Crisil revises outlook for this real estate firm on increased cash flow; check key details

“This is to inform you that CRISIL Ratings Limited (‘CRISIL’) has revised the outlook for long-term facilities from ‘Stable’ to ‘Positive’ and reaffirmed its rating for long- and short-term facilities of the company (‘DLF'),” the company said in a regulatory filing.

The outlook revision reflects the substantial increase in cash flow driven by strong sales bookings backed by healthy demand momentum, new launches, DLF’s strong market position and execution track record.

“DLF is likely to record strong operating performance with a significant increase in cash flows, as DLF is expected to see 35-40% year-on-year growth in net sales bookings this fiscal year, with ₹19,187 crore (including joint ventures [JVs]) registered in the first nine months of fiscal 2025 as against the sales booking of ₹14,778 crore in the full year of fiscal 2024,” Crisil said in a statement.

Crisil Ratings expects DLF to generate healthy cash flow through new launches and liquidation of inventory while continuing to benefit from its strong market position.

The ratings agency further stated that the strong performance by DLF will be supported by a high net sales booking of ₹11,816 crore in the third quarter of fiscal 2025 from the recently launched super luxury Dahlias project, where 40% of the overall launched area was sold within a quarter of launch.

Meanwhile, the real estate company plans to reduce energy intensity in its rental assets (energy consumption per square foot of rental portfolio) by 15% by fiscal 2030 using fiscal 2020 as the baseline and increase renewable energy intensity in its rental assets by 20% by fiscal 2025 using fiscal 2020 as the baseline.

Crisil, in its report, also said that DLF’s financial risk profile is expected to remain strong over the medium term, driven by sustained focus on deleveraging and healthy operating performance.

Although gross debt remained stable at ₹4,435 crore in December 2024 as against ₹4,536 crore in March 2024 and increased compared with ₹3,067 crore as on March 31, 2023, due to a debt-funded land acquisition in fiscal 2024, the leverage metrics are expected to show continued improvement.

DLF is the country's largest real estate firm in terms of market cap. It has a strong presence in the Delhi-NCR and Tamil Nadu markets.

The company has developed more than 185 real estate projects and an area of more than 352 million square feet since inception. The group has 220 million square feet of development potential across residential and commercial segments.

Shares of DLF settled at ₹656.3 per share on Tuesday, February 25, declining 2.58% on the National Stock Exchange (NSE). The company’s market capitalisation stood at ₹1,62,454.93 crore.

From February 26, 2024, the stock has tanked almost 26.64% till the previous trading session (February 25, 2025). In comparison, Nifty Realty has declined 10.16% during the same period.

The scrip had touched its 52-week low of ₹650.35 apiece on February 17, 2025. Its 52-week high was ₹967.6 per share, attained on April 1, 2024.

The company reported a 61% increase in its consolidated profit to ₹1,058.73 crore for the quarter under review.

Its net profit stood at ₹655.71 crore in the year-ago period.

Total income rose 5.7% to ₹1,737.47 crore in the third quarter of this fiscal year from ₹1,643.51 crore registered in the corresponding period of the preceding year, according to a regulatory filing.

During the April-December period of the 2024-25 fiscal year, the company's net profit rose to ₹3,084.62 crore from ₹1,803.71 crore in the year-ago period.