DLF Limited — Q3 FY26 earnings call

Call held 23 Jan 2026

Management summary

DLF reported a strong Q3 FY26 with significant revenue and profit growth, driven by robust collections and a strengthened balance sheet, achieving zero gross debt in its development business. Despite a pause in Dahlias bookings for redesign and some construction delays due to GRAP, the company maintains a healthy launch pipeline and positive outlook for its annuity business. A substantial portion of cash remains trapped in RERA, with unlocking anticipated in future fiscal years.

Highlights

  • Consolidated revenue of ₹2,479 crores, up 43% YoY.

  • EBITDA of ₹848 crores, up 39% YoY.

  • PAT before exceptional items of ₹1,252 crores, up 29% YoY.

  • Record gross collections of ₹5,100 crores with sustained collection efficiency.

  • Net surplus cash generation of ₹6,432 crores for 9M FY26, exceeding entire last fiscal.

  • Achieved zero gross debt in development business ahead of estimated timelines.

  • ICRA upgraded credit rating to AA+ with stable outlook.

Concerns

  • Dahlias bookings were paused during Q3 for redesign, impacting sales for the quarter.

  • GRAP situation (pollution-related measures) caused 30-45 days of construction suspension in Q3.

  • Construction of Downtown Phase 2 Tower 4 slowed marginally due to GRAP, expecting a 45-60 day delay.

  • ₹10,400 crores of gross cash remains trapped in RERA balance, with unlocking expected from FY27-28 onwards.

Key financials

3 periods

Headline

  • Consolidated Revenue
    ₹2,479 Cr
    YoY +43%
  • EBITDA
    ₹848 Cr
    YoY +39%
  • PAT (before exceptional items)
    ₹1,252 Cr
    YoY +29%
  • Reported PAT
    ₹1,207 Cr
    YoY +14%

Q3

  • New Sales Booking
    ₹419 Cr
  • Gross Collections
    ₹5,100 Cr

9M FY26

  • Net Collections
    ₹10,216 Cr
    YoY +21%
  • Net Surplus Cash Generation
    ₹6,432 Cr

What they filed

Q1 FY27: revenue down 52.9%, net profit up 4.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,975 1,529 3,128 2,717 1,643 −17%2,020 +32%1,814 −42%1,280 −53%
EBITDA502 400 978 364 284 −43%390 −2%411 −58%150 −59%
Net profit1,381 1,059 1,282 763 1,180 −15%1,203 +14%1,269 −1%794 +4%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Annuity Business (DCCDL)
    5.5% Closing Vacancy3.5% Closing Vacancy (Value-wise)
  • Annuity Business (New Malls)
    97% Occupancy
  • Midtown Plaza & Summit Plaza
    95% Occupancy

Order book

high confidence

Inflow this quarter

₹419 Cr

Composition

  • NRI Sales (client type) 25%
  • Rest of India (for Gurgaon) (geography) 15%

Pipeline

other

Upcoming launches include Arbour 2 (senior living), a major group housing project in DLF City, next phase of Westpark in Mumbai, Panchkula, and potentially Goa. IREO land parcel has a potential GDV of ₹27,000-28,000 crores.

Cancellations & deferrals

  • deferred: Bookings at Dahlias were paused during Q3 for planned redesign to enhance customer experience, requiring RERA approval and customer sign-offs.
Management noted that Dahlias bookings were paused for redesign but have resumed with strong response. They highlighted monetizing almost one-fourth of inventory (excluding Dahlias) this quarter and a healthy launch pipeline for the coming periods.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹0 Cr
    we have achieved our goal of zero gross debt in the development business ahead of our estimated timelines.
  • M&A Kolkata IT SEZ (DCCDL books) Divestment · Closed

    Monetization of asset

    Rentals continued to accrue till final payment date.

    Kolkata SEZ, which is in the books of DCCDL was sold and the deal closed in December of '25.
  • M&A Kolkata IT SEZ (DLF books) Divestment · Pending regulatory

    Monetization of asset

    Kolkata SEZ, which is in the books of DLF, we have got the first stage approval from the Board of Approvals. We are awaiting the state approvals on one or two issues, which we are working along with the buyers. And we are quite hopeful that we will be able to close it in the current quarter.
  • Liquidity Cash ₹11,600 Cr ₹10,400 crores of gross cash is RERA balance, which is currently trapped and expected to unlock from FY27-28 onwards.
    Our balance sheet remains extremely robust, with gross cash of approximately Rs. 11,600 crores, of which the RERA balance would be Rs. 10,400 crores. ... a large chunk of it unfortunately still is trapped in RERA and frankly, we will start getting the unlocking of the RERA cycle from fiscal 27, 28 onwards.

Guidance & targets

Collections

  • Collections YoY Growth Collections · Annual · Medium confidence 10%-15%
    we should look at a 10%-15% growth year-over-year versus what we have achieved last year on an overall basis from a collections point of view.

    — Badal Bagri

Capex

  • Quarterly Construction Spend Capex · Quarterly · Medium confidence ₹900-1,000 crores
    a range of Rs. 900 crores to Rs. 1,000 crores is a good number to kind of look at on a quarterly basis. It's a number which possibly you can consider as a reasonable construction spend over the coming quarters.

    — Ashok Tyagi

Realization

  • Dahlias Pricing Increase Realization · Past year · High confidence 25%
    from the past year alone, there has already been a 25% increase in Dahlia's pricing and we are selling.

    — Aakash Ohri

Revenue

  • Rental Business Earnings (DCCDL) Revenue · FY26 · High confidence ₹5,900 crores
    the earnings for FY '26 will be in DCCDL about Rs. 5,900 crores

    — Sriram Khattar

  • Rental Business Earnings (DLF) Revenue · FY26 · High confidence ₹550 crores
    and for DLF will be another about Rs. 550 odd crores.

    — Sriram Khattar

  • Rental Business Earnings (Total Annuity) Revenue · FY26 · High confidence ₹6,400 crores
    FY'26 for the year, it will be about Rs. 6,400 crores for the rental business, for the annuity business.

    — Sriram Khattar

  • Rental Business Earnings (Total Annuity) Revenue · FY27 · High confidence ₹7,400-7,500 crores

    Previously ₹6,400 crores → ₹7,400-7,500 crores

    Next year, the Rs. 6,400 crores will go to about Rs. 7,400 to Rs. 7,500 crores.

    — Sriram Khattar

  • Rental Business Earnings (DCCDL) Revenue · FY27 · High confidence ₹6,300 crores
    In this, DCCDL will be about Rs. 6,300 crores.

    — Sriram Khattar

  • Rental Business Earnings (DLF) Revenue · FY27 · High confidence ₹1,150 crores
    But DLF will take a big leap of about Rs. 1,150 crores because Atrium Place rentals will start coming in for the first three towers and the rentals for the three malls will kick in also.

    — Sriram Khattar

Monetization

  • Total Inventory & Pipeline Monetization Timeline Monetization · Long-term · High confidence 3-4 years
    How much time do you think should we expect this entire inventory and launch pipeline to be consummated? Three to four years.

    — Ashok Tyagi

  • Annual Sales/Monetization Value Monetization · Annually · High confidence ₹20,000 crores
    So, if we assume four years, that's roughly Rs. 20,000 crores annually. Is that how we should think about it?

    — Akash Gupta

GDV

  • IREO Land Parcel Potential GDV GDV · Future · High confidence ₹27,000-28,000 crores
    it's a huge land parcel, as we know, with potential GDV of 8 million or 7.5 million square feet plus, which frankly could be in the range of Rs. 27,000 crores, Rs. 28,000 crores.

    — Ashok Tyagi

Dividend

  • Payout Ratio (DCCDL) Dividend · FY26 & FY27 · High confidence 75%-80%
    So, the dividend payout, whatever percentage of the PAT was there last year, we at least propose to the Board to continue at that level for FY '26 and FY '27. ... That is in the ballpark of 75%-80%.

    — Sriram Khattar

What to watch in Q4 FY26

Dahlias Sales Performance

Q4 FY26
Current Bookings paused in Q3, resumed post redesign
Target Strong sales performance, contributing to Q4 sales

Why it matters

Dahlias is a key luxury launch, and its performance post redesign will indicate market acceptance and future sales trajectory.

bookings at Dahlias were paused during Q3 as a part of planned redesign to enhance customer experience. The bookings have now resumed.

Risks & concerns

  • RERA funds trapped

    high

    ₹10,400 crores of gross cash is trapped in RERA balance, with unlocking expected from FY27-28 onwards.

    Management acknowledged

  • GRAP situation / Construction delays

    medium

    Pollution-related GRAP measures caused 30-45 days of construction suspension in Q3, delaying Downtown Phase 2 Tower 4 by 45-60 days.

    Management acknowledged

  • Construction resource crunch

    medium

    Acknowledged a 'severe construction resource crunch' but stated they are strengthening technical backbone, adding contractors, and using project management firms.

    Management acknowledged

Q&A highlights

8 direct
Collections sustainability and growth outlook Direct
I think from a development business perspective, it will be the best way to look at the collection will be on an annual basis rather than quarter-on-quarter basis. ... we should look at a 10%-15% growth year-over-year versus what we have achieved last year on an overall basis from a collections point of view.

Clarifies that collections should be viewed annually due to construction-linked payments and provides a forward growth estimate for collections.

Asked by Puneet Gulati

Dahlias sales pause, redesign, and impact on costs/pricing Direct
We were doing some design modifications on Dahlias to improve the entire layout and the client experience. ... if you do a design modification, you have to run it for the approval of all the existing customers... So unfortunately, about two to two and a half months of this quarter was spent in that entire process. ... Yes, it will do material change to cost of construction, little bit for sure. But also as you know, Dahlias is a dynamic price point system. ... there has already been a 25% increase in Dahlia's pricing and we are selling.

Explains the reason for the sales pause, the regulatory process involved, and confirms that while costs increased, pricing adjustments have maintained margins.

Asked by Puneet Gulati

New product launches and pipeline for Calendar '26 Direct
this calendar year, we are working on Arbour 2, as you know, the senior living. ... And Puneet, if you are asking for the Calendar '26, will see at least one major group housing launch in DLF City. It will see the next phase of Westpark in Mumbai. It will see a launch in Panchkula. It will hopefully see Goa.

Provides a clear overview of the key residential project launches planned for the upcoming calendar year, indicating future sales drivers.

Asked by Puneet Gulati

Rental business earnings forecast for FY26 and FY27 Direct
the earnings for FY '26 will be in DCCDL about Rs. 5,900 crores and for DLF will be another about Rs. 550 odd crores. So, we, in that sense, FY'26 for the year, it will be about Rs. 6,400 crores for the rental business... Next year, the Rs. 6,400 crores will go to about Rs. 7,400 to Rs. 7,500 crores.

Offers specific financial guidance for the annuity business's earnings for both the current and next fiscal year, broken down by entities.

Asked by Pritesh Sheth

Cash balance utilization and dividend payout Direct
a large chunk of it unfortunately still is trapped in RERA and frankly, we will start getting the unlocking of the RERA cycle from fiscal 27, 28 onwards. ... The dividend that we received from Cyber City to DLF and the dividend that DLF distributes to its shareholder. So, we are hopeful that the same trajectory of growth on both of those metrics will continue. ... That is in the ballpark of 75%-80%.

Addresses the significant portion of cash trapped in RERA and provides clarity on the timeline for its unlocking, while reaffirming commitment to dividend payout ratios.

Asked by Abhinav Sinha

Broader Gurgaon market conditions Direct
Gurgaon market right now has shown its robustness over years... if you see the kind of traction Gurgaon is getting... our sales are about 25% NRI, our top line, and 15% are the rest of India sales coming in for Gurgaon alone. ... all the biggies coming to Gurgaon now.

Provides management's positive perspective on the Gurgaon real estate market, highlighting strong demand from diverse buyer segments and the entry of other major developers.

Asked by Abhinav Sinha

Delivery scale vs. peers and focus on volume Direct
million square feet is about the most irrelevant metrics entry in this industry. You have to focus on the sale value we are generating. You have to focus... on the margin that is being generated. You have to focus on the free cash flow that is being generated. ... we are definitely, Gaurav, from an ethos standpoint, not going to chase volume for the sake of volume.

Clarifies DLF's strategic focus on value, margins, and free cash flow rather than merely chasing high volume of deliveries, differentiating its approach from some peers.

Asked by Gaurav Khandelwal

Total inventory and launch pipeline monetization timeline Direct
roughly 600 billion and along with the inventory we have, which is 200 billion. How much time do you think should we expect this entire inventory and launch pipeline to be consummated? Three to four years. ... roughly Rs. 20,000 crores annually.

Quantifies the total value of current inventory and future pipeline and provides a timeline for its monetization, giving insight into long-term revenue potential.

Asked by Akash Gupta

2 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Financial Performance

DLF reported robust Q3 FY26 results with consolidated revenue growing 43% YoY to ₹2,479 crores and EBITDA up 39% YoY to ₹848 crores. Profit after tax before exceptional items increased 29% YoY to ₹1,252 crores. The company achieved record gross collections of ₹5,100 crores in the quarter, contributing to a net surplus cash generation of ₹6,432 crores for the nine-month period, surpassing the entire previous fiscal year.

Development Business: Sales & Pipeline

New sales bookings for Q3 FY26 stood at ₹419 crores. Bookings for the Dahlias project were temporarily paused for redesign to enhance customer experience and comply with new codes, but have since resumed with strong customer response and a 25% price increase in the past year. The company plans several launches in Calendar 2026, including Arbour 2 (senior living) in Q4 FY26, a major group housing project in DLF City (2.5 MSF), the next phase of Westpark in Mumbai (1 MSF), Panchkula, and potentially Goa.

Annuity Business Continues Robust Growth

The annuity business performed well, with closing vacancy in DCCDL at 5-5.5% (3.5% by value). Occupancy in the three new malls (Midtown Plaza, Summit Plaza) reached 95-96%. Management provided strong guidance for rental earnings, projecting ₹6,400 crores for FY26 and an increase to ₹7,400-7,500 crores for FY27, driven by new project completions like Atrium Place and the three malls.

Strengthened Balance Sheet & Capital Allocation

DLF achieved its goal of zero gross debt in the development business ahead of schedule. The company holds gross cash of approximately ₹11,600 crores, though ₹10,400 crores of this is trapped in RERA balances, expected to unlock from FY27-28. Construction spend for 9M FY26 was ₹2,400 crores, up 40% YoY. The company aims to maintain its dividend payout ratio for DCCDL at 75-80% of PAT for FY26 and FY27.

Strategic Asset Monetization & Market Outlook

The Kolkata IT SEZ in DCCDL's books was sold in December 2025, and the DLF portion is expected to close in Q4 FY26. Management reiterated a focus on value, margins, and free cash flow over volume, with a total inventory and launch pipeline expected to be monetized over 3-4 years, generating approximately ₹20,000 crores annually. The Gurgaon market remains robust, attracting significant NRI and pan-India demand, despite some external skepticism.

Operational Challenges & Mitigation

The company faced operational challenges in Q3, including a 30-45 day construction suspension due to GRAP (pollution-related measures), which also marginally delayed Downtown Phase 2 Tower 4. DLF is addressing construction resource constraints by expanding its contractor base, strengthening its technical team, and engaging project management experts like Samsung for key projects.

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