DLF Ltd (NSE: DLF) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Ashok Tyagi — Managing Director
Sriram Khattar — Vice Chairman and Managing Director
Aakash Ohri — Joint Managing Director and Chief Business Officer
Badal Bagri — Chief Financial Officer
Analysts:
Pritesh Sheth — Analyst
Praveen Choudhary — Analyst
Analyst
Parvez Akhtar — Analyst
Abhinav Sinha — Analyst
Akash Gupta — Analyst
Pritesh Sheth — Analyst
Manish Dhariwal — Analyst
Kunal Lakhan — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to DLF Limited’s Q4 FY ’25 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, Joint Managing Director and Chief Business Officer; and Mr. Badal Bagri, Group CFO, DLF Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ashok Tyagi. Thank you, and over to you, sir.
Ashok Tyagi — Managing Director
Thank you. So good afternoon, everybody. Welcome to DLF Limited’s Q4 and ’24-’25 Year’s Analyst Call. Hopefully, all of you have seen the presentation by now. I mean, in all fairness, I think across the board, be it sales, collections, cash flow, net debt, profitability and rentals, I think it’s been, by and large, an extremely strong performance across the board.
Our sales, as you know, have been, I think, our highest ever of INR21,000 crores plus. We had collections of almost INR11,750 crores and operating cash surplus of [Indecipherable] in the quarter and a total INR6,200 crores cash surplus in the year.
Our outlook has been — the rating outlook had strong PAT of INR4,350 crores this year, which again is the highest for a long time now. There’s one more metric that a lot of investors and analysts used to task us, which was that you must now over time, get into a double-digit ROE territory and you’ll be very happy to note that this year, we have had an ROE of 10.2%. So we have crossed over to the double-digit category. And hopefully, we’ll keep on improving year-to-year on this piece.
The business continues to be strong. We had met most of you in the Analyst Day in March, where our Chairman and Aakash and everybody else had spoken to you at length. You’re also seen a couple of the projects. So hopefully, that should have given you more confidence as well. In the spirit of what we had done in the analyst call, we continue to present the overall progress around the DevCo and the RentCo verticals.
Even though the financial data of DLF Limited and DCCDL is there fully as per the statutory format. But frankly, you would encourage businesses, I mean, the analysts and investors to look at our RentCo specifically across the board, which is the RentCo of DCCDL, which obviously is the biggest followed by whatever little DLF has and over time, as Atrium Place drops in.
So with that, I would like to hand it over to Sriram for a brief intro of the RentCo performance, and then we open to Q&A.
Sriram Khattar — Vice Chairman and Managing Director
Thank you, Ashok. The rental portfolio is now, as Ashok mentioned, the combination of DCCDL, DLF and Atrium Place. And this total portfolio now has operating assets of about 43 million, 44 million square feet. And as you know, the pipeline is there for [Indecipherable] in the next year, 18 months, this will go up further.
The vacancy levels, as I had mentioned in the last quarters, are down to 6% which we had said we were targeting towards. And I’m further pleased to say that if you take the occupancy by value, which means the rentals that you earn and the rental loss because of vacancy is about 4-odd-percent now.
The progress on our rental side is pretty good. We, in this quarter, have received the occupancy certificate for Downtown 4 in Gurgaon. And about 10 days back, we have received the occupancy certificate for Downtown 3 in Taramani. Both these buildings, as you know, are preleased. The fit-outs are in an advanced stage, and the rentals should start in another 3 to 4 months’ time.
The construction of Downtown Gurgaon, which is 5.5 million square feet of offices and 2 million of retail is in full swing, and the construction of 3.5 million in 2 towers in Taramani is also in full swing. These are 2 very large and game-changing projects, Downtown Gurgaon once completed, will be a multiuse development of 12 million and Downtown Taramani will be 7 million, 7.5 million square foot development.
The — in DLF, the construction at Noida for Downtown for data center 2 is just about completing and the construction started for data center 3, which as you may know, we have already entered into the lease agreement for. Atrium Place, our joint venture with Hines is in 2 phases. The first phase of 2.1 million is we expect the OC in the month of July and 1 million, we expect the OC in quarter 4 of FY ’26 or quarter 1 of FY ’27. It’s really February, March, April next year target.
I’m pleased to share that we have already leased the entire — about 95% of the 3.1 million space. On the retail side, Midtown Plaza, which is our High Street Plaza, the OC has been received, and it is about 82%, 83% leased. We are in the process of handing over the stores to the retailers to do their fit-outs. Summit Plaza, which is the Plaza in DLF Phase 5, we expect the OC to come in about 2, 2.5 months’ time. And Promenade, Goa, we expect the OC to come in the — in another about 4 to 5 months.
Leasing at Summit Plaza has started and Promenade, Goa will commence shortly. Our journey in sustainability continues. During the quarter, we were able to get the U.S. WELL Institute certification of all our buildings. We realized that some of the larger American tenants wanted to know our Wiredscore, which is a score on the digital connectivity of the buildings. So 3 buildings have now got a Wiredscore a platinum rating. And now we have asked the Wiredscore institute to rate all our buildings across our portfolio.
I’m pleased to share that during the quarter, CRISIL enhanced our ranking to AAA with a stable outlook. This is probably the — among the very few non-listed entities in the country which have got a AAA rating. At the same time, ICRA upped our rating from AA+ stable outlook to AA+ with a positive outlook, and after this quarter’s results, we are hopeful that they will relook at this rating also.
With that, I hand it back to Ashok to start the question-and-answer session.
Ashok Tyagi — Managing Director
Thank you, Sriram. So we are now open for questions.
Questions and Answers:
Ashok Tyagi
Thank you very much. [Operator Instructions] We’ll take our first question from the line of Pritesh Sheth from Axis Capital. Pritesh, please go ahead with your question.
Pritesh Sheth
Yeah, hope I am audible.
Operator
Yes, please go ahead.
Pritesh Sheth
Perfect. Okay. Thanks for the opportunity and congrats on a great year across the residential and commercial segment. First question is on the launches. So INR17,000-odd crores of launches planned for next year. Obviously, I think, a few of them we know, which is Privana, third phase, Mumbai and Goa. If you can share, apart from these 3, what are the other launches, which are planned specifically interested to know whether do we have launches planned for DLF City or IREO Land towards the later part of the year? Yes. That’s my first question, yes.
Sriram Khattar
We are still in various stages of development and discussions. So there will be something, say, in Q4, but at this point in time, we won’t be able to speculate on that or to confirm. But there are 2, 3 things that are being discussed. So this year, we’ve got our hands full already and lots happening actually.
Pritesh Sheth
Got it. So this INR17,000 crores includes these launches that we discussed till now? And anything over and above that will be — obviously be discussed later?
Aakash Ohri
Yeah.
Ashok Tyagi
Perfect. Okay. That’s correct.
Aakash Ohri
That, plus the Delhi revenues will continue.
Pritesh Sheth
Yeah, yeah. Okay. Okay. And second, on the commercial side. So I suppose, 4.6 million square feet of office space between DLF and DCCDL, plus 1.4 million square feet of malls would be delivered in FY ’26 itself. So exit rentals by FY ’26 would be INR7,000-odd-crores, if I’m not wrong, sir?
Sriram Khattar
Exit rentals by FY ’26 should be about INR6,700 crores. But that’s because these assets which are getting completed this year, we will not have the advantage of rentals for the full 12-month period. Then FY ’27, we’ll see a further jump in the rentals because we would have had the advantage of these for the full year.
Pritesh Sheth
Correct. And nothing getting delivered in FY ’27, right, incrementally? Now whatever we do will be 2, 3 years later?
Sriram Khattar
Yeah. So next year, the only delivery will probably be the data center 3 in Noida. And the year after that, again, we will see a spurt of completions.
Pritesh Sheth
Yeah. Got it. Fair enough. I think those were my questions. I’ll come back in queue in case I have more.
Operator
Thank you. We’ll take our next question from the line of Praveen Choudhary from Morgan Stanley. Praveen, can you please unmute and go ahead with your question, please?
Praveen Choudhary
Yes. Thank you. Can you hear me?
Operator
Please go ahead.
Praveen Choudhary
Okay. Hello, First of all, I just wanted to congratulate for a phenomenal result. And then I have literally one question, which is if you can guide us about your operating cash flow outlook for FY ’26, ’27 as well as capex, including construction that will be helpful for us to think about for the next couple of years.
Ashok Tyagi
Okay. So Praveen, thank you. As you know, we typically do not guide in a very specific manner on the forward-looking detailed financial data. But if you’ve seen now — I mean for the fiscal ’25, I think our total free cash flow was INR6,200-odd crores. And now it’s running at a rate of — okay. Maybe this quarter was a slight hike because of One Midtown completion. But it’s clearly looking — I mean running at INR1,500 crores per quarter sort of a run rate, if you will, which should only keep on growing over time. So I mean you could make your own assumption basis that. What was the second question? I’m sorry.
Praveen Choudhary
It was mostly about construction expenses and capex.
Sriram Khattar
Yeah. So the capex spend in RentCo, which again, if I may say, the combination of DCCDL, DLF and Atrium Place. In FY ’26 and in FY ’27 will be in the ballpark of INR5,000 crores. And this is a big jump of what we used to see earlier because the pace of execution of the downtowns and the completion of Atrium Place, etc, and the certain approval fees that has to be paid for incremental FAR will take it to about a INR5,000 crore number this year and also next year.
Praveen Choudhary
Okay. So that’s very clear. And as you mentioned, you’re definitely spitting a lot of cash based on this free cash flow that you just explained, and we are seeing growth. And you also grew dividend this year. Can you just rehash one more time going forward, how should we think about the dividend outlook, please?
Ashok Tyagi
Yeah. So look, I mean, again, I would not want to make a speculative go-forward statement, Praveen. But if you look at last 4 years, our dividend has been growing from INR2, INR3, INR4, INR5 and INR6. And in all fairness, the dividend inflow from Cyber City has also been growing year-on-year. So both our outflow and inflow from Cyber City have both been growing. I mean I can’t comment on exactly what number it will be for the following fiscal, but we do hope that we can sustain some form of a growth strategy that we have had on dividend.
Praveen Choudhary
That is very clear. And thank you so much once again and congratulations.
Operator
Thank you. We’ll take our next question from Parvez Akhtar [Phonetic] from Edelweiss. Parvez, can you unmute yourself and go ahead with your question, please?
Analyst
Hi, good afternoon. Congratulations for great set of numbers. So my question is on the housing demand in Gurgaon. I mean, if we, let’s say, want to meet our — whatever we have done in FY ’25 numbers, we would need a significant absorption in the new launches, etc, that we plan to do in FY ’26. So just wanted to get your thoughts on how do we see, one, launches and housing demand? And second, your outlook on the pricing front? Thank you.
Sriram Khattar
So housing demand for good houses and DLF has got its own diaspora. So housing demand is on — housing demand for quality products is — it’s continuously there. And there is — also what is happening is Gurgaon today has become a very solid investment option too. So — and why I’m not just saying building investment options but also monetize — people are monetizing it through rentals and all that because of the large Cyber City that exists with the major workforce that exists in Gurgaon and so many other things that the city today is — and the employment matrix is almost #1 in the top 3 in the country.
So there is housing demand for sale as well as rentals. And therefore, a lot of people are investing in the DLF real estate as an asset class, which they prefer because of the certain quality deliveries and on time and the escalations that they get. And therefore, it becomes a very good opportunity to invest also, should they not take it for their own. So our attempt has always been that we go for people, who are buying these for themselves. So that is one.
And second, people who are also NRIs or the rest of India has started to invest in Gurgaon in a reasonably big way. Those people are doing this as an investment and they get great rentals. So if you look at our assets across the board, and I don’t even — I’m not even talking about our blue-chip assets in the Golf Links. I’m also talking about Ultima in the rest of Gurgaon region. I’m talking about floors, which we launched, have great rentability. So that has actually added to the entire demand scenario of Gurgaon.
Parvez Akhtar
Yeah, sure. Thanks and all the best for future.
Operator
Thank you. [Operator Instructions] We’ll take our next question from the line of Abhinav Sinha from Jefferies. Please go ahead.
Analyst
Hi, congrats on a strong quarter. Tyagi sir, any guidance for presales that you would like to give for next year?
Ashok Tyagi
Any guidance for sales?
Sriram Khattar
Presales.
Ashok Tyagi
Okay. So if you recall, Abhinav, when you were here in March, and we had that big Analyst Day, we had said that we will continue to be broadly at this level, what we have achieved last year. So I think — but — so I still say that we should be in the 20,000 to 22,000 range for next year. But again, as Aakash has consistently outperformed in the last 3 years, I don’t see why we can’t again. But right now, our guidance will be 20,000 to 22,000.
Abhinav Sinha
Sir, also on cash collections, we have had a very strong year. And do you think that we’ll sort it off at 30 billion quarters now or even higher?
Sriram Khattar
So I think Abhinav, our trajectory should not be any different from what possibility we have achieved in the last couple of quarters in terms of gross collection. It should follow the same trend level in the coming year.
Analyst
Okay. And on the construction cost for the DLF part?
Sriram Khattar
So construction cost, if you see the cash flow, we spent around close to INR724 crores in the last quarter. And I think this number should become the baseline for next year with all the projects coming through. So I would say INR800 crores a quarter inching up slightly over the next 3, 4 quarters should be a safe assumption to take.
Abhinav Sinha
Okay. That’s very helpful. My next question is for Mr. Ohri. Sir, on the Privana side, how are we looking at the next phase currently? And what the product and the size looks like? And what’s the timing here?
Aakash Ohri
Okay. So the Privana North is a far more evolved product. It is quite a nice product, allow us a little more time to come to the market to come and talk about it for compliance reasons. But like anything else, it is the natural progression. The area has been pretty well received and established. It abuts a great green lung. It’s got great infrastructure where 5 minutes, you are in various parts of well-connected expressways. The 2 products themselves — the 2 launches have been so well received.
Previously, as you are aware, South and West, it’s a very homogeneous setup in terms of both the product offering as well as the crowd. So overall, the Privana, it’s like one contiguous 116 acres of a thing which is — of a piece of land, which has really been received very well by the people. So I feel that is something people look forward to. It’s now an established brand. Within the DLF stable, Privana is an established brand. It’s got a very healthy and very eclectic mix of people, who bought Privanas in the previous lots also, where there are all sorts of people who have taken it.
And the good part is that since we know most of them, they have taken it for their own purpose to reside. So I think that has kept the stickiness. Also to let you know that presently, the 2 Privanas that were sold last year are trading at a premium of INR2,500 to INR4,000 a square foot at present, as I speak to you so — which is also very heartening and good to know. And that’s the kind of demand that the present set of Privanas have. And therefore, now the next phase. I think as soon as we have our paperwork in terms of RERA and all done, we will be in the market very soon. You should hear about it soon.
Abhinav Sinha
Sure enough. All the best.
Aakash Ohri
Yeah.
Abhinav Sinha
Yeah, sir, I will just get back in the queue for more questions.
Operator
Thank you. We take our next question from Akash Gupta from Nomura. Please go ahead.
Akash Gupta
Hi, am I audible?
Operator
Yes, sir. Please go ahead.
Akash Gupta
Hi, everyone. Congratulations on a great set of numbers. Sir, my first question is on the timing of the launches for Privana and the Bombay project and the next phase of Dahlias. So how are we looking at these timing of launches?
Aakash Ohri
The timing of launches are now in Q1 and for the first 2, Privana and Bombay. We are working towards the Q1 story. And Dahlias, obviously, as I mentioned to you, once the experience center is ready, which should be sometime in November, December, we will then do the show and tell and kind of bring it. In fact, this particular thing was — the main launch is slated for them — for the Dahlias. But for the Privana and Bombay, it’s now Q1.
Akash Gupta
Okay. Sir, so like are we sure that we’ll get the RERA approval for the Bombay project in the first quarter?
Ashok Tyagi
Yeah. So I think we will. But frankly, the reason for the delay of a few weeks on the Bombay project has actually had nothing to do with RERA. It’s that because it’s a slum rehab society with multiple societies whose approval and all of those things have to be taken. I mean it’s just the multiplicity of the small approval, which has led to a delay. But I think we are now looking good, as Akash said, for hopefully RERA in June for sure.
Akash Gupta
Yeah. Got it, sir. And my, sir, second question is about the Privana North product. So sir, your Privana — previous Privanas have been sold out so — with like awesome demand. So I wanted to understand like what kind of interest is this product generating?
Aakash Ohri
So as I was saying just about in the previous question, Privana has got an established ecosystem today. There is a very good demand for the Privana. And the present Privanas are being traded at a premium of INR2,500 to INR4,000 a square foot. And therefore, there is a reasonable demand for the new offering now and people are waiting for it. So as far as we are concerned, we’ll get into the market post-RERA and then get down to doing what it is.
But right now, overall, I think — because I’m not in the market, so I can’t give you an exact statement here. But — I mean, what I hear is that there is a reasonable amount of demand, and people are looking forward to the launch.
Akash Gupta
Yeah. Thank you. Thank you so much, sir.
Operator
Thank you. We’ll take our next question from Taran Gupta from Elara. Taran, please unmute yourself and go ahead with your question please. I’m sorry, we’ve lost his connection. I now invite Pritesh Sheth from Axis Capital to please unmute and go ahead with your question.
Pritesh Sheth
Okay. I think it was answered in a bit in previous question, just on Privana again, previous 2 phases has been sellout with the kind of expectations that’s already built in since we are closer to launch. If not during launch, but if there is a demand, would we still look to sell it out by this year? What’s your base expectation for Privana North for this year?
And similar question for Mumbai as well. We’ve been hearing about a lot of demand coming from NCR and especially from Gurgaon as well for Mumbai project, but just your initial thoughts on the kind of interest that we have got for Mumbai as well?
Aakash Ohri
Yeah. So you’re right, Pritesh, so a DLF product today is agnostic to geography in terms of investors. So today, you are looking at various sets of people who are wanting to pick up a DLF home. And as I said previously also why they’re looking at because these are not debt assets. Not only do they make money in capital appreciation, but they also — you can have recurring — once you lease them out, you have recurring income also. So it’s like good for both investors, to people who want to live them.
So today, right now, as I see it, there is a sizable demand. I can’t go beyond that today to explain to you because you understand why, but there is a sizable demand for both the products, both here in Privana and Mumbai, both from the micro geographies, rest of the country as well as the NRIs. So we’ll cross the bridge when we come to it, just give us a little more time. I think we’ll have more answers for you, and you’ll hopefully hear about it.
But I’d just like to leave it here right now that based on how we want to do it. But yes, as you know, we don’t discount our products. We don’t do that. So I think at this point in time, we planned a structured launch to do some launch — some towers now and some in the following quarters. But I think let’s see how it goes and also because Mumbai, it will start raining from June end. So I think we’ll have to — our window is very short in June for both Mumbai. And then, of course, we’ve got — as soon as Privana comes in before that. So both are going to almost run concurrently.
Pritesh Sheth
Okay. So phasing out of towers that you mentioned is for Mumbai project. And Privana would be like all opened up all together, right?
Aakash Ohri
No, Privana also, like I said, it’s too close to the quarter end. And also being both June is the time where North India generally travels. Most of the people are out for vacations. So we just — it’s just the timing. So otherwise, there is a good amount — I’m only talking about logistics. So right now, just to manage logistics, that’s all. Otherwise, as far as demand is concerned, there is a — right now, so far, we are in a good place.
Pritesh Sheth
Sure, sure. That’s it from my side. All the best and looking-forward to good news in June. Thank you.
Operator
Thank you. We have our next question from Manish Dhariwal [Phonetic] from Fiducia Capital. Please go ahead.
Analyst
Very good afternoon. Am I audible? Yeah. So thank you very much for this opportunity. Great numbers, great performance. And year-on-year, as the MD mentioned that it’s been an incremental improvement year-on-year. So all that’s like very good news. See, the thing is that my question was a little long-term-ish in nature. And I wanted to understand how are — how is the management attempting to build DLF into a structural business, not a hardcore cyclical business that a typical real estate development business is. See, you’re a great brand, okay? So that’s a great strength that you have an advantage of, also a great rental business, the biggest in the country. So how is it that you kind of — maybe the structural story? Or is that even a thought?
Ashok Tyagi
Yeah. So I mean, Manish, a very interesting question, frankly. I mean, clearly, we have 2 parts of the business, the development and the rental business. And in some sense, the rental business provides the stability and the gradual increase, while the development business basically is the one where you take risk, hopefully grow a lot and then unfortunately, also encounter a few cycles when it happens. So, a, the combination of these 2 provides natural institutional hedge against a completely all or nothing story, which may impact developers who are only in one side of the business. That is clearly one.
B, from an institutional and from a management standpoint, we have clearly been strengthening all streams of our management over the last few years now in that sense. And I think we feel that now we have the wherewithal that — I mean, if something like a COVID happens in a big way, nothing for 6 months, you may have to ride it through. But for most normal business cycles, I think we are now reasonably well covered.
Yes, this is — the residential business will, at some stage, have [Indecipherable]. Honestly, I don’t think anybody has a crystal ball on that. But I think we are reasonably well captured. Also, structurally, we are now a zero leverage company on the development business. So that entire pressure that we used to have earlier of being caught in a down cycle with no debt. So that is gone now.
Analyst
So now I think we reached a situation where about INR15,000 crores to INR20,000 crores of development sales can happen on a — like the market is taking it, right? And in fact, there are other competition, which is also doing it. So when I mentioned that how you kind of make it a structural thing is then — so you have a huge land bank in the NCR, that is Gurgaon and the extended Gurgaon and the further extended Gurgaon region.
Now one way to derisk that is to have a multi-locational kind of a play. So you tried Goa, Mumbai in a very small way. So I basically want to understand that can the company or maybe are your long-term plans, do they talk of INR15,000 crores to INR20,000 crores kind of sales on a year-on-year basis?
Operator
Manish, if we can mute please, there’s some disturbance on your line. Thank you.
Manish Dhariwal
Yes, yes, yes.
Ashok Tyagi
So Manish, first of all, obviously, while our sales are running at this INR12,000 crores approximately levels, I think the — we internally chase 2 metrics, which is, a, the free cash flow that we are generating and b, the embedded margins that we are generating. You could have developers who are doing INR35,000 crores of sales and generating embedded margins of maybe INR7,000 crores, while there are developers who are INR20,000 crores, can generate embedded margins of INR12,000 crores. We would like to be in the latter category.
So we clearly want to be in a situation where our embedded margins on an annual basis continue to be in the 5-figure range and the sales that supports it. While we — Mumbai is a geography which interests us because it is the largest real estate play in the country for sure. But having said that, I don’t think that we have any doubts in our mind that our center of gravity will overwhelmingly remain NCR. That’s for clear even in that sense. And NCR today is one of the deepest and one of the widest sort of markets that exist in the country. There are pockets of NCR we are not present in also today. So I think there’s enough to grow in NCR itself.
Sriram Khattar
Thank you. Yeah. Sure. Question about the structural stability or institutionalization, I may just add to 1 or 2 points, which Ashok mentioned. As we have declared, we have adequate freehold license land to take forward our growth for the next several years, whether it is on the residential side or on the renting side. And I think that is a very, very big competitive advantage that we have over the other developers, who are continuously scouting for land and therefore, have to be on the edge at all points of time to grow.
Analyst
Yeah, I would have good. Absolutely. Thank you for your detailed response. Kunal.
Operator
Thank you. We’ll take our next question from Kunal Lakhan from CLSA. Kunal, kindly unmute your microphone and go ahead with your question, please?
Kunal Lakhan
Yeah. Hi, thanks. Good evening. Sorry, I just missed the time lines on launches of Goa and IREO. And also if you can comment on our Delhi subsequent phases as what will be the time line of launching that?
Ashok Tyagi
Kunal, half of your question, I think, was muted at that time. So can you please repeat?
Kunal Lakhan
Am I audible now?
Ashok Tyagi
Yes, sir.
Kunal Lakhan
Yes. Sir, I just wanted the time line for launches of Goa, IREO and also the Delhi subsequent phase?
Ashok Tyagi
So IREO, I think we should be in a position, hopefully, with all the approvals. IREO was, as you know, it’s a 8.5-acre parcel, but it is 2 distinct parcels. So I think we should hopefully have all our approvals done sometime in this year. And if all goes well, I mean, IREO pieces should be launched next fiscal. Mumbai, we have completed 1 Midtown apart of some residual sales that remain. So I think Mumbai will get back to the planning stage — sorry, it’s not Mumbai, Delhi, Delhi. So Delhi, we will get back to the next year to the planning stage. But the Delhi launch of the next phase may not happen next year.
Kunal Lakhan
You mean FY ’26, it will not happen, ’27?
Ashok Tyagi
It may not happen in FY ’27. It may take longer than that.
Kunal Lakhan
Okay. Okay. And Goa?
Ashok Tyagi
Goa should happen sometime this year, I presume, yeah.
Kunal Lakhan
Second half?
Ashok Tyagi
Second half year.
Sriram Khattar
Yes, around that time.
Ashok Tyagi
Around that time.
Kunal Lakhan
Understood. Understood. Thanks. My second question was to Khattar Ji. Sir, if you look at the Cyber City portfolio, right, which is — I wouldn’t say mature yet because when I look at the rentals, let’s say, about INR110, INR115. And when I look at the rentals in our newer blocks that we are leasing, like INR145, INR175. What’s the rerating potential there in terms of rent over the next few years?
Sriram Khattar
So let me take Cyber City, which is really a legacy asset. We have the current rental for the minimum space that is vacant and for the term expiries is in the ballpark of about INR125 to INR135. And that if you say, compare with Downtown 4, which is the last building or to say, Atrium Place, which we have just leased, which is in the ballpark of INR160 to INR170.
Kunal Lakhan
Sure, sure. Understood. But probably, it will never reach those levels because these are much newer assets. But you’re saying that roughly about 10% upside potential on rent on the Cyber City portfolio, is something that we should look at?
Sriram Khattar
I think maybe a little higher than 10% compared to the weighted average rate that is already there in the portfolio.
Kunal Lakhan
Understood, sir. Understood. And secondly, so on the ROE target, right, we’ve reached 10% plus, so that’s a great thing. But on a sustainable basis over the next say, 2 to 3 years, where do we aspire to be?
Ashok Tyagi
Kunal, about 4 years back, we were told that we that ideally we should at least target at a double-digit first. Having done that, now obviously, double-digit [Foreign Speech] but let’s see how the process runs [Foreign Speech]. On a lighter way, triple digit is still a little beyond.
Kunal Lakhan
Okay. Okay. And my last question is to Badal. Badal, this year, we had a fair bit of deferred taxes or tax reversals. How should we look at tax rate going ahead over the next 2 to 3 years, maybe?
Badal Bagri
The tax rate should be normal to my mind. The deferred tax was a very, very minor component in the current P&L — from a P&L perspective, Kunal. So the tax rate from a P&L forecasting perspective should be business as usual. No significant deferred tax asset gain to be considered in the coming years.
Kunal Lakhan
Understood. Thank you so much and all the best. Thank you.
Operator
Thank you. We have a next follow-up question from Abhinav Sinha from Jefferies. Please go ahead.
Abhinav Sinha
Sir, thanks for the follow-up. First question on Dahlias. What are the price points we are at right now? And what could be that jump when we relaunch in 3Q?
Sriram Khattar
Yeah. So, Abhinav, right now, we are at almost about lakh plus on carpet. So right now, that’s where we are. And just to tell you what Camellias is about now 2 lakhs on carpet. So you do the math now because we are almost sold out. As you know, we are sold out in Camellias. We’ve got nothing. So tomorrow, when people want to get into the DLF Golf Links, the price points, I think, will continue to go up. I don’t want to right now speculate on what we are going to be.
But if you see the gap between what Dahlias is today and what the present prices of Camellias are. I think that’s what the catch-up will be. And it’s going to be faster because of what Camellias has already delivered, done. People have seen the product, used it, using it. Therefore, there is obviously a great legacy. But I think people, who missed the boat then are now joining the Dahlias story. So there is a tremendous amount of, I’d say, money to be made. Also, there is a good amount of escalation here.
Kunal Lakhan
Great. Sir, one clarification. I think, Tyagi sir, if you can provide on the land bank, Slide 17. So we have this 12 million square feet of pipeline in DLF City and 9 in New Gurgaon. So what does this refer to specifically among the projects?
Ashok Tyagi
So the DLF City refers to primarily the IREO timeline Sector 61, and it refers to some pockets that we have for group housing in DLF City in the — while DLF phases 1 to 4. And Privana is affected in New Gurgaon.
Abhinav Sinha
Okay. And metros will be Mumbai then?
Ashok Tyagi
Metros are Mumbai and Delhi — Mumbai, Delhi and Goa.
Operator
Thank you. Ladies and gentlemen, we’ll take that as a last question for today. I now hand over the call to Mr. Ashok Tyagi for closing comments. Over to you, sir.
Ashok Tyagi
So thank you so much for joining this call. As I think we sort of presented and I think a lot of questions also are on the same tune that it’s been a pretty strong performance. The key for us continues to be how do we sustain ourselves not only on the sales cycle, but also on the execution cycle because now between the rental buildings that we are building and the sales commitments that we have made, I think we are already building now in excess of almost 45 million square feet, which is under construction today.
And that number will keep on growing, but that’s the number that we have to track because selling is exciting, but you also have to eventually deliver those products, and we have had a pretty strong track record of delivery. On all the financial metrics, as we mentioned, we will continue to be razor-focused on PAT, on EBITDA, on cash flow, on rental run rates, on rental rates. As Mr. Khattar also said that even on the older buildings, he keeps on trying to see how we can squeeze an additional 10% there. So we’ll continue to be extremely focused on all of that. And hopefully, we look forward to reconnecting back to you guys in the June earnings call. 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.
Ashok Tyagi
Thank you.
Sriram Khattar
Thank you.