Detailed Narrative
Q2 Presales Aberration Masked by Strong Cash Generation
Q2 presales dropped to INR 690 crores as key approvals (Dahlias) slipped to early October. However, cash generation remained robust at INR 2,000+ crores combined across DevCo (INR 1,200 crores) and RentCo (INR 900 crores pre-dividend/CAPEX). H1 presales at INR 7,000 crores. Operating PAT of INR 781 crores. Management confirmed full-year presales guidance of INR 17,000 crores+.
Dahlias Pre-Launch Response Exceeds All Expectations
Dahlias received RERA approval in early October. RERA filing showed INR 26,000 crores total revenue at 70%+ margin (conservative per management). Pre-launch response described as 'overwhelming' with all EOIs backed by banked instruments. Demand from Golf Links community, pan-India Tier 2 cities, and NRIs. 420 apartments with 10,300 sqft minimum size, 4-meter ceiling heights. Product described as incomparable globally.
Rental Revenue Set for Step-Change in FY26
FY25 exit rental guided at INR 5,300 crores (DCCDL INR 5,000 + DLF INR 300). FY26 to jump to INR 6,800 crores (DCCDL INR 5,800 + DLF INR 1,000) driven by 3 malls commissioning, Atrium Place (2.1M sqft from May/June, 800K sqft from Dec 2025), and Downtown 4 rentals. DLF-level rentals growing from 6-7% to meaningful share of total.
Balance Sheet Strength: Net Debt Zero, Gross Debt Zero in Sight
Net debt already at zero. Gross debt zero targeted in 3-4 quarters absent new land acquisitions. NRI contribution to sales grown from 3-8% to 28%, broadening funding base. One Midtown completion driving additional cash flows from Q3. Management committed to never being reckless on land checks regardless of geography.
NCR-Centric Strategy Reinforced Amid Peer Land Rush
Management firmly defended NCR concentration as strategic strength, noting NCR could become world's largest metropolitan area in 5 years. Other developers buying NCR land validates thesis. Mumbai launch planned Q4, Privana Phase 3 year-end, IREO land after Q1 FY26. Analyst Day planned for February to showcase Dahlias, Downtown, and Privana ecosystem.