Detailed Narrative
Record FY25 Performance Across All Metrics
DLF achieved highest-ever presales of INR 21,000+ crores with collections of INR 11,750 crores. PAT reached INR 4,350 crores, the highest in years. ROE crossed the long-awaited double-digit mark at 10.2%. Free cash flow of INR 6,200 crores for FY25 with quarterly run rate of INR 1,500 crores+. Dividend continued upward trajectory from INR 2 to INR 6 over 4 years.
Rental Business Scaling with Premium Assets
Operating rental portfolio at 43-44 million sq ft with vacancy at 6% (4% by value). DCCDL upgraded to AAA by CRISIL. Downtown 4 Gurgaon and Downtown 3 Taramani received OCs with fit-outs underway; rentals expected in 3-4 months. Atrium Place (3.1M sq ft JV with Hines) 95% preleased. FY26 exit rental run rate guided at INR 6,700 crores. New assets commanding INR 160-170/sqft vs legacy INR 125-135 with 10%+ rerating potential.
Strong FY26 Launch Pipeline Led by Privana and Mumbai
INR 17,000 crores of launches planned for FY26. Privana North and Mumbai project targeting Q1 launch; Dahlias next phase in Q3 post experience center completion. Previous Privana phases sold out instantly with secondary market premiums of INR 2,500-4,000/sqft. Dahlias at INR 1 lakh+/sqft on carpet vs Camellias at INR 2 lakhs. Goa launch expected H2 FY26. IREO (8.5 acres, Sector 61) targeting approvals this year for FY27 launch.
Zero-Leverage Development Business with Structural Resilience
Development business now operates with zero leverage, eliminating the risk of being caught in a down cycle with debt overhang. Management prioritizes embedded margins over sales volume - targets INR 12,000 crores embedded margins on INR 20,000 crores sales rather than INR 7,000 crores on INR 35,000 crores. Combined DevCo-RentCo model provides natural hedge against cyclicality. Currently building 45+ million sq ft under construction.
Significant RentCo CAPEX Investment Cycle
RentCo CAPEX of ~INR 5,000 crores per year in FY26-27, a significant jump from historical levels driven by Downtown Gurgaon (12M sq ft multiuse), Downtown Taramani (7-7.5M sq ft), and Atrium Place completion. Data Center 2 Noida nearing completion; Data Center 3 construction started with lease agreement in place. Only Data Center 3 delivery expected in FY27; next major rental additions in FY28.