Realty Stock Soars 12% After Reporting 200% Pre-Sales Growth in Q1 FY27

Synopsis: A Delhi-focused luxury developer has kicked off the new fiscal year with sharp sales momentum, an over threefold jump in quarterly bookings and stronger collections, following a turnaround year that erased a heavy loss.

After years of losses, this luxury real estate player finally turned the corner in FY26, and the momentum has carried straight into the new financial year. Fresh operational numbers for the June quarter show presales tripling year-on-year, collections surging, and construction across ongoing projects marching ahead. Here’s a closer look at the numbers.

With a market cap of Rs. 4,128 Crores, the shares of TARC Ltd. are trading at Rs.140 i.e. 12.4% up from its previous closing price of Rs.124.53. It is trading at a P/E ratio of 193.1.

Strong Start to FY27

TARC Limited has kicked off FY2027 with a bang. For the quarter ended June 30, 2026, the company reported presales of ₹602 crore, a 3x (200%)  jump compared to the same period last year. Collections came in at ₹305 crore, up 80% year-on-year. Management credited this to solid customer conversions and improved collection efficiency, both of which are giving the company better visibility on future cash flows.

This follows a full turnaround in FY26. The company’s consolidated total income for the year stood at ₹671.78 crore, up sharply from just ₹38.89 crore in FY25. EBITDA turned positive at ₹77.51 crore against a negative EBITDA of ₹127.77 crore a year earlier, a swing of over ₹205 crore. Profit after tax came in at ₹19.03 crore, compared to a net loss of ₹231.29 crore in FY25.

What’s Driving the Turnaround

A large part of this improvement traces back to TARC Tripundra, the company’s boutique residential project in New Delhi. Revenue recognition from this project began in Q4 FY26, and management pegs the project’s embedded gross margin at around 45%. Of the total project GDV of roughly ₹1,000 crore, about ₹270 crore was recognised as revenue in FY26, with the remaining ₹730 crore expected to flow in through FY27.

Beyond Tripundra, the company commenced customer handovers during the year, a milestone it describes as reinforcing both its delivery capability and execution discipline. It also introduced premium tower inventory at TARC Kailasa and launched a new tower, “Ishvara,” at TARC Ishva in Gurugram, expanding that project’s development footprint to 1.7 million square feet and lifting its GDV potential to about ₹3,600 crore.

For FY26 as a whole, presales across all three ongoing developments totalled ₹1,373 crore, while collections stood at ₹799 crore. The company also reported its highest-ever business cash flows of ₹1,132 crore for the year, more than double the previous year’s figure.

Pipeline and Debt Plans

TARC’s ongoing developments carry a combined GDV of around ₹9,000 crore, and the company says a similar-sized pipeline is under finalisation. This includes three planned ultra-luxury projects in Delhi, spanning roughly 2.5 million square feet in total, for which approvals are in place and design finalisation is underway.

On the balance sheet side, the company has laid out a path to becoming net-debt zero, banking on rising cash inflows from both ongoing and upcoming projects. It has also projected cumulative cash flows of about ₹10,000 crore over the next five years, with yearly inflows expected to rise steadily from FY27 through FY30.

About the Company

TARC Limited is a New Delhi-based real estate developer focused on the luxury and ultra-luxury residential segment across Delhi and Gurugram. The company follows a “Differentiated Luxury Curated Residences” approach, built on an owned and fully paid land bank. Its ongoing projects include TARC Tripundra, TARC Kailasa and TARC Ishva. 

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