DLF Limited — Q4 FY26 earnings call

Call held 14 May 2026

Management summary

DLF reported a strong close to FY26, driven by robust collections, healthy sales bookings, and significant cash generation. The annuity business demonstrated strong growth, with key projects nearing completion and high occupancy rates. The company maintained a zero gross debt position in its development business and declared a substantial dividend increase, reflecting confidence in its asset quality and execution capabilities. While some launches were deferred and external factors caused minor delays in tenant decision-making, the overall outlook remains positive with a strong launch pipeline and focus on margin and cash flow.

Highlights

  • Record collections of over INR 13,500 crores in FY26, growing 15% YoY.

  • Healthy cash surplus generation of over INR 7,700 crores, up 25% YoY.

  • Achieved zero gross debt position in the development business.

  • FY26 sales bookings of INR 20,143 crores, meeting guidance despite launch deferrals.

  • Q4 sales of INR 3,967 crores, primarily led by Dahlias.

  • Annuity business (DCCDL) revenues grew 15% to INR 7,400 crores, with EBITDA up 16% to INR 5,700 crores.

  • Rental portfolio maintains 95% occupancy across 50 million square feet.

  • Dividend of INR 8 per share declared, a 33% YoY increase.

Concerns

  • Deferral of a couple of launches in FY26 impacted sales timing.

  • Geopolitical events (Iran-US war) caused some tenants to defer decision-making, though no direct portfolio impact.

  • Goa launch is delayed due to a Public Interest Litigation (PIL) despite approvals being in place.

  • SEZ segment is showing a decline in trend, with 4 million square feet already converted to non-processing areas.

Key financials

2 periods

FY26

  • Collections
    ₹13,500 Cr
    YoY +15%
  • Sales Bookings
    ₹20,143 Cr
  • Consolidated Revenue
    ₹10,000 Cr
  • Consolidated Net Profit
    ₹4,256 Cr
    YoY +16%
  • Dividend per Share
    ₹8
    YoY +33%

FY26 end

  • Net Cash Position
    ₹14,155 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

  • DCCDL (Annuity Business)
    ₹7,400 Cr Revenue (FY26)₹5,700 Cr EBITDA (FY26)₹2,726 Cr Net Profit (FY26, before exception)

Order book

high confidence

Total value

₹20,143 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹3,967 Cr

Composition

  • Privana North (Gurugram) (project)
  • West Park (Mumbai) (project)
  • Dahlias (Super Luxury) (project)

Pipeline

other

Upcoming launches for FY27 and medium term

Cancellations & deferrals

  • deferred: Deferral of a couple of launches in FY26
Management emphasizes focusing on margins and cash flows rather than just chasing presales volume, while ensuring delivery capabilities.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Building annuity portfolio
    Second, we have an extremely healthy pipeline in DLF as well, mothership of annuity business and there is a large amount of capex, which is already kind of committed and will be invested for building the portfolio.
  • Debt Net ₹14,155 Cr
    Our net cash position at the end of FY26 stood at INR 14,155 crores, of which close to INR 11,200 crores are in the RERA escrow accounts, signifying a robust balance sheet strength. It's important to reiterate at this point of time as per our commitment, we achieved zero gross debt position in the development business in the last fiscal.
  • Dividend ₹8/share (final)
    In line with our stated commitment of enhancing shareholder return, combined with strong performance and growing cash flows, the Board has recommended a dividend of INR 8 per share for shareholders' approval, which represents a growth of 33% year-over-year.
  • Liquidity Cash ₹14,155 Cr INR 11,200 crores of the net cash is in RERA escrow accounts, which will unlock from FY27/28 onwards for reinvestment, shareholder returns, and opportunistic land deals.
    Our net cash position at the end of FY26 stood at INR 14,155 crores, of which close to INR 11,200 crores are in the RERA escrow accounts, signifying a robust balance sheet strength. ... And all of these projects will start getting unlocked from FY'27, '28 onwards. That's when these cash will be available for us different things.

Guidance & targets

Profitability

  • Rental Business NOI/EBITDA Growth (CAGR) Profitability · next 4 to 5 years · High confidence mid-teens to 25%
    However, our 4 to 5-year guidance remains intact, that we will have mid-teens growth in NOI and 20 to 25% growth as a CAGR basis for the next 4 to 5 years.

    — Sriram Khattar

  • Annual New Margin Creation Profitability · annual · High confidence INR 9,000-odd crores
    and ballpark about INR 9,000-odd crores of new margin creation every year.

    — Ashok Tyagi

Volume

  • Annual Sales Guidance Volume · annual · High confidence INR 20,000 crores
    So from a guidance standpoint, we had mentioned I think last year as well, that we believe that we will broadly stay on this trajectory of a INR 20,000 crores of sales guidance

    — Ashok Tyagi

  • Dahlias Sales Volume · FY27 · High confidence INR 5,000-6,000 crores

    From INR 5,000 crores today

    So look, I think this year, the Dahlias sales was about INR5,000 crores and hopefully it stays to INR 5,000 crores to INR 6,000 crores next year as well.

    — Ashok Tyagi

  • Sales from FY27 Launch Pipeline Volume · FY27 · High confidence INR 13,000-14,000 crores
    We expect that the 13 to 14 million or 14 to 15 million, somewhere in that ballpark of sale to come through from that pipeline. ... The balance, INR 13,000 to INR 14,000 crores should come comfortably for us to hit it to be on these INR 20,000 crores.

    — Ashok Tyagi

Revenue

  • DCCDL Exit Rental Revenue · FY27 · High confidence INR 8,200 crores
    If I said separately, but I think the total should be about INR 8,200-odd crores.

    — Sriram Khattar

What to watch in Q1 FY27

Goa project launch

Next year (FY27)
Current Delayed due to PIL
Target Launch initiated after PIL resolution

Why it matters

Resolution of PIL is key to unlocking a significant new residential project in Goa.

And Goa, of course, approvals are all done. There is a PIL, we don't want to create third-party rights just right now. We're just going to make sure that we are clear, and then we'll bring in Goa. But Goa, we're all ready to go.

Risks & concerns

  • Launch deferrals

    medium

    A couple of launches were deferred in FY26, impacting sales timing.

    Management acknowledged

  • Regulatory delays for new launches

    medium

    Goa launch is on hold due to a Public Interest Litigation (PIL) despite approvals.

    Management acknowledged

  • Limited construction capabilities

    medium

    Company limits aggressive presales to match its construction and delivery capabilities, which are seen as a constraint in the country.

    Management acknowledged

  • Market absorption capacity

    medium

    Launches are paced to ensure market can comfortably absorb new supply without overstraining execution.

    Management acknowledged

  • Decline in SEZ segment

    medium

    SEZ is a declining trend, leading to conversion of 4 million sq ft to non-processing areas.

    Management acknowledged

  • Geopolitical impact on tenant decision-making

    low

    Iran-US war caused some large tenants to defer internal decision-making, potentially delaying leasing.

    Management acknowledged

Q&A highlights

6 direct
Launch pipeline for FY27 and specific projects Direct
Puneet, we've got a healthy launch pipeline, almost about INR 20,000 crores. And we've got some good Gurugram products, we've got Mumbai, we've got Goa. And we've got some residual, and of course Dahlias. So we've got a good set and looking forward to that.

Provides specific value and geographic breakdown of the upcoming launch pipeline, crucial for future sales projections.

Asked by Puneet Gulati (HSBC)

Stagnating medium-term launch pipeline value Partial
So Nilang, this more or less like a status update of the INR1,14,000 crores pipeline that we had projected, I think, about 2 years back for a 5-year cycle. So every quarter, we update on how much of that INR1,14,000 crores has been launched? And what is the to be launched pipeline.

Clarifies that the reported INR 60,000 crores pipeline is a dynamic update of a larger 5-year plan, not a static or shrinking pipeline, addressing analyst concern about stagnation.

Asked by Nilang Mehta (HSBC Asset Management)

DLF's presales strategy vs. peers Direct
So my advice honesty will be for all analyst that presales is about the wrongest metric that you can use to track us or frankly any of the substantial real estate players. I mean, if you also look at some of the other players, some of them are no longer chasing presales. I mean we can do presales of INR 50,000 crores a year also, frankly we have the land bank, we have the demand. But what we have to do is chase margins, chase cash flows and where we believe our primary objective is chasing margins and cash flows and not chasing presales, frankly.

Highlights DLF's strategic focus on profitability and cash flow over aggressive presales volume, differentiating its approach from competitors.

Asked by Akash (Nomura)

Realization and price appreciation for Dahlias vs. Camellias Direct
So a Camellias right now is trading now we're talking about super or carpet? ... Okay. So Camellias today right now is trading between anything between INR 80 to about INR 150 crores. Now the good thing is that the Dahlias has caught up much faster than we expected it to, which is we thought we will achieve this target in about 4 years, but we've done it in about 1.5 years. in terms of per square foot realization. And that's where I'm saying that if you do apple-to-apple, Dahlias would be maybe almost at par at the Camellias today.

Provides specific price points for luxury projects (Dahlias, Camellias) and demonstrates significant price appreciation for Dahlias, indicating strong demand in the super luxury segment.

Asked by Samir Jasuja (P.E. Analytics)

Utilization of RERA escrow cash balance Direct
And all of these projects will start getting unlocked from FY'27, '28 onwards. That's when these cash will be available for us different things. ... Number one is increasing shareholder return from the cash perspective. Second, we have an extremely healthy pipeline in DLF as well, mothership of annuity business and there is a large amount of capex, which is already kind of committed and will be invested for building the portfolio. And third, is, as you rightly pointed out, we already have a reasonable share of land bank, but we are always open for opportunistic deal what will be margin accretive in our assessment.

Clarifies the company's capital allocation strategy for the substantial RERA-locked cash, outlining its use for shareholder returns, annuity business capex, and opportunistic land acquisitions.

Asked by Akash (Nomura)

Status of Moti Nagar Delhi project (second phase) Partial
Moti Nagar, we are hoping that the government will do some infrastructure improvements as well in Central and Western, Delhi in and which may be the right more opportune time for launching the next phase. The first phase is almost completely sold out, barring some small tail that is remaining. So I think it will happen, but I don't think it's going to happen in this fiscal for sure.

Indicates potential delays for the second phase of a key project due to external factors (infrastructure improvements), pushing it to FY28 or later.

Asked by Kunal (CLSA)

Commercial projects (Downtown Gurgaon, Downtown Taramani) construction and leasing status Direct
Downtown Gurgaon, Phase 2 is an integrated development of 7.5 million square feet, out of which 2 million is the mall and 5.5 million is offices split into 4 Towers... Tower 7, which is 2.2 million is nearly fully leased. So now we have released Tower 5 and 6 and they are in the process of being leased. The finishing time lines are later part of FY'28, early '29. ... As far as Downtown, Taramani is concerned, the 3.5 million construction is progressing well. We are reasonably confident of its completion in Q2 of the next fiscal year, ... Out of 3.5 million, we have already leased about 500,000 and the balance leasing is on its way.

Provides detailed updates on the progress and leasing status of major commercial developments, indicating future annuity income streams and timelines.

Asked by Parvez Qazi (Nuvama Group)

SEZ portfolio trends and rental market dynamics Direct
So, as a concept, SEZ is not something which is growing. It is showing a decline in trend. So out of our total portfolio of SEZ of about 16 to 17 million, we have already converted about 4-odd million into non-processing areas... The overall vacancy is about 10-odd percent out of which the lowest vacancy is in the Cyber City in Gurgaon... As far as the rentals is concerned, we are slowly striving to close the gap between the, say in Cyber City in Gurgaon, between the cyber city rentals and the SEZ rentals for the new take up. And that gap has now come down to within 10 to 12%.

Highlights the declining trend in the SEZ segment and the company's strategy to convert areas, along with detailed insights into vacancy rates and rental growth across different micro-markets.

Asked by Nilang Mehta (HSBC Asset Management)

3 min read 6 chapters

Detailed narrative

Strong FY26 Performance & Cash Generation

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.

Annuity Business Growth & Outlook

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.

Residential Development & Launch Pipeline

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.

Dahlias: Super Luxury Market Performance

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.

Capital Allocation & Debt Management

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.

Commercial Portfolio Expansion & SEZ Trends

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.

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