DLF Limited Q3 FY26 Earnings Call Summary

Summary

DLF Limited - Q3 FY 2026 Earnings Call Summary Friday, January 23, 2026, 4:00 PM IST

Event Participants

Executives 4 Aakash Ohri (MD & CBO, DLF Home Developers), Ashok Kumar Tyagi (MD, DLF Ltd), Badal Bagri (Group CFO), Sriram Khattar (Vice Chairman & MD, Rental Business)

Analysts 7 Abhinav Sinha (Jeffries), Akash Gupta (Nomura), Gaurav Khandelwal (J.P. Morgan), Jatin Kalra (BofA), Kunal Lakhan (CLSA), Parvez Qazi (Nuvama), Pritesh Sheth (Axis Capital), Puneet Gulati (HSBC)

Financials & KPIs

Geographic & Segment Commentary

• Gurugram (Super Luxury/Luxury): The ‘Dahlias’ project underwent a design redesign to enhance structural stability and customer experience, causing a temporary sales pause in Q3. Management notes that pricing has already increased 25% over the past year, and the project is nearly 60% sold-out pre-launch.
• Rental Business (DCCDL): Achieved 90% occupancy in rental assets, with Downtown Gurgaon fully leased and Downtown Chennai Phase 2 (Tower 7) completely pre-leased. Rental income is projected to grow to ₹7,400-7,500 crores in FY27 as Atrium Place and new retail malls commence rent.
• Retail Segment: Consumption in Q3 showed strong YoY improvement. Three new malls (Midtown Plaza, Summit Plaza, and Promenade Goa) are 95-96% leased and expected to open within the next 3-6 months.

Company-Specific & Strategic Commentary

• Zero Gross Debt: The development business achieved a milestone of zero gross debt during the quarter, supported by record 9M cash generation.
• Redesign Strategy: Management deliberately paused sales at ‘The Dahlias’ to adapt to new structural codes and enhance the facade, prioritizing product quality over quarterly volume.
• Operational Scale: Currently has ~40-45 million sq. ft. under construction, which management identifies as their optimal execution capacity to maintain quality and compliance.
• Expansion & Land Bank: Actively scouting for “clean” land parcels in Noida and Mumbai while focusing on the next phases of Moti Nagar (7 million sq. ft.) and the IREO land parcel (8 million sq. ft.).

Guidance & Outlook

Risks & Constraints

Q&A Highlights

The Dahlias Sales Pause

• Question: Why were sales so low this quarter and what changed at Dahlias? (Puneet Gulati)
• Answer: Sales were paused for ~2.5 months to get RERA approval for design enhancements. 75% of existing customers had to sign off on the improvements, which are now complete. Bookings resumed in Jan 2026 (Ashok Tyagi).

Gurugram Market Sentiment

• Question: Is the Gurugram market slowing down as some peers suggest? (Abhinav Sinha)
• Answer: There is no disconnect between sales and collections. 15% of sales are from “Rest of India” and 25% from NRIs, showing broad-based demand for the Gurugram brand (Aakash Ohri).

Utilization of Surplus Cash

• Question: Is there a plan for a major dividend jump or new land buys? (Abhinav Sinha, Kunal Lakhan)
• Answer: While cash is high, ₹10,400 Cr is in RERA. Meaningful cash utilization for land replenishment or higher shareholder returns will occur from FY27-28 as cash “unlocks” (Ashok Tyagi).

Future Launch Pipeline

• Question: What are the building blocks for FY27 sales? (Murtuza Arsiwala)
• Answer: Key launches include Arbour 2 (Senior Living), Westpark Mumbai Phase 2, Panchkula, and a major group housing project in DLF City (~2.5 million sq. ft.) (Ashok Tyagi).

Key Takeaway

DLF Limited delivered a robust financial performance in Q3 FY26, characterized by record gross collections of ₹5,100 crores and the achievement of zero gross debt in its development business. While new sales bookings were uncharacteristically low at ₹419 crores, this was a strategic byproduct of pausing ‘The Dahlias’ to implement design enhancements, a move management expects will protect margins and improve product longevity. The rental business continues to be a pillar of stability, with DCCDL vacancy dropping to 5% and projected FY27 rental income reaching ₹7,500 crores. With ₹10,400 crores currently restricted in RERA accounts, the company is poised for a massive liquidity surge in FY27-28. Despite macro risks like GRAP-related construction halts and industry-wide labor shortages, DLF maintains a confident outlook to meet its ₹20,000+ crore annual sales guidance, supported by a 40 million sq. ft. construction pipeline and premium brand positioning in the Delhi-NCR market.