TARC Ltd Reports Record Sales Amidst Financial Health Concerns and Market Volatility

TARC Ltd, a small-cap player in the realty sector, has recently undergone a financial trend adjustment, reflecting a notable shift in its performance metrics. The company reported its highest net sales for the quarter ending June 2025, reaching Rs 75.89 crore, alongside a peak profit after tax of Rs 54.23 crore and an earnings per share of Rs 1.84. These figures indicate a strong revenue generation capability during this period.
However, TARC faces significant challenges that could impact its overall financial health. The return on capital employed stands at a low -4.56%, and the operating profit to interest ratio is concerning at -7.87 times. Additionally, the company's debt-equity ratio is high at 1.87 times, suggesting a reliance on debt financing. The debtors turnover ratio is also low at 3.41 times, indicating potential issues with receivables management. Furthermore, the PBDIT is negative at Rs -120.32 crore, and non-operating income constitutes a substantial 269.39% of profit before tax, raising questions about the sustainability of its core operations.

In terms of market performance, TARC's stock has shown mixed results compared to the Sensex. Over the past year, TARC has experienced a decline of 20.91%, while the Sensex has gained 1.86%. However, the company has demonstrated remarkable growth over a three-year period, with a return of 340.94%, significantly outperforming the Sensex's 35.25% increase. This juxtaposition highlights the volatility and potential of TARC within the broader market context.