Gurugram-based real estate major DLF Limited on Thursday reported a 13.7% year-on-year (YoY) increase in consolidated net profit for the third quarter ended December 31, 2025. The company’s net profit (attributable to owners) climbed to ₹1,203.36 crore, compared to ₹1,058.73 crore in the corresponding period of the previous fiscal.

The company's top line saw expansion, with revenue from operations surging 32.2% YoY to ₹2,020.22 crore. Total income for the quarter reached ₹2,479.54 crore, boosted by a rise in "Other Income," which more than doubled YoY to ₹459.32 crore.

EBITDA and margin compression

Despite the strong revenue growth, the company’s operating EBITDA (earnings before interest, taxes, depreciation, and amortisation) saw a marginal decline. Calculated purely from the operating segment (excluding other income), EBITDA stood at ₹389.87 crore in Q3 FY26, down 2.6% from ₹400.09 crore reported in the same quarter last year.

Consequently, the EBITDA margin compressed to 19.30% from 26.17% in Q3 FY25. This margin pressure was primarily driven by a sharp rise in operating expenses, including the cost of land and plots and higher other expenses.

Exceptional items and zero-debt milestone

The bottom line was also impacted by a net exceptional loss of ₹45.02 crore. This included a ₹60.15 crore provision related to the implementation of new national labour codes, partially offset by a ₹15.13 crore interest income awarded by the court in a land matter.

Operationally, the company achieved a historic milestone by becoming net debt zero. Bolstered by record gross collections of approximately ₹5,100 crore during the quarter, the company ended the period with a net cash position of ₹11,660 crore.

“Our focus remains on delivering high-margin residential projects while maintaining a healthy annuity portfolio through DCCDL,” the management said. The rental arm, DCCDL, contributed with a consolidated revenue of ₹1,878 crore, up 17% YoY.

The shares of DLF Ltd ended 0.49% lower at ₹614.55 apiece on the national stock exchange on Thursday. The company's stock has declined nearly 14% in the past one year, underperforming the benchmark Nifty 50 index which has risen close to 10% during the same period.