DLF

DLF concluded FY26 with robust financial results, reporting record collections of over INR 13,500 crores, marking a 15% year-over-year growth. This led to a healthy cash surplus generation of over INR 7,700 crores, up 25% YoY. The company achieved its annual sales booking guidance, reaching INR 20,143 crores, with Q4 contributing INR 3,967 crores, primarily driven by its luxury offerings. The net cash position at year-end stood at INR 14,155 crores, with a significant portion (INR 11,200 crores) held in RERA escrow accounts, underscoring a strong balance sheet and zero gross debt in the development business.

The annuity business, primarily through DCCDL, delivered an outstanding performance with revenues close to INR 7,400 crores, a 15% growth, and EBITDA exceeding INR 5,700 crores, up 16%. The rental portfolio, spanning 50 million square feet, maintained an industry-leading occupancy of 95%. Management guided for a mid-teens to 25% CAGR growth in Net Operating Income (NOI) over the next 4-5 years. Key projects like Atrium Place are fully leased, and Downtown Taramani's 3.5 million square feet construction is progressing well, with completion expected in Q2 FY27.

DLF has a healthy launch pipeline valued at approximately INR 20,000 crores for FY27, encompassing projects in Gurugram (Senior Living, Hamilton 2), Mumbai (Westpark), and Goa. The company aims to maintain its annual sales guidance of INR 20,000 crores and generate about INR 9,000 crores in new margin creation annually. The Westpark project in Mumbai has a total pipeline of over 5 million square feet, with 900,000 square feet already launched and another 800,000 square feet planned for launch in FY27.

The super luxury offering, Dahlias, continued its strong sales momentum, contributing significantly to Q4 sales with 32 apartments sold. The project's per-sale price has reached approximately INR 135 crores, and its per square foot realization is now almost on par with the established Camellias project, which trades between INR 80-150 crores per square foot. Management noted that Dahlias achieved this price parity much faster than anticipated, in about 1.5 years instead of the projected 4 years, indicating robust demand in the ultra-luxury segment. An Experience Centre for Dahlias is expected to be ready around Diwali.

DLF maintained a zero gross debt position in its development business for FY26. The substantial net cash position of INR 14,155 crores, including INR 11,200 crores in RERA escrow, is earmarked for strategic deployment. This cash will be utilized for increasing shareholder returns, funding committed capex for the annuity business, and pursuing opportunistic, margin-accretive land deals once RERA funds unlock from FY27/28. The Board recommended a dividend of INR 8 per share, representing a 33% year-over-year growth, reflecting the company's strong cash flows and commitment to shareholder value.

The company's commercial portfolio is expanding, with Downtown Gurgaon Phase 2 (7.5 million square feet, including a 2 million square feet mall and 5.5 million square feet offices) expected to complete in late FY28/early FY29. Downtown Taramani (3.5 million square feet) is on track for completion in Q2 FY27, with 500,000 square feet already leased. However, the SEZ segment is showing a declining trend, with DLF having converted approximately 4 million square feet of its 16-17 million square feet SEZ portfolio to non-processing areas. Despite this, overall vacancy remains low at about 10%, with Cyber City having the lowest vacancy.