About the Company:

DLF Limited is engaged in the business of colonization and real estate development. The company operations span all aspects of real estate development, from the identification and acquisition of land, to planning, execution, construction, and marketing of projects. It is also engaged in the business of leasing, generation of power, provision of maintenance services, hospitality and recreational activities, life insurance and retail chain outlets. Its internal business includes development business and rental business. The development business of the Company is involved in the sale of residential spaces, select commercial offices and commercial complexes.

Its exposure across businesses, segments, and geographies, mitigates any down-cycles in the market. The company has also forayed into infrastructure, SEZ and hotel businesses. It operates in all aspects of real estate development, ranging from acquisition of land, to planning, executing, constructing & marketing of project. The group is also engaged in the business of generation and transmission of power, provision of maintenance services, hospitality, and recreational activities.

The business of DLF is organized on a SBU basis. The Homes SBU caters to 3 segments of the residential market - Super Luxury, Luxury and Mid-Income. The product offering involves a wide range of products including condominiums, duplexes, row houses and apartments of varying sizes.

Company also have JVs with Midtown, Delhi DMPL at 50%, Mumbai at 51%, DCCDL at 66.67% and Atrium Place at 67%.

Business Segments:

Company’s business segments include:

1. Development business: The company is one of the largest domestic real estate developers, primarily engaged in the development and sale of residential properties like high-rise condominiums, low-rise independent floors, plotted development, Shop-cum-Offices, etc. Company’s homes are spread across 11 cities and it ranges from cutting-edge luxury residential complexes to thoughtfully designed townships. Company has 27.05 million sq m of developed residential area and completed 112 Residential projects and it has 17.84 million sq m of development potential across India.

It is also credited for developing many well-known urban colonies in Delhi, including South Extension, Greater Kailash, Kailash Colony, and Hauz Khas, and one of Asia’s largest private townships, DLF City, in Gurgaon, Haryana.

2. Annuity / Rental Business: The company develops and leases commercial projects like cyber cities, IT Parks / IT SEZs, corporate parks, retail projects, etc. It is one of the largest organically grown platforms offering both office & retail developments, with over 1,500 tenant partners across offices and retail malls.

DLF Malls have pioneered the retail revolution in India. From curated luxury malls to premium retail destinations, DLF has transformed the way people interact, connect, and experience the retail landscape. It has 4.81 million Sq Ft Retail Space, 3.45 million Sq Ft LEED Certified and 4.19 million Sq Ft in Upcoming Projects which caters to 900 + international and Indian brands and serves 62

million+ annual customers.

Malls by DLF includes DLF Emporio Delhi, the Chanakya Delhi, DLF mall of India, DLF Promenade, DLF Avenue, DLF Cyberhub Gurugram, Horizon Plaza DLF5 Gurugram and DLF City Centre at Chandigarh. Its key projects include DLF Cyber City, Cyber SEZ, Cyber Park, Chennai SEZ, etc. It has been conferred over 40 LEED Zero certifications by the US Green Building Council for its projects spread over 40 msf, which is the highest in the world for any real estate developer.

3. Other Business: The company also operates a hospitality division consisting of recreational clubs in and around its residential developments and two hotel properties. The Lodhi, in New Delhi, is managed by the company, whereas The Hilton Garden Inn, Saket, New Delhi is managed by Hilton.

The company has a total project pipeline of 56 msf. It plans to launch 37 msf within its development business, offering a sales potential of Rs. 1,04,500 Cr over the medium term, including 35% already launched in Fy25 and 15% planned to be launched in FY26. In its rental segment, 28msf is under development, with 6.2 msf expected to be completed in FY26. It has a development potential of 192 msf across the residential and commercial segments largely concentrated in Gurgaon with 112 msf of developable space. About 31% (61 msf) of Land Bank monetization will take place through scaling-up launches over the medium term.

In the development business, the company focuses on margin-accretive products and penetrate key markets, including Gurugram, Delhi NCR, Chandigarh Tri-city, and Goa as well as new geographies like Mumbai. It focuses on achieving double-digit rental growth through organic expansion and new developments, with plans to double its retail portfolio over the next 4-5 years. It targets steady double-digit PAT growth annually.

Fundamentals:

Financial Results:

Company’s revenue from operations reached 3,128cr. in Q4Fy25 marking 105% growth on QoQ basis and 46% growth on YoY basis. It reported EBITDA of 1198cr. marking 97% growth on QoQ basis and 28% on YoY basis. Company reported PAT of 886Cr. and marked stellar growth of 148% on QoQ basis and 41% on YoY basis.

Company reported Record New Sales bookings at Rs 21,223 crore, y-o-y growth of 44%; Embedded Gross margins estimated at ~ Rs 12,875 crore [61%]. Company’s Collections grew to Rs 11,773 crore, y-o-y growth of 36%; Net Cash Surplus at Rs 5,302 crore, y-o-y growth of 134%. Company’s Gross cash balance was at Rs 10,662 crore including Rera 70% A/cs : Rs 8,191 crore and Net Cash position of Rs 6,848 crore.

DCCDL’s Rental income grew to Rs 4,754 crore, reflecting y-o-y growth of 10%. Occupancy of its operational rental portfolio at 94% vs 93% last year; Office[Non-Sez] : 98% vs 97%; Offices[Sez] : 88% vs 86% and Retail : 98% vs 98%. Company received Strong Pre-leasing of New products such as DLF Downtown, Gurugram[Block-4; ~ 2 msf] : OC received in Q4FY25; Pre-leased at 97%, DLF Downtown, Chennai [Block-3; ~ 1.1 msf] : OC received in Q1FY26; Pre-leased at 99%, Atrium Place, Gurugram [Phase-1; ~2.1 msf] : OC expected in Q2FY26; Pre-leased at 87% and Midtown Plaza, Delhi; Pre-leased at 65%.

Key Highlights:

• CRISIL Ratings has upgraded DLF Cyber City Developers Ltd (DCCDL)’s rating to CRISIL AAA (Stable) from CRISIL AA+ (stable).
• DLF Ltd plans to invest 220,000 crore to develop commercial properties, which include office, retail and hospitality in the medium term.
• DLF's rental arm is planning to invest around Rs. 6,000 crore to construct 75 lakh square feet of prime office and retail spaces in Gurugram to tap demand for top quality green commercial properties.
• DLF has sold 173 apartments for Rs. 11,816 crore in its ultra luxury residential project The Dahlias in Gurugram, on strong demand from the super-rich.
• Previously the company launched a luxury residential venture DLF Privana West, a high-rise development spanning over 12.572 acres, this project achieved a sellout value of approximately Rs. 5,590 Cr, within 3 days of launch.
• Again few months back when it launched DLF Privana South, it was entirely sold within a few days of launch resulting in Rs. 7,200 Cr of sales.
• Super-luxury offering - The Dahlias receieved Sales bookings of Rs 13,744 crore which is 39% of estimated Total Sales Potential in the opening year.

Conclusion:

DLF Limited remains a leading force in India's real estate sector, consistently ranking among the top developers in residential and commercial space. According to IMARC Group, DLF is one of the major players alongside Brigade, Godrej, Lodha, Prestige, and others in a market worth approximately USD 482 billion in 2024. While explicit company‑level market share figures aren’t publicly disclosed, DLF’s leadership status is reinforced by its valuation of about ₹2 lakh crore and its dominance as India’s most valuable real estate firm.

Looking ahead, the Indian real estate market is expected to enjoy robust growth. IMARC projects the sector to expand at a compound annual growth rate (CAGR) of about 10.5% from 2025 to 2033, reaching USD 1,184 billion by 2033. Other sources, including Grand View Research, estimate a slightly more moderate CAGR of 7–7.3% through 2030, with market size rising from USD 584 billion in 2024 to around USD 846 billion by 2030. Reuters‑poll forecasts home price increases of roughly 6.5% in 2025 and 7.5% in 2026, driven largely by demand in the luxury segment. India Ratings also expects 3–4% home‑price growth in FY 2026, reflecting moderation in affordability pressures.

Within this dynamic growth environment, DLF stands well-positioned to capitalize on expanding demand, particularly in the premium residential and commercial segments. Its ongoing large-scale launches—such as the Gurugram Privana North project and entry into Mumbai’s redevelopment market—leverage strong brand equity, strategic execution, and emerging urban demand. At the same time, macroeconomic headwinds like rate sensitivity, policy shifts, and housing affordability concerns remain pertinent risks.

On balance, DLF presents a well‑balanced long‑term investment opportunity: a dominant player in a growing real estate market, offering sustainable financial strength and structured expansion—especially in premium housing—while requiring caution around broader economic and regulatory cycles.

HET ZAVERI
info@smartinvestment.in

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