TARC Limited (TARC) AI Stock Analysis

• Market Cap: ₹42.24B
• Dividend Yield: N/A
• Average Volume (3M): 32.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 863.34%
• EPS Growth: 48.32%
• Country: IN
• Employees: 187
• Sector: Services
• Sector Strength: N/A
• Industry: Real Estate - Development
• EPS (TTM): -0.71
• Shares Outstanding: 295,096,340
• 10 Day Avg. Volume: 33,562
• 30 Day Avg. Volume: 32,601
• PEG Ratio: -0.08
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 113.18
• P/FCF Ratio: 668.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹136.00 ▼(-25.40% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

The overall stock score of 46 reflects significant financial challenges, including high leverage and inconsistent profitability, which are the most impactful factors. Technical analysis suggests a bearish trend, while valuation concerns are heightened by the negative P/E ratio and lack of dividend yield. These factors collectively contribute to a cautious outlook for TARC Limited.

Positive Factors

Local market focus (Delhi–NCR)

A concentrated presence in Delhi–NCR gives TARC durable advantages: stronger local land sourcing, established buyer familiarity, and targeted marketing efficiencies. Over 2–6 months this supports steadier presales and faster absorption versus less-focused peers.

Milestone-based cash inflows

Milestone-linked collections create a predictable, project-tied cash conversion mechanism. This reduces sole dependence on bank funding and helps finance construction stages from buyer receipts, aiding liquidity management across project cycles for several months.

Stable equity ratio

A stable equity base offers a structural buffer against cyclical stress and supports credit access. Even with operational volatility, steady equity helps absorb project overruns and maintain lender confidence, preserving financing options over the medium term.

Negative Factors

High leverage

Elevated debt levels materially increase interest and principal servicing pressure, constraining capital for new launches and making the firm sensitive to rate rises or funding squeezes. This structural leverage risk can limit strategic flexibility for months ahead.

Weak and volatile cash flow

Declining and inconsistent operating cash flow reduces the company's ability to fund project completion internally and raises reliance on external finance. Fluctuating FCF undermines creditor confidence and raises execution risk across ongoing developments.

Negative and inconsistent profitability

Sustained negative margins and volatile revenue reflect structural cost and execution issues. Persistent unprofitability erodes retained capital, limits reinvestment into projects, and increases refinancing and covenant risks over the medium term.

TARC Limited Business Overview & Revenue Model

Company Description

TARC Limited engages in the real estate development business in India. The company undertakes residential, hotels, branded and service apartments, warehouses, hospitality, and retail projects. It also owns and leases real estate properties; and engages in the provision of holding land banks. The company was incorporated in 2016 and is based in New Delhi, India.

How the Company Makes Money

TARC generates revenue through multiple channels, primarily by selling telecommunications equipment and providing network infrastructure services to businesses and government entities. The company also earns income from IT consultancy services, where it offers expertise in system integration and technology solutions tailored to client needs. Key revenue streams include direct sales of hardware, recurring service contracts for maintenance and support, and consulting fees. Additionally, TARC has established significant partnerships with major telecom operators and technology firms, which facilitate joint ventures and collaborative projects, further contributing to its earnings.

TARC Limited Financial Statement Overview

Summary

TARC Limited faces financial challenges with inconsistent revenue and profitability, high leverage, and fluctuating cash flows. Despite maintaining some equity stability, the company needs to address operational inefficiencies and strengthen cash flow generation for improved financial health.

Income Statement

The company's income statement shows significant volatility with negative net income in the most recent year, reflecting a challenging environment. Gross profit margin was negative, indicating cost of goods sold exceeded revenue. EBIT and EBITDA margins were substantially negative, suggesting operational inefficiencies. Revenue growth has been inconsistent, further impacting profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating leverage risk. However, the equity ratio remains stable, providing some financial resilience. Return on equity has been negative recently, reflecting poor profitability. Overall, the balance sheet demonstrates moderate stability but is burdened by high debt levels.

Cash Flow

Cash flow analysis highlights a decrease in operating cash flow, raising concerns about cash generation capabilities. Free cash flow has experienced significant fluctuation, impacting financial flexibility. The operating cash flow to net income ratio is positive, showing some ability to convert profits into cash, yet the overall cash flow position remains weak.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.01B	336.89M	1.12B	1.85B	954.53M	1.91B
Gross Profit	622.93M	-96.70M	706.59M	814.23M	-1.85B	260.46M
EBITDA	-154.18M	-1.28B	561.16M	1.65B	-1.46B	20.35M
Net Income	-1.46B	-2.31B	-770.46M	203.40M	-2.33B	61.77M
Balance Sheet
Total Assets	0.00	42.16B	34.66B	31.66B	29.79B	34.12B
Cash, Cash Equivalents and Short-Term Investments	856.66M	2.05B	588.42M	1.06B	193.49M	118.84M
Total Debt	0.00	19.54B	13.93B	13.86B	11.79B	13.21B
Total Liabilities	-10.43B	31.72B	21.91B	18.14B	16.47B	18.48B
Stockholders Equity	10.43B	10.43B	12.75B	13.52B	13.32B	15.64B
Cash Flow
Free Cash Flow	0.00	57.02M	1.17B	-876.05M	-811.72M	1.26B
Operating Cash Flow	0.00	429.55M	1.58B	-810.12M	-811.72M	1.44B
Investing Cash Flow	0.00	-678.05M	-390.62M	745.16M	3.67B	229.73M
Financing Cash Flow	0.00	142.64M	-1.66B	958.92M	-2.79B	-1.61B

TARC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 182.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARC, the sentiment is Negative. The current price of 182.3 is above the 20-day moving average (MA) of 153.58, above the 50-day MA of 159.57, and above the 200-day MA of 163.79, indicating a bearish trend. The MACD of -3.74 indicates Positive momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 7.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TARC.

TARC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASHOKA	72 Outperform	₹36.23B	0.56	―	―	-17.28%	43.34%
AHLUCONT	68 Neutral	₹50.41B	30.38	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹36.36B	13.34	―	0.67%	13.96%	12.91%
CAPACITE	60 Neutral	₹19.58B	10.65	―	―	15.23%	8.61%
RAMKY	58 Neutral	₹30.80B	12.27	―	―	-15.09%	-15.98%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TARC	46 Neutral	₹42.24B	-59.93	―	―	863.34%	48.32%

TARC Limited Corporate Events

TARC Limited Marks Strong Cash Flows and Project Milestones as It Deepens Bet on Luxury Housing

TARC Limited reported strong operational momentum for the nine months ended December 31, 2025, driven by robust sales of ₹977 crore, collections of ₹603 crore and total business cash flows of ₹910 crore in FY26 year-to-date, underlining its execution strength and healthy liquidity. Key project milestones included receipt of the occupation certificate at TARC Tripundra in South Delhi, paving the way for revenue recognition and cash-flow unlocking; preparation of a new sample apartment and sales gallery and the launch of the most premium tower at TARC Kailasa in West Delhi to enhance value realization; and continued construction progress and near-full sales at TARC Ishva in Gurugram, with statutory approvals in place for the next phase and new sales expected to commence within the current quarter, collectively reinforcing the company’s strategy to enter its next phase of luxury-focused growth.