DLF Invests Rs. 5,000 Cr Capex in FY26 And FY27, Targets Strong Rental Yeild

India’s largest real estate developer, DLF is eager to utilize Rs. 5, 000- crore in both 2025-26 and 2026-27 as a capital outlay in rental business despite the company targeting nearly Rs. 6,700 crore in rent income in FY26.

In a post earnings statement, the Vice Chairman and Managing Director (Rental Business) of DLF, Sriram Khattar said that the firm is looking to receive rental income only in the current fiscal year on its upcoming office and retail projects.

The operating assets of about 43-44 million square feet (msf) constitute the rental portfolio of DLF, comprising of office parks, IT/ITeS SEZs, retail spaces and hospitality ventures.

Key Highlights

• DLF to invest Rs. 10,000 crore capex in FY26–27 to boost rental assets.
• Expected rental income to hit Rs. 6,700 crore by FY26 across key projects.
• Q1FY26 net profit rises 19 percent YoY; rental revenue via DCCDL hits Rs. 1,739 crore.

Atrium Place is a collaboration project betwixt DLF and Hines.

Also Read: DLF Exits Rs10,000 Cr Mumbai Project After Settlement

“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.

“While you will see rentals commence this (financial) year, the actual full year benefit will come in 2026-27,” he said.

 “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 added that DLF has a solid project pipeline vis-a-vis the next 12-18 months, further underpinning the rentals portfolio of the firm.

Khattar went on to explain that the DLF will receive two new high-street plazas plus one mall that adds up to a total of about 1.3 msf in Moti Nagar in Delhi, Samit Plaza in DLF-5 as well as Promenade Mall in Goa besides having the advantage of a data centre at Noida and office space in Atrium Place.

Khattar also stated that Atrium Place is also entirely leased where only 1,50,000 sqft of 3.1 msf space is available and three tenants have already started their fit-outs.

Speaking to Khattar stated that the construction of Promenade Goa mall is marginally late mostly due to labour crunch in Goa and thus it would be ready by January 2026 and then the process of fit-outs would begin.

DLF has shown a 19 percent YoY rise in consolidated net profit to Rs 766 crore in Q1FY26. Q1FY26 consolidated revenue of the rental business via DCCDL was 1, 739 crore, and EBITDA was 1, 356 crore, which was 14 percent growth as compared to the previous y-o-y.