DLF Ltd (NSE: DLF) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Badal Bagri — Chief Financial Officer
Sriram Khattar — Vice Chairman and Managing Director
Aakash Ohri — Joint Managing Director and Chief Business Officer
Ashok Kumar Tyagi — Whole Time Director and Managing Director
Analysts:
Puneet Gulati — Analyst
Pritesh Seth — Analyst
Abhinav Sinha — Analyst
Murtuza Arsiwalla — Analyst
Parvez Akhtar Qazi — Analyst
Jatin Kalra — Analyst
Akash Gupta — Analyst
Kunal Lakhan — Analyst
Gourav Khandelwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to DLF Limited’s Q3FY26 earnings conference call. We have with us today on the call Mr. Ashok Tyagi, Managing Director, DLF Ltd. Mr. Sriram Khattar, Vice Chairman and Managing Director, Rental Business Mr. Akash Ohri, Managing Director and Chief Business Officer and Mr. Badil Bagri Group, CFO, DLF Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your Touchstone phone.
Please note that this conference is being recorded. Participants connected on the webcast are requested to refresh their tab in case they face any issue. I now hand the conference over to Mr. Badil Bagri. Thank you. And over to you Sir.
Badal Bagri — Chief Financial Officer
Good evening everyone and thank you for joining us today. We will begin with our overview of operational and financial performance. We are pleased to report a strong performance in third quarter of this fiscal with robust operating execution, strong cash flows and a significantly strengthened balance sheet. Our performance this quarter reinforces the resilience and quality of our business model. We are extremely pleased to report that we witnessed record gross collections of around 5100 crores with sustained collection efficiency across all our projects. We believe this is one of the most critical and leading indicator of the underlying strength and quality of our sales net collections during the nine month period where 10,216 crores reflecting a year over year growth of 21%.
Supported by these strong collections, our net surplus cash generation for the nine month period was 6432 crores exceeding the entire cash generated in the last fiscal. The performance highlights a disciplined focus on cash flows as a core metric of value creation. As a direct outcome of the strong cash generation, we have achieved our goal of zero gross debt in the development business ahead of our estimated timelines. Our balance sheet remains extremely robust with gross cash of approximately 11,600 crores of which the VRERA balance would be 10,400 crores. Recognizing the sustained improvement in our business, ICRA upgraded our credit rating to AA with a stable outlook following Crystal’s upgrade in the previous quarter.
New sales booking in the current quarter was 419crores. Few things we would like to highlight around this are as previously indicated, bookings at Dahlias were paused during Q3 as a part of planned redesign to enhance customer experience. The bookings have now resumed. While there were no new launches, it is noteworthy that we were able to monetize almost one fourth of our inventory excluding dahlias within this quarter. New launches continue to be aligned with our medium term growth plans and we remain confident of achieving our stated sales trajectory across the medium term. Few Financial highlights of the Quarter Our consolidated revenue stood at 2479 crores, a growth of 43% year on year.
EBITDA stood at 848 crores a year over year growth of 39% profit after tax before exceptional items at 1252 crores reflecting a growth of 29% year over year. Reported profit after tax of 1207 crores, a 14% growth year over year. Now I’ll hand over to Sham to give the highlights of our annuity business.
Sriram Khattar — Vice Chairman and Managing Director
Good evening. The annuity business continued to perform well. The take up from the GCCs and international companies, especially in the BFSI and technology sectors was fairly strong. Our closing vacancy as of 31st December is now in DCCDL where about 88 90% of the rental assets are is now down to about 5% 5 and a half percent. However in terms of value now it is further down to about three and a half percent. The income was fairly robust. The Downtown 4 in Gurgaon is fully leased. Downtown 3 in Chennai is fully leased and I am further pleased to share that.
Downtown Phase 2 if you may recall we have four towers. The biggest tower is Tower 7 which is 2.2 million out of 5.5 million total offices. We have been able to lease the entire tower already in Atrium Place we’ve been able to lease 1, 2, 3 and 4 all the towers completely. We received the OCS for tower 1, 2 and 3. The tenant fit outs are making very good progress and the rent commencement have started for one or two tenants in the last quarter but will now pick up pace. The construction of Tower 4 which is least to one single GCC has slowed down marginally because of the grab situation here there we expect a delay of about 45 days to 60 days in its completion, but we expect the completion to be in July August of this year.
Maybe it goes to August and September. Beginning in downtown Chennai we have the construction on the fourth and fifth tower are going full speed. We have re engaged with the international architects and redone the Promenade which is in the center of these five buildings and I dare say it’s come out to be extremely nice and good in this also we in tower four and five which is three and a half million we have already leased 450,000 square feet and negotiations are on for further leasing in downtown here and downtown there. Therefore, as we stand today, our stock in our existing buildings is quite low.
It’s now down to about one and a half odd percentage. And therefore the leasing in the next year will be restricted to either the midterm expiries that happen, the nine year renewals and the new build out that is still in place. In retail, the consumption in the last quarter was much better than the consumption in the corresponding quarter in the previous calendar year. We have met our budgets in terms of our NOI and in terms of our other activity, the occupancy continues to be 97, 98%. The three new malls which are all in the books of DLF two of them, Midtown Plaza and Summit Plaza are now 95%, 96% leased fit outs are going on and within the next three months we should open both these malls.
Prominade Goa the leasing has commenced and I’m saying it with some cautious optimism that the initial response has been very heartening. And we have the first mover advantage there. We have the advantage of creating the best mall in that entire region. And we, we are reasonably confident that we make a big success of it. The construction on Mall of India Gurgaon is progressing along with the other towers and offices. And there is good progress being made there in NOIDA, Data Center 2 as we call it, which is the third building. We have the rent commencement of that also in this quarter.
And construction on Data Center 3 is going on in full swing. We continue to create lead in the area of ESG and in sustainability and fire safety. We became the world leaders again by the swords of honor received from the British Safety Council. We have also got platinum rating for wired score for a number of our buildings. And now we are the largest portfolio in the world.
Badal Bagri — Chief Financial Officer
Okay, we can take the questions now.
Questions and Answers:
operator
Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Participants connected on webcast may click on Ask a Question tab available on your screen. Participants connected through audio call may please press star and one on their phone. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We’ll take our first question from Puneet Gulati from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much for the opportunity. My first question is actually on your collection. So it has notably gone up this quarter. Is that a sustainable run rate one should think of from quarterly perspective or has there been some, you know, previous Quarters dues which have got accumulated in this quarter as well.
Badal Bagri
Okay Puneet, I think from a development business perspective it will be best way to look at the collection will be on annual basis rather than quarter on quarter basis. As you would know that most of our sales is construction linked and the amounts become due as and when the construction phases or the milestones are achieved. So I would say instead of looking at quarter to quarter this will always be misleading. We had no significant dues of the previous quarter which has got taken up in this quarter. As mentioned earlier in our presentation as well that our collection efficiency across all projects remain extremely high. So I would. The way I would look at collections is we should look at a 10 to 15% growth year over year versus what we have achieved last year on an overall basis from a collections point of view.
Puneet Gulati
Okay. So 10 to 15% growth this year, full year and then next year also similar number indicatively. Yes. Okay. Okay. And from collection from construction spend should that also be largely similar? I’m understand there is a bit of garb issue you are facing but.
Aakash Ohri
So. So Puneet, I think this quarter was as you rightly pointed out we had issues. We had suspension of work for a good 30 to 40 days, 40, 45 days or so. But if you look at the nine month trajectory, the last nine months of this year and last nine months of previous year, our construction spends are almost 40% up almost 2, 400 crore versus 1500 odd crores which we spent last year. And as, as we had kind of mentioned earlier a range of 900 to 1000 crores is a good number to kind of look at on a quarterly basis is a number which possibly you can consider as a reasonable construction spend over the coming quarters.
Ashok Kumar Tyagi
And puni just to. I mean reiterated one more point that if you now look at the last three or four years, Q3 always gets impacted by Gap. You know, I mean 30 days it could be 45 days but effectively like between one to one and a half month in the. In the entire year does get lost unfortunately to this to the entire pollution related graph measures and I think most of it happens in Q3 unfortunately.
Puneet Gulati
Understood. And secondly if you can elaborate a bit more on you know why did you post the sales in Dalias and what is the expectation of the new product into this Q4.
Sriram Khattar
Okay, so here unfortunately Akash, why he’ll be joining. He’s already there. He’s there. Okay. So Aakash, I’ll just do the intro and then you can take it off. So normally Puneet this quarter would have been a reasonable quarter for us in the, you know, in the usual couple of thousand crores of the non launch quarter sale, we were doing some design modifications on Dahlias to improve the entire layout and the client experience. And then as you know, as per Rera, if you do a design modification, you have to run it for the approval of all the existing customers. And I think 75% customers need to sign off.
Then RERA needs to take cognizance of it. So unfortunately, about two to two and a half months of this quarter was spent in that entire process. We are very glad that in early January RERA has given that permission after taking into cognizance all the customer approvals that came in and now Aakash has resumed the sale. Aakash, over to you on the daily as feesbase
Puneet Gulati
and also what design modifications you’ve done, if some colors can be given there.
Aakash Ohri
So Puneet, I’ll tell you first, you know, with regard to it’s an enhanced design, basically what happens is as the codes change, you know, you can adapt to the new ones or you can go back and work with the old ones. I think we’ve demonstrated tremendous amount of strength in kind of implementing that. And you know, every element of design and structural stability has gone up manifold. Again, I say to you that we could have continued to do what we were doing, but I think, you know, we chose took a call that this is going to be a.
Since the project right now is in its inception, we decided that we’ll go with the new code and therefore, you know, whether it was the structural part or whether it was the certain other elements in terms of facade and all, you know, the product has come out beautifully. So I think that is one, it is, you know, accepted also by a lot of customers who’ve endorsed it. As you know that the process is that you have to take full endorsements from the existing customers. And now we’re over 55%, almost 60% sold, you know, and that is before launch.
We’ve got an overwhelming response from our customers and that’s, that’s as far as Dahlias is concerned. With regard to your point on collections, I just like to add to what Bardil and Mr. Tagil already said. So our, our collections, if you have been tracking them, have been consistently doing well for the last over two years and that speaks clearly about the quality of sales done. So as far as this particular quarter is concerned, it is, and there is no overhang or there is nothing that has added to the previous quarters. That we have kind of realized this quarter. This has been primarily a schedule based collection and it has been more than 100% Puneet.
Puneet Gulati
And the design change, will it do anything material to cost of construction for dahlias?
Aakash Ohri
Yeah, it will do material change to cost of construction, little bit for sure. But also as you know dahlias is a dynamic price point system. It is not linked to you know in terms of it’s not linked to volume sales or not linked to any categories. The dahlias will continue to rise. Just to let you know, from the past year alone there has already been a 25% increase in Dahlia pricing. So. And we are selling so both. Yes, to answer your question, that plus of course commensurate revenues as well.
Badal Bagri
Puni. Just to add one more point, our margin for this project will remain intact despite what we are doing. Intact too positive I would just say. But I would leave it intact for this point of time. At this point of time.
Puneet Gulati
Yeah. Okay. And and lastly if you can also you know elaborate on what your plans for this calendar year in terms of new products or phases that we should watch out for.
Aakash Ohri
Well this calendar year we are working on ABBA 2 as you know the senior living and we’ve got our residual business to do. And then of course now we are back to to we reintroduced dahlias and that is before the main final big bang launch. So we will try and use this quarter as well for that and look forward to the senior senior living launch as we had we had talked about.
Sriram Khattar
And punished for the calendar 2626 we’ll see at least one major group housing launch in DLF City. It will see the next phase of west park in Mumbai. It will see a launch in Pachkola. It will hopefully see goa. So I mean all of those launches will happen calendar may most of them in the calendar. Maybe something overflows into Q4 next year but I think most of them should happen in this calendar.
Puneet Gulati
So GOA should be now next year fiscal year. Not this potentially
Sriram Khattar
this is fiscal eight weeks. Let’s see if eight weeks we can pull out, you know.
Puneet Gulati
Okay. Okay, great. Thank you so much and all the best.
operator
Thank you. We’ll take our next question from Pritesh Shed from Access Capital. Please go ahead.
Pritesh Seth
Yeah. Am I audible?
Badal Bagri
Yes, Pritesh, you are.
Pritesh Seth
Yes. Hi. Hi. So thanks for taking my question just on Dahlia. So you know any specific set of inventory plan to be open for this quarter in terms of. Should we one look at that. Yeah.
Aakash Ohri
Dahlias has been open always. I don’t Think we’ve restricted any inventory or any tower. So we’ve been getting a phenomenal response and I’d be happy to at any given point in time show you the graph there. And so Dalia is doing very well. Most of that is. Yeah, yeah, yeah. I, I just realized that. So Dahlias there is basically as far as sales is concerned, it is open. Because also please understand that these are, these are high value transactions. So it will be unfair for people. Yes, the, the, the price difference between certain values depending on the, the preferential location charges that they carry obviously are different from what they will be to maybe lower apartments or lower placed apartments or certain other things.
So that’s like any other, any other kind of development that we do. But Dahlias has got some amazing view vistas with the new Lake park that we’re building, which is one of the most phenomenal green spaces that you will see. It’s a hybrid of Hyde park and Central Park. So it’s going to be one of its kind and that, that carries its own price point. And then of course the south side carries its own. So it’s open, it’s by invitation. And all I can say at this point in time we’ve got healthy traction, we’re doing well and now we’ve got great traction from rest of India.
In fact, from top equity and capital market brokers also have started to realize that, look, with all the geopolitical issues going on, converting financial assets to hard assets is prudence today. So I think Dahlia is doing pretty well there. It’s got. And also the NRIs continue to respond. We just clocked in Super Luxury, one of the most renowned NRIs. I won’t name him at this point in time, but one of the most respected and I think in the top three NRI persons in the world has just bought TLF Super Luxury. So we continue to get good traction from across the world. Rest of India is responding extremely well and of course our local markets as well.
Pritesh Seth
Sure. And how should we think about the monetization? Obviously we don’t want you to rush on that, but in general, initially when we launched, we are a target of, I mean we have internal targets of probably monetizing it in three years that still holds or longer or shorter. What would be then?
Aakash Ohri
No, so, so Dahlias, as I said, is a. First of all, let me tell you, it’s a, it’s a dynamic pricing policy. As you know, the valuations, the turnover is, is about 42,000 crores. And when we started off it was about 29,000. So you’ve seen it grow. And as far as the monetizing is concerned, we started with a four year plan and because we’ve done well what we had planned to do, we’ve almost doubled that target in just about one year. So I think we are not going to stop anything. But based on what the price points are going to be, I feel that it’ll, it’ll take its own time and that’s how super luxury should.
Pritesh Seth
Sure, sure. And just to reconfirm Arbor to the senior living will get launched in Q4 along with the Delia next set of inventory.
Aakash Ohri
Yeah, yeah. So we’re working towards that. We right now in various stages of, you know, permissions and also. Yeah, we’re working towards that.
Pritesh Seth
And what’s the revenue potential, GDP potential for that?
Aakash Ohri
That is about close to now. It will be close to about 2,000 odd.
Pritesh Seth
Okay. Okay, fair enough. And just on the commercial side, Sriram sir, you know what the exit run rate look like now with these leasing that has happened in the quarter maybe for in FY26, 27 if you can.
Sriram Khattar
Yeah. So you know exit run rates are now getting more and more difficult to forecast because exit run rate which we say have in March we multiply it by 12 and then the escalations that come up there and then the new build out which keeps getting leased and the operations commence and the rental start, it gets a little difficult to sort of only talk of the exit run rate. So as we stand today our FY26 will be about the earnings for FY26 will be in DCC DL about 5900 crores and for DLF will be another about 550 odd crores.
So we in that sense 26 for the year it will be about 6400 crores for the rental business. For the annuity business next year this 6400 crores will go to about 7400 to 7500 crores. In this DCC DL will be about 6300 but DLF will take a big leap of about 1150 crores because Atrium place rentals will start coming in for the first three towers and the rentals for the three malls will kick in also.
Pritesh Seth
Sure. So these are actual numbers that we project rather than the exit run rates.
Aakash Ohri
The rental income forecast for the next fiscal.
Pritesh Seth
Yeah, sure, sure. That’s, that’s pretty helpful. Okay, okay, that’s it from my side and all the best. Thank you.
operator
Thank you. Ladies and gentlemen. Before we take the next question, would like to remind you to ask a question, participants connected on an audio call may please press RN1 and participants connected on webcast may click on the Ask a Question tab available on the screen. We’ll take an audio question from the line of Abhinav Sinha from Jeffries. Please go ahead.
Abhinav Sinha
Hi and great to see the cash collections happening in the quarter. So just one question on the cash balance and its utilization that we have. So are we looking for a bigger jump in dividend payouts this year?
Badal Bagri
So Abhinav as we have told in the past also that while obviously this cash number looks brilliant on paper and it is a large chunk of it unfortunately still is trapped in rera. And frankly we will start getting the unlocking of the RERA cycle from fiscal 272728 onwards. So which is where I think meaningful cash utilization questions will come. On the dividend front, our dividend has been so two metrics have been growing the last three years. If you see the dividend that we receive from Cybercity to DLF and the dividend that deal of distributes to its shareholders. So we are hopeful that the same trajectory of growth on both of those metrics will continue. Okay.
Abhinav Sinha
And sir, for DCCDL dividends should we see it as say 75% of PAT ratio to continue or Because I guess the last, the biggest chunk is actually given out in the fourth quarter. So what’s the thought there?
Badal Bagri
So the dividend payout whatever percentage of the pad was there last year the we we at least proposed to the board to continue at that level for FY26 and FY27. So and that is all park of 75 80%.
Abhinav Sinha
Okay, okay, that’s helpful. So on the Kolkata its when is the completion expected?
Badal Bagri
Yes. So SEZ which is if you may please recall Kolkata one asset which was in the books of DCCDL was sold and the deal closed in December of 25. Kolkata SEZ which is in the books of DLF. We have got the first stage approval from the board of approvals. We are awaiting the state approvals on one or two issues which we are working along with the buyers and we are quite hopeful that we will be able to close it in the current quarter. Yeah.
Abhinav Sinha
Okay. So the recognition should happen in the fourth quarter itself entirely.
Badal Bagri
But having said that the deal was such that the rentals per month. Month continue to accrue to us till the date of the final payment. So in addition to the advance we received, the renters continue to accrue to us till the date of sale.
Abhinav Sinha
Okay, one last question on the broader Gurgaon market. Now you know, I know, I mean DLF branded products have continued to very well but we keep on hearing two way news flows. Just wanted to hear your take on that.
Sriram Khattar
On what? Residential, retail, commercial, residential, residential which is and I had this whole to Akash obviously but then I’m saying it with semi seriousness, semi light that you know all the Mumbai based analysts anyway view Gurgaon market with some degree of skepticism. So even the slightest line hidden in somebody’s stock exchange release gets flared up and then is projected to cover the entire market which is not the case. But Aakash, obviously you have a far closer connect with the market. So your view on the Gurgaon market, sir?
Aakash Ohri
So Gurgaon market right now I think this was a question also raised about maybe two quarters back. Gurgaon market right now has shown its robustness over years. And also see basically please, there are, there will always be all kinds of people operating everywhere whether it’s Mumbai or Gurgaon. But if you see the kind of traction Gurgaon is getting and you know as I said as far as DLF is concerned, I’m getting business for the Gurgaon markets from the rest of India. I have a very healthy pipeline and I we’ve converted. So just to put it in perspective for all of you are in sales are about 25% NRI, our top line and 15% are the rest of India sales coming in for Gurgaon alone.
Now that is the kind of business that we are getting as far as Gurgaon is concerned. It is extremely, extremely, well kind of what do you call accepted and people are and, and across price points also whether it’s super luxury, luxury premium floors, plots, I mean you name it and Gurgaon is right now the most favorite investment option for people across the board. So there is enough depth in the market. People are choosing this by choice. And you know also a good reflection to all of this year after year, month after month, quarter after quarter is the collections that we report.
So if there was any strain in anything that we would talk about it, it will obviously you will see a disconnect between sales and collection. So the markets are strong, people are putting their money where their mouth is and I think the growth potential is tremendous. You see all the biggies coming to Gurgaon now, you name it in there in Gurgaon. So why would they come into Gurgaon if there was any lack of depth or you know, if they had assessed it differently. But you look at all the top. Guys. In the real estate market today. All, all of them are in Gurgaon now.
Abhinav Sinha
Yeah. Thanks Akashar. And all the best to the team. Thank you.
operator
Thank you. We’ll take our next question from Murtuza Arsewala from Kotak. Please go ahead.
Murtuza Arsiwalla
Yeah, hi sir. Just you know, in terms of I think part of the question you’ve already answered, you had a lot of commentary from Pearset about Gurgaon being sort of. Slow etc, but you’ve kind of answered that already. So that’s well taken. If you could give some color on. Let’S say what FY27 looks like. We’re almost towards the end of FY26. In terms of the building blocks to sales just beyond Arbor 2 and dahlias. That could be useful.
Sriram Khattar
So Murza, as I mentioned earlier that I mean from now till March 27, you know, basically apart from Arbor 2 which the senior living which Akash mentioned, we have the, we have one major group housing scheme in, in DLF City. We have the next phase of west park, we have next phase of Pachkula, we’ll possibly have one more phase of DLF City floors. We maybe we’ll hopefully have goa. So all of these are in the, in the approval and launch queue, you know, in that sense and dahlias will continue to be the strong underpinning for this entire piece. So you know, fiscal 27 looks, honestly looks pretty strong right now.
Murtuza Arsiwalla
Thank you. Thank you so much sir.
Sriram Khattar
Number guidance. Rate another quarter.
operator
Thank you. We’ll take our next question from Jatin Kalra from Bank of America. Please go ahead. Jatin, can you please unmute your line? Since there is no response, we’ll move on to the next. I request Parve Skazi from Nuama to please accept the prompt on his screen.
Parvez Akhtar Qazi
Hi, good afternoon sir. So one question from my side. I mean for the next year you gave the launch pipeline, if you leave apart go and take the other four projects which is Mumbai phase two, Arbor phase two, Panchkula and maybe the one group housing scheme in DLF City, what. Will be the total sales potential of these four projects?
Sriram Khattar
So you know, honestly I think while we have the numbers, you know, frankly typically for the go forward fiscal we have traditionally, you know, done that, I mean slightly more transparent disclosures when we do the annual call and I’d like to stick to that. But broadly speaking the DLF City group housing should be in the range of a couple of million square feet plus you know, to hopefully 2.5. With all the TBRs and all coming in the west park should be about a million square feet. You know. And the. The senior living is there half a million. You know, Goa. We know Pascala will be in phases. So I think you knowz there will be. And of course dahlias will continue to be. To be. To be ongoing selling.
Parvez Akhtar Qazi
Sure, sir. Thanks. And all the best. Thank you.
operator
Thank you. We have a question from Jatin Kalra from Bank of America. Jatin, can you please unmute your audio and go ahead with your question please?
Jatin Kalra
Hi, sorry. I think there was an issue earlier. My question has been answered. Thank you.
operator
Okay, thank you. We’ll take our next question from the line of Akash Gupta from Nomora. Please go ahead.
Akash Gupta
Hi. Am I audible?
Aakash Ohri
Yes, Akash, you are.
Akash Gupta
Perfect. First on the 4Q FY26 and the FY26 guidance. My question is that I think we have just one project which is the Arbor Senior Living. So that would be roughly 20 billion GDV and we have done roughly 160 billion. So should we expect Dalia sales only to the extent to meet our guidance is that how should we think about the fourth quarter?
Ashok Kumar Tyagi
So look, I mean nice try Akash but we stick to the fact that we continue to be confident. Look, there was a time at the end of September quarter when we had done 15,000 odd crores of sales when your brethren were saying that now revise the guidance. And we. Because we knew that you know, you know you could occasionally get a. Get a. Get a rough over as well. So I think we are, we stay confident or to meet our original guidance. You know, in that sense whether frankly that guidance will lead us to 20,438 or 21,744 crores. I. I’m not getting into that but we had given you a guidance range and I think we broadly stay or you know on grid for that. Akash. Over to you boss. If you want to add to that. Sir.
Aakash Ohri
Yeah, no, I, I’d love to give you any guidance you want me to. So, so no problem there. The only thing is that yes, we’ve got. We. We’ve given something. We, we. You know we are not planning to just fit that bill. But I think one thing good about our setup is that there are two things we are very conscious about. One, we are extremely cautious about compliance and we like to make sure that everything is there before we make third party commitments. And I think that is one thing that takes a lot of courage for a company to do. And second as we’ve already been highlighting, there’s a severe construction resource crunch and other issues that are going on. So there’s no point just going into a situation where just you just for the number’s sake and for doing things, you continue to just be on that treadmill and make commitments and then struggle to meet them in the construction.
So I think that’s also something that as a company we’ve taken a call that we want to make sure that our construction processes get stronger and better. So I don’t see any harm in that. I think both these display a tremendous amount of strength. We have also demonstrated our sales prowess and you know, so I think you all need to now please look at it from that perspective. When we’re asked to do what we’re asked to do, we will. So I don’t see numbers a problem because as I say to you, I said it earlier also, the world is the market for me and today a DLF brand painstakingly for over years customers have been with us and stay with us. I mean everybody gets very excited. Anything new comes in and I relate to that. But I think this is where we are. It’s a very strong brand today. Great pull. So I think one step at a time ladies and gentlemen. So I think that’s what Mr. Taghi also mentioned and I’d like to say that also. I’d like to second that.
Akash Gupta
Understood sir. And so my next question is on Pravana and the IDEO land parcel. I didn’t see that. I think in the FY27 lineup is that stacked up for FY28 now?
Ashok Kumar Tyagi
So Nikki, as I mean on the IDEO land parcel as I think I mentioned last time also that we are now getting in the hopefully the final leg of the entire approvals etc, you know and I think at some stage, you know it will now come up for launch. I mean what. It’s a huge land parcel as we know with potential, you know, GDV of 8 million or 7 and a half million square feet plus you know, which frankly could be in the range of 27,28,000 crore rupees. So I think that’s something that will have to be handled with with extreme degree of planning. So we’ll clearly get the other products that we that I spoke about, you know, out of the way before that. But I mean of course, I mean that will come up for, for development and launch hopefully in the north to distant future. Yeah.
Akash Gupta
Got it. And Priwana, that’s F528.
Ashok Kumar Tyagi
Riwana the last, I mean the next phase. Akash, we have some visibility, no.
Aakash Ohri
So Pravana, we may bring in Pravana in Q3, Q4. But again as I think we are concentrating on first finishing off the three. The successful sold outs that we’ve done and you know collections are in line with all that construction going on full swing. Next time when you guys are here in May, obviously the, the whole thing is planned to show you there as well. So I think the next phase will be sometime in later part of Q3 or Q4. But you know we keep. That’s the final call that we take is you know post this quarter when we, when we kind of make our annual guidance that’s when we will run it by you. But see we are okay with. As Mr. Tagi had mentioned to you there will be one DLF Gurgaon launch and it can be either, it can be both. So we’ll see. Just give us this, let’s finish this quarter. I think we’ll make those announcements.
Akash Gupta
And so my one final question is on the medium term launch pipeline which is roughly 600 billion and along with the inventory we have, it is 200 billion. How much time do you think should we expect this entire inventory and launch pipeline to be consummated?
Ashok Kumar Tyagi
Three to four years.
Akash Gupta
So if we assume four years that’s roughly 20,000 crores annually. Is that how we should think about it?
Ashok Kumar Tyagi
So at 20,000 crores I think we, we achieve all our financial and, and stakeholder goals. Good year. It will be, it will hopefully be a number higher than that in a one off, you know, problematic year. It could be, you know, 18, 19 also but broadly. And again the good thing is that 80,000 kebab, the next 40,000 is identified clearly if the markets continue to be buoyant and if our execution continues to be strong, you know it’s not that we have to then desperately go around scouting land licenses, you know, frankly so it’s in the drawing board. So in like six months those things can be on the market.
Sriram Khattar
Akash, there’s one thing which we have reiterated several times that we have an identified set of pipeline which we have talked about the near future and we continuously work on these identified projects. We are not dependent on anybody else except for our own assessment of how the market is and our ability to deliver. Our ability to move forward any project out of these and incrementally add more projects because land is already available with us is at our own will and flexibility. So the timing of this could be a quarter Here or there. But in terms of our ability to say where all and what all projects are going to come in has always been there.
Akash Gupta
Perfect sir, thank you so much for detailed explanation. That’s all the question I had.
operator
Thank you. We’ll take our next question from Kunal Lakhan from clsa. Please go ahead.
Kunal Lakhan
Yeah. Hi, good evening. Thanks for taking my question. Just a follow up on the previous question. Like I understand you have a identified pipeline for the next, for the next mid to long term. But just looking at your cash flows and your 11,000 crores of cash plus the 42,000, 43,000 crores that you’ll make from your existing projects. You have a little alluded to us in the past that you may look at certain markets like Noida, right. You know, any update on, on Noida firstly and then you know, any opportunity outside of Gurgaon that you’re looking at where your pipeline is. But you know, outside of Gurgaon are you looking at any other opportunities or any other markets?
Ashok Kumar Tyagi
So, so you know, as we mentioned and I have mentioned in the past, you are right that I think clearly Noida continues to be one area of interest. We haven’t frankly. I mean we have one land parcel which is under litigation as everybody knows. But beyond that we haven’t come across something, you know, which is, which is completely clean, tech worthy and available. But clearly Noida continues to be one segment and Mumbai continues to be the second segment. But again Mumbai, we believe that the west park parcel that we have hopefully if we keep on.
Working and expanding the settle of west park, this could potentially be a very long term and a very, and a very deep land parcel for us, you know, in that sense. And, but, but again if there’s something else which is of interest, you know and which comes up clearly that will be a second thing. And then of course, you know, I mean what we do with the balance of the money I think is an important point. Shareholder returns will be an important thing. But also as the money comes out of rera, frankly land replenishment and you know, how best to deploy it into assets with, with higher yield and all will be issues that you know that will work in the next year or so.
Kunal Lakhan
Sure, sure. But no, no new market besides Noida and Mumbai that you’ll, you’ll be looking at at least in the midterm.
Ashok Kumar Tyagi
Delhi of course continues to be there. But, but, but beyond that.
Kunal Lakhan
Okay, so just to follow up on that again like on, on Delhi, right. Any clarity on, on the, the second.
Ashok Kumar Tyagi
Phase of Motinagarh so what the issue, I’ll tell you honestly is that Moti Nagar we are working, we are sort of working with the government to see and basically to ensure that the infrastructure around Moti Nagar can actually get enhanced to truly make it like a, you know, a far more upscale neighborhood. You know, I mean Moti Nagar is central Delhi. So we clearly, and I think that that is a process which will take some time. But I think we would ideally like to, you know, hold on to the next phases of Moti Nagar launch till such time that the infrastructure works being planned by the government.
You know, there’s a visibility on that and there’s a certain execution that has happened. But clearly at some stage you are right that the next phase of the Moti Nagar piece will happen. There’s a 7 million plus square feet that is available there. The Mothinagar Mall got is getting commissioned this year. Midtown Plaza. Midtown Plaza is getting commissioned in, in the next quarter. And so we continue from our standpoint to, to do everything to make the experience of the residents there. You know, there. I mean already now we have in excess of 8 million square feet between Capital Greens and one Midtown residents who are, I think we almost three and a half thousand residents who are already staying there. S o improving their quality of, you know, of living and just trying to work with the authorities to see how we can improve the infrastructure including the massive green around that area.
Kunal Lakhan
Great. And one last question. You did give clarity on the health of the NCR market in our previous question. But just to follow up on that, in terms of, I understand DLF is doing really well. You’re getting response for your projects. But how is the, how is the industry or your peers doing? One of your peers earlier in the month kind of alluded towards some kind of a slowdown. Some of the other peers out of Bangalore also colluded towards cautious outlook on the NCR market. I mean just your thoughts on the overall market, not just your products.
Ashok Kumar Tyagi
In all fairness, we don’t comment on individual peers. But to just borrow from what Aakash mentioned earlier, a lot of the major real estate players are coming to Gurgaon. Some of them have announced very marquee launches in the next calendar. You know, so clearly I think Gurgaon, I mean again NCR as overall is three different markets. But Gurgaon specifically, you know, continues to be a market which does attract attention and hold attraction for even other players who are not present in Gurgaon so far. So I think there is an underlying thing, yes, obviously they’ll Be one off people who may have had some, some, you know, some headwinds, you know, in that sense. But I mean, we do believe that the underlying strength of the market for credible names continues to be there.
Kunal Lakhan
Thank you. Very helpful and all the best. Thank you.
operator
Thank you. Our next question is from Gaurav Khandelwal from JP Morgan. Gaurav, please unmute yourself and go ahead with your question, please.
Gourav Khandelwal
Yeah. Hi, good evening. Thanks for letting me ask my questions. My first question is just to understand the company ethos a bit better. I’m just wondering what will it take or is there any intention or no intention to let’s say scale up your deliveries closer to the other big listed players? Right. So we’re talking about 15, 18, 20 msf of deliveries every year. So what exactly is your thinking on these lines where we are and is there any possibility of this scale changing in the next three to five years?
Ashok Kumar Tyagi
So a. I’ll tell you, Gaurav, actually million square feet is about the most irrelevant metric frankly in this industry. You know, you have to focus on the sale value we are generating. You have to focus, not only we, anybody, you have to focus on the margin that is being generated. You have to focus on the free cash flow that is being generated. And frankly, you know, I, I truly, you know, I’d say appreciate if that, you know, over time if the entire community who is studying this industry moves, you know, I can launch, I’ll tell you frankly, I can launch at 10 million square feet somewhere in, you know, on the outskirts of, of Haryana or, or up or Gajabad.
That will add volume, that will add execution headache. Will it add cash flow? Will it add margin? And I think that’s the question that at least we have asked ourselves. And frankly, yes, we have a sharper or a higher threshold of margins that meet our products. And I think we clearly products that don’t meet those margins, we ourselves have some land parcels which we have not developed so far because we believe that there is a eventual margin that those products will realize which is not available today. So we are definitely from an ethos standpoint, not going to chase volume for the sake of volume.
Boss, we were the original pioneers of the volume journey and we have seen the downside of that better than anybody else.
Gourav Khandelwal
Right, that’s super helpful, sir. But just as a follow up to this, in your current business then is supply availability of contractors, the grade A contractors, Is that a hurdle or not really?
Ashok Kumar Tyagi
t’s not a hurdle, but it’s clearly a constraint. And you know, you have to work on that. So we do keep on expanding the pipeline of contractors. You know, I mean, the last 12 months, correct me, Puneet. I think we have added three or four new contractors with whom we had not worked in the past. A couple of old contractors have returned, you know, so I think clearly going into the contracting piece, we have ourselves strengthened our technical backbone humongously in the last 24 months, the number of senior technical people that we have taken. Because now we clearly realize that we are going to do a lot of t hat. You know, to ensure better supervision for dahlias. We have lined up Samsung to do the project management. So I think we are clearly looking at all possible tools to ensure that whatever we undertake, we execute and execute it when it comes.
Gourav Khandelwal
Got it. That’s very helpful. And just I have one. Follow one other housekeeping question.
Sriram Khattar
May I just add, you know, you talked of this million square feet. I think what’s probably lost is that today in the rental business we are, we have projects in pipeline totaling to about 12 million. So if you add that and you add the residential side. 40 million square feet is under construction at this particular one. So 40 million is under construction. So I do not know if there are any developers who are doing 40 million a year.
Ashok Kumar Tyagi
They may be to be fair, but I think we feel that this 40 to 45 is what we believe we can at today. This is what we can execute well. And hopefully, you know, I mean, this number was a lower number three years back. And hopefully as the, as the competence keeps on strengthening, I’m sure this number can go up in a calibrated manner. But 40 to 45 million is frankly what we used to be at the peak in 2010, 11. So I think we are where we feel we are now being, you know, we are being constructively stretched, but I think we are still able to keep B. What also happens is that we have a tremendous, I mean we have an enormous architecture of the compliance framework below. I mean the total number of individual compliance items that get vetted and checked and audited every quarter is. I won’t give you the exact number, but it’s a five figure number. So I mean, you know, it’s just a, it’s an elaborate engine that works, you know, unfortunately.
Gourav Khandelwal
Wow. No, that’s phenomenal. And thanks for that, Kalan. Yeah. Commercial. Of course, I completely agree. You are the largest operator in the country. And just my final question, which is more of a housekeeping question, on slide 28 on your cash flows, there’s a inflow of 131 crores on account of government approval. And others better understand. What is this number?
Badal Bagri
Yeah, Gaurav, there is a. There is an investment which was made in one of the subsidiaries which was returned back this month of close to 250 odd crores and that is included in that line and hence it’s shown as a recovery rather than expense.
Ashok Kumar Tyagi
Actually it’s 120 crores of government outflow and 250 crores was the refund that. So I mean we had given an ICD to our, to our Mumbai project and hopefully because of the boisterous collections that money was returned back by the JVCO to us. So. So that 250 crores came back.
Gourav Khandelwal
Got it. Perfect. Thank you. Those were all my questions.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand over the call to Mr. Ashok Tyagi for closing comments. Over to you, sir.
Ashok Kumar Tyagi
Thank you. You know, as I’m a. I’m. Thank you so much because this was an extremely insightful conversation. I mean, yes, we, I mean I’ll address the elephant, you know, straight that as Badhur also mentioned and Aakash mentioned this quarter did, I mean visually have a very low P sales number. So I understand that but I mean we explained the reason for that which was basically the fact that we consciously and regulatory, you know, held back the Dahlia sales and that anomaly has been fixed now and hopefully it’s back in the pipeline. Now our launch pipeline continues to be exactly as we had mentioned and articulated in the past.
And while obviously Aakash and his team have to work and have worked tremendously hard in the last three or four years, I think that will continue as we bring more and more of these products into the market. The construction back engine has been strengthened over the last few years and continues to be so. But obviously when we, you know, we are not looking just at a launch, we are looking at our 100% certainty that we’ll be able to bring that launch to the consumer’s hands in the, in the time period that we have, that we have mentioned.
Financially, of course, you know, we have now a five digit surplus cash with us. It is still with RERA, but hopefully from fiscal 27 onwards we should begin seeing a very systemic unlocking of that. And I think that that’s where, you know, things should start really strong. And the commercial engine just keeps on, you know, outperforming quarter on quarter, year on year and hopefully in the last, in the next 12 to 18 months with the, with the downtown Chennai, ATM Place, the three malls and then the next phase of downtown beginning to commission downtown go down. I mean, this engine will just keep on going and really hopefully, you know, so we continue to be in a, in a safe and a sweet spot and just. That’s it. Thank you.
operator
Thank you, members of the management team, on behalf of DLF Limited. That concludes this conference. Thank you for joining us. And you may now exit the meeting. Sa.