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TARC Ltd

| Quarterly Financial Results Q3 FY 2025-26

BEARISH SENTIMENT

Report Source

⬤7th Feb 26

Summary : TARC Limited reported significant consolidated losses for Q3 and 9M FY26, with an unmodified limited review from auditors, operating solely in real estate.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Q3 FY26: Construction Rs 733.53 Lakhs, Employee benefits Rs 759.05 Lakhs, Finance costs Rs 1,089.16 Lakhs, Depreciation Rs 239.44 Lakhs, Other expenses Rs 4,166.04 Lakhs. Standalone Q3 FY26: Construction Rs 514.54 Lakhs, Employee benefits Rs 430.45 Lakhs, Finance costs Rs 1,068.04 Lakhs, Depreciation Rs 66.45 Lakhs, Other expenses Rs 1,914.90 Lakhs.
  2. Consolidated Q3 FY26: Operations Rs 3,837.69 Lakhs, Other Income Rs 392.45 Lakhs. Consolidated 9M FY26: Operations Rs 12,114.23 Lakhs, Other Income Rs 25,062.56 Lakhs. Standalone Q3 FY26: Operations Rs 3,203.31 Lakhs, Other Income Rs 156.46 Lakhs. Standalone 9M FY26: Operations Rs 3,381.06 Lakhs, Other Income Rs 537.36 Lakhs.
  3. Consolidated Net Worth: Rs 1,06,037.61 Lakhs (Dec 31, 2025). Standalone Net Worth: Rs 1,09,855.48 Lakhs (Dec 31, 2025). Paid-up Equity Share Capital: Rs 5,901.93 Lakhs.
  4. Consolidated results show a loss of Rs (2,102.80) Lakhs for Q3 and a profit of Rs 1,742.02 Lakhs for 9M. Standalone results show a profit of Rs 161.85 Lakhs for Q3 and a loss of Rs (16,236.04) Lakhs for 9M.

Corporate Overview

  1. Operations domiciled in India; no reportable geographical segment.
  2. Significant consolidated and nine-month standalone losses reported.
  3. Operates in a single business segment: Real estate business.
  4. Formal and compliant in reporting financial results.
  5. Revenue from operations (main segment).

Risk Factors

  1. Significant consolidated losses reported.
  2. Negative earnings per share.
  3. High debt-equity ratio.
  4. Auditor did not review subsidiary financials.

Key Drivers

  1. Unmodified limited review report.
  2. Board approved financial results.
  3. Compliance with SEBI regulations.
  4. Focus on real estate business.

Auditor’s Report

  1. Unmodified limited review report on financial results.
  2. Auditors did not review financial results of 36 subsidiaries, 1 partnership firm, 2 LLPs, and 1 associate company's share of loss was not accounted for as it exceeded investment.
  3. Auditor's conclusion is not modified regarding non-review of certain subsidiary/associate financials.

Board Commentary

  1. Potential impact from new Labour Codes, currently assessed as no impact on gratuity/leave encashment.
  2. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Corporate Governance

  1. Audit Committee reviewed and recommended financial results to the Board.

Management Discussion & Analysis

Performance Drivers

  1. Financial performance driven by real estate operations, resulting in significant losses.

Risk Control Measures

  1. Monitoring finalization of Central/State Rules and clarifications regarding Labour Codes.

Critical Risks

  1. Potential impact from new Labour Codes, though currently assessed as no impact on gratuity/leave encashment.