1. At a Glance
TCC Concept, the co-working space whisperer, posted Q1 FY26 revenue of ₹22.1 Cr (-31% QoQ), with PAT at ₹9.4 Cr (down 45% QoQ). Despite a rough quarter, the company flaunts 75% OPM and a 124% TTM profit growth. Investors, however, still scratch their heads at a P/E of 40.
2. Introduction with Hook
Think of TCC as WeWork’s thrifty Indian cousin – less tequila, more spreadsheets. After a meteoric FY25, Q1 FY26 was a reminder that co-working isn’t immune to seasonal chills. Still, they remain one of the few real estate players making margins fatter than their office chairs.
3. Business Model (WTF Do They Even Do?)
TCC Concept is:
- Broker + Aggregator for flexible office spaces
- Property Manager for leasing/renting commercial real estate
- Lead Generator for 100+ daily prospects
In short, they sell desks and dreams, taking commissions and rental spreads.
4. Financials Overview
- Revenue (Q1 FY26): ₹22.1 Cr (-31% QoQ, +87% YoY)
- EBITDA: ₹17.9 Cr (margin 81%)
- PAT: ₹9.4 Cr (-45% QoQ)
- 3-year CAGR: Sales +15%, Profits +124%
Margins scream SaaS, but volatility says “don’t get too comfy.”
5. Valuation
With P/E 40x and Book Value ₹201, the stock trades at 2.6x P/BV. Fair value range: ₹450–₹550. Anything above that is paying champagne prices for filter coffee.
6. What’s Cooking – News, Triggers, Drama
- NES Data Centre fully leased (4 MW) – big win.
- Acquisition of NES (₹461 Cr) – aggressive expansion.
- CFO Exit Drama (Nov 2024): CFO resigned mid-flight, raising eyebrows.
- Expect growth from data centres, but integration is key.
7. Balance Sheet
| ₹ Cr | Mar 2024 | Mar 2025 |
|---|---|---|
| Assets | 226 | 785 |
| Net Worth | 191 | 716 |
| Debt | 4 | 44 |
Equity shot up post-preferential issues. Debt creeping up – still manageable.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | -2 | 1 | 23 |
| CFI | 2 | 14 | -54 |
| CFF | 0 | 5 | 30 |
Operations finally generating cash, but investment outflows (hello data centres) are huge.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 9.3% |
| ROCE | 12% |
| P/E | 40x |
| D/E | 0.06 |
| OPM | 72% |
Margins hot, returns lukewarm. Leverage low but rising.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1 | 77 | 83 |
| EBITDA | 1 | 34 | 60 |
| PAT | 1 | 20 | 42 |
Revenue went from rickshaw to Tesla in two years, but sustaining that growth is the challenge.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Redington | 99,334 | 1,171 | 20x |
| MSTC | 311 | 197 | 18x |
| Vintage Coffee | 366 | 50 | 37x |
| TCC Concept | 94 | 46 | 40x |
TCC trades richer than MSTC despite being a fraction of its size. Market is clearly pricing in dreams.
12. Miscellaneous – Shareholding, Promoters
Promoter stake fell to 60.9% (from 69%) over three years – dilution due to capital raises. FIIs nibbling (1.7%), DIIs entering (1.4%). Public at 36%. Shareholder count ballooned 10x – retail frenzy alert.
13. EduInvesting Verdict™
TCC Concept is riding high on margins, acquisitions, and data centre dreams. But promoter dilution, CFO exits, and a lofty P/E keep it risky. Great story stock with strong execution so far – but one bad quarter, and investors could be left holding empty desks.
Written by EduInvesting Team | 26 July 2025
Tags: TCC Concept, Flexible Office Spaces, Data Centres, Q1 FY26 Results, EduInvesting Premium, Smallcap Real Estate, Stock Analysis
