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    DLF Limited

    DLFStrong
    Realty·31 Oct 2025
    Management Summary

    DLF delivered a solid Q2 FY26 with H1 pre-sales of Rs. 15,750 crores tracking guidance well. The maiden Mumbai launch 'The Westpark' was a resounding success while Dahlias continued its strong momentum in the super-luxury segment with pricing now comparable to Camellias. The rental business maintained robust 15% growth with multiple new assets nearing completion. DLF is actively reducing debt toward zero at the parent level while maintaining strong shareholder returns with a 20% dividend increase.

    Highlights

    8

    • New sales bookings of Rs. 4,300 crores in Q2; H1 FY26 pre-sales of Rs. 15,750 crores, tracking annual guidance of Rs. 20,000-21,000 crores

    • Successful maiden Mumbai launch 'The Westpark' with overwhelming response; Dahlias 55%+ sold with 18 units in Q2 at Rs. 1-1.5 lakh/sq ft carpet

    • Consolidated revenue Rs. 2,262 crores, EBITDA Rs. 902 crores, PAT Rs. 1,171 crores (includes Rs. 600 crore one-time Tulsiwadi impact)

    • Collections at Rs. 2,672 crores (excl. Rs. 240 crores Westpark JV); expected to scale to Rs. 13,000-14,000 crores annually going forward

    • Debt repaid Rs. 963 crores; outstanding debt Rs. 1,487 crores; endeavor to reach gross debt zero at DLF level

    • DCCDL rental income Rs. 1,362 crores (+15% YoY), PAT +23% YoY; net debt/EBITDA at 3.1x; occupancy 96% by value

    • Gross margin potential of Rs. 40,000+ crores and surplus cash potential of Rs. 44,000+ crores from sold inventory

    • CRISIL upgraded credit rating to AA+ Stable; dividend of Rs. 6/share (+20% YoY)

    What Changed3

    vs Q3 FY26

    Guidance items13 → 6 (-7)Risks discussed3 → 4 (+1)Q&A highlights8 → 3 (-5)

    Key financials

    Single quarter

    12 metrics
    1. 01New Sales Bookings₹4,300 Cr
    2. 02H1 Pre-sales₹15,750 Cr
    3. 03Consolidated Revenue₹2,262 Cr
    4. 04EBITDA₹902 Cr
    5. 05PAT₹1,171 Cr

    Segment breakdown

    Development Business
    ₹4,300 Cr Q2 New Sales Bookings₹15,750 Cr H1 Pre-sales₹40,000 Cr Gross Margin Potential₹44,000 Cr Surplus Cash Potential221 Dahlias Units Sold (cumulative)
    Rental Business (DCCDL)
    ₹1,362 Cr Rental Income49 Mn Operational Portfolio96% Occupancy (value basis)93% Atrium Pre-leasing85% Midtown Plaza Pre-leasing
    List

    Guidance & targets

    6
    CategoryTargetPriority
    Pre-sales
    FY26 Pre-sales Guidance
    Rs. 20,000-21,000 crores
    		High
    Collections
    Annual Collections Run Rate
    Rs. 13,000-14,000 crores
    		Medium
    Debt
    DLF Gross Debt Target
    Zero
    		High
    Rental
    Atrium Place Gross Rental Income (all 4 towers)
    Rs. 600-650 crores
    		High
    Rental
    Three New Malls Rental Income
    Rs. 450-460 crores cumulative
    		High
    Launches
    Total Launch Pipeline (4-5 years)
    Rs. 1,15,000 crores GDV
    		Medium

    Risks & concerns

    4
    RiskSeverity

    Concentration in super-luxury segment with limited price discovery

    Dahlias pricing at Rs. 1-1.5 lakh/sqft carpet with invitation-only sales; management confident in demand from top families across India — Analyst downplayed

    low

    Collections lag pre-sales significantly

    Q2 collections Rs. 2,672 crores vs Rs. 4,300 crores new sales; annualized Rs. 10-11K crores vs Rs. 15-20K annual pre-sales. Expected to scale to Rs. 13-14K crores as construction progresses — Analyst acknowledged

    medium

    Tulsiwadi one-time settlement impact of Rs. 600 crores

    One-time Rs. 600 crore impact from Tulsiwadi project settlement in July; already reflected in Q2 numbers — Management acknowledged

    low

    Government approval delays for new launches

    Goa court case (not DLF-related) delaying launch; Kolkata SEZ sale delayed by state/SEZ approvals (3.5 months away); IREO land licensing pending — Management acknowledged

    medium

    Q&A highlights

    3

    “today my demand for DLF is not geography-specific. I am getting responses from across the country... the top equity brokers have also invested in the super luxury real estate today”

    DLF sees no demand slowdown; brand-driven pan-India demand; 18-month pipeline includes Goa, Arbour 2, Hamilton 2, Privana, Westpark Phase 2, and Panchkula

    asked by Parikshit Khandpal

    1 min read4 chapters

    Detailed Narrative

    01

    Pre-sales Strong at Rs. 15,750 Crores in H1, Tracking Guidance

    DLF's H1 FY26 pre-sales of Rs. 15,750 crores track the Rs. 20,000-21,000 crore annual guidance well. Q2 bookings of Rs. 4,300 crores were led by the maiden Mumbai launch 'The Westpark' which received an overwhelming response. Dahlias sold 18 units in Q2 (221 cumulative, 55%+ sold) at Rs. 1-1.5 lakh/sqft carpet, now at Camellias-level pricing. Management maintains no upside revision to guidance, focusing on margins over volume.

    02

    Rental Business: Multiple New Assets Nearing Contribution

    DCCDL rental income grew 15% YoY to Rs. 1,362 crores with 96% occupancy by value. Atrium Place (3.2 mn sqft) received OC for 2.1 mn sqft with 93% pre-leasing; rentals start Dec 2025, full portfolio at Rs. 600-650 crores gross rental. Three new retail malls (Midtown, Summit, Promenade Goa) will add Rs. 450-460 crores at FY27 exit rate. Downtown Gurgaon (7.5 mn sqft) targets mid-2028 completion, Chennai slightly ahead.

    03

    Balance Sheet Strengthening Toward Debt-Zero

    DLF repaid Rs. 963 crores in Q2, bringing outstanding debt to Rs. 1,487 crores with an explicit target of zero gross debt at the parent level. Gross cash balance stood at Rs. 9,200 crores (Rs. 8,350 crores in RERA). CRISIL upgraded rating to AA+ Stable. DCCDL net debt/EBITDA at healthy 3.1x. No DCCDL REIT or monetization planned for at least 3 years.

    04

    18-Month Launch Pipeline Provides Growth Visibility

    DLF has a clear 18-month launch pipeline: Goa (Q3/Q4 FY26), Arbour 2 senior living, Panchkula developments, Privana next phase, Hamilton 2, Westpark Phase 2, and Dahlias formal launch post experience center (April 2026). Total 4-5 year launch pipeline of Rs. 1,15,000 crores GDV with Rs. 48,000 crores already launched. IREO land parcel expected in 18 months pending final licensing. Noida entry planned when suitable opportunity arises.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.