DLF Ltd (NSE: DLF) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Badal Bagri — Group Chief Financial Officer
Sriram Khattar — Vice Chairman & Managing Director
Ashok Kumar Tyagi — Managing Director
Aakash Ohri — Joint Mng Managing Director and Chief Business Officer
Analysts:
Puneet Gulati — Analyst
Pritesh Sheth — Analyst
Abhinav Sinha — Analyst
Murtuza Arsiwalla — Analyst
Parvez Qazi — Analyst
Jatin Kalra — Analyst
Akash Gupta — Analyst
Kunal Lakhan — Analyst
Gaurav Khandelwal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to DLF Limited’ Q3 FY ’26 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. [Operator Instructions] And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions]
I now hand the conference over to Mr. Badal Bagri. Thank you, and over to you, sir.
Badal Bagri — Group 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 INR5100 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 INR10,216 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 INR6432 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 INR11,600 crores of which the VRERA balance would be INR10,400 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 INR419 crores. 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 INR2,479 crores, a growth of 43% year-on-year. EBITDA stood at INR848 crores a year-over-year growth of 39%. Profit after tax before exceptional items at INR1,252 crores reflecting a growth of 29% year-over-year. Reported profit after tax of INR1,207 crores, a 14% growth year-over-year.
Now I’ll hand over to Sriram to give the highlights of our annuity business.
Sriram Khattar — Vice Chairman & Managing Director
Good evening. The annuity business continued to perform well. The takeup from the GCCs and international companies, especially in the BFSI and technology sectors was fairly strong. Our closing, we can see, as of 31st December is now — in DCCDL where about 88%, 90% of the rental SSR is now down to about 5% — 5.5%. However, in terms of value, now it is further down to about 3.5%.
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 one, two, three and four, all the towers completely. We received the OCs for tower one, two and three. The tenant fit-outs are making very good progress, and the rent commencement has started for one or two tenants in the last quarter, but we’re now pick up pace. The construction of Tower 4, which is leased to one single GCC has slowed down marginally, because of the GRAP 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 reengaged with the international architects and redone the Promenade, which is in the center of these five buildings. And they say, it’s come out to be extremely nice and good. In this also, we — in Tower 4 and 5, which is 3.5 million, we have already leased 450,000 square feet. And negotiations are on for further leasing in Downtown here, in Downtown there.
Therefore, as we stand today, our stock in our existing buildings is quite low. It’s now down to about 1.5-odd percent. And therefore, the leasing in the next year will be restricted to either the midterm expiries that happened, 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% and 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.
Promenade, 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 are reasonably confident that we’ll 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 Sword of Honour received from the British Safety Council. We have also got a Platinum rating for Wiredscore for a number of our buildings. And now, we are the largest portfolio in the world.
Badal Bagri — Group Chief Financial Officer
Okay. We can take your questions now.
Questions and Answers:
Operator
Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] 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 collections, which has notably gone up this quarter. Is that a sustainable run rate one should think of from quarterly perspective? Or has there been some previous quarters’ views which have got accumulated in this quarter as well?
Badal Bagri
Okay. Puneet, I think from a development business perspective, it will be the best way to look at the collection will be on an annual basis rather than a 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, sir. 10% to 15% growth this year, full year and then next year also similar numbers?
Badal Bagri
Yes. Indicatively. Yes, Puneet.
Puneet Gulati
Okay. Okay. And from construction spend, should that also be largely similar? I understand there is a bit of GRAP issue you are facing, but —
Badal Bagri
So Puneet, I think this quarter was — as you rightly pointed out, we had issues. We had a suspension of work for a good 30 to 40 days, 40, 45 days or so. But if you look at the 9-month trajectory, the last nine months of this year and last nine months of previous year, our construction spends are almost 40% up, almost INR2,400 crores versus INR1,500-odd crores, which we spent last year. And as we had kind of mentioned earlier, a range of INR900 crores to INR1,000 crores is a good number to kind of look at on a quarterly basis is the number which possible you can consider as a reasonable construction spend over the coming quarters.
Ashok Kumar Tyagi
And Puneet, just to — I mean, reiterate one more point that if you now look at the last three or four years, Q3 always gets impacted by a gap. I mean, 30 days, it would be 45 days, but effectively like between 1, 1.5 months in the entire year does get lost, unfortunately to the entire pollution-related GRAP measures. And I think most of it happens in Q3, unfortunately.
Puneet Gulati
Understood. And secondly, if you can elaborate a bit more on why did you pause the sales in Dahlias, and what is the expectation of the new product into this Q4?
Ashok Kumar Tyagi
Okay. So here, unfortunately, Aakash, while he will be joining.
Badal Bagri
He’s already there.
Ashok Kumar Tyagi
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 usual couple of INR1,000 crores of the non-launch quarter sales. And we were doing some design modifications on Dahlias to improve the entire layout and the client experience. And then, as you know, as per RERA, if you do a design modification, you have to run it for the approval of all the existing customers and I think 75-odd percent customers need to sign off, then RERA need to take cognizance of it. So unfortunately, about two to 2.5 months of this quarter was spent in that entire process. I mean, we are very glad that in early January, RERA has given that permission after taking into cognizance all the customer approvals that came in. And now Aakash has resumed the sale.
Aakash, over to you on the Dahlias piece.
Puneet Gulati
And also, what design modifications you’ve done, if some color can be given there.
Aakash Ohri
Yeah. So Puneet, I’ll tell you first, with regard — it’s an enhanced design. Basically, what happens is as the codes change, you can adapt to the new ones or you can go back and work with the old ones. I think we’ve demonstrated a tremendous amount of strength in kind of implementing that. And every element of design and structural stability has gone up many fold. Again, I say to you that we could have continued to do what we were doing. But I think we chose — took a call that this is going to be a — since the project right now is in its inception, we decided that we’ll go with the new code and therefore, whether it was the structural part or whether it was the certain other elements in terms of facade and all, the product has come out beautifully.
So I think that is one. It is 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, and that is before launch. We’ve got an overwhelming response from our customers, and that’s as far as Dahlias is concerned.
With regard to your point on collections, I’d just like to add to what Badal and Mr. Tyagi has already said. So, 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
Ye, it will do a material change to cost of construction a little bit for sure. But also, as you know, Dahlias is a dynamic price point system. It is not linked to in terms of — it’s not linked to volume sales or not linked to any categories. The Dahlias is — will continue to rise. Just to let you know, from the past year alone, there has already been a 25% increase in Dahlias pricing. So — and we are selling. So both, yes, to answer your question there, plus, of course, commensurate revenues as well.
Badal Bagri
Puneet, just to add one more point, our margin for this project will remain intact despite what we are doing. Intact to positive, I would just say, but I would leave it intact for this point of time — at this point time.
Aakash Ohri
Yes. Okay.
Puneet Gulati
And lastly, if you can also elaborate on what your plans for this calendar year in terms of new products or phases that we should watch out for?
Aakash Ohri
Well, this calendar year, we are working on other two, as you know, the senior living. And we’ve got our residual business to do. And then, of course, now we are back to — we introduced Dahlias and that is before the main final big bang launch. So, we will try and use this quarter as well for that. And look forward to the senior living launch as we had talked about.
Ashok Kumar Tyagi
And Puneet, for the calendar ’26, the calendar ’26 will 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 Panchkula. It will hopefully see Goa. So, I mean all of those launches will happen. Calendar, most of them in the calendar, maybe something over fall into Q4 next year, but I think most of this should happen in this calendar.
Puneet Gulati
So, Goa should be now next year, fiscal year, not this, possible potentially.
Ashok Kumar Tyagi
[Foreign Speech] Let’s see if eight weeks will be — we can pull off in this eight weeks.
Puneet Gulati
Okay. Okay, great. Thank you so much and all the best.
Operator
Hank you. We’ll take our next question from Pritesh Sheth from Axis Capital. Please go ahead.
Pritesh Sheth
Yeah. Am I audible?
Badal Bagri
Yes, Pritesh, you are.
Pritesh Sheth
Hi. So thanks for taking my question Just on Dahlias, so any specific set of inventory plan to be opened for this quarter in terms of — [Technical Issues] one look at that? Yeah.
Ashok Kumar Tyagi
So 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 Dahlias is doing very well. Most of that is —
Badal Bagri
Aakash, you have turn mute.
Aakash Ohri
Yeah, yeah. 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 price difference between certain values, depending on the preferential location charges that they carry, obviously, are different from what they will be to maybe lower apartments or lower placed apartments or certain other things. So that’s like any other kind of development that we do.
But Dahlias has got some amazing view 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 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 with all the geopolitical issues going on, converting financial assets to hard assets is prudence today. So, I think Dahlias is doing pretty well there.
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 them 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 DLF 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 Sheth
Sure. And how should we think about the monetization? Obviously, we don’t want you to touch on that. But in general, like initially, when we launched, we had a target of — I mean, we have internal targets of probably monetizing it in three years. That still holds or longer or shorter. What would be the timeline?
Aakash Ohri
No. So Dahlias, as I said, is — first of all, let me tell you, it’s a dynamic pricing policy. As you know, the valuations, the turnover is about INR42,000 crores. And when we started off, it was about INR29,000 crores. So you’ve seen it grow. And as far as the monetizing is concerned, we’d 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’ll — we are not going to stop anything. But based on what the price points are going to be, I feel that it will take its own time, and that’s how super luxury should.
Pritesh Sheth
Sure, sure. And just to reconfirm, Arbour to the senior living will get launched in Q4. Along with the detail, yes, next set of inventory. Yes.
Aakash Ohri
Yeah. So, we are working towards that. We are, right now, in various stages of permissions and all. So, yeah, we’re working towards that.
Pritesh Sheth
And what is the revenue potential, GDV potential for that?
Aakash Ohri
That is about close to — now, it will be close to about INR2,000-odd crores.
Pritesh Sheth
Okay. Okay. Fair enough. And just on the commercial side, Sriram sir, what the exit run rate look like now with these leasing that has happened in the quarter, maybe for FY ’26, ’27, if you can?
Sriram Khattar
Yeah. So, the exit run rates are now getting more and more difficult to forecast because exit run rate, which we see have in March, we multiply it by 12 and then the escalations that come up there and then the new build-out, which keeps getting leased and the operations commence and the rental start, it gets a little difficult to sort of only talk of the exit run rate. So, as we stand today, our FY ’26 will be about the earnings for FY ’26 will be in DCCDL about INR5,900 crores. And for DLF will be another about INR550-odd crores. So we, in that sense, ’26 for the year, it will be about INR6,400 crores for the rental business for the annuity business. Next year, this INR6,400 crores will go to about INR7,400 crores to INR7,500 crores. In this DCCDL will be about INR6,300 crores, but DLF will take a big leap of about INR1,150 crores because Atrium Place rentals will start coming in for the first three towers and the rentals for the three malls will kick in also.
Pritesh Sheth
Sure. So these are the actual numbers that we project rather than the exit run rate, yes?
Sriram Khattar
Our forecasted numbers. Yeah. The rental income forecast for the next fiscal. Yeah.
Pritesh Sheth
Yeah, sure. That’s pretty helpful. Okay. Okay, that’s it from my side and all the best. Thank you.
Operator
Thank you. [Operator Instructions] We’ll take an audio question from the line of Abhinav Sinha from Jefferies. Please go ahead.
Abhinav Sinha
Hi. And great to see the cash collections happening in the quarter. Sir, just one question on the cash balance and its utilization that we have. So are we looking for a bigger jump in dividend payout this year?
Ashok Kumar Tyagi
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 is still strapped in RERA. And frankly, we will start getting the unlocking of the RERA cycle from fiscal ’27 — ’27-’28 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 in the last 3 years, if you see. The dividend that we received from Cyber City to DLF and the dividend that DLF distributes to its shareholders. So we are hopeful that the same trajectory of growth on both of those metrics will continue.
Abhinav Sinha
Okay. And sir, for DCCDL dividend, should we see it as a 75% of PAT ratio to continue or — because I guess the last — the biggest chunk is actually given out in the fourth quarter. So what’s the thought there?
Sriram Khattar
So, the dividend payout, whatever percentage of the PAT was there last year, we at least propose to the Board to continue at that level for FY ’26 and FY ’27. So — and that is in the ballpark of 75%, 80%.
Abhinav Sinha
Okay. Okay. That’s helpful. Sir, on the Kolkata IT SEZ, when is the completion expected on the transaction?
Sriram Khattar
Yeah. So Kolkata SEZ, which is, if you may please recall, Kolkata 1 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 for 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.
Sriram Khattar
Yeah. But having said that, the deal was such that the rentals per month continue to accrue to us till the date of the final payment. So, in addition to the advance we received, the rentals continue to accrue to us till the date of sale.
Abhinav Sinha
Okay. Sir, one last question on the broader Gurgaon market. Now, I know — I mean, DLF branded products have continued to do very well. But we keep on hearing two-way news flows, just wanted to share your take on that.
Ashok Kumar Tyagi
On what, residential, retail, commercial?
Abhinav Sinha
Residential.
Ashok Kumar Tyagi
I tell you, Abhinav, which is — and I’ll hand this over to Aakash obviously. But then, I’m saying it with semi-serious and semi-lite that all the Mumbai-based analysts anyway view Gurgoan market with some degree of skepticism. [Foreign Speech] 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 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 we’ve converted. So just to put it in perspective for all of you, our 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 you call, accepted. And people are — and across price points also, whether 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 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 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 and they are in Gurgaon. So why would they come into Gurgaon if there was any lack of depth or if they’re assessed it differently. But you look at all the top guys in the real estate market today, all of them are in Gurgaon now.
Abhinav Sinha
Yeah. Thanks Aakash, sir, and all the best to the team.
Aakash Ohri
Thank you. Thank you.
Operator
Thank you. We’ll take our next question from Murtuza Arsiwalla from Kotak. Please go ahead.
Murtuza Arsiwalla
Just, yes, in terms of — I think part of the question you’ve already answered, you had a lot of commentaries from peer set about Gurgaon of 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 FY ’27 looks like, we are almost towards the end of FY ’26 in terms of the building blocks to sales just beyond Arbour 2 and Dahlias, that could be useful.
Ashok Kumar Tyagi
So Murtuza, as I mentioned earlier that, I mean, from now till March ’27, basically, apart from Arbour 2, which the senior living, which Aakash mentioned, we have the — we have one major group housing scheme in DLF City. We have the next phase of West Park. We have the next phase of Panchkula, we’ll possibly have one more phase of DLF City Floors. We’ll hopefully have Goa. So, all of these are in the approval and launch queue in that sense. And Dahlias will continue to be the strong underpinning for this entire piece. So, fiscal ’27 looks, honestly looks pretty strong right now.
Murtuza Arsiwalla
Thank you. Thank you so much sir.
Ashok Kumar Tyagi
[Foreign Speech]
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 Parvez Qazi from Nuvama to please accept the prompt on your screen.
Parvez Qazi
Hi, good afternoon, sir. Sir, 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 2, Arbour Phase 2, Panchkula, and maybe the one group housing scheme in DLF City. What will be the total sales potential of these four projects?
Ashok Kumar Tyagi
So, honestly, I think — while we have the numbers, frankly, typically for the go-forward fiscal, we have traditionally done that, I mean, slightly more transparent disclosures when we do the annual call. And I’d like to stick to that. But broadly speaking, the DLF City group housing should be in the range of a couple of million square feet plus hopefully, 2.5 million square feet with all the TBRs and all coming in. The West Park should be about 1 million square feet. And the senior living is there 0.5 million square feet. Goa, we know, Panchkula will be in phases. So I think there will be — and of course, Dahlias will continue to be ongoing selling.
Parvez Qazi
Sure, sir. Thanks. And all the best.
Ashok Kumar Tyagi
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
Sorry, there was an issue, and my question has been answered.
Operator
Okay. Thank you. We’ll take our next question from the line of Akash Gupta from Nomura. Please go ahead.
Akash Gupta
Hi. Am I audible?
Ashok Kumar Tyagi
Yes, Akash. You are.
Akash Gupta
Perfect. Sir, first, on the 4Q FY ’26 and FY ’26 guidance. My question is that, I think, we have just one project which is the Arbour senior living. So, that would be roughly INR20 billion GDV, and we have done roughly INR160 billion. So should we expect Dahlias sales only to the extent to meet our guidance? Is that how should we think about the fourth quarter?
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 end of September quarter when we had done INR15,000-odd crores of sales. When your brother and were saying that now revised the guidance and — because we knew that you could occasionally get a rough over as well. So I think as we stay confident to meet our original guidance in that sense. Whether frankly, that guidance will lead us to INR20,438 crores or INR21,744 crores, I’m not getting into that. But we had given you a guidance range, and I think we broadly stay on grid for that. Aakash, over to you, boss, if you want to add to that, sir.
Aakash Ohri
Yeah. I’d love to give you any guidance you want me to. So, no problem there. The only thing is that, yes, we’ve got — we’ve given something 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 our 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 have 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 provision. 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. Tyagi also mentioned, and I’d like to say that also, I’d like to second that.
Akash Gupta
Understood, sir. And sir, my next question is on Privana and IREO land parcel. I didn’t see that, I think, in the FY ’27 lineup. Is that stacked up for FY ’28 now?
Ashok Kumar Tyagi
I mean, on the IREO land parcel, as I think, I mentioned last time also, that we are now getting in the — hopefully, the final leg of the entire approval, etc. And I think at some stage, it will now come up for launch. I mean, what — it’s a huge land parcel as you know, with potential GDV of 8 million or 7.5 million square feet plus, which frankly would be in the range of INR27,000 crores, INR28,000 crores. So, I think that’s something that will have to be handled with an extreme degree of planning. So, we’ll clearly get the other products that I spoke about out of the way before that. But I mean, of course, I mean that will come up for development and launch, hopefully in the not-too-distant future year.
Akash Gupta
Got it. And Privana, that’s FY ’28?
Ashok Kumar Tyagi
Privana, the last — I mean, the next phase, Aakash, you have some visibility?
Aakash Ohri
No. So, Privana, we may bring in Privana in Q3, Q4. But again, as I think we are concentrating on first finishing of the three successful sold-outs that we’ve done and collections are in line with all that. Construction is going on full swing. Next time when you guys are here in May, obviously, 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 we keep — that’s the final call that we take is, post this quarter 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. Tyagi had mentioned to you, there will be one DLF Gurgaon launch. And it can be, either it can be both. So we’ll see, let’s give us this — let’s finish this quarter. I think we’ll make those announcements.
Akash Gupta
Understood, sir. And sir, my one final question is on the medium-term launch pipeline, which is roughly INR600 billion. And along with the inventory we have, it is INR200 billion. How much time do you think should we expect this entire inventory and launch pipeline to be consummated?
Ashok Kumar Tyagi
It’s three to four years.
Akash Gupta
So, if you assume four years, that’s roughly INR20,000 crores annually. Is that how we should think about it?
Ashok Kumar Tyagi
Yeah. So, at INR20,000 crores, I think we achieved all our financial and stakeholder goals. Good year. It will be hopefully be a number higher than that. In a one-off problematic year, it could be INR18,000 crores, INR19,000 crores also. But broadly, and again, the good thing is that most [Foreign Speech] the next INR40,000 is identified clearly. If the markets continue to be buoyant and if it still continues to be strong, it’s not that we have to then desperately go around scouting land. [Foreign Speech] So it’s on the drawing board. So, in like 6 months, those things can be in the market.
Badal Bagri
Akash, this is one thing which we have reiterated several times that we have an identified set of pipeline, which we have talked about in the near future. And we continue to 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.
Badal Bagri
Thank you.
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. I understand you have identified pipeline for the next mid- to long term. But just looking at your cash flows and your INR11,000 crores of cash plus the INR42,000 crores — INR43,000 crores that you’ll make from your existing projects. You have alluded towards in the past that you may look at certain markets like Noida, right? Any update on Noida firstly? And then any opportunity outside of Gurgaon that you’re looking at, where your pipeline is? But outside of Gurgaon, are you looking at any other opportunities or any other markets?
Ashok Kumar Tyagi
So, as we mentioned and as 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 which is completely clean, take worthy and available. But clearly, Noida continues to be one segment. And Mumbai continues to be the second segment. But again, Mumbai, we believe that the West Park parcel that we have, hopefully, if we keep on working and expanding the circle of West Park, this could potentially be a very long term and a very deep land parcel for us in that sense.
But again, if there’s something else, which is of interest and which comes up, clearly, that will be the second thing. And then, of course, I mean, what we do in the balance of the money, I think is an important point, shareholder returns would be an important thing. But also as the money comes out of RERA, frankly, land replenishment and how best to deploy it into assets with higher yield and all will be issues that will work in the next year or so.
Kunal Lakhan
Sure, sure. But no new market besides Noida and Mumbai that you’re looking at, at least in the midterm?
Ashok Kumar Tyagi
No. Delhi, of course, continues to be there, but beyond that.
Kunal Lakhan
Okay. So just a follow-up on that again, like on Delhi right, any clarity on the second phase of Moti Nagar?
Ashok Kumar Tyagi
No. 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 far more upscale neighborhood. I mean, Moti Nagar is in Central Delhi. And so we clearly — and I think that is a process which will take some time. But I think you would ideally like to hold on to the next phases of Moti Nagar launch, till such time that the — I mean, the infrastructure was being planned by the government.
There’s a visibility on that, and there is 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 Moti Nagar mall got — is getting commission this year, Midtown Plaza. Midtown Plaza is getting commissioned in the next quarter. And so we continue, from our standpoint to do everything to make the experience of the residents 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 there are almost 3,500 residents who are already staying there, so improving their quality 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 like no, I understand DLF is doing really well. You’re getting response for your projects. But how is the industry or your peers doing? One of your peers earlier in the month kind of alluded towards some kind of a slowdown, some of the other peers out of Bangalore also collated towards cautious outlook on the NCR market. I mean, just your thoughts on the overall market, not just your products.
Ashok Kumar Tyagi
But in all fairness, we don’t comment on individual peers. But to — just to borrow from what Aakash mentioned earlier, a lot of the major real estate players are coming to Gurgoan. Some of them have announced very marquee launches in the next calendar. So clearly, I think Gurgoan, I mean, again, NCR overall is three different markets. But Gurgaon specifically, continues to be a market which does attract attention and hold the traction for even other players who are not present in Gurgaon so far. So, I think there is an underlying thing. Yes, obviously, there will be one-off people who may have had some headwinds in that sense. But I mean, we do believe that the underlying strength of the market for credible names continues to be there.
Kunal Lakhan
Thank you. Very helpful and all the best.
Ashok Kumar Tyagi
Thank you.
Operator
Thank you. Our next question is from Gaurav Khandelwal from JPMorgan. Gaurav, please unmute yourself and go ahead with your question, please.
Gaurav 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 you’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, 1 million square feet is about the most irrelevant metric, frankly, in this industry. 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, I truly, I’d say appreciative that — over time, if the entire community who is studying this industry moves — I can launch — I’ll tell you, frankly, I can launch a 10 million square feet somewhere in — on the outskirts of Haryana or UP or Ghaziabad. 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 on a higher threshold of margins that meet our products. And I think we see clearly products that don’t meet those margins. I mean, we ourselves had some land parcel, which we have not developed so far, because we believe that there is an eventual margin that those products will realize, which is not available today. So we are definitely, Gaurav, from ethos standpoint, not going to chase volume for the sake of volume. We have — we were the original pioneers of the volume journeys, and we have seen the downside of that better than anybody else.
Gaurav 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
It’s not a hurdle, but it’s clearly a constraint and you have to work on that. So we do keep on expanding the pipeline of contractors. I mean, the last 12 months, 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 retired. So I think clearly, going into the contracting piece, we have ourselves strengthened a technical backbone, humongously in the last 24 months. In that sense, the number of senior technical people that we have taken, because now we clearly realized that we are going to do a lot of that to ensure better supervision. For Dahlias, we have lined up Samsung to do the project management. So I think we are really looking at all possible tools to ensure that whatever we undertake, we execute and execute it well, boss.
Gaurav Khandelwal
Got it. That’s very helpful. And just I have one follow-up, one housekeeping question.
Ashok Kumar Tyagi
Gaurav, once look here.
Badal Bagri
May I just add, you talked of this 1 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.
Ashok Kumar Tyagi
Over 40 million square feet is under construction at this particular point.
Badal Bagri
So, 40 million square feet is under construction. So I do not know if there are any developers who are doing 40 million square feet a year ago.
Ashok Kumar Tyagi
They may need to be fair. But I think we feel that this 40 to 45 million square feet, is what we believe we can — as today, this is what we can execute well. And hopefully, I mean, this number was a lower number 3 years back. And hopefully, as the competency keeps on strengthening, I’m sure this number can go up in a calibrated manner. But 40 million to 45 million square feet is exactly what we used to be at the peak in 2010, ’11. 50 million square feet. So I think we are where we feel we are now being — we are being constructively stretched, but I think we are still able to keep. B, what also happens is that we have — I mean, we have an enormous architecture of the compliance framework below. I mean, the total number of individual compliance items that gets vetted and checked and altered every quarter is, I won’t give you the exact number, but it’s a five-figure number. So I mean, it’s just — it’s an elaborate engine that works, unfortunately.
Gaurav Khandelwal
No, that’s phenomenal. And yes, commercial, of course, I completely agree you are the largest operator in the country. And just my final question, which is more of a housekeeping question. On slide 28 on your cash flows, there’s an inflow of INR131 crores on account of government approval and others. Can you just better understand what is this number?
Badal Bagri
Yes. Gaurav, there is an investment which was made in one of the subsidiaries, which was returned back this month of close to INR250-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 INR120 crores of government outflow. And INR250 crores was the refund that we got. So, I mean, we had given an ICD to our Mumbai project. And hopefully, because of the boisterous collections, that money was returned back by the JV Co to us. So that INR250 crores came back.
Gaurav Khandelwal
Got it. Perfect. Thank you. Those were all my questions.
Operator
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. As, a, thank you so much because this was an extremely insightful conversation. I mean, yes, we — I mean, I’ll address the elephant state, as Badal also mentioned, and Aakash mentioned, this quarter did, I mean, visually have a very low presales number. So, I understand that. But I mean, we explained the reason for that, because basically the fact that we consciously and regulatory held back the Dahlias 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, I mean, Aakash and his team have to work and had 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 — we’re not looking just at a launch, we are looking at — are 100% certainty that we’ll be able to bring that launch to the consumer’s hands in the time period that we have mentioned.
Financially, of course, 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 debt. And I think that’s where things should start really strong. And the commercial engine just keeps on outperforming quarter-on-quarter, year-on-year. And hopefully, in the next 12 to 18 months will be with the Downtown Chennai, Atrium Place, the three malls and then the next phase of Downtown beginning to commission, Downtown Gurgaon. I mean, this engine will just keep on growing. And really, hopefully, also we continue to be in a safe and a sweet spot, and just — that’s it. Thank you.
Operator
[Operator Closing Remarks]