In conversation with Amar Sarin, Managing Director & CEO, TARC Limited

Catch the MD & CEO’s perspective on the company’s financial performance, upcoming project pipeline, strategic priorities, and renewed focus on the real estate segment in light of the recent repo rate cut.

The company recorded a robust 25 per cent year-on-year revenue growth in Q4FY25; however, profitability witnessed a notable decline. Could you elaborate on the key drivers behind the revenue growth and the strategic measures being undertaken to improve the bottom line?

As per the Accounting Standard India has for Real Estate, revenue can be recognised only at the time of project delivery. Therefore, even though we are registering a strong YoY sales growth from our projects under construction, the same is not reflected in the books as revenues. The revenues from our sales will start to get recognised upon delivery in FY25-26 when we shall deliver our pioneer development, TARC Tripundra, which is nearing completion. What’s more important to recognise at this juncture is market acceptability for our product being reflected in the exceptional sales performance, which has grown over 7x in the last three years.

This demonstrates growing customer trust and strong demand for our luxury flats. It is also important to recognise potentially strong operating margins that our developments recognise given that the land parcels on which they are being developed are already fully paid and are recognised in the books at a historical valuation. Further, our focus on execution enables us to complete the project without time and cost overruns. It is also worth highlighting that we shall be delivering Tripundra much ahead of its delivery deadline.

Could you provide insights into the upcoming development pipeline valued at Rs 10,000 crore?

Apart from our current ongoing pipeline of Rs 7,700 crore, our upcoming development pipeline will have GDV of approximately Rs 10,000 crore, reflecting our strong visibility and preparedness for growth. The pipeline comprises marquee luxury residential projects across New Delhi and Gurugram, strategically located in high-demand micro-markets. These projects are currently at various stages of planning, design finalisation, and approvals. We are placing a strong emphasis on differentiated product offerings, sustainability features, and curated lifestyle amenities. This pipeline not only reinforces our long-term development strategy but also ensures continuity in revenue and cash flow generation over the near and medium term.

With three projects worth Rs 7,700 crore in GDV already launched, could you elaborate on the specifics of these developments and your current execution timeline?

We have successfully launched three key luxury projects:

1. TARC Tripundra, New Delhi: With a GDV value of approximately Rs 1,000 crore, this development is reaching completion and almost sold out. This development exemplifies our execution capabilities and a strong resonance of our brand in the luxury segment.

2. TARC Kailasa, New Delhi: With a GDV value of approximately Rs 4,000 crore, this development has received an exceptional market response. Phase 1 is fully sold out. The new sample flat is currently being constructed. We are currently gearing up to release the balance inventory during the festive season, later this year, and expect the project to fully sell soon. Kailasa is designed around urban luxury, offering large format 3 & 4 BHK residences with a blend of privacy and panoramic city views, a diverse range of amenities delivering a refined urban living experience.

3. TARC Ishva, Gurugram: With a GDV value of approximately Rs 2,700 crore, the project was launched in September 2024. This development has witnessed strong early sales traction. It offers one-of-a-kind four-side open 3 & 4 BHK residences, with premium wellness and lifestyle amenities, designed for the evolving aspirations of the city’s elite. Construction across all three projects is progressing at a fast pace. We remain firmly committed to timely delivery, backed by a focus on quality, operational efficiency, and customer satisfaction. In the case of TARC Tripundra, launched in October 2022, we plan to deliver the project much ahead of its schedule within the current financial year itself.

With affluent investors increasingly viewing luxury residential properties as a means for capital appreciation, how is the company positioning itself to leverage this trend, especially given its focus on the luxury segment?

The shift towards luxury real estate as a preferred choice of customers is becoming more pronounced, with affluent buyers seeking both capital appreciation and lifestyle value. Our positioning is well-aligned with this trend. We are curating exclusive living experiences that combine design, privacy, security, and state-of-the-art amenities. By focusing on central and highly aspirational locations, we cater to a discerning audience that values brand credibility, bespoke offerings, and long-term value. Our ongoing and upcoming projects are tailored to meet this demand, with a clear emphasis on design excellence, smart living solutions, and community-driven spaces. We remain committed to our brand philosophy: ‘Differentiated Luxury. Curated Residences.’ This underlines our approach of creating timeless, high-quality assets that not only elevate lifestyles but also offer compelling investment potential.

Lastly, how do you anticipate the recent RBI decision to reduce the repo rate will impact your business? What is your outlook on the sector's growth trajectory in the near term?

The recent reduction in the repo rate serves as a significant catalyst for the residential real estate sector, particularly benefiting the luxury housing segment. This monetary policy adjustment effectively lowers borrowing costs, thereby enhancing the affordability of home loans for prospective buyers. As a result, it reinforces the aspirations of affluent Indian consumers who are increasingly seeking residences that not only provide comfort but also align with their evolving lifestyles and preferences. The structural demand in the luxury segment remains robust, driven by factors such as rising disposable incomes, urbanisation, and a growing emphasis on quality living spaces. This repo rate cut is expected to further stimulate buyer confidence and accelerate transaction volumes, thereby injecting meaningful momentum into the housing market. The repo rate reduction is poised to strengthen the housing sector’s growth trajectory, supporting both end-users and long-term investors in their pursuit of high-end residential properties.