

That's

Aakash Ohri

how. I think we are a bit too precise in what we're doing.

Otherwise, it's all, technically, everything was done before 30th September.

Puneet Gulati

Understood. Secondly, on Yeah.

Aakash Ohri

Booking amount, Puneet, was 50 lakhs,

Badal Bagri

50 lakhs. 50 lakhs,

Puneet Gulati

yeah. That's very clear.

Secondly, on Dahlias, you talked about taking the price increases. Are you already seeing those price increases or should we still expect them post the launch of experience center?

Aakash Ohri

No, no. If you see this time's report, Dahlias has been seeing a price increase.

In fact, it's already gone up by almost about 10% even this time. Post the experience center, once the show-and-tell begins, it's going to be there.

The total super luxury, including the Camellias, we did gross sales of about 19 this quarter. Dahlias has shown a very, very strong thing.

In fact, this time, the North sales have happened. Which you may have seen per unit, about 120 3, 124, 125 crores per unit.

That's the 10,000 square feet ones. The one penthouse that we reported for about 271.

This time, there were more North sales than there were South? Plus that, obviously, Dahlias is the price algorithm makes sure that there is an increase with every sale.

It is not linked to velocity or it's not linked to the number of sales. It's a progressive kind of a statement.

Puneet Gulati

Understood. North commands better value, you said, versus South?

Aakash Ohri

There's a 25-odd-crore 20 to 25-odd-crore price difference between North and South.

Puneet Gulati

Okay. When should we expect launch of experience center?

Aakash Ohri

We're on the last leg, actually, unless GRAP or anything else stalls it, but I think we're just now getting everything together. We hope if everything goes well, it'll be by December.

Yeah.

Puneet Gulati

Meaningful pick-up into Q4, then?

Aakash Ohri

No, Q3 also. See, now we've demonstrated enough, Puneet, if you see.

That is nothing to do with Uh if you see the kind of Now we're almost, what, about nearing about 200 80-odd sales. 274.

Badal Bagri

274 units have been sold so far. Yeah.

Yeah,

Aakash Ohri

276 also, two more happen. Plus two.

That's why I'm saying nearing almost nearing 280. Also, see, if you see, there has been a consistent sale as far as Dahlias is concerned.

If you've been tracking it for 1.5 years, if you've seen it. There is a reasonable amount of now I feel trust which is established.

Most importantly, it was the price point that had to be established and understood by people, which is now a given. I'm happy to also tell you that most recently in the South also, we've done about 100-crore We just clocked 100 crores per apartment, which is also a kind of the new landmark.

Basically what's happening is that is become the new norm, and that's how it's going on.

Puneet Gulati

Understood. That's very clear.

Secondly, on the commissioning, no major commissioning expected in FY27, and '28 should be Arbour or should any change in completion plans?

Badal Bagri

Yeah. That's true, Puneet.

As we have said, that our inflection point is '27, '28. From Arbour and thereafter, their series of projects will start getting completed.

From '27 or '28 onwards Arbour onwards, you'll see a series of projects getting completed.

Aakash Ohri

Then, Puneet, we get into that virtuous cycle of over the next three years after that of Arbour, the three Privanas, Dahlias itself. I think then it's so really in that sense this shadow of the earlier post-Camellias and pre-Arbour, that shadow I think we are hopefully in the last four to four or quarters of that, in that sense.

Puneet Gulati

Got it. On the commercial side, DCCDL, what should we expect commissioning in '28 and '29 and

Aakash Ohri

DCCDL, we continue to keep on working on the balance office towers of Downtown Gurgaon, the Mall of India, Gurgaon, and the Downtown Chennai. Correct me, Naveen and Badal, I think, by and large, by fiscal '30, all of it should be done.

Everything will be done.

Badal Bagri

Everything will be done, yes.

Puneet Gulati

In '28, Block 7 of Downtown was supposed to come in, 2.3. That's on track?

Aakash Ohri

Block 7 should come in next year?

Badal Bagri

Yes.

Aakash Ohri

Goa will come by December. Goa should come in by December.

Badal Bagri

By December. Yeah.

Chennai by calendar next.

Aakash Ohri

Yeah.

Puneet Gulati

Sorry, which one? Goa, oh.

Aakash Ohri

Goa, Downtown Chennai, and Building 7 should all happen in Goa this fiscal and the balance two next fiscal.

Puneet Gulati

Okay. Chennai Block 3 should come in.

The 3.6 million. Next year should be a big year even from those completions of 2.3 plus 3.6 within DCCDL.

Blocks 4 and 5, Blocks 4 and 5.

Aakash Ohri

Blocks 4 and 5 of Downtown Chennai.

Puneet Gulati

That's how much in total?

Aakash Ohri

3.6 3.6 million square feet.

Puneet Gulati

3.6. Okay.

That's very clear. Thank you so much, and all the best.

Badal Bagri

Just to get one additional point, Puneet, and this will be for all others, and this also depends on the mix and the kind of sales which we did. On an average, we were much ahead of 100,000 per square realization per square feet in this quarter.

That price increase has been realizing, and It has come a long way from the time when we had launched it.

Puneet Gulati

Understood. Got it.

Thank you so much.

Operator

Thank you. Participants on the audio bridge may press star and one to ask a question.

Participants connected on the webcast may click on Ask a Question tab, accept the prompt, connect via Zoom, and click on Raise Hand icon to ask your question. Next question is from the line of Abhinav Sinha from Jefferies India.

Please go ahead.

Abhinav Sinha

Hi. Good to see the results this time.

My question is firstly on the rental component. We have seen in DLF rentals climb up to about 120 crores this quarter.

What is the exit run rate that we should expect?

Badal Bagri

Exit run rate, I would say, with full potential, it should be close to 175, 180 crores this year quarterly. On an annualized basis, close to 750 crores annual.

Abhinav Sinha

Okay. Ex of Atrium?

Badal Bagri

Ex of Atrium, yes. [Atrium?]

I'm talking of only DLF Abhinav asked for DLF portfolio.

Abhinav Sinha

Yeah. Just the DLF portfolio.

Sir, second question is on cash flows. Construction expenditure seems to be running a little bit lower in first half of the year, and we are also hearing about the Delhi government putting in a lot of impositions on construction in the months ahead.

What's the outlook on the cash flow commensurate inflows that you will get on the installment from customers and broadly completion timeline?

Badal Bagri

Look, honestly, on the completion timeline broadly, give or take a quarter, we don't right now foresee any challenges. Yeh sahi baat hai aapki, ke last quarter and possibly this quarter could see a slight blip in construction outflows, primarily on two things.

A, of course, is the fact that we are now entering the phase of chronic labor migration back for Chhath Puja and everything else that happens during this quarter. Traditionally.

B is that honestly the GRAP guidelines printed in the papers pertain to Delhi. Delhi government have announced them.

Typically in Gurgaon, we have seen 30 to almost 30 to 40 days of GRAP happens once those guidelines come into play, those specific wo jo thresholds hote hain un log ke. Let's see.

Currently, of course, air quality continues to be okay, but we are entering the challenging AQI season. Maybe this Q3 may still have some challenges on the construction outflow, but I do believe that fundamentally the contractors are in place, their labor arrangements are in place, and I think this quarter also we should see a decent progress.

Post GRAP, definitely I think this challenge should disappear. Again, something which if I may say so, is a concern, but I don't think it's a crisis by any stretch.

Abhinav Sinha

Okay. Thanks for that.

Sir, just one last question. On dividend, company has stepped up the payout.

Do you think you can migrate to say a quarterly or say a half-yearly dividend in another couple of years given that we've got very strong and consistent cash flows now?

Badal Bagri

Dekho yaar, this I will hold my horses because I myself don't know the answer. What we are doing is that we are clearly establishing a more predictable dividend pipeline from DCCDL to DLF on a regular basis.

Abhi DLF dividends continue to be annual. We'll see in the future, but right now I think our guidance continues to be an annual dividend.

Abhinav Sinha

Great. Thanks and all the best.

Badal Bagri

Thank you.

Operator

Thank you. Next question is from the line of Pritesh Sheth.

Kindly accept the prompt, announce your company name, and proceed with your question. Yeah.

Pritesh Sheth

Hi. Pritesh here from Axis Capital.

First just bookkeeping one. I see two different inventory number reported in our presentation.

In slide 12, we have mentioned balance surplus from unsold inventory to be 15,000 crore, and on slide 14, we have mentioned at 11,000 crore. How should I look at these two numbers?

Badal Bagri

Pritesh, the value of inventory is 15,000 crores. The margin of that inventory is 11,000 crores.

If you look at page 14, it is written 10,825 is the balance margin yet to be recognized. So, 11,000 is the margin of the value of inventory.

Pritesh Sheth

Oh, sorry. My bad to understand that.

Thanks for that clarification. Second is on the land spend that we have been doing since last two quarters.

I recollect last quarter was a big Noida payment that we made. This quarter also we have made around 350 crore of land payment.

Any opportunities that we are looking at, and yeah, some details on that, yeah. Isme,

Ashok Tyagi

Pritesh, if you recall, about two years back, we had done a transaction through acquisition of bonds of 28.5-odd acres of land from IREO. The 19.5 acres had been conveyed to us about I think 18 months back.

There was a 7.06-acre parcel which was still had some encumbrances needed to be removed. Those were done this quarter, and so the complete payment of that was made in this quarter.

We also entered into a collaboration for a fresh 7.48 acres of land again, which is contiguous to this 28 acres. Eventually, it will be a 36-acre land parcel contiguous in Sector 61 that we'll have.

Some small payment was also made for that. This again is coming through a bank delinquency rule in that sense.

The proceeds of this will be paid out to the lenders of that company.

Pritesh Sheth

Interesting. The project potential has enhanced now after this additional seven

Ashok Tyagi

[inaudible]? Has enhanced, and hopefully by Q4, we should be able to conclude this entire transaction.

Pritesh Sheth

Gearing up for a launch next year?

Ashok Tyagi

Yaar, pehle land ho jaye, fir launch bhi karenge.

Pritesh Sheth

Sure. Okay.

Just for next two quarters, how the series of launches would be like Mumbai Q3 and Magnolia's 2 Q4, is the timeline correct?

Ashok Tyagi

Pritesh, before I hand over to Aakash, we have set up a reasonably transparent guidance on our medium-term launches. Frankly, now it's all driven by the approval processes, in that sense, be it in Mumbai, be it in Gurgaon.

Clearly, those two projects that you mentioned about are definitely on the anvil, but I will defer to Aakash.

Aakash Ohri

No, I think the same. We are gearing up for both this Mumbai launch for Q3 and then, of course, there's a Gurgaon one.

Then, the Dahlias continue and some other whatever residual inventory continues. That's what it is.

Pritesh Sheth

Got it. Just one last, with this Delhi master plan getting approved, I know it's still early stages, but any opportunity apart from the existing land that we have between Midtown and Chanakyapuri, anything else gets unlocked from this approval?

Ashok Tyagi

We have no other land parcels really apart from Midtown and Chanakyapuri. Let's see how this policy plays out and then we'll think, but abhi toh it's still early days yaar, frankly.

Pritesh Sheth

Sure. That's it from my side.

All the best. Thank you.

Aakash Ohri

Thank you.

Ashok Tyagi

Thank you.

Operator

Thank you. Next question is from the line of Parvez.

Kindly accept the prompt, announce your company name, and proceed with your question.

Parvez Qazi

Hi. Good afternoon, team.

This is Parvez from Nuvama. One question from my side.

You had earlier given the exit rental guidance for the rental assets in Devco. Would be great if you could get the same for DCCDL also.

Ashok Tyagi

The exit rental for DCCDL would be close to 6,800 crores, Parvez.

Parvez Qazi

Sure. When do we expect the Mall of India, Gurgaon to get completed?

Will this be FY29 or FY30? FY30

Ashok Tyagi

FY30, Parvez.

Parvez Qazi

Sure. Thanks, and all the best, guys.

Ashok Tyagi

Thank you.

Operator

Thank you very much. Participants, you may press star and one to ask a question.

Next question is from the line of Satinder Bedi. Kindly accept the prompt, announce your company name, and proceed with your question.

Satinder Bedi, may I request you to accept the prompt, unmute, and proceed with your question? Satinder, if you can hear us?

Due to no response, we move on to the next participant. Next question is from the line of Samarth Khandelwal.

Kindly accept the prompt, announce your company name, and proceed with your question.

Samarth Khandelwal

Am I audible?

Operator

Yes.

Ashok Tyagi

Yes. Yes.

Samarth Khandelwal

Good morning, good afternoon, sir, and thank you for this opportunity. I am from ICICI Securities.

My name is Samarth Khandelwal. My question is regarding the project Hamilton.

Have you decided what kind of a product that will be, and when can we expect to be launched?

Aakash Ohri

That is not the name of the project. We've yet to name it.

It's in the same vicinity, but it is going to be a luxury-plus product and we aim to launch it in Q4. It's in the heart of DLF City, I'd say it is going to be a luxury product, and it is going to be one of its kind.

It's going to be at par with our recent luxury launches. It is in DLF Phase 4.

We are scheduling a launch sometime in Q4.

Samarth Khandelwal

Okay. That's wonderful to hear.

Thank you.

Aakash Ohri

Thank you.

Operator

Thank you very much. Next question is from the line of Gupta.

Kindly announce your full name and your company name, and proceed with your question. Yeah.

Akash Gupta

Hi. Thank you for taking my question.

This is Akash Gupta from Nomura. Congrats on a good booking performance also.

Sir, my question was on the DCCDL rental portfolio. I just wanted to get a clarity on how are we looking at the new volumes that are coming in on the DCCDL side between FY28 to FY30.

I just a little confused that when is Block 3 for Chennai coming, when is Block 4, 5 for Chennai coming, and when is Block 5, 6, 7, 8 for Gurugram coming. Just wanted to get an annual visibility.

Ashok Tyagi

On the Chennai, 1, 2, 3 are already operational. Block 4 and 5 is what is under construction, which is together 3.6 million square feet, which will become operational by calendar next year.

Coming on to the Downtown Gurgaon, which is 5, 6, 7, 8 and the MOIG, the completion is targeted towards the end of FY28 and '29. Most of the blocks will become operational between FY29 and '30.

Akash Gupta

Understood. The Mall of India, Gurugram is also stacked up for FY30?

FY30.

Ashok Tyagi

FY30.

Akash Gupta

Understood. Okay.

That was my question. Thank you so much.

Operator

Thank you. Next question is from the line of Satinder Bedi.

Kindly accept the prompt, unmute your audio, announce your company name, and proceed with your question. Satinder Bedi, we are unable to hear you.

Due to no response, we move on to the next participant. Next question is from Shrenik Jain.

Kindly accept the prompt, announce your company name, and proceed with your question.

Hi. The company name is J.P.

Morgan. The question is regarding the revenue for the first two quarters is still below the market expectations, though launches are very good.

Marketing expenses, other expenses has shoot up very highly. The market expectations are still very high, and the revenue is still not meeting up the expectations.

When can we see revenues which used to come in the earlier seven, eight quarters before?

Badal Bagri

Hi, Shrenik.

Aakash Ohri

Revenue in terms of launch or accounting? Are you talking of accounting revenues or sales?

Accounting revenues and Accounting, okay.

Badal Bagri

Yeah. Shrenik, we follow completed contract method of accounting, which effectively means once the project is done, is over is when you receive an OC, then you are able to recognize the revenue in the P&L versus a POCM accounting, okay?

The number of projects which get completed and we are able to offer it to the customers is when possibly this gets recognized. This we have highlighted earlier that our inflection point of revenue, which is almost 75,000 crores of launched and projects so far, the inflection point you'll see in '27, '28 and going forward next two, four, five years is when this entire revenue is going to get recognized.

Aakash Ohri

The second thing from an accounting revenue standpoint also that you should understand is that for both Cyber City and Atrium Place, even though we control 67% and should normally be consolidating their revenues and EBITDA into us, because of certain AVM rights that the minority partners have, the auditors believe that consolidation should not be there. If I may say, in a very accounting construct, that the entire revenue of Cyber City is about 2,000 crores a quarter and Atrium Place, which is another 150, 175 crores a quarter, is not consolidated, even though we own the majority control in those entities.

Second question is,

what is the key reason for other expenses shooting up in this quarter?

Badal Bagri

Other expenses includes brokerage, marketing, and et cetera. As you understand that we continue to take into P&L all the overheads which are being incurred to make and develop the projects of future.

I think those are the overheads which we continue to increase. In this particular quarter, there's a marginal increase versus previous quarter, but it's kind of in line.

On an average, it's in line with what generally we have from an overheads perspective.

What is the forward guidance for other expenses?

Badal Bagri

It'll be in similar range. Average of last two quarters should be looked at for forward guidance as well.

How do we look towards forward guidance towards other revenues?

Badal Bagri

Other incomes? Yes, see, other incomes are getting recorded the way they are.

The first one was Joyce, which was almost four, five quarters back, which was a settlement which was going on in the company, and that is also from a business outcome, a very positive business outcome which was struck, and that was included as other income. In this particular quarter, you have the fair valuation gain which is due to accounting guidance.

Apart from that, on an average, you'll have almost 100 to 200 150 to 200 crores of other income, which is interest income, interest from other subsidiaries, et cetera, et cetera, which will continue to happen.

Thank you.

Operator

Thank you very much. Ladies and gentlemen, we'll take that as a last question.

I would now like to hand the conference over to Mr. Ashok Tyagi for closing comments.

Ashok Tyagi

Thank you so much. A, I am sorry for dragging all of you on a Saturday early afternoon into this call, but I think because our meeting was on Friday, this became really unavoidable.

As Badal explained, in some sense, till the time that Arbour will be commissioned sometimes next year, this entire thing of the accounting revenue, being dependent on the launches made earlier in the post-Camellias but pre-Arbour phase, those only will be the key drivers of that plus any miscellaneous asset sale, etc., that happen. This is a small passing phase.

Fundamentally, the three key drivers of our business, which is strong pre-sales of the identified products, strong cash and margin generation, and a continuously sustained and strong growth of the rental business, we continue to work and hopefully deliver on all the three engines. The first quarter was relatively a quiet period from his pre-sales standpoint.

Oreva hopefully should have started the entire process, and hopefully in the next two quarters, as we mentioned, we should have a couple of more launches, which apart from the continuing sales of Dahlias, which of course continues. Our focus continues to be on strong cash management and strong margin generation.

The RentCo continues to hopefully grow strong. Atrium has commissioned.

I think this is the first year when Atrium will be fully rent-generating. Summit Plaza got commissioned in this quarter, Midtown Plaza got commissioned, Promenade Goa should get commissioned hopefully around the Christmas, New Year time frame.

All of these are long-term rent-generating assets which we continue. Our focus continues to be on doing all this with this extremely strong focus on governance and compliance.

I think with that, we look forward to reconnecting back with you guys hopefully in January. Thank you.

Aakash Ohri

Thank you.

Operator

Thank you very much. On behalf of DLF Limited, that concludes this conference.

Thank you all for joining us, and you may now leave the meeting and disconnect your lines. Thank you all.