DLF Q1 FY26 Results: Profit Soars 19%, But Stock Price Falls. Here’s Why.

It was a classic case of “buy the rumor, sell the news” for DLF investors this week. India’s real estate giant posted blockbuster earnings for the  DLF Q1 FY26, yet its stock price took a noticeable hit, leaving many wondering about the disconnect.

On the surface, DLF’s financial report was a picture of health. The company’s consolidated net profit climbed an impressive 19% year-on-year, settling at Rs. 766 crore. Even more remarkably, its revenue from operations skyrocketed by 91% to reach Rs. 2,717 crore, a massive leap from the Rs. 1,423.2 crore recorded in the same quarter last year. This performance was driven by record-breaking sales bookings, which grew by 78% and have already fulfilled more than half of the company’s full-year target.

However, the stock market reacted with caution instead of celebration. Following the announcement, DLF’s shares fell by 1.63% to close at Rs. 779.90 on Tuesday, extending its recent losing streak.

Market experts point to two primary factors behind this puzzling trend. Firstly, the stock had already experienced a significant rally in anticipation of these strong results, prompting many investors to lock in their profits once the news was officially released. Secondly, a closer look at the numbers reveals a slight pressure on profitability. The company’s EBITDA margins contracted to 13.4% from 16.7% a year ago, a development attributed to rising operational expenditures.

While the short-term stock movement may seem bearish, the underlying business performance showcases strong operational momentum and continued demand in the premium real estate sector, painting a robust picture for DLF’s long-term outlook.

Source:- GR