Just on Dahlias, so, any specific set of inventory planned to be open for this quarter in terms of if you can quantify that or everything is open for now, but we are taking it, you know, invite by invite. So how should we one look at that?
Dahlias has been open always. I don't think we've restricted any inventory or any tower. So, we've been getting a phenomenal response. So, Dahlias, there is basically, as far as sales is concerned, it is open because also, please understand that these are high value transactions. So, it will be unfair for people. Yes, the price difference between certain values, depending on the preferential location charges that they carry, obviously are different from what they will be to maybe lower apartments or lower placed apartments. But Dahlias has got some amazing view with the new Lake Park that we are building. It's a hybrid of Hyde Park and Central Park. And then, of course, the south side carries its own. So, it's open. It's by invitation. We have got healthy traction. We are doing well and now we've got great traction from the rest of India. In fact, from top equity and capital market brokers also have started to realize that, look, with all the geopolitical issues going on, converting financial assets to hard assets is prudence today. So, I think Dahlias is doing pretty well there and also the NRIs continue to respond. We just clocked in Super Luxury, one of the most renowned NRIs.
Sure. And how should we think about the monetization? Obviously, we don't want you to rush on that. But in general, like initially when we launched, we had a target of, I mean, we have internal targets of probably monetizing it in three years. That still holds or longer or shorter? What would be the time now?
No, so Dahlias, as I said, first of all, let me tell you, it's a dynamic pricing policy. As you know, the valuations, the turnover is about Rs. 42,000 crores and when we started off, it was about Rs. 29,000 crores. So, you've seen it grow. And as far as the monetizing is concerned, we had started with a four-year plan. And because we've done well, what we had planned to do, we've almost doubled that target in just about one year. So, I think we're not going to stop anything. But based on what the price points are going to be, I feel that it'll take its own time and that's how Super Luxury should.
Hi, and great to see the cash collections happening in the quarter. So just one question on the cash balance and its utilization that we have. So, are we looking for a bigger jump in dividend payout this year?
So, Abhinav, as we have told in the past also, that while obviously this cash number looks brilliant on paper, and it is, a large chunk of it unfortunately still is trapped in RERA and frankly, we will start getting the unlocking of the RERA cycle from fiscal 27, 28 onwards. So, which is where I think meaningful cash utilization questions will come. On the dividend front, two metrics have been going in the last 3 years, if you see. The dividend that we received from Cyber City to DLF and the dividend that DLF distributes to its shareholder. So ,we are hopeful that the same trajectory of growth on both of those metrics will continue.
If you could give some color on, let's say, what FY '27 looks like. We're almost towards the end of FY'26 in terms of the building blocks to sales just beyond, Arbour 2 and Dahlias? That could be useful.
So, Murtuza, as I mentioned earlier that, I mean, from now till March 27, basically apart from Arbour 2, which senior living, which Aakash mentioned, we have one major group housing scheme in DLF City. We have the next phase of Westpark. We have the next phase of Panchkula. We will possibly have one more phase of DLF City Floors. We'll hopefully have Goa. So, all of these are in the approval and launch queue, in that sense and Dahlias will continue to be the strong underpinning for this entire piece. So, fiscal27 honestly looks pretty strong right now. We will give you the guidance in numbers in May.
So, one question from my side, I mean, for the next year, you gave the launch pipeline. If we leave apart Goa and take the other four projects, which is Mumbai Phase II, Arbour Phase II, Panchkula, and maybe the one group housing scheme in DLF City, what will be the total sales potential of these four projects?
So, honestly, I think, while we have the numbers, frankly, typically for the go-forward fiscal, we have traditionally done that, I mean, slightly more transparent disclosures when we do the annual call. And I'd like to stick to that. But broadly speaking, the DLF City group housing should be in the range of a couple of million square feet plus hopefully, 2.5 million square feet with all the TDRs and all coming in. The Westpark should be about 1 million square feet and the senior living is there 0.5 million square feet. Goa, we know, Panchkula will be in phases. So I think there will be, and of course, Dahlias will continue to be ongoing selling.
Hi, sorry, I think there was an issue earlier. My question has been answered. Thank you.
Okay, thank you.
Sir, First on the Q4 FY '26 and the FY '26 guidance. My question is that I think we have just one project, which is the Arbour senior living. So, that would be roughly 20 billion GDV, and we have done roughly 160 billion. So, should we expect Dahlias sales only to the extent to meet our guidance? Is that how should we think about the fourth quarter?
So look -- I mean, nice try, Akash. But we stick to the fact that we continue to be confident. Look, there was a time at the end of September quarter when we had done Rs. 15,000odd crores of sales. When your brethren were saying that now revised the guidelines and -- because we knew that you could occasionally get a rough over as well. So, I think we stay confident to meet our original guidance in that sense. Whether frankly, that guidance will lead us to Rs. 20,438 crores or Rs. 21,744 crores, I'm not getting into that. But we had given you a guidance range, and I think we broadly stay on good for that. Aakash Ohri added: we are extremely cautious about compliance, and we like to make sure that everything is there before we make third-party commitments. And there's a severe construction resource crunch and other issues that are going on. So, there's no point, just going into a situation where just you just for the number's sake and for doing things you continue to just be on that treadmill and make commitments and then struggle to meet them in the construction.
Sure, sure. But no new market besides Noida and Mumbai that you're looking at, at least in the mid-term. And on Delhi, any clarity on the second phase of Moti Nagar?
No. Delhi, of course, continues to be there, but beyond that, no. So, the issue, I'll tell you honestly, is that Moti Nagar, we are working with the government to see and basically to ensure that the infrastructure around Moti Nagar can actually get enhanced to truly make it like a far more upscale neighbourhood. I mean, Moti Nagar is central Delhi. And I think that that is a process which will take some time, but I think we would ideally like to hold on to the next phases of Moti Nagar launch till such time that the infrastructural work being planned by the government, there's a visibility on that and there's a certain execution that has happened. But clearly at some stage, you're right that the next phase of the Moti Nagar piece will happen. There's a 7 million plus square feet that is available there. The Moti Nagar Mall is getting commissioned this year, Midtown Plaza.
Great and one last question. You did give clarity on the health of the NCR market in a previous question. But just to follow up on that in terms of like I understand DLF is doing really well. You're getting response for your projects, but how is the industry or your peers doing? One of your peers earlier in the month kind of alluded towards some kind of a slowdown. Some of the other peers out of Bangalore also colluded towards a cautious outlook on the NCR market. I mean, just your thoughts on the overall market, not just your products?
In all fairness, we don't comment on individual peers. But to just borrow from what Akash mentioned earlier, a lot of the major real estate players are coming to Gurgaon. Some of them have announced very marquee launches in the next calendar. So, clearly, I think Gurgaon, I mean, again, NCR overall is three different markets. But Gurgaon specifically continues to be a market which does attract attention and hold attraction for even other players who are not present in Gurgaon so far. So, I think there is an underlying thing. Yes, obviously, they'll be one of people who may have had some headwinds in that sense. But I mean, we do believe that the underlying strength of the market for credible names continues to be there.
My first question is actually on your collection, which has notably gone up this quarter. Is that a sustainable run rate one should think of from a quarterly perspective, or has there been some previous quarters views which have got accumulated in this quarter as well?
Okay, Puneet, I think from a development business perspective, it will be the best way to look at the collection will be on an annual basis rather than quarter-on-quarter basis. As you would know that most of our sales is construction linked, and the amounts become due as and when the construction phases or the milestones are achieved. So, I would say instead of looking at quarter-to-quarter, this will always be misleading. We had no significant dues of the previous quarter which has got taken up in this quarter. As mentioned earlier in our presentation as well, that our collection efficiency across all projects remains extremely high. So, the way I would look at collections is we should look at a 10% -15% growth year-over-year versus what we have achieved last year on an overall basis from a collections point of view.
Okay, so 10% - 15% growth this year, full year, and then next year also similar number?
Ashok Tyagi: Yes. Badal Bagri: Indicatively, yes.
Okay, okay. And from construction spend, should that also be largely similar, I understand that there's a bit of GRAP issues you are facing?
So, Puneet, I think this quarter was, as you rightly pointed out, we had issues. We had suspension of work for a good 30 to 40 days, 40, 45 days or so. But if you look at the nine-month trajectory, the last nine months of this year and last nine months of previous year, our construction spends are almost 40 % up, almost Rs. 2,400 crores versus Rs. 1,500 odd crores which we spent last year. And as we had kind of mentioned earlier, a range of Rs. 900 crores to Rs. 1,000 crores is a good number to kind of look at on a quarterly basis. It's a number which possibly you can consider as a reasonable construction spend over the coming quarters. Ashok Tyagi added: if you now look at the last three or four years, Q3 always gets impacted by a GRAP. I mean, 30 days, it could be 45 days, but effectively like between one to one and a half months in the entire year does get lost unfortunately to the entire pollution-related GRAP measures.
Understood. And secondly, if you can elaborate a bit more on why did you pause the sales in Dahlias and what is the expectation of the new product into this Q4?
So normally, Puneet, this quarter would have been a reasonable quarter for us in the usual couple of thousand crores of the non-launched quarter sales. We were doing some design modifications on Dahlias to improve the entire layout and the client experience. And then as you know, as per RERA, if you do a design modification, you have to run it for the approval of all the existing customers and I think 75% odd customers need to sign off, then RERA needs to take cognizance of it. So unfortunately, about two to two and a half months of this quarter was spent in that entire process. I mean, we are very glad that in early January, RERA has given that permission after taking into cognizance of all the customer approvals that came in. And now Aakash has resumed the sale.
And also what design modifications you've done, if some colors can be given.
So Puneet, I'll tell you first, with regard, it's an enhanced design. Basically what happens is as the codes change, you can adapt to the new ones or you can go back and work with the old ones. I think we've demonstrated a tremendous amount of strength in kind of implementing that. And every element of design and structural stability has gone up manifold. Again, I'd say to you that we could have continued to do what we were doing, but I think we chose, took a call that this is going to be, since the project right now is in its inception, we decided that we'll go with the new code and therefore, whether it was the structural part or whether it was the certain other elements in terms of facade and all, you know, the product has come out beautifully. It is, you know, accepted also by a lot of customers who have endorsed it. And now we're over 55%, almost 60% sold and that is before launch. We've got an overwhelming response from our customers and that's as far as Dahlias is concerned. With regard to your point on collections, our collections have been consistently doing well for the last over two years. This has been primarily a schedule based collection and it has been more than 100%.
And the design change, will it do anything material to cost of construction for Dahlias?
Yes, it will do material change to cost of construction, little bit for sure. But also as you know, Dahlias is a dynamic price point system. It is not linked to volume sales or not linked to any categories. The Dahlias will continue to rise. Just to let you know, from the past year alone, there has already been a 25% increase in Dahlia's pricing and we are selling. So both, yes, to answer your question, that plus, of course, commensurate revenues as well. Badal Bagri added: our margin for this project will remain intact despite what we are doing. Intact to positive, I would just say, but I would leave it intact for this point of time.
And lastly, if you can also elaborate on what your plans for this calendar year in terms of new products or phases that we should watch out for?
Well, this calendar year, we are working on Arbour 2, as you know, the senior living. And we've got our residual business to do. And then, of course, now we are back to, we re-introduced Dahlias and that is before the main final Big Bang launch. So, we will try and use this quarter as well for that. And look forward to the senior living launch, as we had talked about. Ashok Tyagi added: if you are asking for the Calendar '26, will see at least one major group housing launch in DLF City. It will see the next phase of Westpark in Mumbai. It will see a launch in Panchkula. It will hopefully see Goa. So, I mean, all of those launches will happen. Most of them in the calendar, maybe something will fall into Q4 next year, but I think most of them should happen in this calendar.
Sure, sure and just to reconfirm, Arbour 2 the senior living will get launched in Q4, along with the next set of inventory. And what is the revenue potential, GDV potential for that?
Yes. So we're working towards that. We are right now in various stages of permissions and all. So yes, we're working towards that. That is about close to, now it will be close to about 2,000 odd.
Okay. Okay. Fair enough. And just on the commercial side, Sriram sir, what the exit run rate look like now with these leasing that has happened in the quarter, maybe for FY 26-27, if you can.
Yes. So, exit run rates are now getting more and more difficult to forecast because exit run rate, which we say have in March, we multiply it by 12. And then the escalations that come up there, and then the new build out, which keeps getting leased and the operations commence and the rental start, it gets a little difficult to sort of only talk of the exit run rate. So, as we stand today, our FY '26 will be about, the earnings for FY '26 will be in DCCDL about Rs. 5,900 crores and for DLF will be another about Rs. 550 odd crores. So, we, in that sense, FY'26 for the year, it will be about Rs. 6,400 crores for the rental business, for the annuity business. Next year, the Rs. 6,400 crores will go to about Rs. 7,400 to Rs. 7,500 crores. In this, DCCDL will be about Rs. 6,300 crores. But DLF will take a big leap of about Rs. 1,150 crores because Atrium Place rentals will start coming in for the first three towers and the rentals for the three malls will kick in also.
Okay and sir, for DCCDL dividends, should we see it as a 75% of PAT ratio to continue or because I guess the last, the biggest chunk is actually given out in the fourth quarter. So, what's the thought there?
So, the dividend payout, whatever percentage of the PAT was there last year, we at least propose to the Board to continue at that level for FY '26 and FY '27. That is in the ballpark of 75%-80%.
Okay. Okay. That's helpful. Sir, on the Kolkata IT SEZ, when is the completion expected of the transaction?
Yes. So Kolkata SEZ, which is, if you may please recall, Kolkata, one asset which was in the books of DCCDL was sold and the deal closed in December of '25. Kolkata SEZ, which is in the books of DLF, we have got the first stage approval from the Board of Approvals. We are awaiting the state approvals on one or two issues, which we are working along with the buyers. And we are quite hopeful that we will be able to close it in the current quarter. But having said that, the deal was such that the rentals per month continued to accrue to us till the date of the final payment. So, in addition to the advance we received, the rentals continued to accrue to us till the date of sale.
Okay. Sir, one last question on the broader Gurgaon market. Now, I know, I mean, DLF branded products have continued to do very well. But we keep on hearing two-way news flows. Just wanted to hear your take on that residential market.
Ashok Tyagi: Firstly, all the Mumbai-based analysts anyway view Gurgaon market with some degree of scepticism. So that's one problem. So even the slightest line hidden in somebody's stock exchange release, you know, gets flared up and then is projected to cover the entire market, which is not the case. Aakash Ohri: So Gurgaon market right now has shown its robustness over years. If you see the kind of traction Gurgaon is getting, as far as DLF is concerned, I'm getting business for the Gurgaon markets from the rest of India. I have a very healthy pipeline and we've converted, our sales are about 25% NRI, our top line, and 15% are the rest of India sales coming in for Gurgaon alone. As far as Gurgaon is concerned, it is extremely, extremely well kind of accepted and people are, and across price points also, whether it's super luxury, luxury, premium floors, plots, Gurgaon is right now the most favourite investment option for people across the board. So, there is enough depth in the market. People are choosing this by choice and, also a good reflection to all of this year-after-year, month-after-month, quarter-after-quarter is the collections that we report. So, the markets are strong, people are putting their money where their mouth is.
Understood, sir. Actually, my next question is on Privana and the IREO land parcel. I didn't see that, I think, in the FY '27 line-up. Is that stacked up for FY '28 now? And Privana, that's FY '28.
So, on the IREO land parcel, as I think I mentioned last time also, that we are now getting in hopefully the final leg of the entire approval, etc. And I think at some stage, it will now come up for launch. I mean, it's a huge land parcel, as we know, with potential GDV of 8 million or 7.5 million square feet plus, which frankly could be in the range of Rs. 27,000 crores, Rs. 28,000 crores. So, I think that's something that will have to be handled with extreme degree of planning. So, we clearly get the other products that I spoke about, you know, out of the way before that. Aakash Ohri added: So Privana, we may bring in Privana in Q3, Q4. But again, as I think we're concentrating on first finishing of the three, the successful sold outs that we've done and collections are in line with all that. So I think the next phase will be sometime in later part of Q3 or Q4.
Understood, sir. And sir my one final question is on the medium-term launch pipeline, which is roughly 600 billion and along with the inventory we have, which is 200 billion. How much time do you think should we expect this entire inventory and launch pipeline to be consummated?
Three to four years. So, if we assume four years, that's roughly Rs. 20,000 crores annually. You're absolutely right. So, at Rs. 20,000 crores, I think we achieve all our financial and stakeholder goals. Good year. It will hopefully be a number higher than that. In a one-of, you know, problematic year, it could be Rs. 18,000 crores Rs. 19,000 crores also, but broadly. And again, the good thing is that after that 80,000, the next 40,000 is identified clearly. If the markets continue to be buoyant and if it continues to be strong, it's not that we have to then desperately go around scouting land. Land is there, licenses are there. Badal Bagri added: we have an identified set of pipeline, which we have talked about in the near future and we continuously work on these identified projects. We are not dependent on anybody else except for our own assessment of how the market is and our ability to deliver.
Just to follow up on the previous question, like I understand you have an identified pipeline for the next mid to long term. But just looking at your cash flows and your Rs. 11,000 crores of cash plus the Rs. 43,000 crores that you'll make from your existing projects, you have alluded to us in the past that you may look at certain markets like Noida, right? Any update on Noida firstly and then any opportunity outside of Gurgaon that you're looking at?
So, as we mentioned and I have mentioned in the past, you're right, that I think clearly Noida continues to be one area of interest. We haven't, frankly, I mean, we have one land parcel which is under litigation, as everybody knows. But beyond that, we haven't come across something which is completely clean, take-worthy and available. But clearly, Noida continues to be one segment and Mumbai continues to be the second segment. But again, Mumbai, we believe that The Westpark parcel that we have, hopefully, if we keep on working and expanding the circle of Westpark, this could potentially be a very long term and a very deep land parcel for us, in that sense. But again, if there is something else which is of interest and which comes up, clearly, that will be the second thing. And then, of course, what we do with the balance of the money, I think is an important point. Shareholder returns will be an important thing. But also, as the money comes out of RERA, frankly, land replenishment and how best to deploy it into assets with higher yield and all will be issues that will work in the next year or so.
My first question is just to understand the company ethos a bit better. I'm just wondering what will it take or is there any intention or no intention to, let's say, scale up your deliveries closer to the other big listed players. So, they're talking about 15, 18, 20 MSF of deliveries every year. So, what exactly is your thinking on these lines where we are and is there any possibility of this scale changing in the next three to five years?
So, I'll tell you, Gaurav, actually, million square feet is about the most irrelevant metrics entry in this industry. You have to focus on the sale value we are generating. You have to focus on the margin that is being generated. You have to focus on the free cash flow that is being generated. And frankly I truly I would say appreciate this that over time if the entire community who's studying this industry moves. I can launch, I'll tell you frankly, I can launch a 10 million square feet somewhere on the outskirts of Haryana or UP or Ghaziabad. That will add volume, that will add execution headaches. Will it add cash flow? Will it add margin? And I think that's the question that we have asked ourselves. And frankly, yes, we have a sharper or a higher threshold of margins that meet our products. So, we are definitely, Gaurav, from an ethos standpoint, not going to chase volume for the sake of volume. We were the original pioneers of the volume journey and we have seen the downside of that better than anybody else.
Right. That's super helpful, sir. But just as a follow up to this, in your current business then is supply availability of contractors, the Grade A contractors, is that a hurdle or not really?
It's not a hurdle, but it's clearly a constraint and you have to work on that. So, we do keep on expanding the pipeline of contractors, I mean, the last 12 months, I think we have added three or four new contractors with whom we have not worked in the past. A couple of old contractors have retired. So, I think clearly, going into the contracting piece, we have ourselves strengthened our technical backbone, humongously in the last 24 months, the number of senior technical people that we have taken, because now we clearly realize that we are going to do a lot of that to ensure better supervision. For Dahlias, we have lined up Samsung to do the project management. Sriram Khattar added: today in the rental business, we have projects in pipeline totalling to about 12 million. So, if you add that and you add the residential side, 40 million square feet. Badal Bagri: Over 40 million square feet is under construction at this particular point.
Well, no, that's phenomenal and thanks for that color, and yes, commercial, of course, I completely agree, you are the largest operator in the country. And just my final question, which is more of a housekeeping question. On slide 28 on your cash flows, there's a inflow of Rs. 131 crores on account of government approval and others. Can I just better understand what is this number?
Yes, Gaurav, there is an investment which was made in one of the subsidiaries which was returned back this month of close to Rs. 250 odd crores. And that is included in that line, and hence, it's shown as a recovery rather than expense. Ashok Tyagi added: Actually, it's Rs. 120 crores of government outflow and Rs. 250 crores was the refund that we got. So I mean, we had given an ICD to our Mumbai project and hopefully, because of the boisterous collection, that money was returned back by the JV Co. to us. So that Rs. 250 crores came back.