DLF Limited (DLF) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to DLF Ltd's Q4 F526 Earnings Conference Call. We have with us today on the call Mr. Ashok Tyagi, Managing Director, DLF Ltd, Mr. Shriram Khattar, Vice Chairman and Managing Director, Rental Business, Mr. Akash Ohri, Managing Director and Chief Business Officer, and Mr. Badal Bagri, Group CFO, DLF Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Badal Bagri. Thank you, and over to you, sir.

Good evening, and thank you all for joining this call today. We are pleased to report a strong close to FY26, wherein we have delivered robust earnings, healthy sales booking, and strong cash generation, supported by sustained demand momentum across our development business and continued strength of our annuity business. This performance reflects the underlying quality of our assets, the brand strength, Prudent capital allocation and disciplined execution across a well-diversified mix of development and business. Some of the key operating financial highlights would be, we had a record collection of over 13,500 crores in this fiscal, representing a growth of 15% year-over-year, which led to healthy cash surplus generation of over 7,700 crores, reflecting a growth of 25%. It's important to highlight that our collection efficiency across all our projects continues to remain extremely high. Vindicating the strong underlying demand of our products and high quality of sales. Our net cash position as the end of FI26 stood at 14,155 crores, of which close to 11,200 crores are in the RERA S2 accounts, signifying a robust balance sheet strength. Second, it's important to reiterate at this point of time that we... As per our commitment, we achieved zero gross debt position in the development business in the last fiscal year. New sales bookings for the year was in line with our guidance and stood at 20,143 crores, led by successful sellouts of Privana North in Gurugram, West Park in Mumbai, and very well supported by our super luxury offering in Delia's. Q4, we had a sales of close to 3,967 clothes, which was primarily led by Delia's. It's important to highlight that in a particular quarter, we were able to sell 32 apartments of Delia's, which by itself is a remarkable feat. We were able to meet our guidance despite of a couple of our launches in the last fiscal year. Our rental portfolio stands at 50 million square feet and continues to operate at industry-leading occupancy of 95%. In terms of financial highlights, our consolidated revenue stood at 2,452 crores with a gross margin of approximately 46%. Net profit for the quarter was 1,256 crores. Overall revenue stood approximately 10,000 crores with a gross margin of 39% for the fiscal. EBITDA was over 3,000 crores and net profit on a reported basis was 4,408 crores. At an exceptional, excluding exception, the net profit for the financial year was 4 to 5,6 representing a growth of 16%. For DCCDL, I think we had another outstanding year with revenues close to 7,400 crores, a growth of almost 15%, EBITDA at over 5,700 crores, a growth of 16%, and net profit before exception of 2,726 crores, a growth of almost 38%. Inline is our stated commitment of enhancing shareholder return. Combined with strong performance and growing cash flows, the board has recommended a dividend of Rs.8 per share for shareholders approval, which represents a growth of 33% year-over-year. With this, I will hand over to Sriram to talk about the annuity business.

Good evening, everyone. I am pleased to share with you some of the highlights of Q4 and for the year FY26. Good evening, everyone. Let me share with you the rental business highlights for Q4 mainly and some for the year FY26. The few highlights of Q4 are our atrium place, our joint venture with Heinz is now fully leased. We have got during the year the occupation certificate for three towers and the OC for the fourth quarter is expected in Q2 of FY27. Though it is fully leased, it's in the final stages of completion. The three malls, Midtown Plaza is 95% leased and operational as we speak. Summit Plaza is 95-97% leased and we expect to open it most likely in the second half of July. Promenade, Goa, we have a line of sight of leasing to the extent of 50%. We expect the mall to be completed sometime in the month of August, and the opening will be to three months thereafter. We've had an exceptional growth in this year. As Badal was mentioning, we have a high growth in our EBITDA or NOI as we call it, and a 34-35% growth in PAD. This has been rather exceptional, given the fact that some of our assets got completed in the end of the previous year, and their entire income came because they were 100% leased in the current year. I would request you not to take that as a basis for the future, because in our business, to construct a property and to bring it to market takes a cycle of four years. And every quarter and every year, it may not be the same. However, our four to five-year guidance remains intact that we will have mid-teens growth in Noy and 20 to 25% growth in Noy. On a CAGR basis for the next four to five years. The offices business is strong. Our occupancies in the non-SEZ areas are 98 to 99%. We have SEZs which are at about 88-89%. However, the value of Income lost because of vacancy is now down to about 3.5% in the overall portfolio and our teams are working hard to continuously try and see how this gap can be further met. The good part is that all the newer properties where the rental rates are higher are 99% or 100% or least occupied and generating revenue. The recent issues related to AI. And then the war between Iran and US have not had any impact on the portfolio per se. However, there are large tenants who are reviewing their internal processes and internal decision making. And there could be some deferral in their decision making without in any way disturbing the structural strength of the business. The retail business continue to do well. Our ability to create experiences for the tenants and continuously improve the quality of our retail offering continues. And we see in the current year a growth of about 10 to 11% in our incomes from the existing properties. Plus, of course, the three new malls that come up, that will be the incremental growth. If there is any question after this, after Ashok finishes, you'll be happy to answer that. I think we can open to questions. We can take the questions now.

Thank you very much. We will now begin the question and answer session. Participants connected on webcast may click on Ask a Question tab available on the screen and then click on Raise an Option on Zoom. Participants connected through audio call may please press star and 1 on their phone. Ladies and gentlemen, we will wait for a moment while the question 2 assembles. We'll take our first question from Puneet Gulati from HSBC. Puneet, please unmute your microphone and go ahead with your question, please.

Yeah, thank you so much for the opportunity. My first question is with respect to the cash flows first. There seems to have been some increase in marketing brokerage costs for the quarter and also overheads. How should one think about these trends?

Okay, marketing brokerage. Our brokerage payout is linked to collections. And as in, there are milestones basis which the payout happens. So if you recall, there was a reasonably robust collection in the previous quarter. And thereafter, the brokerage becomes due. And hence, you have seen a slightly slight bump up in the current quarter on a sequential basis. So I would say you should consider that marketing is a normal phenomena. And the overheads could be some year-end provisioning, etc. But the way you should look at is the overall number for the full year should be taken as a guidance. I don't think so. Our overheads are going to change any further. In fact, it should be around the similar numbers going forward as well. But looking at quarter can always be slightly misleading.

And from the taxation perspective also, should one think that you've been getting the benefit of tax refunds, is that era largely over?

So I think in the current year, I think we had some accumulated losses in one of the two of the legal entities where we are now comfortable and we have recognized the deferred tax assets in the last financial year. And from a different perspective, no, I think there will be the amount which we are seeing in the current year, I think we should continue to see those kind of flows coming through in the future as well.

Understood. That's very clear. The more important part is how should one think about the launch pipeline for this year?

Okay. So, Puneet, I mean, Akash, I'm not sure, Akash unfortunately is traveling, so his connection is patchy. Akash, are you around? Okay. So, Akash, you want to talk about the launch pipeline?

Okay. So, Puneet, we've got a healthy launch pipeline, almost about 20,000 crores, and we've got some good, good ground products. We've got Mumbai, we've got Goa. And we've got some residual costs. We've got the daily. So we've got we've got a good set. Looking forward to that.

So in Gurugam, what should we target, which all projects should we focus on and and what is the progress on Goa in terms of approvals?

Gurugam, we've got two good projects. We've got the senior living and we've got the Hamilton 2. These are good products. And Goa, of course, approvals are all done. We just, there is a PIL. We don't want to create third-party rights just right now. We're just going to make sure that we are clear. And then we'll bring in Goa. But Goa, we're all ready to go.

And Privana, any chance during the year, last phase?

No, no, not right now. Next year.

Okay. And then, Khattarji, on the commercial side, any projects that you think will get completed in FY28?

Yeah. So, FY28, the two new towers totaling to 3.5 million in downtown Taramani will get completed.

Okay. And for 27, it's just the atrium where we should expect OC.

Please don't call just the atrium. Atrium is 3.2 million square feet and will generate about 700 crores of rent. And in addition to that, the three malls will get completed and will be leased. The benefit of full rentals of all Atrium Place, Tower 4, and for the three malls, while the income accrual will start this year, the full income will come in the following year.

Understood. And what should be the exit rental for 27, or DCCDL separately and for the rest, DLF assets?

I don't know separately, but I think the total should be about 8,200 odd crores.

Okay. That's very helpful. That's all from my side. Thank you so much and all the best.

Just on a lighter weight, it could have been a billion dollars at the Iran-U.S. war.

Sure, one day.

Thank you. Ladies and gentlemen, before we take the next question, we would like to remind you, to ask a question through the webcast, please click on the Ask a Question tab, and then click on Raise an Option on Zoom. Participants connected through audio call may please press star and one on their phone. We'll take our next question from Nilang Mehta from HSBC Asset Management. Please go ahead.

Thank you. Good evening, sir, and thanks for the opportunity. I just wanted to check, you know, our pipeline which we show now medium term. We're showing around 60,000 crores of medium term pipeline for launch. Just go back to our previous presentation and go back to our Friday 23 presentation for the airline. We had 60,000, 67,000 crores of, you know, pipeline. So, in the last three years, the pipeline, at least the future pipeline, seems stagnating, while obviously I understand we've done launches and grown the business to the current level in the last three years. But just wanted to think, how are you seeing this number? It almost, when you look at, you know, next few years, at least maybe not next year, but why is this number not increasing? Are you not confident about the market?

So, Nilam, you know, this more or less is more like a status update of the 114,000, I mean, 1,14,000 crore pipeline that we had projected, I think, about two years back for a five-year cycle. So, every quarter, we update on how much of that 114 has been launched and what is the to-be-launched pipeline. So, basically, it needs to be connected to that 114,000 crores that we had said. Obviously, this launch pipeline is not there at all. We have a, we have like the next phase also identified. But we'll obviously unlock it at the pace at which the market can comfortably absorb and at a pace which does not overstrain our own execution capability.

Nila, does that answer your question?

I guess I lost the earlier appointment. Hello, am I audible? Yeah, please go ahead. Yeah, just I think what Puneet had asked in terms of launch pipeline for next year, I missed it. So can you just read what's the number you're looking like and what's the pre-sale target for next year?

Okay. So, Nilang, basically, just to answer your earlier question also, because I think you had, I mean, the audio was slightly poor. About two years back, we had laid out a pipeline of 1,14,000 crores of launches across a medium term of five years. So, every quarter we give an update against that of how much has been cumulatively launched and how much is there to be launched. That's how the 60,000 crore number comes in. So, it's not that this 60,000 6,000 crores is the only, I mean, launch pipeline that we have, we have projects lined up even once this is done and this is being sort of phased out in a manner where we believe the market can absorb at the, you know, the products that we are offering and something which we believe that we can execute well. To the point that Puneet raised earlier, just to reiterate what Akash said, next year we should definitely have one, I mean, in the current year, 26-27, we should have one big launch in DLF city for sure, which should hopefully be in the 8000 to 9000 crore range, if not higher. We should have this Arbor senior living launch, which we have spoken about. We should have the next launch, the next phase launch of West Park. And the Delia's will continue selling. And hopefully at some stage, Goa should also come into play. So from a guidance standpoint, we had mentioned, I think, last year as well, that we believe that we will broadly stay on this trajectory of a 20,000 crores of sales guidance and ballpark about 9,000 crores of new margin creation every year. And I think we should hopefully be comfortably placed on that trajectory. Obviously, this guidance can go up if there is demand, you know, and if the demand sort of continues to be strong, there is always an upward assessment for it and an upward upside risk to it. But a 20,000 number broadly in that trajectory, I think we are comfortable.

Thank you, sir.

Thank you. Next question is from the line of Abhinav Sinna from Jefferies. Please go ahead.

Hi. Thanks for taking my question and just a couple of details on the project pipeline that we were just discussing. So on Arbor Senior Living, what is the size and timing that we are looking at? And similarly, if you can update us on the DALIA's Experience Center.

So, you know, the Arbor senior living should happen in the next, I'd say, in the next few months. It could be one month, it could be three months. But clearly, these projects that I mentioned, all of them, you know, have a fair chance of being launched in this calendar year. You know, they're very comfortably. Delia's Experience Center, I'll defer to Akash. Akash, what's the current timeline of the Delia's Experience Center being ready?

Around Diwali. Yeah. So we're doing something nice, something that, you know, has not been done so far, at least presentation-wise in the country. So I think it'll be nice for everyone to see, and we'll organize definitely a show for you all also.

Aakash, the only risk with you is that by the time the experience center is commissioned, you may actually have sold out a large number of Delia's.

No, sir, I hope that happens because then the analysts are never happy. Then they'll tell us Delia too, so we'll at least have something to tell them during that show. No, but God is kind. I think we've done phenomenally well in Delia's. I'm sure you know that this quarter alone we've done about 32. And plus two of the camellias. And what has happened is right now that as far as this entire thing is concerned, we've been able to create demand, which is, and in fact, we've been able to do sales. In the entire country, I don't think if we put all the developers together, I don't think anybody has crossed a double digit in the 100 crore sale mark. But I think this speaks volumes of the dahlias and the commitment that DLF brings on the table on super luxury. So this is huge. As far as anybody is concerned, please don't. Judge us with a real estate thing, but I think it's phenomenal for the business and, of course, the industry as well. And the demand people keep talking about, it's pretty large. Very well accepted. And we're doing about 100 plus, as you know. Delia's is now touching, the new stock will be about 135 crores per sale. That's where we are. Buddy, if there's a background noise.

Sorry, can you hear me clearly now? Go ahead, Abhinav. Yeah. Sir, on the dividend side, which has been increased this year to 8 rupees, fully appreciate that. Where do you see this setting given the current pace of FCF generation?

The dividend is driven by two pieces. A large chunk of this dividend is driven by Cyber City's dividend to us, frankly. And I think broadly about two-thirds of this dividend has been, is really Cyber City's dividend. Cyber City, like a normal, proper operating rental company, with its debt to NOI at a very comfortable sub 3.5 level, you know, is generating more FCF and will continue, you know, hopefully, Thank you very much.

Thank you, sir.

Thank you. Next question is from Samir Jasuja from PE Analytics Limited. Please go ahead.

Yeah, hi. This question is for Aakash. If I can get some sense on the weighted average per square feet sale of the last 32 delias, and what was the first 10 units sold and the last 10 units sold? So what's the real price appreciation that has happened over the last one and a half years? And how much inventory are we left?

So, we are now, inventory-wise, we've done about 60% already done. And these 32, you can safely say they've run about almost 100 crores, about 80, 90 odd crores because of the south and north. There's a south orientation and there's a north orientation. North looks over the lake park and everything else, and the south looks, as you know, into the Aravlis. And there is a price difference between the south and north, which is about between 20 to 30 odd crores, depending on the size and PLC. And then, of course, we've got the north side. As far as when we started off, what was about 60 crores is now 90, and what was about 75 crores is now about 110. So there has been a phenomenal growth, but I don't want you all to kind of look at that right now at the moment. Because this is just the beginning, and I feel it's more to do with... What the entire offering is going to be, once you see the experience center and see what we're actually up to, you'd be happy to kind of acknowledge the fact that super luxury in India, the definition that is super luxury is a completely different one as far as this is concerned. So, you know, Delia's is something far more superior than the Camellia's. If Camellia's has made a benchmark for the industry in the country, I think you'll all be very happy to see where the Delia's is heading to. Also, as I said, we recently hosted a dinner for all Delia owners. Everybody but Mr. Shoktyagi attended it. But it was good. It was phenomenal. And it was, I won't call it a show of strength, but I think more... To do with building a camaraderie. And actually, you know, a lot of people had this whole thing about, you know, they started to compare price points and all. And that's what I wanted to bring out in the open, that whoever boarded this journey in the beginning, obviously have benefited enormously with the kind of, in the first stage. So I think that's where we are, Sameer.

So just one follow-up question. We have a ready product like Camellia's. So what is the price per square foot of a ready product like Camellia's compared to an under-construction product like Dahlia's, which of course is going to be far more superior. But just the price differentiation between a super luxury ready product and an under-construction product on a per square foot basis, if you can throw some light on that, please.

So, a Camellia right now is trading, now, we're talking about super or carpet? Apples to apples, whatever. Okay. So, a Camellia today, right now, is trading between, anything between 80 crores to about 150 crores. Now, the good thing is that the Delia's has caught up much faster than we expected it to, which is... We thought we will achieve this target in about four years, but we've done it in about a year and a half, in terms of per square foot realization. And that's where I'm saying that if you do apple to apple, daily as would be maybe. Almost at par at the Camellias today. And now that is actually a pain point for me, for Camellias, because I feel there's a good headroom there. I feel that we will be able to achieve the next lot as far as Camellias is concerned or the next valuation will be, I feel the next jump for Camellias will be at least 25 crore rupees an apartment. But it's going to be a progress driven by people who are wanting to live in immediately versus

So, just to, I still didn't get that answer, can I take Camellias at 1,20,000 on super and maybe Dahlia's at, say, 95,000 on super? Would that be a correct estimation?

You can take Camellia's at 1,20,000 on super, but Dahlia's, as I said, there is a South Dahlia and there's a North Dahlia. Average, right now, you take about a lakh.

Yeah, how you treat.

Average, you take about a lakh.

Okay, 20% differential. Right.

Okay, thank you so much. And Samir, you know, the interesting thing, of course, since apart from you, most other people on this call would be from Mumbai, that these prices of camellias or dahlias today, if you convert it to carpet, they'll be carpet north of 150,000, 160,000 rupees a square foot. Frankly, compare with the Superlux products in Mumbai, you know, be it Worldly or South Mumbai. So, I mean, Gurgaon pricing of the Superlux has frankly caught up, if not exceeded We did that in South Mumbai.

So, we have exceeded, Mr. Tyagi.

Tell me, I don't want to say we have exceeded, but all I'm saying is that we have definitely hit that level for sure. Absolutely.

Yeah, yeah. No, I reiterate we have exceeded.

Thank you.

Our next question is from the line of Gupta. Please introduce yourself, your company name, and go ahead with your question, please.

Hi, this is Akash from Nomara. Am I audible? Yes. Yes, please go ahead. Hi, sir. My first question is on the... Pre-sales guidance of 200 to 220 billion, and this is the third year we are coming up with this guidance. So, peers have now gone to pre-sales of 300 to 350 billion, and we are still at 200 to 220 billion. So, just wanted to know your thoughts as to when should we think about growth on the pre-sales front?

So, my advice, honestly, will be for all the analysts that pre-sales is about the wrongest metric that you can use to track us or, frankly, any of the substantial real estate players. I mean, if you also look at, you know, some of the other, you know, players, some of them are no longer chasing pre-sales, you know, frankly. You know, I mean, we can do pre-sales of 50,000 crores a year also, frankly. We have the land bank, we have the demand. But, you know, what you have to do is chase margins, chase cash flows, and there we believe our primary objective is chasing margins and cash flows and not chasing pre-sales, frankly. So, we are comfortable with generating this, you know, 9000 to 10,000 crores of margin every year, generating about, you know, this 7,000 to 8,000 crores of cash flow every year on the Devco side, and obviously building a pipeline for the future. From next year onwards, we'll also enter the virtuous cycle of completions from a bookkeeping standpoint. And, you know, frankly, I mean, chasing joint venture deals or, you know, deals of lower margin products or even higher margin products beyond this, I'm sure at some stage these numbers will grow. I am not saying it will not. But we are not going to chase the 35,000 30,000 numbers just for the heck of chasing them. If you have a great product, maybe we will, we will achieve. So there have been years when we have been the highest in pre-sales for the year, but that was not because we were chasing pre-sales. We were chasing margins and we were basically riding on our products.

Understood, sir. Thank you so much.

Also, also, Mr. Tyagi, if I can just add to what you said, I'd like to address the elephant in the room that most importantly, you all need to understand that the construction capabilities in our country are still limited. So, you know, everybody can chase their pre-sale numbers, but who's going to deliver on time? And also, please understand with the monies that you are taking from yourselves, as long as... Even if you're a consumer, how would you like it if I make a commitment of four-year delivery and deliver in eight to ten years? So I think that is something that this company is absolutely cognizant of. Mr. Tiagi has told you what our capabilities of sales are, and across the geographies, we are invited to participate post our Mumbai success. Panchula, you already know. A lot of companies and babies are wanting to partner with them. So I don't think that is something that we need to prove anymore. I think we've got capabilities of selling, we've got capabilities of making sure that we have the brand out there. But the delivery is something which I think we are extremely, extremely cautious of.

Understood, sir. My second question is on your Mumbai strategy. I think we are launching the second phase of West Park this year. What after that? How are we thinking about the Mumbai market going forward?

So, West Park itself, you know, overall, we, is a total, I mean, the West Park, as defined currently, is a, is a total pipeline of, in excess of 5 million square feet super area, against which we have so far launched 900,000. We should be launching the next phase of 800-odd thousand in this fiscal, maybe the 500-600,000, the fiscal afterwards, and which change may. B, we are also constantly looking how we can organically grow the West Park geography. And we are in conversations, you know, across with other development options in and around West Park. And obviously, you know, frankly, our Mumbai team and our joint venture partners, we continue to look at any other interesting opportunities in Mumbai. So, we are in Mumbai now for good, for sure, you know, clearly, we would continue to be cautious and calibrated in Mumbai. But we would be open to, we are open to, to, to lucrative and nice opportunities in Mumbai, and West Park itself should keep on going into a very strong core for us.

Understood. And so my third and final question is on the cash balance. So we are already at 14,000 crores of net cash balance and generating free cash flow of 8,000 crores. Once that RERA balance unlocks, what's the plan with the cash? Because we are already sitting on the land bank. So any thoughts there? And also on the revenue recognition front in FY27, how should we think about that? Thank you.

Yeah, so Akash, as you rightly pointed out, out of the 14,000 crores of cash balance, almost 11,200 crores are sitting in RERA balance. And all of these projects will start getting unlocked from 27, 28 onwards. That's when these cash will be available for us, different things. As stated earlier, I think we have a three-pronged approach. Number one is increasing shareholder return from the cash perspective. Second, we have an extremely healthy pipeline in DLF as well, mothership of building an annuity business. And there is a large amount of capex, which is already kind of committed and will be invested for building that portfolio. And third is, as you rightly pointed out, we already have a reasonable share of land back, but we are always open for opportunistic deal whereby we will be able to, what will be margin accretive in our assessment. So that cash pool is always available for reinvestment. On the second question, it's linked to the first one itself. As you know, our accounting policies are fairly conservative. We follow the CCM method, which is completed contract methods. All our large projects, starting from Arbor, will start getting delivered from 27, 28 onwards. So from there, there'll be a virtual cycle of getting freer cash and also an extremely healthy margin, which is going to get booked in our P&L, which we always share, which is kind of getting accrued and just waiting for the final delivery.

Understood, sir. Thank you so much.

Thank you. Next question is from Kunal from CLSA. Please go ahead.

Hi, am I audible?

Yes, please go ahead.

Yeah, thanks for taking my question. On the 200 billion guidance, how much have you budgeted in terms of contribution coming from Delia's in FY27?

So, look, I think this year the Delia's sales was about 5,000 crores, and hopefully it should stay at this 5,000 to 6,000 crores next year as well.

Sure. And then you said you have a launch pipeline of 200 billion for FI27. So from that you are expecting another 150 billion odd.

Yeah. We expect that the 13 to 14 billion or 14 to 15 billion somewhere in that ballpark of sale will come through from that pipeline.

And why is that? Because, you know, typically if you see the, you know, barring Dahili as whatever you have launched so far have gotten sold at launch, including Mumbai projects. So, just trying to understand your assumption that why 150, 130 billion out of 200 billion of launch pipeline that you are expecting.

The assumption is that maybe because of tools and all, you will eventually may end up launching a subset of 200, you know. We, I think, you know, I mean, you're right that so far we have always sold 100%. I mean, Delia is, of course, a calibrated selling, but we have sold 100%. But I don't think it's, you know, it's smart in today's world to bank on everything to be a three-day sale, you know, in that sense. So, we do believe that of our launch pipeline, the balance 13,000 to 14,000 crores should come comfortably for us to hit it to be on this 20,000 crore schedule.

I understood. And my second question was more on the land bank side. You know, you have articulated a plan for the next few years in terms of a 25 million square feet pipeline. But just wanted to understand on the land bank outside of your launch pipeline, right, that especially the one in the north and metros, which is almost close to 40 million square feet, how marketable that is in terms of like, say, you know, in terms of time horizon of next, say, five to 10 years?

No, the most of this is marketable, most of this is marketable, the north and metro's pipeline, most of this is marketable. It's a question of, you know, some of these pipelines may not get at the best pricing today, which hopefully they will get in the in the next two or three, in fact, some parts of Gurdav also, we believe it's it's it's it's more it's. Better to wait two or three years to launch them versus today. I mean, Privana, when we launched versus, had we launched it six years back, there would have been a world of difference in terms of the monetization. So, I mean, what is here, this 137 million square feet of balance potential, all of this is monetizable, for sure, you know, in that sense. This is all monetizable. The only thing is getting the right price point, getting the right demand, and as Akash mentioned, marrying it to our execution capability.

Sure. And lastly, any update on the Motinagar Delhi project, the second phase of it?

In Motinagar, we are hoping that the government will do some infrastructure improvements as well in Central and Western Delhi, which may be the right, more opportune time for launching the next phase. The first phase is almost now completely sold out, barring some small tail that is remaining. So, I think it will happen, but I don't think it's going to happen in this fiscal, for sure.

But FY28, you would aspire for that? Thank you so much and all the best. Thank you. Bye.

Thank you. Next question is from Parveys Kazi from Nuwama Group. Please go ahead.

Hi, thanks for taking my question. So, a couple of questions for Sriram, sir. One, of the four blocks which are under construction in Gurgaon, DT 528, what is the construction timeline? Also, same for the mall that we are making in Gurgaon. And the second question is of both DT 528 in Gurgaon and the block 4-5 in Chennai, what is the pre-leasing status considering that in our existing portfolio anyway, we don't have much to lease? Thank you.

Yeah, so let me start with the downtown Gurgaon phase two. Downtown Gurgaon phase two is an integrated development of seven and a half million square feet, out of which two million is the mall and five and a half million is offices split into four towers, as you rightly mentioned, five, six, seven and eight. Out of this, Tower 7, which is 2.2 million, is nearly fully leased. So now we have released Tower 5 and 6, and they are in the process of being leased. The finishing timelines are later part of 28, early 29. This at the end of it will still leave downtown one, which is in between where we have the multilevel car park today, which is in between ambience and tower two, three and four. And that's going to be an iconic tower that we will start the construction about two and a half years from now. As far as downtown Taramani is concerned, the 3.5 million construction is progressing well. We are reasonably... Confident of its completion in Q2 of the next fiscal year, we have made certain project changes there because of, we have created a central atrium between Tower 1, 2, 3, 4 and 5, and that's coming out to be a very beautiful place. Out of 3.5 million, we have already leased about 500,000 and the balance leasing is on its way.

Sure, sir. Thanks and all the best. Thank you.

Thank you. We'll take our next follow-up question from Nilang Mehta from HSBC Asset Management. Please go ahead. Can you please use your handset? Your audio is not very clear. Nilaak?

Hello, am I audible?

Yes, please go ahead.

Hello?

Yes, Nilaak, we can hear you.

Question for Mr. Sriram. Sir, on the, yeah, question for Mr. Sriram.

Please go ahead.

Yeah. No, just wanted to get us some sense on, you know, the pending area we have on ACZ, what's the house that being deployed or rented out, that's one. Second is, based on the micro markets in which we are, if you could give some color on, you know, supply and absorption, and also the rental trends, what you're seeing, yeah.

So, as a concept, SEZ is not something which is growing. It is showing a declining trend. So, out of our total portfolio of SEZ of about 16-17 million, we have already converted about 4-odd million into non-processing areas, including a small portion which we have even denotified. Right.

However, they had.

The existing tenants who have not yet exhausted their ATI tax incentives continue to take SEZs on lease. The overall vacancy is about 10 odd percent, out of which the lowest vacancy is in the cyber city in Gurgaon, and then we've got about 8-9 percent vacancy in Silokhra or 7 percent vacancy between Silokhra and Chennai. And Hyderabad is at about 17, 18, 20 percent vacancy. As far as the rentals is concerned, we are slowly trying to close the gap between the cyber city rentals and the SEZ rentals for the new take-up. And that gap has now come down to within 10, 12 percent. Chennai, we continue to get marginal rental increases. Selokhra, we continue to get marginal increases and so is the case with Hyderabad.

Sure. And could you give some color on supply as well in these markets, an absorption which has happened so broadly?

So, now, I believe we've set a certain standard and quality of the office space, and we believe this is the port of first call for any global blue-blooded marquee company that comes in, especially the GCC. We've just completed leasing the entire tower of downtown, of Atrium Place Tower 4 to a single tenant from the US. We believe that with the quality of offering that we have and what we create in terms of the workspace solutions and spaces, we shall continue to be a leader here. To some extent, this will also be reflective in Chennai, where we have now a fairly large operating portfolio exceeding 10 million square feet, going up to about 14-15 million square feet. We also created a benchmark about two years ago in crossing a rental of 100 rupees in Taramani. The 450, 500,000 that we have leased in Tower 4 and 5, I must share that the top floors, which have a 360 view of the city and the sea, have been leased at 145 to 150 rupees. And we expect an average rental realization of between 125-130 rupees there.

Thank you, sir. Thank you. Ladies and gentlemen, we'll take that as the last question for today. I now hand over the call to Mr. Ashok Tyagi for closing comments. Over to you, sir.

So, thank you once again for joining us on this year-ending call. You know, as we as Badal and then Sheram mentioned, both on the Devco and the Rentco pieces, you know, we continue to have a strong story. In fact, the rental business with the commissioning of the two downtowns and the full throttle, you know, going on rental of atrium place is actually poised to see a very, very, you know, exciting phase of growth. On the DEVCO, you know, I could sense some degree of, you know, expectation that I should have given a higher pre-sales than 20,000. But frankly, I think that's, I would still encourage that we need to not only focus on pre-sales as a metric, but on the margins and cash flows. And I think once, you know, that entire sustainability comes into play, hopefully, you know, the pre-sales number will grow organically. That is very clear. We have a reasonably strong launch pipeline and Delia continues to be the base for our entire growth prospect. Our cash generation would continue to be extremely strong, as should hopefully be our dividend trajectory, and our continued focus on, you know, on the entire EHS and governance pieces, you know, continues to be extremely, extremely strong, which at times leads to a more delayed start when we launch a new project, because we just go through such an exhaustive checklist of our own. But I think all in all, we are poised for a strong 26-27, coming on the heels of a strong 25-26. And look forward to connecting with all of you through the year. Thank you.

Thank you, members of the management team. On behalf of DLF Limited, that concludes this conference. Thank you for joining us, and you may now exit the meeting.

Thank you.