Super Luxury Sales Drive Q2 Performance
DLF Limited reported sales of Rs 16,000 crore from 221 units of its Dahlias project in Q2 FY’26, highlighting sustained demand for high-end residential properties in India. During the company’s earnings call on October 31, 2025, Group CFO Badal Bagri confirmed, “We sold 18 units this quarter, Pritesh. Okay, on cumulative basis, we sold 221 units,” with the project’s total sales value reaching approximately Rs 16,000 crore. The performance, driven by the super luxury Dahlias project and the Mumbai launch of The Westpark, underscores DLF’s ability to attract affluent buyers amid a competitive market.
Financial Metrics Reflect Steady Growth
DLF recorded new sales bookings of Rs 4,300 crore for the quarter, contributing to a first-half total of Rs 15,750 crore, aligning with its FY’26 guidance of Rs 20,000–21,000 crore. Aakash Ohri, Joint Managing Director and Chief Business Officer, noted that Dahlias, with over 55% of its inventory sold, commands realizations of Rs 1 lakh per square foot, rising to Rs 1.25–1.50 lakh based on unit location. “Dahlias targets an exclusive clientele, with interest from top families across major cities,” Ohri said, citing a recent high-profile sale that gained significant attention online.
Collections reached Rs 2,672 crore, tied to construction and payment milestones, with an additional Rs 240 crore from The Westpark joint venture not included in the consolidated figure. Bagri projected annual collections could rise to Rs 13,000–14,000 crore in FY’27 as construction progresses. The company spent Rs 925 crore on construction, reflecting increased project activity.
DLF maintained a gross cash balance of Rs 9,200 crore, with Rs 8,350 crore in RERA accounts, and reduced its debt to Rs 1,487 crore after repaying Rs 963 crore. Dividend payouts totaled Rs 1,485 crore at Rs 6 per share, up 20% year-over-year. Consolidated revenues were Rs 2,262 crore, with EBITDA at Rs 902 crore and profit after tax at Rs 1,171 crore, aided by a one-time Rs 600 crore settlement from the Tulsiwadi project. CRISIL upgraded DLF’s credit rating to AA+ with a Stable Outlook, citing its strong balance sheet.
Ambitious Launch Pipeline
DLF outlined plans for launches over the next 18 months, including projects in Goa, Arbour 2 (senior living), Privana, Hamilton 2, and Panchkula. The Goa project, with a gross development value exceeding Rs 3,000 crore, awaits resolution of an unrelated court case but is expected to launch by Q4 FY’26 or early Q1 FY’27. Ashok Tyagi, Managing Director, said, “Timings will hinge on approvals and demand, but we’re prepared to roll out projects as market conditions allow.” The Westpark’s strong reception in Mumbai has prompted plans for a phase-II launch, with Ohri noting broad investor interest across India.
Rental Portfolio Shows Resilience
DLF’s rental business, managed through DLF Cyber City Developers Limited (DCCDL), posted a 15% year-over-year increase in rental income to Rs 1,362 crore, with profit after tax up 23%. The 49-million-square-foot portfolio maintained occupancy rates of 96% by value and 94% by area, with non-SEZ offices at over 98% and retail at 97–98%. Sriram Khattar, Vice Chairman and Managing Director (Rental Business), highlighted Atrium Place, where 1.9–1.95 million square feet of the 2.1 million square feet with occupancy certificates are leased. “Atrium will start generating rentals from December, targeting a run rate of Rs 600–650 crore when fully operational,” Khattar said.
Three retail assets—Midtown Plaza, Summit Plaza, and Promenade Goa—are projected to add Rs 450–460 crore in rental income by FY’27, with occupancy certificates either secured or expected soon. DLF plans to identify new assets for development by early 2026, as part of its five-year strategy.
Construction and Debt Management
Construction is advancing on major projects, including Downtown in Gurgaon (7.5 million square feet, set for completion by mid-2028) and Towers 4 and 5 in Chennai (expected early 2028). Bagri emphasized DLF’s goal to eliminate gross debt at the parent level, currently at Rs 1,487 crore, while retaining long-term loans for rental assets like DCCDL and Atrium Place to optimize operations.
ESG and Customer Policies
DCCDL earned a Five-Star GRESB rating, recognizing its ESG initiatives as a global sector leader. DLF’s customer-centric approach was evident in its handling of cancellations, which Tyagi described as often being upgrades to larger units. Ohri added, “These are healthy signs of evolving customer preferences. Our systems ensure strong collections while maintaining transparency.” The company’s gross margin potential stands at over Rs 40,000 crore, with surplus cash potential at Rs 44,000 crore as of September 30, 2025.
Challenges and Market Outlook
While DLF’s performance is strong, challenges remain, including navigating approval delays for projects like the Kolkata IT SEZ, which is three months from monetization due to regulatory hurdles. The company’s reliance on super luxury projects like Dahlias, where pricing rivals its Camellias project, could face risks if market sentiment shifts. However, with a launch pipeline worth Rs 1,15,000 crore over the next four to five years, DLF is well-positioned to capitalize on India’s real estate demand, balancing residential growth with a stable rental portfolio.
