TARC Ltd Q1 FY26 (FY25) – Luxury Real Estate With Negative ROE, Bain’s Bailout & Forensic Auditors Camping In Their Balance Sheet
1. At a Glance
Welcome to the circus called TARC Ltd — once Anant Raj Global, now trying to rebrand itself as Delhi’s Louis Vuitton of apartments. Market cap? ₹4,926 Cr. Current price? ₹167. In the last 3 months, the stock is down 15% (because Delhi heat isn’t the only thing melting). ROE: –20%. ROCE: –4.8%. Debt: ₹1,954 Cr. EPS? A solid –₹4.96. Yes, the only thing going up here faster than flat prices is the auditor’s blood pressure.
2. Introduction
Imagine a real estate developer in Delhi who holds 500 acres of prime land but still manages to post losses big enough to make startups look profitable. That’s TARC for you.
They’ve done the usual rebrand trick — Anant Raj Global became TARC in 2021. (Because if you can’t fix your numbers, at least fix your name. Classic Indian jugaad.)
On the surface, it’s all champagne, infinity pools, and “luxury residential projects.” Dig deeper, and you’ll find forensic auditors poking through receipts, Bain Capital trying to collect NCD coupons, and a presales target of ₹5,000 Cr for FY25 that’s more ambitious than Baba Ramdev promising six-pack abs with aloe vera juice.
Delhi’s real estate is anyway a game of patience — half builder, half politician, full-time magician. And TARC is currently performing the disappearing cash flow trick.
3. Business Model – WTF Do They Even Do?
TARC builds luxury residential projects in New Delhi and Gurugram. Think big clubhouses, imported marble, and brochures with more English than actual floorplans.
Projects in the limelight:
Kailasa: A ₹4,000 Cr GDV monster in New Delhi. Phase I sold out, Phase II is coming. (Apparently, Delhiites don’t read balance sheets.)
Tripundra: 3 acres of “international design,” 75% price appreciation since launch. Handovers FY25.
63A, Gurugram: 1.4 mn sq ft, ₹2,600 Cr GDV. Launched late because, well, permits don’t respect your PowerPoint timelines.
They also sit on 500 acres of land bank across Delhi, Haryana, and UP. Which sounds sexy until you realize land is just paper wealth until someone actually builds something.
In short: they collect land, launch luxury projects, borrow from Bain, and hope buyers arrive before lenders do.
4. Financials Overview
Here’s how Q1 FY26 stacked up:
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
76
8
12
824%
533%
EBITDA (₹ Cr)
–120
–15
–84
–700%
–43%
PAT (₹ Cr)
54
–31
–105
NA
NA
EPS (₹)
1.84
–1.04
–3.54
NA
NA
Commentary: Revenue jumped like a Delhi electricity bill in June, but EBITDA is still buried deep underground. PAT turned positive this quarter at ₹54 Cr, but one swallow doesn’t make a monsoon. Annualised EPS is ₹7.36 — looks decent until you remember this company’s profit and loss statement is moodier than Bollywood sequels.
5. Valuation Discussion – Fair Value Range Only
Let’s crunch it auditor-style:
P/E Method Annualised EPS = 7.36. Industry P/E = 41x. If TARC sustains profit, fair range = 15x–25x P/E → ₹110 – ₹185.
EV/EBITDA Method Current EV = ₹6,795 Cr. EBITDA is negative, so this method is basically “not meaningful.” EV/EBITDA at –441 is like trying to divide by zero in Excel — only
