DLF bets on luxury home sales, margins and rental growth

DLF is prioritising luxury housing pre-sales, strong cash and profit-margin generation, and expansion of its commercial rental business, managing director Ashok Tyagi told analysts on Saturday, October 17. The Economic Times reported that the developer is targeting around Rs 20,000 crore in sales bookings for 2026-27, against Rs 4,457 crore recorded in the first half.

Tyagi said revenue should increase significantly over the next few years as housing projects launched after the pandemic reach completion and their sales become eligible for recognition in the accounts. He expressed confidence in the company's ability to deliver across all three business priorities.

Project completions determine revenue recognition

Chief financial officer Badal Bagri told analysts that DLF recognises residential revenue only once projects are completed. Sales bookings therefore do not translate immediately into reported revenue, making the completion schedule important to the company's future financial results.

Bagri attributed the September-quarter performance to the quality of DLF's assets, execution discipline, brand strength and capital allocation across its property-development and recurring-income businesses. He said cash generation and the balance sheet supported the company's growth prospects.

Quarterly profit rises as housing bookings decline

In results announced on Friday, DLF reported consolidated net profit of Rs 1,301.35 crore for the July–September quarter, up 10 per cent from Rs 1,180.09 crore a year earlier, helped by lower expenses.

Total income edged up to Rs 2,297.30 crore from Rs 2,261.80 crore, with other income accounting for much of the increase. Housing sales bookings, however, declined to Rs 3,800 crore from Rs 4,332 crore in the corresponding quarter, a fall attributed to fewer fresh homes being offered for sale.

The first-half figures also showed profit and income moving in different directions. Net profit increased to Rs 2,095.25 crore from Rs 1,942.76 crore, while total income fell to Rs 3,902.86 crore from Rs 5,242.68 crore.

Gurugram senior living project sells out

DLF said it had sold all 172 homes in a luxury senior living project in Gurugram for Rs 1,985 crore. Management presented the sell-out as evidence of demand for specialised housing offerings and said its super-luxury development, The Dahlias, continued to attract strong customer interest.

The company reported operating cash flow of Rs 1,858 crore for the quarter. Its net cash position stood at Rs 15,084 crore despite a dividend outflow of Rs 1,980 crore.

Rental portfolio anchors a separate growth stream

Alongside housing development, DLF has an office and mall rental portfolio of around 50 million square feet. Sustained growth in this business is the third pillar of the strategy outlined by Tyagi.

The group has developed more than 185 projects spanning over 352 million square feet. Its remaining development potential across residential and commercial property, including projects already under execution, totals 275 million square feet.