TARC Limited returns to Q2 profit as revenue reaches Rs 128.81 crore

TARC Limited reported profit after tax (PAT) of Rs 4.39 crore in the second quarter (Q2) of financial year (FY) 2026-27, compared with a Rs 15.77 crore loss a year earlier, as revenue rose to Rs 128.81 crore from Rs 6.87 crore. The detailed consolidated table records the profit figure, while the presentation summary states Rs 4.05 crore.

What drove TARC's Q2 income increase?

TARC's Q2 FY2026-27 income increase was driven by revenue of Rs 128.81 crore, compared with Rs 6.87 crore in Q2 FY2025-26. Total income increased to Rs 134.07 crore from Rs 34.10 crore, while other income declined to Rs 5.26 crore from Rs 27.23 crore.

The change meant revenue, rather than other income, formed most of TARC's total income in the latest quarter. Management said TARC Tripundra was progressing through its revenue-recognition phase and was increasingly realising the financial value of the development portfolio, although the presentation does not give a Q2 project-level revenue allocation.

How did TARC's operating result change in Q2?

TARC reported earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 2.80 crore in Q2 FY2026-27, against negative Rs 8.41 crore in Q2 FY2025-26. EBITDA margin moved to 2.09% from negative 24.66% as income rose by Rs 99.97 crore year on year.

Direct costs, including inventory changes, increased to Rs 110.29 crore from Rs 12.91 crore, reflecting the higher revenue base. Other expenses fell to Rs 20.98 crore from Rs 29.60 crore, leaving Rs 2.80 crore of EBITDA after the two cost lines were deducted from total income of Rs 134.07 crore.

Why did TARC make a profit despite a pre-tax loss?

TARC reported PAT of Rs 4.39 crore despite a profit before tax (PBT) loss of Rs 13.06 crore in Q2 FY2026-27. From EBITDA of Rs 2.80 crore, depreciation of Rs 2.25 crore and finance costs of Rs 13.61 crore produced the pre-tax loss.

The detailed table records a negative tax line of Rs 17.46 crore, compared with negative Rs 6.27 crore in Q2 FY2025-26, which moved the reported result from the pre-tax loss to PAT of Rs 4.39 crore. TARC's financial-highlights page instead states Q2 PAT of Rs 4.05 crore and a prior-year loss of Rs 15.63 crore; the presentation does not explain the difference from the detailed table.

What does TARC's H1 financial performance show?

TARC's first half (H1) FY2026-27 revenue rose to Rs 345.94 crore from Rs 82.77 crore in H1 FY2025-26, while total income increased to Rs 352.78 crore from Rs 329.47 crore. The smaller increase in total income reflected other income falling to Rs 6.84 crore from Rs 246.70 crore.

EBITDA declined to Rs 44.57 crore from Rs 90.75 crore, and EBITDA margin fell to 12.63% from 27.54%. Direct costs increased to Rs 255.63 crore from Rs 9.35 crore, while other expenses decreased to Rs 52.59 crore from Rs 219.37 crore; reported PAT was Rs 27.04 crore, compared with Rs 38.45 crore a year earlier.

Which developments are generating TARC's sales and collections?

TARC recorded H1 FY2027 pre-sales of Rs 955 crore and collections of Rs 462 crore across Tripundra, Kailasa and Ishva. Ishva produced Rs 494 crore of pre-sales and Rs 211 crore of collections, ahead of Kailasa at Rs 428 crore and Rs 168 crore respectively; Tripundra recorded Rs 33 crore of pre-sales and Rs 83 crore of collections.

The three projects have combined gross development value (GDV) of Rs 9,000 crore. Tripundra has about 5 lakh square feet of super built-up area and 187 units, while Kailasa and Ishva each have about 17 lakh square feet, with 417 and 480 units respectively.

What milestones and cashflows does TARC project?

TARC projects cashflows of Rs 1,600 crore to Rs 1,800 crore in FY27, Rs 1,800 crore to Rs 2,000 crore in FY28, Rs 2,300 crore to Rs 2,500 crore in FY29 and about Rs 4,000 crore in FY30. Management says the five-year projection is about Rs 10,000 crore, including existing and upcoming developments.

For FY2026-27, TARC lists revenue recognition of more than about Rs 1,000 crore from Tripundra, new-launch scaling and debt reduction as milestones. For FY2027-28, it lists improved cashflows, becoming cash positive and new investments in joint development agreement, joint venture and land opportunities; it expects revenue recognition for Kailasa and Ishva of about Rs 8,000 crore to begin in FY2029 and FY2030.

Conclusion

TARC's Q2 turnaround coincided with a shift in the composition of income toward revenue, which rose to Rs 128.81 crore while other income declined to Rs 5.26 crore. The company returned to reported quarterly PAT, but its H1 EBITDA was Rs 44.57 crore, below Rs 90.75 crore in the prior-year half, and Q2 finance costs were Rs 13.61 crore.

The next disclosed items to watch are TARC's planned Tripundra revenue recognition of more than about Rs 1,000 crore in FY2026-27, its debt-reduction plan and its aim to become cash positive in FY2027-28. Management also projects about Rs 4,000 crore of FY30 cashflow and the start of Kailasa and Ishva revenue recognition in FY2029 and FY2030.