DLF Ltd is focusing on luxury home sales, profit margins, and rental income to drive growth, MD Ashok Tyagi said on Saturday. The firm sold properties worth Rs 4,457 crore in the first half. Tyagi said, "Fundamentally, the three key drivers of our business are strong pre-sales of the identified products."
Synopsis
DLF Ltd focuses on generating strong pre-sales of luxury homes and increasing rental income from commercial properties. The company expects significant revenue growth as housing projects launched post-COVID complete over the coming years. DLF's recent performance reflects brand strength and disciplined execution, despite a decline in sales bookings. The company has achieved a positive net cash position, even after significant dividend outflows.
New Delhi: Realty major DLF Ltd is focusing on strong pre-sales of luxury homes, generating better profit margins and growing rental income from commercial properties, the company's MD Ashok Tyagi said on Saturday.
In a conference call with market analysts, he said the company's revenue would grow significantly after housing projects launched post-COVID get completed over the next few years, enabling the company to recognise the revenue in the books of accounts.
"Fundamentally, the three key drivers of our business are strong pre-sales of the identified products, strong cash and margin generation, and a continuously sustained and strong growth of the rental business...," Tyagi said.
He expressed confidence that the company would deliver on all three growth engines.
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DLF, the country's largest real estate firm in terms of market capitalisation, sold properties worth Rs 4,457 crore in the first half of this fiscal. It is targeting sales bookings of around Rs 20,000 crore in 2026-27.
DLF CFO Badal Bagri said the company has reported yet another strong performance in the September quarter.
This reflects the "underlying quality of our assets, disciplined execution, our brand strength, and prudent capital allocation across a well-diversified mix of development and annuity business", he said.
"Strong cash generation and a robust balance sheet continue to position us well for sustained growth in future," the CFO said.
Bagri informed analysts that the company recognises revenue only after completion of residential projects.
On Friday, DLF reported a 10 per cent growth in consolidated net profit to Rs 1,301.35 crore for the second quarter of this fiscal on lower expenses.
Its net profit stood at Rs 1,180.09 crore in the year-ago period.
Total income rose to Rs 2,297.30 crore in the second quarter of this fiscal from Rs 2,261.80 crore in the corresponding period of the preceding year, mainly on the back of other income.
Regarding operational performance, DLF's sales bookings fell to Rs 3,800 crore during the July-September quarter from Rs 4,332 crore in the year-ago period.
The fall in pre-sales or sales bookings was due to less fresh supply of housing inventory.
The company highlighted that its luxury senior living project witnessed a complete sell-out, underscoring strong demand for such differentiated offerings.
Recently, DLF sold all 172 senior living homes for Rs 1,985 crore in Gurugram.
The company said its super-luxury housing project 'The Dahlias' continues to attract strong demand from customers.
"Operating cash flow was Rs 1,858 crore, marking yet another quarter of sustained cash generation in the business. The net cash position stood at Rs 15,084 crore despite a significant dividend outflow of Rs 1,980 crore," the company said.
In the first half of this fiscal, DLF's net profit rose to Rs 2,095.25 crore from Rs 1,942.76 crore in the year-ago period.
Its total income, however, fell to Rs 3,902.86 crore in the first six months of 2026-27 from Rs 5,242.68 crore in the corresponding period of the preceding year.
DLF has developed more than 185 real estate projects so far, covering more than 352 million square feet of area. It has a rental commercial real estate (offices and malls) portfolio of around 50 million sq ft.
The group has 275 million sq ft of development potential across residential and commercial segments, including current projects under execution.
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