TARC - TARC Ltd

📊 NSE: TARC 🏢 Construction 📅 Last Updated: 12/14/2025 14:08

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income for FY24 was INR 111.45 Cr, representing a 69.76% decrease from INR 368.66 Cr in FY23. However, H1 FY26 showed significant recovery with Total Income reaching INR 329.5 Cr. Segment-specific percentage growth is not disclosed, but the company is transitioning from warehousing (divested) to luxury residential development.

Geographic Revenue Split

100% of revenue is derived from the Delhi and National Capital Region (NCR), specifically Delhi and Haryana. This concentration exposes the company to regional market volatility.

Profitability Margins

The company reported a Net Profit Margin of -63.46% in FY24, a sharp decline from 5.43% in FY23, primarily due to a PAT loss of INR 77.04 Cr. Operating Profit Margin for FY25 was reported at -684% compared to -70% in FY24, driven by a decrease in sales and increased project-related expenses.

EBITDA Margin

EBITDA Margin was 41.78% in FY24, down slightly from 43.26% in FY23. EBITDA decreased by 9.7% YoY from INR 7.19 Cr to INR 6.49 Cr.

Capital Expenditure

Not explicitly disclosed in INR Cr, but the company is heavily investing in three major luxury projects: TARC Tripundra (GDV INR 1,000 Cr), TARC Kailasa (GDV INR 4,000 Cr), and TARC Ishva (GDV INR 2,700 Cr).

Credit Rating & Borrowing

The company maintains an adequate liquidity rating from Infomerics. Total debt stood at INR 1,391.95 Cr in FY24. It secured INR 1,330 Cr from Bain Capital via secured NCDs and recently refinanced project-specific borrowings at substantially lower costs with banks and NBFCs.

⚙️ Operational Drivers

Raw Materials

Steel, cement, and other construction materials are the primary inputs. While specific names like 'SAIL' or 'Tata Steel' are not mentioned, the company notes that raw material cost fluctuations are a significant risk to project profitability.

Capacity Expansion

Current saleable area is 17 million sq. ft across ongoing projects. The company is geared to launch the next phase of projects in New Delhi and Gurugram using its 550+ acre land bank.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company identified raw material cost fluctuations as a key factor that could cause actual results to differ from projections.

Manufacturing Efficiency

Capacity utilization is measured by construction progress; TARC Tripundra received its Occupancy Certificate on December 2, 2025, signaling 100% completion for that project.

Logistics & Distribution

Not disclosed as a percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth will be achieved through the execution of a INR 7,700 Cr GDV pipeline, specifically TARC Kailasa (INR 4,000 Cr) and TARC Ishva (INR 2,700 Cr). Strategy includes launching Phase II of these projects, leveraging a 550+ acre land bank, and maintaining a cash flow coverage ratio above 2x through FY25-FY27.

Products & Services

Luxury residential apartments and curated residences (e.g., 3BHK and 4BHK luxury units).

Brand Portfolio

TARC, TARC Tripundra, TARC Kailasa, TARC Ishva, TARC Maceo.

New Products/Services

Upcoming high-end residential projects in New Delhi and Gurugram; TARC Kailasa Phase II is approaching launch.

Market Expansion

Focused expansion within marquee locations in New Delhi and Gurugram to maintain luxury branding.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Collaborated with US private investment firm Bain Capital for a INR 1,330 Cr growth capital investment.

🌍 External Factors

Industry Trends

The Indian real estate sector is evolving toward luxury, green-certified developments (ESG-aligned). TARC is positioning itself with 100% green-certified residential portfolios.

Competitive Landscape

Highly fragmented and capital-intensive luxury residential market in North India.

Competitive Moat

Durable advantage through a 550+ acre fully-owned land bank in marquee Delhi/NCR locations and 40+ years of promoter experience, providing high development flexibility and cost advantages in land acquisition.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and interest rate cycles; adverse movements in interest rates hamper demand and increase construction costs.

Consumer Behavior

Shift toward 'curated living' and 'design-led' luxury experiences among discerning customers in the capital region.

Geopolitical Risks

Not disclosed.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RERA, Municipal Corporation of Delhi (MCD) approvals, and pollution norms. Timely receipt of regulatory approvals is critical for project launches and collections.

Environmental Compliance

Committed to 100% Green certified portfolio; TARC Tripundra has IGBC Gold Pre-certification, and TARC Kailasa is approaching Platinum rating.

Taxation Policy Impact

Not disclosed.

Legal Contingencies

The company emerged from a demerger approved by NCLT Chandigarh on August 24, 2020. Specific pending litigation values in INR are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Project implementation risk is primary; any delay in completion (e.g., Tripundra OC timing) impacts projected cash flows and liquidity. Market risk from cyclicality in real estate could impact sales velocity.