Real estate giant DLF Ltd has disclosed that it is yet to recognize a substantial amount of revenue exceeding ₹55,000 crore in its financial accounts from sales bookings accumulated until the December quarter of the current fiscal year. This revelation comes from the company's latest investor presentation, highlighting the significant gap between total sales and recognized income.
Massive Sales Bookings with Pending Revenue Recognition
According to the presentation, DLF has sold properties, primarily residential units, worth a staggering ₹79,885 crore across its existing projects. However, as of the December quarter, the company has only recognized revenue of ₹24,460 crore from these sales. The balance revenue that remains to be recognized from the sales booked stands at an impressive ₹55,425 crore.
Revenue Recognition Practices in Real Estate
In the real estate sector, developers like DLF typically receive advances from customers against sales bookings. The revenue from these transactions is recognized only after the completion of construction projects or based on the percentage of completion method. This accounting practice explains the substantial amount of unrecognized revenue, as many projects are still under development.
DLF's Market Position and Recent Performance
DLF, which holds the title of India's largest realty firm by market capitalization, reported a 16 percent decline in sales bookings to ₹16,176 crore during the first nine months of this fiscal year. This decrease is attributed to a reduction in the supply of new homes. In comparison, the company sold properties worth ₹19,187 crore in the same period last year.
Despite this decline, DLF has provided guidance aiming to achieve sales bookings between ₹20,000 crore and ₹22,000 crore for the entire fiscal year. This target follows the record sales bookings of ₹21,223 crore achieved during the 2024-25 financial year, largely driven by the successful launch of its ultra-luxury housing project 'Dahlias' on Golf Course Road in Gurugram.
Financial Results and Growth Trajectory
DLF reported a 14 percent increase in consolidated net profit, reaching ₹1,203.36 crore during the October-December period, up from ₹1,058.73 crore in the corresponding quarter of the previous year. Total income also saw a significant surge, rising to ₹2,479.54 crore from ₹1,737.47 crore year-on-year.
For the first nine months of the current fiscal year, DLF's net profit increased to ₹3,146.12 crore from ₹3,084.62 crore in the year-ago period. Total income during the April-December period of the 2025-26 fiscal year grew to ₹7,722.22 crore from ₹5,648.12 crore a year earlier.
In the entire 2024-25 fiscal year, DLF recorded a net profit of ₹4,366.82 crore on a total income of ₹8,995.89 crore, demonstrating the company's robust financial health despite the challenges in the real estate market.
DLF's Business Operations and Development Portfolio
The DLF Group is primarily engaged in two core business segments: the development and sale of residential properties, known as the Development Business, and the development and leasing of commercial and retail properties, referred to as the Annuity Business. The company has an extensive track record, having developed more than 185 real estate projects covering a total area exceeding 352 million square feet.
DLF's development potential remains substantial, with approximately 280 million square feet of land available for future residential and commercial projects. Additionally, the company boasts an annuity portfolio of over 49 million square feet, providing a steady stream of rental income from leased properties.
Geographical Focus and Project Locations
DLF is actively developing residential projects in key metropolitan regions across India, with a primary focus on Delhi-NCR, Mumbai, and the Tri-city area of Chandigarh. These locations represent some of the most dynamic real estate markets in the country, contributing significantly to the company's sales bookings and future revenue recognition potential.
