India’s largest listed real estate firm, DLF, has outlined an ambitious roadmap to generate ₹1 trillion in bookings from its ongoing and planned residential projects over the next five years. The company, known for its premium and luxury housing segments, aims to sustain strong cash generation while maintaining a debt-free status at the group level, including its rental business arm, DCCDL.
Residential momentum steady
DLF has already surpassed its FY25 sales guidance of ₹170 billion, recording ₹192 billion in pre-sales during the first nine months of the fiscal. Over the next five years, it expects ₹750 billion in sales from new launches and the remaining from ongoing projects. Despite this growth, the company remains focused on its core markets—NCR, Tricity, and Mumbai—without aggressive expansion into new geographies or mid-income housing.
DLF anticipates generating ₹500 billion in surplus cash over the medium term, backed by a healthy gross margin of over 45%. The company is prioritizing execution over rapid expansion, a strategy aimed at long-term stability rather than short-term volume gains.
Doubling rental income by FY30
Beyond residential projects, DLF is strengthening its annuity business. The company is expanding its office portfolio from 39 million sq. ft to 60 million sq. ft and increasing its retail footprint from 4 million sq. ft to 13 million sq. ft. This expansion is expected to double its rental income to ₹100 billion annually by FY30.
With a planned capex of ₹200 billion, DLF remains committed to maintaining financial discipline, keeping its net debt-to-EBITDA ratio at approximately 3x. Unlike its residential strategy, the company is open to exploring newer markets for its rental business.
Focus on financial prudence
DLF’s management remains cautious about over-leveraging, prioritizing cash conservation for potential market downturns. It also plans to gradually increase its dividend payout to nearly 50% of net profit.
Despite some near-term challenges in pre-sales, DLF’s long-term vision remains strong. The company’s steady execution strategy, increasing rental portfolio, and focus on maintaining a healthy balance sheet reinforce its position as a leading player in India’s real estate sector. Analysts continue to maintain a positive outlook, with a target price of ₹915 per share, reflecting a potential upside of 31%.
A measured approach
DLF’s strategy signals a balance between growth and financial stability. With a strong pipeline of luxury projects, robust rental expansion, and a focus on a zero-net-debt future, the company is positioning itself for sustained leadership in India’s evolving real estate landscape.
