Q1 2027 DLF Ltd Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to DLF Limited's Q1 FY27 earnings conference call. We have with us today on the call Mr. Ashok Thiagi, Managing Director, DLF Limited; Mr. Sreeram Khattar, Vice Chairman and Managing Director, Rental Business; Mr. Akash Ohri, Managing Director and Chief Business Officer; and Mr. Badal Bagri, Group CFO, DLF Limited.

Speaker #1: As a reminder, all participants' minds will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your dash phone. Please note that this conference is being recorded.

Speaker #1: And now I hand the conference over to Mr. Badal Bagri. Thank you, and over to you, sir.

Speaker #2: Good evening, and thank you for joining us today. We are pleased to report a resilient performance during the first quarter. This performance continues to reflect the underlying asset quality, disciplined execution our brand strength, and prudent capital allocation across a well-diversified mix of development and annuity businesses.

Speaker #2: I'll briefly talk about the operating highlights, and thereafter the financial highlights. Overall collection for the current quarter stood at $2,406, operating cash flow continues to be strong, at over $1,300 crore, in the quarter.

Speaker #2: Consequently, our net cash position at the end of the first quarter stood at $15,200 crores, of which close to $11,000 crores is sitting in the RERA 70% escrow accounts.

Speaker #2: New sales booking for the quarter was $657 crores, reflecting the timing impact of deferment of our launch of Aureva, our senior living product. We are awaiting the final approvals and expected expecting them to be received over the next few weeks.

Speaker #2: Our rental portfolio stands at over $50 million square feet, and continues to operate at an industry-leading occupancy at over 95% in terms of space and over 97% in terms of value.

Speaker #1: Ladies and gentlemen, good day and welcome to DLF Limited's Q1 FY27 earnings conference call. We have with us today on the call Mr. Ashok Tihagi, Managing Director, DLF Limited.

Operator: Ladies and gentlemen, good day and welcome to DLF Limited Q1 FY27 Earnings Conference Call. We have with us today on the call Mr. Ashok Tyagi, Managing Director, DLF Limited; Mr. Sriram Khattar, Vice Chairman and Managing Director, Rental Business; Mr. Aakash Ohri, Managing Director and Chief Business Officer; and Mr. Badal Bagri, Group CFO, DLF Limited. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Now hand the conference over to Mr. Badal Bagri. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to DLF Limited Q1 FY 2027 Earnings Conference Call. We have with us today on the call Mr. Ashok Tyagi, Managing Director, DLF Limited; Mr. Sriram Khattar, Vice Chairman and Managing Director, Rental Business; Mr. Aakash Ohri, Managing Director and Chief Business Officer; and Mr. Badal Bagri, Group CFO, DLF Limited. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Now hand the conference over to Mr. Badal Bagri. Thank you, and over to you, sir.

Speaker #2: Our revenue stood at $1,605 crores, yielding an EBITDA of $476 crore for the quarter, net profit for the quarter was $794 crores, versus $766 crores in the same period last year.

Speaker #1: Mr. Sreeram Khattar, Vice Chairman and Managing Director, Rental Business; Mr. Akash Ohri, Managing Director and Chief Business Officer; and Mr. Badal Bagri, Group CFO, DLF Limited.

Speaker #2: It's important to reiterate here that the cu given the current applicable laws and standards, we. Continue to follow a conservative practice of completed contract method of accounting, which reflects the recognition of revenue and profits from the projects once it's completed in that relevant period.

Speaker #1: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touchtone phone. Please note that this conference is being recorded.

Speaker #1: And now, I'll hand the conference over to Mr. Badal Bagri. Thank you, and over to you, sir.

Speaker #2: Good evening, and thank you for joining us today. We are pleased to report a resilient performance during the first quarter. This performance continues to reflect the underlying asset quality, disciplined execution, brand strength, and prudent capital allocation across a well-diversified mix of development and annuity businesses.

Badal Bagri: Good evening. Thank you for joining us today. We are pleased to report a resilient performance during the first quarter. This performance continues to reflect the underlying asset quality, disciplined execution, our brand strength, and prudent capital allocation across a well-diversified mix of development and annuity businesses. I will briefly talk about the operating highlights and thereafter the financial highlights. Overall collection for the current quarter stood at INR 2,406 crore. Operating cash flow continues to be strong at over INR 1,300 crore in the quarter. Consequently, our net cash position at the end of the first quarter stood at INR 15,200 crore. Of which close to INR 11,000 crore is sitting in the RERA 70% escrow accounts. New sales booking for the quarters were INR 657 crore, reflecting the timing impact of deferment of our launch of The Aureva, our senior living product.

Speaker #2: I'll briefly talk about the operating highlights, and thereafter the financial highlights. Overall collection for the current quarter stood at ₹2,406 crore. Operating cash flow continues to be strong at over ₹1,300 crore in the quarter.

Speaker #2: We strongly believe that FY28 would be an inflection point from a report. Perspective, wherein all our large products starting from the Arbor will start to contribute to the P&L and consequently we will start to unlock the significant gross margin potential that we have been highlighting over the last several quarters now.

Speaker #2: Consequently, our net cash position at the end of the first quarter stood at ₹15,200 crore, of which close to ₹11,000 crore is sitting in the RERA 70% escrow accounts.

Speaker #2: New sales bookings for the quarter were ₹657 crore, reflecting the timing impact of the deferment of our launch of Oreva, our senior living product. We are awaiting final approvals and expect to receive them over the next few weeks.

Badal Bagri: We are awaiting the final approvals and expecting them to be received over the next few weeks. Our rental portfolio stands at over 50 million square feet and continues to operate at an industry-leading occupancy at over 95% in terms of space and over 97% in terms of value. Our revenue stood at INR 1,605 crore, yielding an EBITDA of INR 476 crore for the quarter. Net profit for the quarter was INR 794 crore versus INR 766 crore in the same period last year. It is important to reiterate here that given the current applicable laws and standards, we continue to follow a conservative practice of Completed Contract Method of accounting, which reflects the recognition of revenue and profits from the projects once it is completed in that relevant period.

Speaker #2: Our rental portfolio stands at over 50 million square feet and continues to operate at an industry-leading occupancy, at over 95% in terms of space and over 97% in terms of value.

Speaker #2: Just to remind the. Gross margin potential as it stands today is approximately 39,000 crores. It's important to highlight that in the current quarter, in the month of July, we also got the operation certificate for our mall in Goa, with this all three malls in DLF Limited will be operational in the current financial year.

Speaker #2: Our revenue stood at ₹1,605 crore, yielding an EBITDA of ₹476 crore for the quarter. Net profit for the quarter was ₹794 crore, versus ₹766 crore in the same period last year.

Speaker #2: It's important to reiterate here that, given the current applicable laws and standards, we continue to follow a conservative practice of the completed contract method of accounting, which reflects the recognition of revenue and profits from the projects once they're completed in that relevant period.

Speaker #2: We strongly believe that FY28 will be an inflection point from a reporting perspective, wherein all our large products, starting from the Arbor, will start to contribute to the P&L, and consequently, we will begin to unlock the significant gross margin potential that we have been highlighting over the last several quarters.

Badal Bagri: We strongly believe that FY28 would be an inflection point from a reporting perspective, wherein all our large products, starting from The Arbor, will start to contribute to the P&L, and consequently, we will start to unlock the significant gross margin potential that we have been highlighting over the last several quarters now. Just to remind, the gross margin potential as it stands today is approximately INR 39,000 crore. It is important to highlight that in the current quarter, in the month of July, we also got the operation certificate for our mall in Goa. With this, all three malls in DLF Limited will be operational in the current financial year, leading to a significant increase in run rate of rental business within the DLF entities itself. As a result, from the current quarter, we have started reporting segment financials in DLF Limited, reflecting individual performance of both development and rental businesses.

Speaker #2: Leading to a significant increase in run rate of rental business within the DLF entities itself. As a result, from the current quarter, we have started reporting segment financial in DLF Limited, depicting individual performance of both development and rental businesses.

Speaker #2: Just to remind, the gross margin potential as it stands today is approximately 39,000 crores. It's important to highlight that in the current quarter, in the month of July, we also got the operation certificate for our mall in Goa.

Speaker #2: With this, all three malls in DLF Limited will be operational in the current financial year, leading to a significant increase in the run rate of the rental business within the DLF entities themselves.

Badal Bagri: With this, all three malls in DLF Limited will be operational in the current financial year, leading to a significant increase in run rate of rental business within the DLF entities itself. As a result, from the current quarter, we have started reporting segment financials in DLF Limited, reflecting individual performance of both development and rental businesses. We have also added one slide in our presentation to show the combined scale of our rental business across DLF, DCCDL, and Atrium from this quarter. Moving to DCCDL, our consolidated revenue stood at INR 1,917 crore, reflecting a growth of 10% year-over-year, yielding an EBITDA of INR 1,474 crore. Net profit continues to be a strong performance of INR 770 crore, a growth of over 20% year-over-year. With this, I hand it over to Sriram to give you details of the entity business.

Speaker #2: We have also added one slide in our presentation to show the combined scale of our rental business across DLF, DCCDL, and HAM. From this quarter.

Speaker #2: As a result, from the current quarter, we have started reporting segment financials in DLF Limited, reflecting individual performance of both development and rental businesses.

Speaker #2: Moving to DCCDL, our consolidated revenue stood at $1,917 crores, reflecting a growth of 10% year over year, yielding an EBITDA of $1,474. Crores. Net profit continues to be a strong performance of $717 crores, a growth of over 20% year over year.

Speaker #2: We have also added one slide in our presentation to show the combined scale of our rental business across DLF, DCCDL, and HAM from this quarter.

Badal Bagri: We have also added one slide in our presentation to show the combined scale of our rental business across DLF, DCCDL, and Atrium from this quarter. Moving to DCCDL, our consolidated revenue stood at INR 1,917 crore, reflecting a growth of 10% year-over-year, yielding an EBITDA of INR 1,474 crore. Net profit continues to be a strong performance of INR 770 crore, a growth of over 20% year-over-year. With this, I hand it over to Sriram to give you details of the entity business.

Speaker #2: Moving to DCCDL, our consolidated revenue stood at ₹1,917 crore, reflecting a growth of 10% year-over-year, yielding an EBITDA of ₹1,474 crore. Net profit continues to show a strong performance at ₹717 crore, a growth of over 20% year-over-year.

Speaker #2: With this, I hand it over to Sreeram to give you details of the annuity business.

Speaker #2: With this, I hand over hand it over to Sriram to give you details of the annuity business. good evening. I'll very quickly take you through the rental businesses.

Sriram Khattar: Good evening. I'll very quickly take you through the rental businesses. I'll start with offices. Last two quarters, there has been a fair amount of debate on the impact of AI on the hiring of the various multinationals and GCCs and how it is impacting. From February onwards, the war between Iran and US and the ever-changing dynamics there. These two did slow down the decision-making of the global companies because as you, investors and analysts will appreciate, no one likes uncertainty. Last about four, five weeks, I personally see the green shoots of the international companies coming back and making inquiries and starting to take decisions. I believe that Q2 and Q3 will be good quarters from that point of view.

Speaker #3: Good evening. I'll very quickly take you through the rental businesses. I'll start with offices. Over the last two quarters, there has been a fair amount of debate on the impact of AI on the hiring of various multinationals and GCCs, and how it is impacting us. And from February onwards, the war between Iran and the US and the ever-changing dynamics there.

Speaker #2: I'll start with offices. last two quarters there has been a fair amount of debate on the impact of, AI on the hiring of the various, multinationals and GCCs and how it is impacting and from February onwards the war between Iran and US and the ever-changing dynamics there.

Speaker #3: These two did slow down the decision-making of the global companies because, as you investors and analysts will appreciate, no one likes uncertainty. But in the last four or five weeks, I personally see the green shoots of the international companies coming back and making inquiries and starting to take decisions.

Speaker #3: And I believe that Q2 and Q3 will be good quarters from that point of view. As Badal has just explained to you, the vacancy levels are very low, and fortunately for us, our newer projects—which are Cyberpark, Atrium Place, Downtown Gurgaon, and Downtown Chennai—are nearly 100% leased.

Speaker #2: these two, did, slow down the decision-making of the global companies because as you investors and analysts will appreciate, no one likes uncertainty. But last about four, five weeks, I personally see the green shoots of, the the international companies coming back and making inquiries and, starting to take decisions.

Sriram Khattar: As Badal has just explained to you, the vacancy levels are very low, and fortunately for us, our newer projects, which is Cyber Park, Atrium Place, Downtown Gurgaon, Downtown Chennai, are nearly 100% leased. Our CapEx program on Downtown Gurgaon Phase 2 and Downtown Chennai Phase 2 are going at full speed. The leasing here in Gurgaon is about 40%. The leasing in Taramani, pre-leasing is at about 17% and 18%. As I said, we will see reasonable momentum in Q2 and Q3. The rentals in the portfolio grew by about 8.5% and 9% from Q1 of FY26. In retail, as Badal mentioned, the three new malls, they are getting operational slowly. The one in Midtown Plaza is now fully operational. It's about 85% open with more than 97% and 96% leasing. The Summit Plaza, we did the opening puja and soft launch yesterday.

Speaker #3: Our CapEx program on Downtown Gurgaon Phase Two and Downtown Chennai Phase Two are going at full speed, and the leasing here in Gurgaon is about 40%.

Speaker #3: The leasing in Taramani pre-leasing is at about 17, 18%. But as I said, we will see reasonable momentum in Q2 and Q3. The rentals in the portfolio grew by about eight and a half, nine percent from Q1 of FY26.

Speaker #3: In retail, as Badal mentioned, the three new malls we have are getting operational slowly. The one in Midtown Plaza is now fully operational.

Speaker #2: And I believe that that, Q2 and Q3 will be good quarters from that point of view. as, Badal has just explained to you the vacancy levels are very low and fortunately for us our newer projects which is, Cyber Park, Atrium Place, Downtown Gurgaon, Downtown Chennai are nearly 100% leased.

Speaker #3: It's about 85% open, with more than 96% or 97% leased. The Summit Plaza—we did the opening puja and soft launch yesterday. We think it'll come to its full bloom in the next two to two and a half months.

Sriram Khattar: We think it'll come to its full bloom in the next two and a half months. That is also about 90% leased. In Goa, while we have got the OC, the finishing works are in progress, leasing is in progress. We are targeting to open the mall in either end of this year or early next year. The retail business, the consumption in the Q1, and the spend have been good. We have done as per our budgets, slightly better. The growth from previous year continues, is about 13.5% and 14%. We continue on our journey of sustainability and green. This is something which there is a relentless effort to do so in addition to having zero tolerance to safety and compliance. Our profit PAT for the quarter in DCCDL was INR 717 crore.

Speaker #3: That is also about 90% leased. In Goa, while we have got the OC, the finishing works are in progress. Leasing is in progress.

Speaker #2: our capex program on Downtown Gurgaon phase two and Downtown Chennai phase two are going at full speed and, the leasing, here in Gurgaon is about 40%.

Speaker #3: And we are targeting to open the mall either at the end of this year or early next year. The retail business, the consumption in the first quarter, and the spend have been good.

Speaker #2: The leasing in Taramani pre-leasing is at about 17, 18%. But as I said, we will see, reasonable momentum in Q2 and Q3. the rentals, in the portfolio grew by about 8 and a half, 9% from Q1 of, FY26.

Speaker #3: We have done slightly better than our budgets, and the growth from the previous year continues at about 13.5% to 14%. We continue on our journey of sustainability and green.

Speaker #2: in retail, as Badal mentioned, the three new malls, we have, they are getting operational slowly. The one in, Midtown Plaza is now fully operational.

Speaker #3: This is something for which there is a relentless effort to do so, in addition to having zero tolerance for safety and compliance. Our profit after tax for the quarter in DCCDL was ₹717 crore.

Speaker #2: It's it's about, 85%, open with more than 97%, 96% leasing. the Summit Plaza we did the, puja opening puja and soft launch yesterday. We think it'll come to its full bloom in the next two, two and a half months.

Speaker #3: It's a growth of more than 20% from the path of Q1 of FY26. It is slightly lower than Q4, and that's because there were one-time entries of DTA and such other entries, which sort of bumped up the profit to about ₹780 crores.

Sriram Khattar: It's a growth of more than 20% from the PAT of Q1 of FY26. It is slightly lower than Q4. That's because there was one-time entries of DTA and such other entries which sort of bumped up the profit to about INR 780 crore. Our rating from CRISIL and ICRA continue to be AAA. We have a reasonably fine rate of borrowing. At the portfolio level, our borrowing is for this quarter at a rate of 7.14%. I'll be happy to answer any queries as the analysts would have. Thank you.

Speaker #2: That is also about 90% leased. in Goa, while we have got the OC, the finishing works are are in progress. leasing is is in progress and we are targeting to open the in, either end of this year or early next year.

Speaker #3: Our rating from CRISIL and ICRA continues to be triple A, and we have a reasonably fine rate of borrowing at the portfolio level. Our borrowing for this quarter is at a rate of 7.14%.

Speaker #2: The retail business, the consumption in the first quarter, and the spend have been good. we have, done as per our budgets a slightly better and the growth from previous year continues is about 13 and a half, 14%.

Speaker #3: I'll be happy to answer any queries, as the analyst would have. Thank you.

Speaker #1: Thank you very much. We'll now begin the question-and-answer session. Participants connected to the audio bridge may please press star and one on their touchscreen telephone.

Operator: Thank you very much. We'll now begin the question and answer session. Participants connected to the audio bridge may please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Participants connected on the webcast may click on Ask a Question tab and accept the prompt via Zoom. Post which, you may click on Raise Hand icon to ask your question. Participants, please announce your company name before proceeding with your questions. First question is from the line of Puneet. Kindly announce your company name and proceed with your question.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #2: we continue on our journey of sustainability and green. the the, this is something which there is a relentless effort to do so in addition to having zero tolerance to safety and, compliance.

Speaker #1: Participants connected on the webcast may click on the 'Ask a Question' tab and accept the prompt via Zoom. After that, you may click on the 'Raise Hand' icon to ask your question.

Speaker #1: Participants, please announce your company name before proceeding with your questions. The first question is from the line of Puneet. Kindly announce your company name and proceed with your question.

Speaker #2: our profit path for the quarter in DCCDL was $700. 17 crores. it's a growth of, more than 20% from the path of, Q1 of FY26.

Speaker #4: Yeah, thank you. This is Puneet from HSBC. My first question is on the pre-sales. While we understand you didn't launch anything, how should one think about the sustenance sales for Dahlias?

[Analyst] (HSBC): Yeah, thank you. This is Puneet from HSBC. My first question is on the pre-sales. While we understand you didn't launch anything, how should one think about the sustaining sales for Dahlias? That used to be almost 12 to 15 units every quarter. It seems this was a lower number this time. Is it a deliberate slowdown or how should one think about this?

Speaker #2: it is, slightly lower than Q4 and that's because there was one time entries of DTA and such other entries. Which sort of bumped up the profit to about $780 crores.

Speaker #4: That used to be almost, you know, 12 to 15 units every quarter. It seems this was a lower number this time. Is there a deliberate slowdown, or how should one think about this?

Speaker #3: Okay. So, should I take that?

Aakash Ohri: Okay. Mr. Bagri, should I take that?

Speaker #2: Yeah, yeah. Of course, Akash.

Ashok Kumar Tyagi: Yeah. Of course, Akash.

Speaker #3: Okay. So Puneet, see, we did about 34 areas last quarter. Please understand that The Dahlias has been the biggest success so far in the last 18 months.

Aakash Ohri: Okay. Puneet, see, we did about 34 Dahlias last quarter. Please understand that Dahlias has been the biggest success so far in the last 18 months. We are almost about 65% sold. We have created history in terms of the first nine weeks of sale, as well as if you see the kind of collections that are going on, plus the price realization of Dahlias is now over INR 1 lakh a square foot, and on higher floors about touching INR 120, 125 a square foot and selling. There is a certain amount of momentum. Also because the experience center now is going to be unveiled sometime after Diwali.

Speaker #2: our rating from Crystal and Nikra continue to be triple A and we have a reasonably fine, rate of borrowing at the portfolio level. our borrowing is for this quarter at a rate of 7.14.

Speaker #3: We are almost about 65% sold. We have created history in terms of the first nine weeks of sales, as well as if you see the kind of collections that are going on.

Speaker #3: Plus, the price realization of Dahlias is now over ₹1 lakh per square foot, and on higher floors, it's touching ₹120,000 to ₹125,000 per square foot.

Speaker #2: Percent. I'll be happy to answer any queries as as the, analyst. Would have. Thank you.

Speaker #3: And selling. So there is a certain amount of momentum also because the experience center now is going to be unveiled sometime after Diwali.

Speaker #3: So what we have done is that I won't say it's a it's a slowdown of sorts, but we have consciously kind of our presentations and all that are veered to that because the the as the algorithm of Dahlias states that the price increases now are going to be reasonably steep.

Aakash Ohri: What we have done is that, I won't say it's a slowdown of sorts, but we have consciously, our presentations and all that are weird to that because as the algorithm of Dahlias states that the price increases now are going to be reasonably steep. The entry level of Dahlias is now INR 100 crores plus, and therefore, it requires that kind of an attention and time. Also the good thing, let me tell you, is that we have interest from all over the country and outside for Dahlias now. Almost over 25% to 30% of our business now is coming from rest of India and outside, which is NRI. As I speak, I'm in Kolkata for one of those important visits and meetings. There is a considerable amount of interest for Dahlias all across. I can assure you that. That's where we are.

Speaker #3: So, the entry level for Dahlias is now ₹100 crore plus, and therefore it requires that kind of attention and time. Also, the good thing, let me tell you, is that we have interest from all over the country and outside for Dahlias now.

Speaker #1: Thank you very much. We'll now begin the question and answer session. Participants, connected to the audio bridge. May please press star and one. On the touchstone.

Speaker #1: Telephone.

Speaker #2: Mm-hmm.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets. While asking a question.

Speaker #3: Almost 25% to 30% of our business now is coming from the rest of India and outside, which is NRI. As I speak, I'm in Kolkata for one of those important visits and meetings.

Aakash Ohri: Almost over 25% to 30% of our business now is coming from rest of India and outside, which is NRI. As I speak, I'm in Kolkata for one of those important visits and meetings. There is a considerable amount of interest for Dahlias all across. I can assure you that. That's where we are. There is a process to Dahlias. It can't be sold like any other, say, even 500 or 600,000.

Speaker #3: So, there is a considerable amount of interest in Dahlias all across, and I can assure you of that. So that's where we are. But there is a process to Dahlias.

Speaker #1: Participants connected on the webcast may click on ask a question tab. And accept the prompt. Via Zoom. Post which you may click on raise an icon to ask your question.

Aakash Ohri: There is a process to Dahlias. It can't be sold like any other, say, even 500 or 600,000.

Speaker #3: It can't be sold like any other say even 500 or 600,000 US dollar kind of a product. It it it requires a reasonable reasonable amount of time and attention.

Badal Bagri: US dollar kind of a product. It requires a reasonable amount of time and attention. Puneet?

Speaker #4: So, completely understand, Akash. Completely understand. But you guys have been doing a phenomenal job of it, so the expectation was similar. But should one assume that, till the time the experience center opens up, the sales momentum should be a tad slower than what you delivered in the past?

[Analyst] (HSBC): Look, completely understand, Akash. Completely understand. You guys have been doing a phenomenal job of it, so the expectation was similar. Should one assume that till the time experience center opens up, the sales momentum should be a tad slower than what you've delivered in the past?

Speaker #1: Participants, please announce your company name. Before proceeding with your questions. First question is from the line of Puneet. Khali, announce your company name. And proceed with your question.

Speaker #3: Well, I'll tell you what. It's—it's about, as I said, it's about per unit realization now. The prices of Dahlias are going to be—the lower floors are ₹100 crore.

Badal Bagri: Well, I'll tell you what, as I said, it's about per unit realization now. The prices of DLFs are going to be, the lower floors are INR 100 crores, and it goes up to almost about INR 160, 70 odd crores right now. That is what the new price points are, and I think the people are getting used to that also. We have recorded some more sales this quarter, but obviously, I'd like to hold them on till I finish the paperwork. You will hear some very exciting news very soon. Some very new and good benchmarks being set, but you'll hear about that soon. Just give me a little more time.

Speaker #3: And it goes up to almost about 160, 170-odd crores right now. So that is what the new price points are. And I think people are getting used to that also.

Speaker #3: yeah, thank you. This is Puneet from HSBC. my first question is on the pre-sales. es. While we understand you didn't launch anything, but how should.

Speaker #3: We have recorded some more sales this quarter, but obviously I'd like to hold them on till I finish the paperwork. You will hear some very, very exciting news very soon.

Speaker #3: Some very new and good benchmarks are being set, but you'll hear about that soon. Just give me a little more time.

Speaker #2: Yep.

Speaker #4: Understood. All the best for that. On the cost side, we are seeing a slight slowdown on a Q1Q basis for construction costs.

[Analyst] (HSBC): Yep. Understood. All the best for that. On the cost side, we are seeing a tad slowdown on a Q-on-Q basis for construction cost, but on the land acquisition side, things are picked up. How should one read that?

Speaker #3: Think about the sustainance sales, for Dahlias. That used to be almost, you know, 12 to 15 units every quarter. It seems this was a lower number this time.

Speaker #4: But on the land acquisition side, things have picked up. How should one read that?

Speaker #3: So Puneet, I think our cost from a construction perspective continues to be very, very stable and strong. Our average cost versus last year has definitely increased.

Badal Bagri: Puneet, I think our cost from a construction perspective continues to be very stable and strong. Our average cost versus last year has definitely increased, and our momentum and trajectory remains very strong. On the land, as we have always maintained that as and when we come out with reasonable parcels which are of interest, we will definitely evaluate. We are in discussions. From that perspective, yes, we have made some advances on land in the previous quarter, where we have got into some kind of an agreement with them, which is going to fructify over the next three or four quarters.

Speaker #3: Is there a deliberate slowdown or or how should one think about this?

Speaker #3: And our momentum and trajectory remain very, very strong. On the land side, as we have always maintained, as and when we come out with reasonable parcels which are of interest, we will definitely evaluate.

Speaker #2: Okay. So strategy, should I take that?

Speaker #3: Yeah, yeah, of course, of course, Akash.

Speaker #2: Yeah.

Speaker #3: Okay.

Speaker #2: So Puneet.

Speaker #3: And we have we are in discussions in in in from from that perspective yes we have made some advances. On land in the previous quarter where we have got into some kind of an agreement with them.

Speaker #3: Which is going to rectify over the next three or four quarters.

Speaker #4: So, you spent about, you know, ₹545 crores in the last two quarters. Anything you can call out on the quantum or quality of this land acquisition?

[Analyst] (HSBC): You spent about INR 545 crore in last two quarters. Anything you can call out on the quantum quality of this land acquisition?

Speaker #3: Puneet, see, we did about 34 areas last last quarter. please understand that Dahlias has been the biggest success so far in the last 18 months.

Speaker #3: So Puneet you know I mean I mean in all fairness apart from of course contiguous land parcels which are which could be an acre here and acre there we are pursuing a couple of you know slightly more strategic parcels within within within Gurgaon.

Badal Bagri: Puneet, in all fairness, apart from, of course, contiguous land parcels, which could be an acre here, an acre there, we are pursuing a couple of slightly more strategic parcels within Gurugram, I think some of the advances have been towards that. There was also an INR 80 odd crore, which was a deposit for a certain auction, in the NCR region, which hasn't fructified yet, the auction hasn't happened yet. The 10% EMD of INR 80 crore was deposited, that's also being counted in this INR 545 of land. I think as some of these land parcels fructify in the next one to two quarters, and we report them out, hopefully, you will see these translating into additional GAV.

Speaker #3: And I think some of the advances have been towards that. There was also an eighty-odd crore amount, which was a deposit for a certain auction, you know, in the NCR region which hasn't rectified yet.

Speaker #3: We are almost about 65% sold. we have created history in terms of the first nine weeks of, sale as well as, if you see the kind of collections that are going on.

Speaker #3: I mean, the auction hasn't happened yet, but the 10% EMD of ₹80 crore was deposited. So that's also being counted in this ₹545 crore of land.

Speaker #3: I think as some of these land parcels rectify in the next one to two quarters and we report them out, hopefully you will see these translating into additional GAVs.

Speaker #3: Plus the price realization of Dahlias is now over 1 lakh rupee, a square foot. And in on higher floors about touching 120, 125 a square foot.

Speaker #4: Understood. That's very helpful. And last thing, Khatobji, on the Goa side, what is the leasing status?

[Analyst] (HSBC): Understood. That's very helpful. Last thing, Khattar ji, on the Goa side, what is the leasing status?

Speaker #3: So we are, at the moment, about 64% leased as we speak—say, 31st July. And the momentum is pretty strong. There are a number of brands who have not experienced the Goa market and, therefore, are taking a little longer to come.

Sriram Khattar: We are, at the moment, about 64% leased as we speak, say 31 July, and the momentum is pretty strong. There are a number of brands who have not experienced the Goa market and therefore are taking a little longer to come. We are quite hopeful that we will cross 85% to 90% leasing in the next six to eight weeks. The anchor fit out should start later part of this month.

Speaker #3: And and, selling. So there is a certain amount of momentum also because the experience center now is, going to be unveiled, sometime after Diwali.

Speaker #3: But we are quite hopeful that we will cross 85-90% leasing in the next six to eight weeks. And the anchor fit-out should start later part of this month.

Speaker #3: So what we have done is that I won't say it's a, it's a slowdown of sorts, but we have consciously kind of, presentations. And all that are weird to that because the, the as the algorithm of, Dahlias, states that, the price increases now are going to be reasonably, steep.

Speaker #4: And what are the rentals you're seeing?

[Analyst] (HSBC): What are the rentals you are seeing?

Speaker #3: The the rentals I dare say are fairly healthy. It's a the rentals are very different from cinema anchors from retail and FNB. These are the four or and and FEC five categories have different rentals but if you take the mall as a whole which is 705,000 square feet on a super area we should earn a rental of about 170 to 175 rupees.

Sriram Khattar: The rentals, I dare say, are fairly healthy. The rentals are very different from cinema anchors, from retail and F&B. These are the four, and FEC. Five categories have different rentals, but if you take the mall as a whole, which is 705,000 square feet, on a super area, we should earn a rental of about INR 170 to 175.

Speaker #4: 175 rupees. That's very helpful. Thank you so much, and all the best.

[Analyst] (HSBC): INR 175. That's very helpful. Thank you so much, and all the best.

Speaker #3: Thank you.

Sriram Khattar: Thank you.

Speaker #1: Thank you very much. Next question is from the line of Abhinav Sena from Jefferies. Please go ahead.

Operator: Thank you very much. Next question is from the line of Abhinav Sinha from Jefferies. Please go ahead.

Speaker #3: So the entry level of Dahlias is now 100 crore plus. And therefore, it requires that kind of an attention and time. Also. So the good thing, let me tell you is that, that we have interest from all over the country and outside for Dahlias now.

Speaker #4: Hi, so thanks for taking my question, and good to see the steady cash generation. Khatab sir, first question for you on the CAM charges.

Abhinav Sinha: Hi. Thanks for taking my question, and good to see the steady cash generation. Khattar sir, first question for you on the CAM charges. Have you seen any impact of the recent revisions which have happened on the minimum wages, and is there some pushback from the tenants on that?

Speaker #4: Have you seen any impact of the recent revisions which have happened on the minimum wages and is there some pushback from the tenants on that?

Speaker #3: over almost over 25 to 30% of our business now is coming from rest of India. And outside, which is NRI. as I speak, I'm in Kolkata for for for one of those important visits and meetings.

Speaker #3: Yeah, there has been a marginal impact on that. I would tend to think it's about 2 to 2.5 percent of CAM cost which has gone up.

Sriram Khattar: Yeah. There has been a marginal impact on that. I would tend to think it's about 2%, 2.5% of CAM cost which has gone up. There has been no pushback from the tenants because this is a national law, and they themselves are facing these issues. They realize that what is there, and our transparent system in which we charge it, I don't think we are having any issues at all. To remind you, we are probably among the few companies who get the CAM charges audited annually and share it with our tenant partners, and either give a refund or take the extra, depending on what the audited certificate says. It's really a pass-through that we have.

Speaker #3: There has been no pushback from the tenants because this is a national law, and they themselves are facing these issues. And they realize that this is what is there, and are transparent system in which we charge it.

Speaker #3: so there is a consider considerable amount of interest for Dahlias all across. and I can assure you that, so. That's where we are. But there is a process to Dahlias.

Speaker #3: I don't think we are having any issues at all. To remind you, we are probably among the few companies who get the CAM charges audited annually.

Speaker #3: And share it with our tenant partners, and either give a refund or take the extra depending on what the audited certificate says. So it's really a pass-through that we have.

Speaker #3: It can't be sold like any other say. Even 500 or 600,000 US dollar kind of a product. It it it requires. a reasonable reasonable amount of time and attention.

Speaker #4: Okay. And sir, you mentioned some improvement in the leasing activity that you're now seeing. So is this mainly GCC clients, or is there some other sort of demand that we're seeing now?

Abhinav Sinha: Okay. Sir, you mentioned on some improvement in the leasing activity that you're now seeing. This is the GCC clients or some other sort of demand that you're seeing now?

Speaker #3: Yeah. So this is basically the GCC and other multinational companies who probably were waiting for some signs from the Iran-Iraq, Iran-US war to sort of give some indications, and then start making their decisions.

Sriram Khattar: Yeah. This is basically the GCC and other multinational companies who probably were waiting for some signs of the Iran-US war to sort of give some indications and then start making their decisions. This is where we are seeing the local Indian companies and normal ongoing expansion of the existing tenants have continued during this period. The big boys who come where, say, 250,000 plus, 300,000 plus are the ones which have now started moving.

Speaker #3: Puneet.

Speaker #1: So completely understand, Akash. Completely understand. But you you guys have been doing a phenomenal job of it. So the expectation was similar. But should one assume that till the time experience center opens up, the.

Speaker #3: This is where we are seeing the thing. The local Indian companies and the normal ongoing expansion of the existing tenants have continued during this period.

Speaker #3: But the big boys who come—where say, 250,000 plus, 300,000 plus—are the ones which have now started moving.

Speaker #1: Sales momentum should be a tad slower than what you delivered in the past.

Speaker #2: Well.

Speaker #3: Tell you what, it's it's it's about rel as I said, it's about, per unit realization now. The prices of Dahlias are going to be the lower floors are 100 crores.

Speaker #4: Akash sir, just a question on the launch activity that we can expect. So on Hamilton, have you sort of identified the product that we are going ahead with?

Abhinav Sinha: Akash, there's the question on the launch activity that we can expect. On Hamilton Court 2, have you sort of identified the product that we are going ahead with? Also if you can update us on the status of Arbor 2. Thank you.

Speaker #4: And also, if you can update us on the status of Arba 2. Thank you.

Speaker #3: and it goes up to all. Most about 100 and 60, 70 odd crores right now. So that is what the new price points are.

Speaker #3: Okay, thanks. So first, Aurora. Aurora, as you know, is a retirement policy scheme which we are going to be launching soon.

Aakash Ohri: Okay, thanks. First, The Aureva. The Aureva, as you know, is a retirement policy scheme that we are going to be launching soon. This is in process now. As soon as we get the data, we will make those announcements accordingly. That is something that we're looking forward to most immediately. The other one that you mentioned is still on the drawing board. I'm happy to let you know that there is a reasonable amount of excitement in the market for the same. I'd like to leave it there, as and when we finalize the product, we'll definitely come back to you all and talk about it. As of now, both have a good level of interest going.

Speaker #3: And I think the people are getting used to that also. we have recorded some more sales this. Quarter, but obviously I'd like to hold them on till till I finish the.

Speaker #3: This is in process now. As soon as we get the radar, we will make those announcements accordingly. And that is something that we're looking forward to most immediately.

Speaker #3: The other one that you mentioned is still on the drawing board. I'm happy to let you know that there is a reasonable amount of excitement in the market for the same.

Speaker #3: But I'd like to leave it there, and as and when we finalize the product, we'll definitely come back to you all and talk about it.

Speaker #3: As of now, both have a good level of interest going.

Speaker #4: But just to reiterate, this is in line for the second half of the year, right? The Hamilton. Yeah. Okay, thank you.

Speaker #3: Paperwork. You will hear some very very exciting news very soon. some some some very new and and good benchmarks being set but you'll hear about that soon.

Abhinav Sinha: Just to reiterate, this is in line for H2 of the year, right?

Aakash Ohri: Yes.

Abhinav Sinha: The Hamilton one. Yeah. Okay. Thank you.

Speaker #3: just give me little more time.

Speaker #1: Thank you. Next question is from the line of Akash Gupta from Nomura. Please go ahead.

Speaker #2: Yep. Understood.

Operator: Thank you. Next question is from the line of Akash Gupta from Nomura. Please go ahead.

Speaker #1: all the best for that. on the cost side, we are seeing, you know, a a tad slowdown on a Q1 Q basis for construction cost.

Speaker #4: Hi. Am I audible?

Speaker #1: But on the land acquisition side, things have picked up. How should one read that?

Akash Gupta: Hi, am I audible?

Speaker #1: Yes sir. Go ahead.

Speaker #4: Hi. Congrats on a steady set of numbers. So, for my first question—it's on our land parcel, on both the DLF side and the DCCDL side.

Operator: Yes, sir. Go ahead.

Akash Gupta: Hi. Congrats on a steady set of numbers. Sir, my first question is on our land parcel on both the DLF side and DCCDL side. I think some of your peers are expanding very rapidly into the data centers side of the business. Just wanted to understand, is there any thought process where we are seriously evaluating data centers so that we can monetize our land parcels a little faster? That's my first question.

Speaker #2: so.

Speaker #4: I think some of your peers are expanding very rapidly into the data center side of the business. Just wanted to understand, is there any thought process where we are seriously evaluating data centers so that we can monetize our land parcels a little faster?

Speaker #3: Puneet, I think our cost from a construction perspective continues to be very very stable and strong. Our average cost versus last year has definitely trajectory remains very very strong.

Speaker #4: So that's my first question.

Speaker #3: On the. Land, as we have always maintained, that as and when we come out with reasonable parcels, which are of interest, we will definitely evaluate.

Speaker #3: I'll take that question, Akash. The data center business is a business of three different components which come together. One is real estate, the second is power, and the third is technology of the racks and how you efficiently store the data.

Sriram Khattar: I'll take that question, Akash. The data center business is a business of three different components which come together. One is real estate, the second is power, and the third is technology of the racks and how you efficiently store the data. Now, as DLF, we have decided to focus only in the business of real estate, and we are constructing data centers for the companies as real estate developers, but not getting into the business of buying the technology and running the data centers ourselves, and we don't intend to do so.

Speaker #3: And we have we are in discussions in in. In of from from that perspective, yes, we have made some advances. on land, in the previous quarter, where we have got into some kind of an agreement with them.

Speaker #3: Now, as DLF, we have decided to focus only on the business of real estate. We are constructing data centers for companies as real estate developers, but not getting into the business of buying the technology or running the data centers ourselves, and we don't intend to do so.

Speaker #4: Understood. So my second question is: what is the status of our co-op project, and are we still on track for the 200 billion guidance in the event that the co-op project doesn't come through in FY '27?

Akash Gupta: Understood. Sir, my second question is, what is the status of our Goa project, and are we still on track for the INR 200 billion guidance in the event that the Goa project doesn't come through in FY27?

Speaker #3: Which is going to fructify over the next three or four quarters.

Speaker #1: So you spent about, you know, 545 crores in last two quarters. Anything you can call out quantum quality of this. Land acquisition.

Speaker #3: Okay. So, the Goa Mall project is definitely on stream, as Shiram pointed out to you. I think your question is obviously on the Goa residential project.

Sriram Khattar: Okay. The Goa Mall project is definitely on stream, as Sriram pointed out to you. I think your question is obviously on the Goa residential project.

Speaker #3: So yes, I mean the Goa residential project, as you know, is involved in some, in some sort of, you know, PIL form of litigation, which is not uncommon in that part of the country.

Akash Gupta: Yeah.

Sriram Khattar: Yes, the Goa residential project, as you know, is involved in some sort of PIL form of litigation, which is not uncommon in that part of the country. In the morning, only Akash and I did a lucky check with each other, I think we are on track to hopefully meet the plan that we had laid out at the beginning of the year. I think that the INR 20 billion number should ballpark still be on track.

Speaker #2: So Puneet, you know, I mean, aid I mean, in all fairness, apart from of course contiguous land parcels which are which could be an acre here and acre there, we are pursuing a couple of, you know, slightly more strategic parcels within.

Speaker #3: But in the morning only Akash and I did a reckee check with each other. And I think we are on we are on track to hopefully meet the plan that we had laid out at the beginning of the of the year.

Speaker #3: And I think that the ₹20 billion number should, ballpark, still be on track. I'll just come in here, Akash. See, we've got all our approvals for Goa, as Mr. Tyagi mentioned about the PIL.

Akash Gupta: Understood.

Aakash Ohri: I'll just come in here, Akash. See, we've got all our approvals for Goa. As Mr. Tyagi mentioned about the PIL, we as a company, I think we choose to be on the side of caution more than anything else. Nothing stops us from launching, but I think that is something before we create third-party interest and all that, we needed to be very clear as to what path we're going to be taking. Goa itself, as you all know, when it started, it's created a huge excitement in the market. In fact, everybody else has kind of benefited with the potential prices that DLF was supposed to come in with, whereas we choose to be first absolutely clear with our approvals and wherever this PIL is going before we actually accept the customer's payment. I think that's a call that this company has taken.

Speaker #3: We, as a company, I think we choose to be on the side of caution more than anything else. And nothing stops us from launching.

Speaker #3: Within within within Gurgaon. And I think some of the advances have been towards to to towards that. There was also an an 80 odd crores which was a a deposit for a certain auction a you know.

Speaker #3: But I think that is something, before we create third-party interest and all that, we needed to be very clear as to what path we're going to be taking.

Speaker #3: Goa itself as you all know when it started it's it's created you know a huge excitement in the market. In fact everybody else has kind of benefited with the potential prices that DLF was supposed to come in with and whereas we choose to be first absolutely clear with our approvals and you know wherever this PIL is going before we actually you know accept the customers payment.

Speaker #3: In the NCR region, which hasn't fructified yet. I mean, the auction hasn't happened yet, but the 10% EMD of 80 crores was deposited. So that's also being counted in this 545 of land.

Speaker #3: I think as some of these land parcels fructify in the next one to two quarters, and we report them out, hopefully you will. You will see these translating into additional.

Speaker #3: I think that's a call that this company has taken. It's always a customer-first approach.

Aakash Ohri: It's always a customer-first approach.

Speaker #1: Understood. That's very helpful. And last thing, Khatabji, on the Goa side, what is the leasing status?

Speaker #4: Akash sir, yeah. Thank you so much, sir. That's all the questions I had.

Akash Gupta: Got you, sir. Thank you so much, sir. That's all the questions I had.

Speaker #2: So, we are at the moment about 64% leased, as we speak, say 31st July. And the momentum is pretty strong. there are a number of brands who have not experienced the Goa market, and therefore are taking a little longer to come.

Speaker #1: Thank you. Next question is from the line of Rahul Jain from Elara Capital. Please go ahead.

Operator: Thank you. Next question is from the line of Rahul Jain from Elara Capital. Please go ahead.

Speaker #5: Hi sir, thank you for the opportunity. I have just one question on your Mumbai strategy. How should we look at it in the medium term? Is your presence going to be confined to just one micro market, or are there any active discussions ongoing that you are evaluating today in Mumbai, which could be at an advanced stage?

Rahul Jain: Hi, sir. Thanks for the opportunity. Just one question on your Mumbai strategy. How should we look at it in the medium term? Is your presence going to be confined to just one micro market, or are there any active discussions that are ongoing that you are evaluating today in Mumbai, which could be in advanced stages? Just color on that front. Thank you.

Speaker #2: But we are quite hopeful that we will cross 85, 90% leasing in the next six to eight weeks. and the anchor fit-out should start later part of this month.

Speaker #5: So just a bit of color on that front. Thank you.

Speaker #1: And what are the rentals, you're seeing?

Speaker #3: So, so, so thank you, Rahul. You know, in Mumbai, as you know, we, we—I mean, Akash had a spectacular launch last year. And we should be hopefully coming up with a follow-through of that launch, you know, definitely within this fiscal year.

Ashok Kumar Tyagi: Thank you, Rahul. In Mumbai, as you know, Aakash had a spectacular launch last year, and we should be hopefully coming up with a follow-through of that launch definitely within this fiscal year, possibly even within the calendar year. I think that is on track. Overall, the way the stars are aligning around that development, we believe it has the potential to be more than a five million square feet development over the next few years. That'll be a sizable development in itself. To your second question, yes, we are alive to other possibilities in Mumbai. We have looked at some, we are exploring some as we speak, and if there's something interesting that does come up, we'll obviously report it. This project was supposed to be a dipping toes into water project for us. It's touched wood, done very well for us.

Speaker #2: The the rentals I dare say are fairly healthy. It's the rentals are very different from cinema anchors, from retail and FNB. These are the four or and and FEC.

Speaker #3: Possibly even within the calendar year. So I think that is on track. Overall, the way the stars are aligning around that development, we believe it has the potential to be more than a 5 million square feet development over the next few years.

Speaker #2: Five categories have different rentals. But if you take the mall as a whole, which is 705,000 square feet, on a super area, we should earn a rental of about 170 to 175 rupees.

Speaker #3: So I mean that will that will be a sizable development in itself. To your second question yes we are alive to to to other possibilities in in Mumbai.

Speaker #1: 175 rupees. That's very helpful. Thank you so much and all the best.

Speaker #2: Thank you.

Speaker #1: Thank you very much. Next question is. From the line of Abhinav Senna from Jefferies. Please go ahead.

Speaker #3: We have looked at some. We are exploring some as we speak. And if there's something interesting that does come up, we'll obviously report it.

Speaker #3: But I mean this project was supposed to be a dipping toes in into water project for us. It's it's touch wood done very well for us.

Speaker #4: Hi. so thanks. For taking my question and good to see the steady cash generation Khatabji sir, first question for you on the cam charges.

Speaker #3: We do feel more enthused and more confident about being able to work out in Mumbai. But we'll be, obviously, very, very selective in terms of taking projects where we believe we can truly add value.

Ashok Kumar Tyagi: We do feel more enthused and more confident about being able to work out in Mumbai. We will be obviously very selective in terms of taking projects where we believe we can truly add value in that sense. Mumbai continues to be a part of our medium and long-term strategy.

Speaker #3: I mean, in that sense, Mumbai continues to be a part of our medium- and long-term strategy.

Speaker #4: Have you seen any impact of the recent revisions which have happened on the minimum wages and is there some pushback from the tenants on that?

Speaker #5: Got it sir. Thank you.

Rahul Jain: Got it, sir. Thank you.

Speaker #1: Thank you. Next question is from the line of Hritesh, Max's Capital. Please go ahead.

Operator: Thank you. Next question is from the line of Ritesh Shah from Axis Capital. Please go ahead.

Operator: Thank you. Next question is from the line of Rishith Shah from Axis Capital. Please go ahead.

Speaker #2: yeah, there. Has been a a marginal impact on that. I would tend to think it's about two to and a half. Percent of cam cost which has gone up.

Speaker #4: Yeah, thanks for the opportunity. I have a couple of questions. The first one is again on the Goa residential project. So, in case it doesn't happen this year, while we have reiterated our ₹20,000 crore guidance, do we have some other launches that we can replace it with, or are we comfortable with the launches we already have planned and can manage the sales target based on those?

Ritesh Shah: Thanks for the opportunity. Couple of questions. First one, again on the Goa residential project. If in case it doesn't happen this year, and while we have reiterated our INR 20,000 crore guidance, do we have some other launches which can be replaced with that, or we are comfortable with whatever launches we have planned and can manage the sales target based on that itself?

Rishith Shah: Thanks for the opportunity. Couple of questions. First one, again on the Goa residential project. If in case it doesn't happen this year, and while we have reiterated our INR 20,000 crore guidance, do we have some other launches which can be replaced with that, or we are comfortable with whatever launches we have planned and can manage the sales target based on that itself?

Speaker #2: there has been no pushback from the tenants. Because this is a national law and they themselves are facing. These issues. And they realize that this what what is there and are.

Speaker #3: So look, the Goa component of the 20,000, if at all, was just about a couple of thousand. So, I mean, it was around 10% of the guidance.

Ashok Kumar Tyagi: Look, the Goa component of that 20,000, if at all, was just about a couple of thousand. It was around 10% of the guidance, if at all it was a part of that guidance. I think, hopefully, we should be able to swing it very comfortably. I don't think we should be losing any sleep on that number.

Speaker #3: If at all it was a part of that guidance, I think, you know, hopefully we should be able to swing it very comfortably. So, I don't think we should be losing any sleep on that number.

Speaker #2: Transparent system in which we charge it. I don't think we are having. Any issues at all. two Remind you, we are probably among the few companies who get the cam charges audited annually.

Speaker #4: Sure, got it. That's helpful. And a couple of questions on the annuity part. Firstly, on the group-level rental income, I see roughly ₹1,600 crore for the quarter.

Ritesh Shah: Sure. Got it. That's helpful. Couple of questions on the annuity part. Firstly, on the group-level rental income that I see, roughly INR 1,600 crore for the quarter. Is that the stabilized number for whatever operational that we have? I know there's Vamunyat Goa, which will contribute. There's 1 million square feet of your Atrium Place, which will also come up. At least whatever is operational, is that the steady rental or there is some more ramp-up to go?

Rishith Shah: Sure. Got it. That's helpful. Couple of questions on the annuity part. Firstly, on the group-level rental income that I see, roughly INR 1,600 crore for the quarter. Is that the stabilized number for whatever operational that we have? I know there's Vamunyat Goa, which will contribute. There's 1 million square feet of your Atrium Place, which will also come up. At least whatever is operational, is that the steady rental or there is some more ramp-up to go?

Speaker #4: Is that the stabilized number for whatever operational that we have? I know, I mean, there's Promenade Goa which will contribute. There's 1 million square feet of your Atrium Place, which will also come up.

Speaker #4: But at least, whatever is operational, is that the steady run rate, or is there some more ramp-up to go?

Speaker #3: So, there is a little bit of ramp-up because the two malls, Midtown Plaza and Summit Plaza, are just about starting. We expect both the malls to get into steady rental state by the fourth quarter of FY27.

Ashok Kumar Tyagi: There is a little bit of ramp-up because the 2 malls, Midtown Plaza and Summit Plaza, are just about starting. We expect both the malls to get into steady rental state by the Q4 of FY27, and Goa to stabilize by about May, June of next year. That's 1 part. Secondly, as you very rightly pointed out, at Atrium Place, 1 tower for which we expect to OC in the month of September, we will get into steady state rental for that 1 full tower that is there. Anything?

Speaker #2: And share it with our tenant partners. And either give a refund or take the extra depending on what the audited certificate says. So it's really a pass through that.

Speaker #3: And Goa to stabilize by about May–June of next year, so that's one part. Secondly, as you very rightly pointed out, at Atrium Place, one tower for which we expect the OC in the month of September, we will get into steady-state rental for that one full tower that is there.

Speaker #2: We have.

Speaker #4: Okay. And sir, you mentioned on some improvement in the leasing. Activity that you're now seeing. so this is the GCC client. Or you know, some other sort of demand that we're seeing now?

Speaker #3: And the anything no but other than that it's otherwise a steady state and we we expect this to to to be there.

Sriram Khattar: Yes.

Ashok Kumar Tyagi: No, other than that, it's otherwise a steady state we expect this to be there.

Speaker #2: Yeah. So this is basically the GCC and other multinational companies who. Probably we're waiting for some signs of the Iran-Iraq Iran-US war to sort of give some indications and then start making.

Speaker #4: Sure. Got it.

Ritesh Shah: Sure. Got it.

Rishith Shah: Sure. Got it.

Speaker #3: There will be one more add-on. One will be the Data Center 3 in Noida, which will also add to the rentals sometime in March or April of next year.

Ashok Kumar Tyagi: There will be one more add-on. One will be the data center three in Noida, which will also add to the rentals sometime in March, April of next year.

Speaker #4: Got it, got it. That's helpful. And just a second on the commercial piece. So now that we are starting to see signs of recovery coming back in terms of leasing, what are our plans to start the next 11 million square feet of development that we have lined up on the commercial plus retail side?

Ritesh Shah: Got it. That's helpful. Just second on the commercial piece, now that we are starting to see signs of recovery coming back in terms of leasing, what are our plans to start the next 11 million square feet of development that we have lined up on the commercial plus retail side? More so specifically on the commercial side, where we have a large office coming up in Hyderabad and our first phase in DLF Cyber City 2. When should we start building those into our numbers?

Rishith Shah: Got it. That's helpful. Just second on the commercial piece, now that we are starting to see signs of recovery coming back in terms of leasing, what are our plans to start the next 11 million square feet of development that we have lined up on the commercial plus retail side? More so specifically on the commercial side, where we have a large office coming up in Hyderabad and our first phase in DLF Cyber City 2. When should we start building those into our numbers?

Speaker #4: More so, specifically on the commercial side, where we have a large office coming up in Hyderabad and the first phase in Cyber City Two. So, when should we start, you know, building those into our numbers?

Speaker #2: Their decisions. this is where we are seeing the thing. The local Indian companies and normal on. Going expansion of the existing tenants have continued during this period.

Speaker #3: Yeah. So let me answer that. We expect that downtown two in phase two in Gurgaon should finish by about end of 29. And then in addition to that we have one iconic tower which we call one downtown where we have a multi-level car park and the cars will then get the the car parks will get consumed in the phase two basements that are there.

Ashok Kumar Tyagi: Let me answer that. We expect that Downtown Two in phase two in Gurugram should finish by about end of 2029. Then in addition to that, we have one iconic tower, which we call DLF One Midtown, where we have a multi-level car park, and the car park will get consumed in the phase two basements that are there. Then that tower is there. Similarly, in Chennai, the

Speaker #2: But the but the big boys who come. Where say 250,000 plus 300,000 plus are the ones which have now started moving.

Speaker #3: And then that tower is there. And similarly, in Chennai, the tower four and five, which are coming up for 3.5 million, will get over by the beginning of '28.

Sriram Khattar: Tower 4 and 5, which are coming up for 3.5 million, will get over by the beginning of 2028. We have a sort of a runway to do. We have leasing of about 3.5, 4 million to do in these two new projects. Whilst it is on our radar to start the construction in Hyderabad or in Cybercity, I think it is sometime next year that we will start planning for that.

Speaker #3: So, we have a sort of a runway to do. We have leasing of about 3.5 to 4 million to do in these two new projects.

Speaker #3: So, whilst it is on our radar to start the construction in Hyderabad or in Cyber City, I think it is sometime next year that we will start planning for that.

Speaker #4: Khatabji sir, just a question on the launch activity that we can expect. So on Hamilton to have you sort of identified the. Product that we are going ahead with.

Speaker #4: Yeah, perfect. That's absolutely fine. Thank you, and that's it from my side. All the best.

Ritesh Shah: Perfect. That's absolutely. Thank you, and that's it from my side. All the best.

Rishith Shah: Perfect. That's absolutely. Thank you, and that's it from my side. All the best.

Speaker #1: Thank you. Next question is from the line of Sameer Jasuja from PE Analytics. Please go ahead.

Operator: Thank you. Next question is from the line of Samir Jasuja from P.E. Analytics. Please go ahead.

Speaker #4: And also if you can update us on the status of Arber too. Thank you.

Speaker #4: Hi Shivam sir, just two questions I had. One is that, you know, we hear a lot about Cyber City Two. I don't know whether it's been answered clearly.

Speaker #2: Okay. Thanks. So first Oreva. Oreva as you know is a retirement policy. Scheme which is. Of that we are going to be launching soon.

Samir Jasuja: Hi, Sriram sir, just two questions I had. One is that, we hear a lot about Cybercity 2. I don't know whether it's been answered clearly, when is the likely commencement of projects starting to roll out over there in the Cybercity 2 project? The second question to you was that, do you have a sense of the weighted average price of rentals, say, on 100,000 or 200,000 square feet for the last three years? What has been the kind of price increase in Gurugram, specifically?

Speaker #4: When is the likely commencement of the project rollout over there in the Cyber City Two project? And the second question to you was, do you have a sense of the weighted average rental price, say, on 100,000 or 200,000 square feet for the last three years?

Speaker #2: This is in in in process now. As soon as we get the radar. We will make those announcements accordingly. and that is something that we're looking forward to.

Speaker #4: What has been the kind of price increase in Gurgaon specifically, or on your portfolio?

Speaker #3: Thank you, Sameer. I'll take the first question first. I presume you are talking about Cyber City II and you're referring to the SPR.

Sriram Khattar: Okay.

Samir Jasuja: On your portfolio?

Sriram Khattar: Thank you, Samir. I will take the first question first. I presume you are saying about CyberCity 2, you are talking about the SPR.

Speaker #4: SPR. Yes. Yes.

Speaker #3: So, we have consolidated 70–80 acres of land there, and it is still on the drawing board. We have not yet taken a final call on either the sizing or the start of launch there.

Samir Jasuja: SPR. Yes.

Sriram Khattar: We have consolidated 70, 80 acres of land there. It is still on the drawing board. We have not yet taken a final call on either the sizing or the start of launch there. I think this decision also will be taken sometime in the next year. It is definitely on the horizon. It is only a question of timing.

Speaker #2: Most immediately. the other one that you mentioned is still on the drawing board. I'm. Happy to let you know that there is a reasonable amount of.

Speaker #3: I think this decision also will be taken sometime in the next year. But it is definitely on the horizon; it's only a question of timing.

Speaker #2: Enlightenment in the market for the same. but I'd like to leave it there and and as in when we finalize the product we'll definitely come back to you all and and talk about it.

Speaker #3: On the rentals in Gurgaon if you take the the the newer buildings which is downtown four and atrium place atrium place rental weighted average is about 175 rupees and downtown four is about 150, 155 rupees.

Samir Jasuja: Given there's so much

Sriram Khattar: On the rentals in Gurugram, if you take the newer buildings, which is DLF Downtown Block 4 and Atrium Place. Atrium Place rental weighted average is about INR 175, and DLF Downtown Block 4 is about INR 150, INR 155. The leasing that we are doing in DLF Downtown Phase 2 is now averaging INR 200.

Speaker #2: As of now both have have good level of interest going.

Speaker #4: But just to reiterate, this is in line for the second half of the year, right? The Hamilton. Yeah. Okay. Thank you.

Speaker #3: The leasing that we are doing in phase two is now averaging 200 rupees.

Speaker #4: If you could tell me, for a building that is typically, say, seven years old, and a new building, what's the rental gap between them?

Samir Jasuja: If you could tell me a building, typically say 7 years old, and new building, what's the rental gap between them?

Speaker #1: Thank you. Next question is from the line of Akash Gupta from Namora. Please go ahead.

Speaker #3: Yeah. So the rental in Cyber City is now between 140 and 150, and the rate in a newer building, which will come up after two years, is about 210 to 220.

Sriram Khattar: Yeah. The rental in DLF Cyber City is now between INR 140 and INR 150, and the rate in a newer building, which will come up after 2 years, is about INR 210, INR 220. You have a 30% gap, but a rental that will come 2 years later. On a like-to-like basis, the gap is about 20%.

Speaker #3: Hi. am I audible?

Speaker #1: Yes, sir. Go ahead.

Speaker #3: Hi. congrats on steady set of numbers. so so for my first question. Question is on our land parcel on both the DLF side and DCCDL side.

Speaker #3: So, you have a 30% gap, but a rental that will come two years later. So, on a like-to-like basis, the gap is about 20%.

Speaker #4: Thank you so much. One question for Akash sir: there's one question that I had with respect to Dahlias, which was what is your visibility of, say, selling the balance of inventory? In what time period, and that will lead to phase two opening up, right?

Samir Jasuja: Thank you so much. One question for Akash. Sir, the one question that I had with respect to The Dahlias was, what is your visibility of, say, selling the balance stock in a time period of how much time period? That will lead to phase 2 opening up, right? Just to get a sense of that, I would really appreciate to get to know that.

Speaker #3: I think some of your peers are expanding very rapidly into the data center. This side of the business. just wanted to understand, is there any thought process where we are we we are seriously evaluating data centers so that we can monetize our land.

Speaker #4: So just to get a sense of that, I'd really appreciate getting to know that.

Speaker #3: Okay. So Sameer, as you know, our targets for Dahlias for three and a half years, we achieved in about 15–16 odd months.

Aakash Ohri: Well, Samir, as you know that our targets for The Dahlias of three and a half years, we did in about 15, 16 odd months. As you know, the trajectory has been that the price increase of The Dahlias, and this is an algorithm-based price increase, which increases with a certain quarter base and of course, inventory typology base. What happens in The Dahlias right now as we stand is that all the lower and mid floors of south are gone. Most of the mid and low floors of north are gone. Some high floors have gone. Right now, for the trajectory, as we have planned it, we have another three years to go in The Dahlias. The Dahlias is also, right now, as I see it, the demand is such that, I don't want to speculate, but post the experience center, I feel that there will be another spurt.

Speaker #3: So and as you know the trajectory has been that the price increase of Dahlias because we have and and this is an algorithm based increase price increase which is you know increases with a certain quarter based and of course inventory typology based.

Speaker #3: Parcels a little faster. So that's my first question.

Speaker #2: I'll I'll take that question Akash. The data center business is a business of three different. Components which come together. One is real estate. The second is par.

Speaker #3: So what’s happening in Dahlias right now as we stand is that we have done almost, as you know, all the lower and mid floors of South are gone.

Speaker #2: And the third is. Technology of the racks and how you efficiently store. The data. Now as DLF we have decided to focus only in the business.

Speaker #3: Most of the mid and low floors of North are gone. Some high floors have gone. So right now, for the trajectory as we have planned it, it is going to be—we have another three years to go in Dahlias.

Speaker #3: And Dahlias is also, right now as I see it, the demand is such that, you know, I don't want to speculate, but post the experience center, I feel that there will be another spurt.

Speaker #2: Business of real estate. And we are constructing data centers for the companies as real estate developers. But not getting into the business of. buying the technology and running the data centers ourselves and we don't intend to do so.

Speaker #3: And as of now, also, there are some good conversions that have happened, which I had said previously also, will be reported soon.

Aakash Ohri: As of now also, there are some good conversions that have happened, which I had said previously also will be reported soon. I think, Samir, there we have surpassed the expectation of at least the sales velocity of super luxury so far. Otherwise, there was a five-year process to selling The Dahlias year-on-year, basically about 20% a year. Since we are now over 60% sold in this time, also people have to kind of get used to the new price points of that area. I'll give you a small example. There are two brothers who are living in the Golf Links right now. One bought The Dahlias about 10 months back at a certain price, the other didn't. He passed that opportunity, but he wants to do it now. There is already, say about INR 30, 35 crore upside there.

Speaker #3: So I think, Sameer, there I think we have surpassed the expectation of at least the sales velocity of super luxury so far.

Speaker #3: So otherwise, there was a five-year process to selling Dahlias year on year, basically about 20% a year. But since we are now over 60% sold in this time, I think, and also people have to kind of get used to the new price points.

Speaker #3: Understood. sir, my second question is what is the status of our co-op project? And are we. We still on track for the 200 billion guidance in the event that the co-op project doesn't come through in FY.

Speaker #3: Of of of that area. So you know there is I'll give you a small example. There are two brothers who are who are at at living in the Golf Links right now.

Speaker #3: One bought Dahlias about 10 months back at a certain price. The other didn't. He passed that opportunity but he wants to do it now.

Speaker #3: 27.

Speaker #2: Okay. So the Goa Mall project is definitely on stream as as Shiram point out. You. I think your question is obviously on the on the Goa residential project.

Speaker #3: And there is already talk about a 30–35 crore upside there. And that particular thing is a question for him. So, you know, as the process goes on, I feel the price will settle down.

Aakash Ohri: That particular thing is a question for him. As the process goes on, I feel the price will settle down. People will kind of get used to these kind of price points now, because it is not only about the price, but the amazing amount of value that it brings with it. Since people have experienced The Camellias, and of course, The Aralias and The Magnolias, the future of the DLF Golf Links, and I say it emphatically, it is the Beverly Hills of India. It will continue to create that demand going forward. Our business is coming from not only within the Delhi NCR, but also from rest of India and rest of world. It has become a choice of destination for people. I feel that we will sell out sooner than later, but we don't want to compromise the price realization to velocities, Samir.

Speaker #3: People will kind of get used to these kinds of price points now, because it is not only about the price, but also about the amazing amount of value that it brings with it.

Speaker #2: So yes. I mean, the Goa residential project as you know is involved in some in some sort of you know, PIL form of litigation which is not.

Speaker #3: And since people have experienced the Camellias, and of course Aralias and Magnolias, the future of the DLF Golf Links—it is, and I say it emphatically—it is the Beverly Hills of India.

Speaker #2: Not uncom uncommon in that part of the of the country. But in the morning only Akash and I did a recce check with each other.

Speaker #3: And it will continue to create that demand going forward. Our business is coming from not only within the Delhi NCR, but also from the rest of India and the rest of the world.

Speaker #2: And I think we are on we are on track to hopefully meet the plan. That we had laid out at the beginning of the of the year.

Speaker #3: So this is a choice of it has become a choice of destination for people. And I feel that we will we will sell out sooner than later.

Speaker #2: And I think that that the 20 billion numbers should ballpark still be. On track.

Speaker #3: But we don't want to compromise price realization for velocity, Sameer.

Speaker #2: Yeah.

Speaker #4: Yeah, so just to follow up on that question—that was my precise question going forward. Since we have been very fortunate, thanks to you and DLF, we've been able to achieve great price appreciation that was unexpected in the last 15 months in Dahlias itself.

Samir Jasuja: Yeah. Just to follow up on that question, that was my precise question going forward. Since we have been very fortunate, thanks to you and DLF, we've been able to achieve a great price appreciation that was unexpected in the last 15 months in Dahlias itself. Now that we've got a very good price appreciation, are we going to compromise on sales velocity to price appreciation? Try to take the prices higher, or it's going to be the other way around now that the project has got literally revalued, right? The profitability would have also increased substantially. Going forward, since we have two more phases left here, we can look at a higher sales velocity or we're going to look at holding off a higher sales velocity because of further price increases?

Speaker #3: Understood.

Speaker #2: I'll just I'll just come in here. Akash, see, we've got all our approvals for Goa as Mr. Tyagi mentioned about the PIL. We as a company.

Speaker #4: Now that we've got very good price appreciation, are we going to compromise on sales velocity for price appreciation and hold, or try to take the prices higher? Or is it going to be the other way around, now that the project has been literally revalued?

Speaker #2: I think we choose to be on the side of caution more than anything else. and nothing stops us from launching. But I think that is something before we create third party interest in all that.

Speaker #4: Right. So the profitability would have also increased substantially. So, going forward, since we have two more phases left here, are we going to look at a higher sales velocity, or are we going to consider holding off a higher sales velocity because of further price increases?

Speaker #3: So Sameer, two points. One is, I don't think there's a direct binary, at least in DLF. Hello? Can you hear me?

Ashok Kumar Tyagi: Samir, two points. One is, I don't think there's a direct binary, at least in Delhi.

Speaker #2: we need it to be very clear as to what path we're gonna be taking. Goa itself as you all know when it started it's it's.

Speaker #4: Yeah, yeah. I can hear you. So there's no correlation, is what you're saying.

Samir Jasuja: There's no correlation?

Ashok Kumar Tyagi: Hello, can you hear me?

Speaker #3: No. No. I'm not saying there's no correlation. I'm saying there's no direct binary you know in that sense. So it's not like a one is to one I mean it's not y is equal to f x you know.

Samir Jasuja: Yeah. I can hear you. There's no correlation is what you're saying.

Ashok Kumar Tyagi: No, I'm not saying there's no correlation. I'm saying there's no direct binary, in that sense. It's not like a one is to one. It's not Y is equal to FX. Yes, there is some correlation, obviously, but there is a price matrix that has been planned, and there's a pace of sales that's been planned, and obviously it's an iterative process. The second thing about the next phase, as you are saying, that is not just dependent on the sales. There's a small matter of constructing Dahlias also. That is a process that will take between two, three and a half years. You must have seen the site. It's still coming up to the raft level.

Speaker #3: Yes, there is some correlation, obviously, but I mean there is a price matrix that has been planned, and there's a pace of sales that has been planned, and obviously it's an iterative process.

Speaker #2: Created you know, a a. Huge excitement in the market. In fact, everybody else is kind of benefited with the potential prices that DLF was supposed to come in with.

Speaker #3: The second thing about the next phase, as you were saying, is that it is not just dependent on the sales. I mean, there's the small matter of constructing Dahlias also.

Speaker #3: You know, and that is a process that will take between three to three and a half years, too. You must have seen the site—it's still, you know, coming up to the raft level.

Speaker #2: And whereas we choose to be first absolutely clear with our approvals and You know, wherever this PIL is going before we actually you know, accept the customers payment.

Speaker #3: So I think the next phase you know as and when it happens will be a function of both where the physical progress of Dahlias is and where the commercial progress of Dahlias is.

Ashok Kumar Tyagi: I think the next phase, as and when it happens, will be a function of both where the physical progress of Dahlias is and where the commercial progress of Dahlias is. I think, clearly to Akash's point, we are looking at at least a three-year cycle before we are able to completely sell out Dahlias in that sense.

Speaker #3: So I think clearly to Akash's point we are looking at at least a three year cycle before we are able to completely sell out Dahlias you know in that sense.

Speaker #4: Okay. Perfect. Thank you so much.

Speaker #3: Thank you.

Speaker #4: Thank you very much. Next question is from Parvesh Kazi from Noama Group. Please go ahead.

Samir Jasuja: Okay, perfect. Thank you so much.

Ashok Kumar Tyagi: Thank you.

Operator: Thank you very much. Next question is from Parvez Qazi from Nuvama Group. Please go ahead.

Speaker #2: I think that's a call that this company has taken. it's always a customer first approach. Akash.

Speaker #5: Hi. Good afternoon and thanks for taking my question. So two questions first one for Akash. By when do we expect the next phase of launch in the Prevana ecosystem and a related question.

Parvez Qazi: Hi, good afternoon and thanks for taking my question. Two questions. First one for Akash. By when do we expect the next phase of launch in the Privana ecosystem? A related question-

Speaker #3: Understood, sir. Yeah. Thank you so much, sir. That's all the question I had. Thank you. Next question is from Rahul Jain from Elara Capital.

Speaker #3: Please go ahead.

Speaker #4: Hi sir. thanks for the opportunity. so just one question on your Mumbai strategy. how should we look at it? in the medium term, is it your presence is going to be confined to just one micro market or is there any active discussions that are ongoing that you are evaluating today in Mumbai which could be an advanced stages?

Speaker #4: So just color on that front. Thank you.

Speaker #2: So so so thank you Rahul. You we we I mean, Akash had a spectacular launch last year. And we should be hopefully coming up with a follow through of that launch you know, definitely within this fiscal year.

Speaker #2: Possibly even within the calendar year. And so I think that is on track. Overall the way the stars are aligning around that development, we believe it has the potential to be more than a 5 million square feet development over the next few years.

Speaker #2: So I mean, that'll that'll be a sizable development in itself. To your second question, yes, we are alive to to to other possibilities in in Mumbai.

Speaker #2: We have looked at some. We are exploring some as we speak. And if there's something interesting that does come up, we'll obviously report it.

Speaker #2: But I mean, this project was supposed to be a dipping toes in into water project for us. It's it's touch wood done very well for us.

Speaker #2: We do feel more enthused and more confident about being able to work out in Mumbai. And we'll but we'll be obviously very very selective in terms of taking projects where we believe we can truly add value I mean, in that sense.

Speaker #2: So I mean, Mumbai continues to be a part of our medium and long term strategy.

Speaker #4: Got it sir. Thank you.

Speaker #3: Thank you. Next question is from Lionel Pritesh here from Axis Capital. Please go ahead.

Speaker #4: yeah. thanks for the opportunity. couple of questions. First one, again on the Goa residential project. so if in case if it doesn't happen this year, and while we have reiterated our 20,000 crore guidance, you know, do we have some other launches which we can which can be replaced with that or we are comfortable with whatever launches we have planned and can manage the sales target based on that itself.

Speaker #2: So look, the Goa component of the 20,000 if at all was just about a couple of thousand. So I mean, it was around 10% of the guidance.

Speaker #2: If at all it was a part of that guidance. I think you know, hopefully we should be able to swing it very comfortably. You know, so I think I don't think we should be losing any sleep on that number.

Speaker #4: Sure. Got it. that's helpful. And and couple of questions on the annuity part. Firstly on the group level rental income that I see roughly 1,600 crore for the quarter.

Speaker #4: is that the stabilized number for whatever operational that we have? I know I mean, there's prominent Goa which will contribute. There's 1 million square feet of your Atrium Place which is also which will also come up.

Speaker #4: But at least whatever is operational, is that the steady rendered or there is some more ramp up to go?

Speaker #2: So there is a little bit of ramp up because the two malls Midtown Plaza and Summit Plaza are just about starting. we expect both the malls to get into steady rental state by the first by by the Q4 of FY27.

Speaker #2: And Goa to stabilize by about May, June, of next year. So that's one part. Secondly, as you're very rightly pointed out that Atrium Place one tower for which we expect the OC in the month of September we will get into steady state rental for that one full tower that is there.

Speaker #2: And the anything no, but other than that, it's otherwise a steady state. And we we expect this to to to be there.

Speaker #4: Sure. Got it.

Speaker #2: There'll be one more add on. One will be the data center three in Noida. which will also add to the rentals sometime in March, April of next year.

Speaker #4: Got it. Got it. That's helpful. and just second on the commercial piece. So now that we are starting to see signs of recovery coming back in terms of leasing, you know, what are our plans to start the next 11 million square feet of development that we have lined up on the commercials commercial plus re retail side.

Speaker #4: more so specifically on the commercial side where we have a large office coming up in Hyderabad and first phase in cyber city two. So when should we start you know, building those into our numbers?

Speaker #4: Yeah.

Speaker #2: So let me answer that. We expect that downtown two in phase two in Gurgaon should finish by about end of 29. And then in addition to that, we have one iconic tower which we call one downtown where we have a multi-level car park and the cars will then get the the car parks will get consumed in the phase two basements that are there.

Speaker #2: And then that tower is there. And similarly in Chennai, the the tower four and five which are coming up for three and a half million will get over by the beginning of 28.

Speaker #2: So we have a sort of a runway to do. We have leasing of about three and a half, four million to do in these two new projects.

Speaker #2: So why is it is on our radar to start the construction in Hyderabad or in cyber city? I think it is sometime next year that we will start planning for that.

Speaker #4: Yeah. Perfect. That's helpful. thank you and that's it from my side. All the best.

Speaker #3: Thank you. Next question is from the line of Sameer Jasuja from PE Analytics. Please go ahead.

Speaker #4: hi Shivam sir. Just two questions I had. One is that, you know, we hear a lot about cyber city two. I don't know whether it's been answered clearly.

Speaker #4: When is the likely commencement of project starting to roll out over there in the cyber city two project? And the second question to you was that do you have a sense of the weighted average price of rental say on 100,000 or 200,000 square feet for the last three years?

Speaker #4: What has been the kind of price increase on in Gurgaon specifically?

Speaker #2: Okay.

Speaker #4: Or on your portfolio?

Speaker #2: thank you Sameer. I'll take the first question first. I presume you are saying about cyber city two you're talking about the SPR.

Speaker #4: SPR. Yes. Yes.

Speaker #2: So we have consolidated 70, 80 acres of land there. And we it is still on the drawing board. We have not yet taken a final call on either the sizing or the start of launch there.

Speaker #2: I think this decision also should will be taken sometime in the next year. But it is definitely on the horizon. It's only a question of timing.

Speaker #4: Even there's so much.

Speaker #2: On the rentals in Gurgaon if you take the the the newer buildings which is downtown four and Atrium Place Atrium Place rental weighted average is about 170 rupees and downtown four is about 150, 155 rupees.

Speaker #2: The leasing that we are doing in phase two has is now averaging 200 rupees.

Speaker #4: if you could tell me a building typically say seven years old and new building what's the rental gap between them? So the

Speaker #2: the rental in cyber city is now between 140, 150 and the rate in a newer building which will come up after two years is about 210 to 20.

Speaker #2: So you have a 30% gap but a rental that will come two years later. So on a like to like basis the gap is about 20%.

Speaker #4: Thank you so much. One question for Akash. sir, there's one question that I had with respect to Dalia's. Was what is your visibility of say selling the balance stock in in a time period of how much time period and that will lead to phase two opening up right?

Speaker #4: so just to get a sense of that I'd really appreciate to get to know that.

Speaker #2: Okay. So Sameer as you know that our targets for Dalia's of three and a half years we did in about 15, 16 odd months.

Speaker #2: So and as you know the trajectory has been that the price increase of Dalia's because we have and and this is an algorithm based increase price increase which is you know, increases with a certain quarter based and of course inventory typology based.

Speaker #2: So what happens in in Dalia's right now as we send is that we have done almost as you know, all the lower and mid floors of South are gone.

Speaker #2: most of the mid and low floors of North are gone. some high floors have gone. So right now for the trajectory as we have planned it, it is going to be we have another three years to go in Dalia's.

Speaker #2: And Dalia's is also right now as I see it the demand is such that you know, I don't want to speculate but post the experience center I feel that there will be another spurt.

Speaker #2: And as of now also there are some there are some good conversions that have happened which I had said previously also will will be reported soon.

Speaker #2: so I think Sameer there I think we we have surpassed the expectation of at least the the sales velocity of super luxury so far.

Speaker #2: So otherwise there was a five year process to to selling Dalia's year on year basically about 20% a year. But since we are now over 60% sold in in this time I think and also people have to kind of get used to the new price points.

Speaker #2: of of of that area. so you know, there is I give you a small example. There are two brothers who are who are at at living in the Golf Links right now.

Speaker #2: One bought Dalia's about 10 months back at a certain price. The other didn't. He passed that opportunity but he wants to do it now.

Speaker #2: and there is already a say about a 30, 35 crore upside there. And that particular thing is is a question for for him. So you know, as the process goes on I feel the price will settle down.

Speaker #2: people will kind of get used to these kind of price points now. because it is not only about the price but the amazing amount of value that it brings with it.

Speaker #2: And since people have experienced the Camellia's and of course Aralia's and Magnolia's, the future of the DLF Golf Links is it is and I say it emphatically it is the Beverly Hills of India.

Speaker #2: And it will continue to create that demand going forward. Our business is coming from not only within the Delhi NCR but also from rest of India and rest of world.

Speaker #2: so this is a a choice of it has become a choice of destination for people. and I feel that we will we will sell out sooner than later.

Speaker #2: But we don't want to compromise the price realization to velocity Sameer.

Speaker #4: Yeah. Yeah. So just to follow up on that question that was my precise question going forward. Since we have been very fortunate thanks to you and DLF we've been able to appreciate achieve a great price appreciation that was unexpected in the last 15 months in Dalia's itself.

Speaker #4: Now that we've got a very good price appreciation are we going to compromise on sales velocity to price appreciation and hold or try to take the prices higher or it's going to be the other way around now that we've the project has got literally revalued right?

Speaker #4: So the profitability would have also increased substantially. So going forward since we have two more phases left here we can look at a higher sales velocity or we're going to look at holding off a higher sales velocity because of further price increases.

Speaker #2: So Sameer two points. One is I don't think it there's a direct binary at least in correlation. Hello. Can you hear me?

Speaker #4: Yeah. Yeah, I can hear you. So there's no correlation is what you're saying.

Speaker #2: No, no, I'm not saying there's no correlation. I'm saying there's no direct binary you know in that sense. So it's not like a one is to one I mean it's not y is equal to fx you know.

Speaker #2: Yes, there is some correlation obviously but I mean there is a price matrix that has been planned and there's a pace of sales that has been planned and obviously it's an iterative process.

Speaker #2: The second thing about the next phase as you are saying you know that is not just dependent on the sales. I mean there's a small matter of constructing Dalia's also.

Speaker #2: You know and that that is a process that will take between three to three and a half years to you you must have seen the site.

Speaker #2: It's still you know coming up to the wraps level. So I think the next phase you know as in when it happens will be a function of both where the physical progress of Dalia's is and where the commercial progress of Dalia's is.

Speaker #2: So I think clearly to Akash's point we are looking at at least a three year cycle before we are able to completely sell out Dalia's you know in that sense.

Speaker #4: Okay, perfect. Thank you so much.

Speaker #2: Thank you.

Speaker #4: Thank you very much. Next question is from Parvesh Kazi from Nuama Group. Please go ahead.

Speaker #5: Hi, good afternoon and thanks for taking my question. so two questions first one for Akash. by when do we expect the next phase of launch in the Privana ecosystem?

Speaker #5: and a related question. Do we have plans to do some plotted development there also?

Speaker #2: Yeah. So at the Privana Parvesh right now will definitely be early next year. if not last quarter I think it'll be early next year.

Speaker #2: The Privana ecosystem is coming out pretty well. we've got some the southwestern now north as you know it's all sold out. not only that some very encouraging news coming from the Privana's is that there is a good amount of appreciation.

Speaker #2: I mean again that is not that is not something that I'm I'm saying it for the the point of view because there is there is even demand in the secondary sale which is between two and a half thousand to four thousand rupees a square foot already.

Speaker #2: that entire ecosystem with its infrastructure and everything has come out pretty well. It as you know it abuts a 10,000 hectare of a green lung so as far as a as far as a a contiguous nature of a project is concerned after DLF5 this is this is the next big thing.

Speaker #2: and therefore I'd like to bring out the fourth phase once we kind of move on with construction and everything else which also thankfully is going on pretty well.

Speaker #2: but I see that happening early next year. for for Privana as far as plotted is concerned those were some some arrangement that we had with what you are what you may be referring to is is there there isn't going to be a plotted scheme if you're asking.

Speaker #2: That is a separate arrangement that we had with some collaborators. But I think right now you will you will expect the Privana the next Privana to be maybe taller or or more evolved one than the north and that is the process as as we moved on.

Speaker #2: But so far so good. It's it's got a very eclectic mix of people who who bought into the Privana. and you've seen our collections there.

Speaker #2: You've seen the progress. So it's it's high on demand as far as the investors are concerned. So so again just to reiterate Parvesh the the Privana continues to be a higher scheme.

Speaker #2: The small plotted enclave there if at all will be only for some collaboration of collaborator obligations nothing else.

Speaker #4: Yes. Thanks. and second

Speaker #5: question for Khatter sir. What would be our exit entrance for FY27?

Speaker #2: So the exit rentals for FY27 for

Speaker #5: At a group level I mean you don't need to go into DLF plus.

Speaker #2: Group level they will be between 7,300 and 7,500.

Speaker #5: Sure sir. Thanks and all the best.

Speaker #2: Thank you. Thank you.

Speaker #4: Thank you very much. As I don't know for the questions I'll now like to hand the conference over to Mr. Ashok Tyagi for closing comments.

Speaker #2: So thank you once again. For logging on to our call I know today has been a crowded call calendar for some of you but that's fine.

Speaker #2: You know I mean this quarter from a pre-sales standpoint was a muted quarter and you know thank you for understanding you know the the the reason for that and hopefully we still stick to our broad guidance for sales for the year.

Speaker #2: The focus that we have on cash flows and embedded margins and fiscal you know fiscal prudence that continues. You would continue seeing some strategic you know land investments as the as the clock moves.

Speaker #2: The rental business is continuing at an excellent clip both in the leasing and in the rental piece. The point that some of you raised I mean really I was doing my math I think between downtown Gurgaon downtown Chennai Atrium I think we have almost in excess of 11 12 million square feet under construction.

Speaker #2: Once these are complete there is a further millions I mean a few million square feet in cyber city itself. And then of course there's Hyderabad there's cyber city two and all of those things.

Speaker #2: So really the rentco has a very very deep pipeline you know frankly. I think it's possibly the deepest pipeline in the rental business that exists in the country.

Speaker #2: And I think we continue to to do it very strongly and hopefully you know we now we will regroup at the end of the next quarter.

Speaker #2: Thank you once again.

Speaker #5: Thank you.

Speaker #2: Thank you.

Speaker #4: Thanks. Thank you very much. On behalf of DLF Limited that concludes this conference. Thank you for joining us and you now disconnect your lines.

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Q1 2027 DLF Ltd Earnings Call

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