TARC Limited disclosed on August 13, 2026, that Doogar & Associates has tendered its resignation as the statutory auditor of its material subsidiary, TARC Projects Limited. The resignation is effective from the financial year 2026-27.

The audit firm stated that its tenure as statutory auditor for the holding company will conclude at the forthcoming annual general meeting. To align its position as group auditor, Doogar & Associates will not continue with the subsidiary. The firm submitted its latest limited review report for the quarter ended June 30, 2026, on August 10, 2026, prior to the resignation.

Resignation Details

Doogar & Associates was appointed as the statutory auditor of TARC Projects Limited on September 30, 2025. Its term was scheduled to expire at the conclusion of the annual general meeting for the financial year 2029-30.

The company filed the intimation under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure references SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Key Particulars

The auditor confirmed in its declaration that there are no other material reasons for the resignation beyond those stated. No concerns regarding management-imposed limitations or lack of information were reported.

TARC Limited reported a consolidated profit after tax (PAT) of ₹22.65 crore for the quarter ended June 30, 2027 (Q1FY27), marking a significant sequential recovery from ₹1.61 crore in Q4FY26. Revenue from operations stood at ₹217.13 crore, up from ₹208.70 crore in the previous quarter, driven primarily by continued revenue recognition from its flagship project, TARC Tripundra. EBITDA surged to ₹41.76 crore from ₹1.05 crore in Q4FY26, reflecting improved operational efficiency and margin expansion as direct costs stabilized relative to higher realizations.

The strong quarterly performance underscores the company’s transition toward stable earnings visibility. Managing Director & CEO Amar Sarin stated that revenue recognition from TARC Tripundra, coupled with robust cashflows, has strengthened the earnings profile. The Board also highlighted the appointment of Singhi & Co. as statutory auditor to enhance governance standards. Looking ahead, TARC projects generating approximately ₹10,000 crore in cashflows over the next five years, supported by a fully paid land bank and a focus on ultra-luxury developments in Delhi and Gurugram.

Financial Performance

Consolidated total income for Q1FY27 was ₹218.71 crore, comprising ₹217.13 crore from operations and ₹1.58 crore in other income. This compares to ₹300.02 crore in total income during Q4FY26, which included ₹91.32 crore in other income. Direct costs, including inventory changes, decreased significantly to ₹145.34 crore from ₹258.82 crore in Q4FY26, contributing to the EBITDA improvement. Finance costs remained relatively stable at ₹17.69 crore.

EBITDA margin expanded to 19.10% from 0.35% in the prior quarter. Net profit margin stood at 10.36%, up from 0.54%. The company maintained a debt-equity ratio of 1.67, indicating steady deleveraging efforts.

Strategic Outlook & Pipeline

TARC Limited outlined a clear roadmap for future growth, targeting over ₹1,000 crore in revenue recognition from TARC Tripundra in FY27. The company plans to scale up new launches and pursue joint development agreements (JDAs) and land investments in FY28. Major upcoming projects, Kailasa and Ishva, are expected to begin revenue recognition in FY29-FY30, potentially contributing ~₹8,000 crore in future revenues.

The luxury segment in Delhi remains supply-constrained with near-zero developable land in the urban core, supporting long-term pricing power. TARC’s pipeline includes three planned ultra-luxury developments in Delhi, spanning approximately 2.5 million square feet across 10 acres, all with approvals in place. These projects emphasize curated living experiences, smart home systems, and sustainable design, catering to HNIs and NRIs.

What the Numbers Show

The dramatic QoQ improvement in EBITDA and PAT highlights the normalization of operational metrics after a volatile prior quarter. While total income declined due to lower other income, the core operating profitability strengthened significantly. The shift from one-time gains to consistent revenue recognition from TARC Tripundra suggests improving earnings quality. With a fully paid land bank and high-margin luxury positioning, TARC is well-positioned to capitalize on the underserved ultra-luxury demand in Delhi, though execution risks remain inherent in large-scale real estate projects.