By Chaitanya | BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance
TARC Limited, a prominent New Delhi-based luxury residential real estate developer, has reported an exceptional financial performance for the first quarter of fiscal year 2025-26, ending June 30, 2025. The company demonstrated a remarkable turnaround, swinging from significant losses to robust profitability, driven by strong project sales and strategic operational advancements. This quarter’s results mark a pivotal moment for TARC, highlighting its growing prowess in the competitive Delhi and Gurugram real estate markets.
TARC Limited Q1 FY26 Results: Unpacking the Financial Gains
The financial figures for Q1 FY26 showcase an impressive surge in performance. TARC Limited’s total income soared to ₹295.37 crore, a staggering increase of over 2,968% compared to ₹9.63 crore recorded in Q1 FY25. This dramatic leap in revenue was accompanied by a significant return to profitability, with the Net Profit (Profit After Tax) reaching ₹54.21 crore, a stark reversal from a loss of ₹30.67 crore in the same period last year. Profit Before Tax also saw a substantial recovery, hitting ₹81.47 crore, overcoming previous quarter losses as reported by company announcements and confirmed by financial analysis from firms like Kotak Securities. The Earnings Per Share (EPS) for the quarter stood at ₹1.84, further underscoring the improved financial health.
Here’s a snapshot of the key financial figures for Q1 FY26:
| Parameter | Q1 FY26 (June 2025) | Q1 FY25 (June 2024) | QoQ Change | YoY Change |
|---|---|---|---|---|
| Total Income (₹ crore) | 295.37 | 9.63 | 2748.3% | 2967.2% |
| Net Profit (₹ crore) | 54.21 | -30.67 (Loss) | +204.8% | +276.8% |
| Profit Before Tax (₹ crore) | 81.47 | -27.61 (Loss) | +273.3% | +395.1% |
| EBITDA (₹ crore) | 99.16 | Not specified | – | – |
| Earnings Per Share (₹) | 1.84 | Not specified | – | – |
This impressive performance signifies a significant rebound, especially when contrasted with the previous fiscal year (2024-25), during which the company posted a net loss of ₹231.28 crore on a total income of just ₹38.88 crore. The current quarter’s results demonstrate effective strategies translating into tangible gains.
Strategic Moves and Project Progress
Beyond the financial numbers, TARC Limited achieved several crucial operational milestones that underpin its current success and future growth trajectory. The company applied for the Occupancy Certificate (OC) for its flagship TARC Tripundra project ahead of schedule. This proactive step is vital as it enables the timely delivery of units to customers and facilitates early revenue recognition, directly contributing to the strong Q1 FY26 results. Furthermore, TARC secured essential regulatory approval for a key land parcel in Delhi, positioning it for future project launches and expansion. The quarter also saw robust total cash inflows of ₹455.91 crore, derived from both project sales and receipts from land acquisitions, providing a solid capital base for upcoming developments and operational needs.
Further insights into the quarter’s performance and strategic initiatives include:
- TARC applied for Occupancy Certificate for TARC Tripundra project ahead of schedule, facilitating customer delivery and revenue recognition.
- Received regulatory approval for a key land parcel in Delhi.
- Total cash inflows of ₹455.91 crore included from project sales and land acquisition receipts.
- Significant turnaround from losses in previous quarters, reflecting improved profitability and strong revenue growth.
- Operating cash inflows and robust capital position support an accelerated project launch pipeline.
- Despite strong profits, concerns exist around debt levels (debt-equity ratio at 1.87 times).
- Reported net profit figures vary in some sources by a small margin (₹54.09 crore vs ₹54.21 crore), likely rounding differences.
- Share price delivered strong returns: 25% in last 6 months and 691% over 4 years, marking it a multibagger stock.
Robust Share Performance and Future Outlook
TARC Limited’s positive momentum is also reflected in its share price performance. The stock has delivered impressive returns, with a 25% increase over the last six months. More notably, it has achieved multibagger returns of 691% over the past four years, demonstrating significant investor confidence. While the company’s focus remains on luxury residential real estate development in the high-demand Delhi and Gurugram markets, a point of consideration is its debt-equity ratio, which stands at 1.87 times. This is a metric investors and analysts, including MarketSmojo, are closely observing, despite the strong profit surge.
Recent updates further underline TARC’s active period:
- August 14, 2025: TARC Limited announced over 2,968% increase in Q1 FY26 total income to ₹295.37 crore, netting ₹54.09 crore profit. Applied for Occupancy Certificate early for Tripundra project and secured Delhi land parcel approval.
- August 13, 2025: Kotak Securities reported TARC’s Q1 FY26 results, confirming ₹295.37 crore revenue, ₹54.21 crore net profit, and EBITDA ₹99.16 crore with strong YoY growth.
- August 12, 2025: MarketSmojo noted mixed financial indicators: net sales surged to ₹75.89 crore with PAT at ₹54.23 crore, but profit before tax declined to ₹-138 crore and debt-equity ratio remains high at 1.87.
- April 9, 2025: TARC achieved highest annual sales of ₹3,122 crore for FY2025, with ₹1,235 crore sales in Q4 FY25.
- 2024-25 Fiscal Year: The company posted a net loss of ₹231.28 crore on total income of ₹38.88 crore, indicating a significant turnaround in Q1 FY26.
Overall, TARC Limited’s Q1 FY26 performance signifies a powerful resurgence, laying a strong foundation for the fiscal year ahead. With strategic project deliveries, crucial land approvals, and robust cash inflows, the company appears well-positioned to capitalize on the growing demand in the luxury residential segment, even as it navigates its debt levels.
Disclaimer: All stock-related information, financial results, Price Targets and ratings shared on IPOC are strictly for informational and educational purposes only. The views and investment tips expressed by investment experts/broking houses/rating agencies on IPOcenter.in are their own, and not that of the website or its management None of the content published here should be considered as financial advice or a recommendation to invest. IPOC and its authors are not liable for any losses arising from decisions made based on the content of this article. Please consult a SEBI-registered financial advisor before making any investment decisions. The images used in this article are generated Images and meant for illustration purposes only.
