DLF Q3 Results 2026: Profits up but margins fall sharply, but company says debt-free

News Topical, Digital Desk : DLF's December quarter (Q3FY26) results have been released, and the company reported year-over-year growth in profit and revenue. However, a decline in EBITDA and margins has slightly dampened market sentiment. Continued selling by foreign investment (FIIs) and the stock's declining trend are also impacting the company's performance. The stock has declined over both the one-month and one-year periods. DII buying has increased, but the market is currently experiencing pressure. A statement from the company has come out that could impact the stock. Yes, the company says that in the December quarter, it had a strong cash balance of ₹3,876 crore on its books, resulting in a zero gross debt level. The company stated that total cash was ₹11,660 crore. DLF has announced its results for the December 2025 quarter (Q3FY26), and the company's data clearly paints two pictures: growth in profits and revenue, while, on the other hand, increasing pressure on margins and the stock. This is why, despite the strong results, the market sentiment remained mixed. On January 22, 2026, DLF shares fell 1% to close at ₹613. This decline wasn't just a single day—the stock has fallen 11% in a month and 14% in a year. This clearly indicates that volatility and investor caution in the real estate sector remain. This has had the greatest impact on FII participation. Foreign investors have consistently sold, leading to a decline in their stake from 16.37% in December 2024 to 14.81% in December 2025. On the bright side, domestic investors (DIIs) are showing confidence—their stake has increased from 4.87% in December 2024 to 5.78% in December 2025. Now, let's talk about the results. The company's profit increased year-on-year (YoY) from ₹1,058 crore to ₹1,203 crore. This is a very positive sign, as the company's sales and projects saw good activity. DLF's revenue also increased from ₹1,528 crore to ₹2,020 crore during this period. This means the company performed well in both real estate demand and project delivery. But there's another side to every picture—and that's reflected in EBITDA and margins. EBITDA declined slightly from ₹400 crore to ₹389 crore. The biggest pressure was seen in EBITDA margin, which fell from 26.1% to 19.3%. This significant decline suggests that the company's costs increased or that certain projects incurred higher expenses during the quarter. The decline in margins was a cause for concern for the market, as it is considered a key indicator of a company's operational efficiency. Increasing pressure on the stock, FII selling, and weak margins—all these factors have dampened the stock's momentum even after the results. However, earnings and profits appear strong, and DII confidence is rising, which could present an opportunity for long-term investors in the stock. Overall, DLF's Q3 results show strong profits and sales on the upside, and weak margins and investor caution on the downside. Margin improvement and the return of FIIs will determine the stock's direction in the coming quarters.
 

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