India’s highest valued real estate developer, DLF plans to spend Rs 5,000-crore each in the financial years 2025-26 and 2026-27 as capital expenditure in rental business even as the company aims to achieve approximately Rs 6,700 crore in rental earnings by the end of FY26.
DLF’s Vice Chairman and Managing Director (rental business), Sriram Khattar said in a post earnings commentary that the company is expecting to earn rentals from its upcoming office and retail projects from the current fiscal only.
“We will be investing in the ballpark of Rs 5,000 crore this (financial) year and Rs 5,000 crore in the next (financial) year. The exit rentals at the end of FY26 are expected to be around Rs 6,700 crore. Out of this, approximately Rs 5,900 crore will be for DCCDL (DLF Cyber City Developers) and the balance around Rs 750 crore will be with DLF and Atrium Place,” Khattar said in the analyst call on August 5.
DLF’s rental portfolio has operating assets of about 43-44 million square feet (msf) - which includes office parks, IT/ITeS SEZs, retail spaces and hospitality ventures. Atrium Place is a joint venture between DLF and Hines.
Khattar said DLF has a strong project pipeline for the next 12-18 months, further helping the company’s rental portfolio.
Khattar elaborated that DLF is now going to get two new high-street plazas and one mall totalling approximately 1.3 msf in Delhi’s Moti Nagar, Samit Plaza in DLF Phase-5 and Promenade Mall in Goa and the company will also have benefit of a data centre in Noida and office space Atrium Place.
“While you will see rentals commence this (financial) year, the actual full year benefit will come in 2026-27,” he said.
Khattar also said that Atrium Place is fully leased as only 1,50,000 sqft from 3.1 msf is left and three tenants have already started their fit-outs.
“The occupancy certificates (OCs) for the first three blocks at Atrium Place totalling 2.1 msf are likely to come by the later part of this month so the rentals will commence from December 2025-January 2026. For Summit Plaza the application for OC has been submitted and we expect rentals from Q4FY26. The rentals for Moti Nagar Plaza will start from December 2025,” he said.
Khattar said that construction of Promenade Goa mall is slightly delayed primarily because of labour shortage in Goa so it will be completed by January 2026 and fit-outs will start thereafter.
DLF has received OCs for two of its commercial projects - Downtown 3 in Chennai and Downtown 4 in Gurugram and the rentals are expected from these facilities in the next few months.
DLF reported a 19 percent YoY jump in consolidated net profit at Rs 766 crore in Q1FY26. Q1FY26 consolidated revenue of rental business through DCCDL stood at Rs 1,739 crore while EBITDA stood at Rs 1,356 crore, reflecting a y-o-y growth of 14 percent.
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