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The Print Times
DLF Limited reported a resilient performance for the first quarter of FY27, supported by strong collections, operating cash flow, a robust rental portfolio, disciplined execution and prudent capital allocation across its development and annuity businesses.
Founded in 1946 by Chaudhary Raghvendra Singh, DLF began with the development of 22 urban colonies in Delhi. In 1985, the company expanded into the then-unknown region of Gurugram, creating exceptional living and working spaces for India’s emerging global professionals. Today, DLF is the largest publicly listed real estate company in India, with residential, commercial, and retail properties spanning 15 states and 24 cities.
Speaking during the Q1 FY27 earnings conference call, Mr. Badal Bagri, Group Chief Financial Officer, DLF Limited, said the company’s overall collections during the quarter stood at INR 2,406 crore, while operating cash flow remained strong at more than INR 1,300 crore.
Consequently, DLF’s net cash position at the end of Q1 FY27 stood at INR 15,200 crore, of which nearly INR 11,000 crore was held in RERA 70% escrow accounts.
New sales bookings during the quarter stood at INR 657 crore, reflecting the timing impact from the deferment of the launch of Aureva, the company’s senior living product. The company is awaiting final approvals and expects to receive them over the next few weeks.
DLF’s rental portfolio currently stands at more than 50 million square feet, with occupancy at over 95% in terms of space and more than 97% in terms of value.
For the quarter, revenue stood at INR 1,605 crore, generating EBITDA of INR 476 crore. Net profit stood at INR 794 crore, compared with INR 766 crore in the same period last year.
Bagri reiterated that, under the current applicable laws and accounting standards, DLF continues to follow the conservative completed contract method of accounting, under which revenue and profits from projects are recognised once the relevant projects are completed.
He said FY28 is expected to be an inflection point from a reporting perspective, as the company’s large projects, starting with The Arbour, are expected to begin contributing to the profit and loss account. This, in turn, is expected to unlock the gross margin potential that the company has highlighted over recent quarters.
DLF currently estimates its gross margin potential at approximately INR 39,000 crore.
During July, DLF also received the occupancy certificate for its mall in Goa. With this development, all three DLF malls are expected to become operational during the current financial year, which is expected to significantly increase the run rate of the rental business within DLF entities.
From the current quarter, DLF has started reporting segment financials separately for its development and rental businesses. The company has also introduced a presentation slide showing the combined scale of its rental business across DLF, DCCDL and Atrium.
DLF Cyber City Developers Limited (DCCDL) Delivers Strong Growth
Moving to DCCDL, consolidated revenue stood at INR 1,917 crore, representing a 10% year-on-year growth, while EBITDA stood at INR 1,474 crore.
DCCDL reported net profit of INR 717 crore, registering growth of more than 20% year-on-year.
On the office rental business, the management noted that decision-making among global companies had slowed over the past two quarters amid uncertainty surrounding the impact of AI on hiring by multinational companies and GCCs, as well as changing geopolitical conditions.
However, management said that over the past four to five weeks it had observed signs of international companies returning to the market, making enquiries and taking leasing decisions. The company expects Q2 and Q3 to see better momentum in this regard.
The company said vacancy levels remain low, while its newer projects, including Cyber Park, Atrium Place, Downtown Gurgaon and Downtown Chennai, are nearly fully leased.
Construction and capital expenditure programmes for Downtown Gurgaon Phase 2 and Downtown Chennai Phase 2 are progressing at full speed. Leasing at Downtown Gurgaon Phase 2 is around 40%, while pre-leasing at Taramani is around 17%-18%.
Rental income across the portfolio grew by approximately 8.5%-9% compared with Q1 FY26.
Retail Portfolio Expands
In the retail segment, the company said its three new malls are progressively becoming operational.
Midtown Plaza is now fully operational, with approximately 85% of the space open and leasing of more than 96%-97%.
At Summit Plaza, the company recently conducted the opening pooja and soft launch. The mall is approximately 90% leased, with management expecting it to reach full operational momentum over the next two to two-and-a-half months.
In Goa, following receipt of the occupancy certificate, finishing works are underway and leasing activity is progressing. The company is targeting the opening of the mall by the end of the current year or early next year.
Retail consumption and customer spending during the first quarter remained strong and were slightly better than the company’s budget. Retail growth compared with the previous year was approximately 13.5%-14%.
The management also reiterated its continued focus on sustainability, green initiatives, safety and compliance.
DCCDL’s Q1 FY27 profit after tax of INR 717 crore represented growth of more than 20% from Q1 FY26. The profit was lower than Q4, primarily because the previous quarter benefited from one-time entries, including deferred tax asset-related items, which had taken profit to around INR 780 crore.
DLF’s credit ratings from CRISIL and ICRA remain at AAA, while the company said it continues to maintain a favourable borrowing rate at the portfolio level. The borrowing rate for the quarter stood at 7.14%.
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