DLFNSEQ1FY26August 05, 2025

DLF Limited

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Management on call

Ashok Kumar Tyagi

Managing Director, DLF Limited

Sriram Khattar

Vice Chairman and Managing

Aakash Ohri

Chief Business Officer and Joint

R. P. Punjani

09810655115/ punjani-rp@dlf.in

Nikita Rinwa

09069293544/ rinwa-nikita@dlf.in

Badal Bagri

GROUP CHIEF FINANCIAL

Key numbers — 40 extracted

INR 11,425 crore

our question-and-answer session. Our overall sales booking for the development business stood at INR 11,425 crores, which reflects a year-on-year growth of almost 78%. This was led by another successful launch i

78%

e development business stood at INR 11,425 crores, which reflects a year-on-year growth of almost 78%. This was led by another successful launch in our DLF Privana ecosystem. This reaffirms the sus

INR 4,500 crore

gth of our core market. The embedded margin from the sales made in the first quarter was close to INR 4,500 crores. The overall collections for the quarter were INR 2,794 crores, generating a net cash surplus of

INR 2,794 crore

in the first quarter was close to INR 4,500 crores. The overall collections for the quarter were INR 2,794 crores, generating a net cash surplus of over INR 1,100 crores. We reduced our debt by INR 1,364 crores

INR 1,100 crore

overall collections for the quarter were INR 2,794 crores, generating a net cash surplus of over INR 1,100 crores. We reduced our debt by INR 1,364 crores in the current quarter, reflecting strength of our bala

INR 1,364 crore

INR 2,794 crores, generating a net cash surplus of over INR 1,100 crores. We reduced our debt by INR 1,364 crores in the current quarter, reflecting strength of our balance sheet. We'd like to reiterate the key

INR 24,500 crore

eneration and gross margin. The gross margin potential for the sales already made stood at almost INR 24,500 crores and for the products launched, including the inventory, is over INR 40,000 crores. The cash pote

INR 40,000 crore

stood at almost INR 24,500 crores and for the products launched, including the inventory, is over INR 40,000 crores. The cash potential from this entire product launch over the period of time is over INR 46,000 c

INR 46,000 crore

40,000 crores. The cash potential from this entire product launch over the period of time is over INR 46,000 crores. We believe that these metrics enable us to be a very strong and distinguished player in the mar

INR 3,000 crore

reflected in our financials over a period of time. Revenue for the quarter was slightly short of INR 3,000 crores, INR 2,981 crores, with a gross margin of 28%. We would like to highlight that the gross margi

INR 2,981 crore

financials over a period of time. Revenue for the quarter was slightly short of INR 3,000 crores, INR 2,981 crores, with a gross margin of 28%. We would like to highlight that the gross margin is a reflection of

28%

for the quarter was slightly short of INR 3,000 crores, INR 2,981 crores, with a gross margin of 28%. We would like to highlight that the gross margin is a reflection of the product mix and with C

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Guidance — 20 items

Badal Bagri

opening

“We believe that these metrics enable us to be a very strong and distinguished player in the market and speaks of the embedded large potential of the business, which will be reflected in our financials over a period of time.”

Akash Gupta

“Congratulations on the great sales performance for both Privana and the Bombay project.”

Akash Gupta

“What's your thought on the launch pipeline for the Goa project?”

Akash Gupta

“And what would be the size of that project?”

Akash Gupta

“And when are we bringing the Phase 2 for the Bombay project?”

Aakash Ohri

“So hopefully, I think even if we prepone and do whatever, the next phase will take until next year, so because of the SRA regulations, as you are aware.”

Aakash Ohri

“And I think our approach will be to kind of meet them and take this forward for Dahlias as well.”

Sriram Khattar

“And the total growth will be, if you look at year-to-year, of about 15-odd percent.”

Badal Bagri

“Yes, Puneet, the OMT project in Delhi and the Garden City Enclave in near Gurgaon, they were the two main projects, which we recognized in the current year.”

Aakash Ohri

“So the other one has come back to us, but that will be sold at the present premium, whereas at that point in time, these were 3 to 4, about almost 3 years back.”

Risks & concerns — 8 flagged

So I think right now, at this point in time, I think, we'll be concentrating on this and some risk here and there.

— Aakash Ohri

But I think I don't foresee any fundamental challenge, except the general pace is just a trifle, more complicated or slower in a place like Delhi than it is in Gurgaon or Mumbai.

— Ashok Tyagi

And I think all of those things just add to that challenge.

— Ashok Tyagi

But yes, if you're looking at a big bang land acquisition, I think, (a) it will depend on one that is available to our risk appetite and our risk appetite in all fairness might be lower than what some of our competitors may have.

— Ashok Tyagi

I'm under pressure from friends and family.

— Aakash Ohri

Do you think there's a risk to this number for FY '26?

— Akash Gupta

No, there is hopefully no risk to this number.

— Ashok Tyagi

But I don't think we have a challenge on this on the sales guidance that we had given you.

— Ashok Tyagi

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Q&A — 11 exchanges

Hi sir. This is Akash, from Nomura. Congratulations on the great sales performance for both Privana and the Bombay project. Sir, my first question is on your launch pipeline. What's your thought on the launch pipeline for the Goa project? Second, when are we bringing the next phase of Dahlias? And what would be the size of that project? And when are we bringing the Phase 2 for the Bombay project? That's my first question. The second question is with respect to your collections. Collections for this quarter were slightly on the flattish side. So what's your thought on that? Thank you so much si

Aakash Ohri

Thank you. So Goa, as you've seen are -- when we mentioned and talked about Bombay, Goa, as and when the approvals come by, we will get down to Goa, which we're hoping they come by in the near future. So Goa, we'll work on that. With regard to the next phase of Mumbai, we've just about come out of the first phase. In fact, I was complaining right now that Mr. Tyagi has not even congratulated me. So at least let me take a breather here. So but Mumbai, we're excited. I think that we changed the discourse there and very grateful for the support we got in Mumbai. You all are aware that we did what

Puneet

Hi this is Puneet, from HSBC. My first question is with respect to the income recognition. Can you talk about what all projects were recognized in this quarter? And so primarily, the OMT is responsible for lower margin. Is that how one should look at it? Okay and secondly, if I look at the consolidated sales number for ONE Midtown, it seems to be a negative number. Is there a cancellation here? Because when you look at the cumulative gross sales last quarter, it was INR 4,112 crores. This quarter, it is INR 3,980 crores. So negative INR 132 crores. So that's what I'm wondering. Okay. Fair enou

Badal Bagri

Yes, Puneet, the OMT project in Delhi and the Garden City Enclave in near Gurgaon, they were the two main projects, which we recognized in the current year. Yes, yes. See, ONE Midtown, what happens it's not cancellation. But what has happened in ONE Midtown is that people have upgraded from 2 bedrooms to 3 bedrooms and 3 bedrooms to 4 bedrooms. So that is the variance right now that you see is because of that. So what you do is generally when, let's say, couple of people, not couple, a lot of people had taken 2 apartments, and they have now upgraded to 1 large apartment. So the other one has c

Thank you. My name is Praveen Choudhary, from Morgan Stanley. Hello Tyagi ji, Khattar ji, Aakash ji and Badal ji. Congratulations on great quarter for presales of Privana as well as Mumbai launch and also a big growth of 26% in the rental business profit. So a very good quarter. I have the same question that I always ask, which is what's the use of so much cash that you are generating? So if Badal can provide us in the next 3 years, how much cash are we expecting from DP business? And then if anyone else can tell us where will we use this cash? Because my calculation of dividend growth is not

Badal Bagri

Hi Praveen, if you look at, I think our overall cash balance is around circa INR 10,500 crores, of which almost INR 8,000 crores is sitting in the RERA account, which cannot be taken out, per se, and it's not free for use. INR 2,500 crores is sitting as cash balance right now, where there is a significant order of dividend payout, which is going to happen in the month of August itself. So while technically at this particular time, I don't think so we have significant surplus cash. But yes, the way the projects have been kind of envisaged and the way it's planned, over a period of time, yes, th

Yes. So thanks and congratulations for the great quarter. First question, in terms of launch plans, any changes for our project launch planned in DLF City that is probably Hamilton Phase 2, IREO or all of these projects would largely be FY '27. That's my first question.

Aakash Ohri

Yes. So right now we are working towards whatever guidance we've given you on. I think we're first working towards that. Launches take, as you know, in DLF, there's a lot of planning, especially on product. And I think that is what takes time. So I don't think we'd like to compromise or circumvent that procedure. As far as the projects that you mentioned, they are slated for FY '27. And I think we will stick to that unless something changes or things are done. But as per plan, right now, we've got whatever we have committed and Dahlias itself is, as you know, INR 40,000 crore turnover. So a lo

Congrats to the team on a strong set of numbers. Sriram, sir, just a follow-up. So I understand that straight lining for the Block 4 Gurgaon Downtown would have started last quarter. Did we start for Chennai this quarter? Or it is in Q2?

Sriram Khattar

Yes. So the OC for Downtown 4 Gurgaon came in the month of February and the spaces were handed over to the tenants. I expect the rentals to commence from next month and then right up to November, December when the full 100% rentals will start coming. The OC for Downtown 3 in Chennai came on May 4th. However, we had worked out with the largest tenant there, which out of 1 million, had taken about 740,000 square feet to start the fit-outs after the Fire NOC came in November. And the good news is that the rental for that 740,000-odd will start from 5th of August, which happens to be today. The ba

Hi good evening. Congratulations on the successful launches. Firstly, if you could help us understand the embedded gross margins, which if I refer to Slide number 10, this quarter was around 39%. It is lower than FY'25, I understand that, but why this should be lower than fiscal '24? Because we've seen like a meaningful price increase for Privana over, I mean, the last two launches. So I mean that's the first question.

Badal Bagri

Right. So Girish, our embedded margin for the sales done for the quarter is coming at 40%. The margin for our projects, as you would appreciate that when we drop a project model, there's a fair amount of contingencies and escalations, which are built in the project line itself. And as an organization, we always continue to be slightly on the conservative side. So 40% margin for Privana North is, I would say, still fairly reasonable, okay? And this is in line with our guidance of almost on a product portfolio perspective, a weighted average margin of 45%. So the INR 4,500 crores over INR 1,100

Kunal

Yes. Hi this is Kunal, from CLSA. Just on the cash utilization side, right? You did mention that there's a lot of completion coming in the next few years and that will unlock a lot of cash, which is sitting in the RERA accounts. At what level of cash levels would you be compelled or, for that matter, like you would look at deploying that cash into growth capital vis-a-vis like keeping it in banks? Sure. Just a follow-up on that, having seen the kind of response that you got in Mumbai and the success that you received. Are you now going to start, will you look at other geographies also besides

Ashok Tyagi

No, no. So please understand the preferred utilization of free cash is growth or shareholder return, honestly. Obviously, if we have cash more than what those two can absorb, then it goes into earning financial income. And there also, I think over time, as those quantum, we'll have to figure out more efficient uses of improving the financial income. But clearly, there's no threshold as such that on top of that we will begin hunting. Like we purchased, we did one deal last year. If there are opportunistic transactions that come our way, we'll be more than happy to look at. I mean, in the last t

Yes, thanks for the follow up. A couple of housekeeping questions. Firstly, if you can guide us on the capex budgets, both DLF and DCCDL for FY'26 and FY'27?

Sriram Khattar

So I'll probably answer DCCDL and RentCo assets, which are either in DLF, DCCDL or, say, the Atrium Place investment, we will be investing in the ballpark of INR 5,000 crores this year and INR 5,000 crores in FY'26 and FY'27. Okay. Got it. And in terms of any updates on the exit rentals at DCCDL for fiscal '26. So I think the exit rentals for March '26 for DLF as a whole will be INR 6,700 crores, out of which INR 5,900-odd crores will be DCCDL and the balance INR 750 crores will be between DLF and Atrium Place. See, DLF is now going to get 3 new malls for 1.3 million in Moti Nagar, Summit Plaz

Vasudev

Yes. Hi, Thank you for the opportunity. I'm Vasudev, from Nuvama and congratulations on the super quarter. So just on the 1.3 million square feet of malls, which you just said, just wanted to know where are we in terms of leasing and completions for these assets? Yes, sure, sir. Thank you. And just one number about gross leasing that we did in this quarter? Okay. Sure sir. That’s it from my side.

Sriram Khattar

So I'll start with the three malls. The first is what we call a High Street Plaza, which is near the Midtown projects in Moti Nagar. That mall is now 85% leased. It got its OC about 3 months back. The tenant fit-out is commencing within the range. There was a little disruption, but it is commencing now. And we expect that by December, the rentals will start. Summit Plaza which is in DLF Phase 5. For that, the OC application is being submitted during the course of this week. It typically takes 60 to 75 days for the OC to come. And the fit-out start around the time of the OC with most players ot

Akash here from Nomura. Sir, in FY '25, we did a presale of roughly INR 210 billion. And during the Investor Day, we were thinking that the presales for this year would be also at a similar level. Now the experience center for Dahlias we are bringing in March and April. Do you think there's a risk to this number for FY '26?

Ashok Tyagi

No, there is hopefully no risk to this number. I think if you see, we have already done 11.5 in the first quarter. Mumbai has already happened. So I think we will already be sitting at about 14. So I think that this number of 20 to 22 that we had said last time is completely secure. And then I think let's just see how the balance pieces fall into play. But I don't think we have a challenge on this on the sales guidance that we had given you. The second piece I'd like to -- which I thought was a part of my closing comment, but I'd put it here also is that, much as it will break your hearts, pre

So thank you so much all of you for taking time out on this Tuesday afternoon. I mean, yes, we had a decent quarter. Obviously, we need to continue sustaining this. I mean, as I mentioned just now 30 seconds back, our primary driver continues to be to strengthen our embedded margins, to strengthen our operating cash flows and to strengthen and grow our rental business. And I think on all the three parameters, we continue to work in a with a reasonably strong piece. Mumbai, this quarter was a first for us in that sense, and we are happy that Aakash pulled it off. In the previous quarter, the en

Sriram Khattar

Thank you. Thank you.

Speaking time

Moderator

Aakash Ohri

Sriram Khattar

Ashok Tyagi

Puneet

Kunal

Badal Bagri

Abhinav Sinha

Akash Gupta

Pritesh Sheth

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Opening remarks

Badal Bagri

Thank you, and welcome to the first quarter earnings call for Financial Year 2025-26. I'll just start with the key highlights before we start our question-and-answer session. Our overall sales booking for the development business stood at INR 11,425 crores, which reflects a year-on-year growth of almost 78%. This was led by another successful launch in our DLF Privana ecosystem. This reaffirms the sustained demand of high-quality products, which are backed by DLF as a brand and also reaffirms the strength of our core market. The embedded margin from the sales made in the first quarter was close to INR 4,500 crores. The overall collections for the quarter were INR 2,794 crores, generating a net cash surplus of over INR 1,100 crores. We reduced our debt by INR 1,364 crores in the current quarter, reflecting strength of our balance sheet. We'd like to reiterate the key KPIs that we monitor to be net cash generation and gross margin. The gross margin potential for the sales already made st

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