TARC Limited (TARC) AI Stock Analysis

• Market Cap: ₹36.21B
• Dividend Yield: N/A
• Average Volume (3M): 32.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• 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: ₹120.00 ▼(-34.17% 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

Focused Delhi–NCR development footprint

A concentrated presence in the Delhi–NCR region aligns TARC with one of India’s largest residential demand pools. This geographic focus supports repeat project opportunities, faster sales cycles in established micro-markets, and operational efficiencies from local market knowledge over the next 2–6 months and beyond.

Cash collection via milestone-based sales model

Milestone-linked collections create predictable construction cash inflows and reduce exposure to single-point revenue timing. For a developer, this durable cash collection structure helps fund ongoing projects, lowers short-term working-capital stress, and supports project completion sequencing over multiple quarters.

Execution via contractors enables asset-light delivery

Relying on contractors and service providers keeps fixed overhead low and enables scalable project execution without proportionate increases in permanent staff or capital equipment. This asset-light orientation can preserve cash and permit quicker scaling or reallocation of capital across projects.

Negative Factors

High leverage on balance sheet

Elevated debt-to-equity increases interest burden and refinancing risk, constraining the firm’s ability to finance new launches or absorb construction cost overruns. Overcoming leverage requires sustained cash generation or asset monetization, making capital flexibility limited over coming quarters.

Weak and volatile operating cash flow

Declining and erratic operating cash flow undermines the company’s capacity to fund project completion from internal sources, increasing reliance on external financing or advance collections. This weak cash conversion elevates execution and liquidity risk in the medium term.

Negative profitability and margin pressure

Sustained negative net income and margins indicate project-level cost overruns or pricing shortfalls. Persistent unprofitability erodes equity, limits reinvestment capacity, and raises the likelihood of corrective measures (discounting, asset sales), impairing long-term earnings resilience.

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 primarily makes money by developing and selling real estate units within its projects. The main revenue stream is consideration received from customers for the sale of residential apartments and other developed units (including associated charges tied to the sale such as car-parking, club/membership, and other project-related charges where applicable). Cash inflows typically occur via customer booking amounts and milestone-based collections during construction, with final collections at/near handover; revenue is generally recognized based on the company’s applicable accounting policy for real estate contracts. Additional earnings can come from (i) sale/transfer of development rights or interests in projects (if undertaken), (ii) rental or lease income from any commercial/retail inventory held for leasing (if any), and (iii) ancillary income such as interest income on deposits/financial assets and other non-operating income. Key factors influencing earnings include the pace of sales and pricing in its micro-markets, project execution timelines and construction costs, access to financing, regulatory approvals, and the company’s ability to launch and deliver projects. Information on specific partnerships, project-level joint ventures, or the exact mix of operating vs. other income is null.

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	1.04B	336.89M	1.12B	1.85B	954.53M	1.91B
Gross Profit	617.27M	-96.70M	706.59M	814.23M	-1.85B	260.46M
EBITDA	-1.33M	-1.28B	561.16M	1.65B	-1.46B	20.35M
Net Income	-947.17M	-2.31B	-770.46M	203.40M	-2.33B	61.77M
Balance Sheet
Total Assets	45.48B	42.16B	34.66B	31.66B	29.79B	34.12B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.05B	588.42M	1.06B	193.49M	118.84M
Total Debt	19.62B	19.54B	13.93B	13.86B	11.79B	13.21B
Total Liabilities	34.67B	31.72B	21.91B	18.14B	16.47B	18.48B
Stockholders Equity	10.81B	10.43B	12.75B	13.52B	13.32B	15.64B
Cash Flow
Free Cash Flow	2.45B	57.02M	1.17B	-876.05M	-811.72M	1.26B
Operating Cash Flow	2.65B	429.55M	1.58B	-810.12M	-811.72M	1.44B
Investing Cash Flow	-393.69M	-678.05M	-390.62M	745.16M	3.67B	229.73M
Financing Cash Flow	-1.62B	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: Positive
• STOCH: Neutral

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 138.08, above the 50-day MA of 151.75, and above the 200-day MA of 161.76, indicating a bearish trend. The MACD of -8.48 indicates Positive momentum. The RSI at 28.66 is Positive, neither overbought nor oversold. The STOCH value of 26.96 is Neutral, 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	₹31.92B	0.56	―	―	-17.28%	43.34%
AHLUCONT	68 Neutral	₹48.68B	30.38	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹36.83B	13.34	―	0.67%	13.96%	12.91%
RAMKY	61 Neutral	₹32.03B	12.27	―	―	-15.09%	-15.98%
CAPACITE	58 Neutral	₹18.92B	10.65	―	―	15.23%	8.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
TARC	46 Neutral	₹36.21B	-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.