TARC shares fall 4.29% in week as MarketsMojo cuts rating to Strong Sell

What happened

MarketsMojo, a stock-rating service, downgraded TARC Ltd from Sell to Strong Sell. Its own articles date the change to 7 October 2026. A second MarketsMojo article gives the effective date as 6 October 2026. This report uses 7 October with that discrepancy noted.

MarketsMojo said the downgrade reflected deteriorating technical indicators and weak fundamentals. The rating is an opinion from a research service. It is not a regulator action, a lender decision or a company announcement.

Reasons MarketsMojo gave

• Mojo Score: 29.0, with the grade cut from Sell to Strong Sell.
• Main driver: a technical grade change from mildly bearish to bearish.
• Technical signals: daily moving averages and monthly MACD were described as showing sustained downward pressure.
• Fundamentals: MarketsMojo cited negative EBITDA and poor debt servicing capacity.

The EBITDA claim conflicts with TARC's own Q1 FY27 figures, which report positive EBITDA of Rs 41.76 crore (see below). Readers should weigh the rating with that conflict in mind.

MarketsMojo also noted that TARC was not the first stock in its coverage to receive a Strong Sell grade in 2026. An earlier article dated 13 January 2026 recorded a Strong Sell grade with a Mojo Score of 23.0.

Price movement through the week

According to MarketsMojo's daily account, the stock moved as follows:

• 5 Oct 2026: week opens at Rs 122.50.
• 6 Oct 2026: gains 1.47% to Rs 124.30.
• 7 Oct 2026: downgrade to Strong Sell; technical momentum shifts.
• 8 Oct 2026: falls 4.25% to Rs 117.05.
• 9 Oct 2026: recovers slightly to Rs 117.25 (+0.17%).

MarketsMojo said the 4.29% weekly fall outpaced the Sensex's 0.57% decline over the same period. The 52-week high and low figures found in searches differ between sources, so they are not used here.

The company's own numbers

TARC describes itself as a New Delhi-based luxury residential developer. Its Q1 FY27 operating update, dated 7 July 2026, reported presales of Rs 602 crore, about three times the year-earlier level, and collections of Rs 305 crore, up about 80%. A Multibagg article gives collections of Rs 805 crore, which conflicts with the company figure. This report uses the company's Rs 305 crore.

The company's Q1 FY27 financials, as reported by the press, show consolidated profit after tax of Rs 22.65 crore, against Rs 1.61 crore in Q4 FY26. Revenue from operations was Rs 217.13 crore. EBITDA rose to Rs 41.76 crore from Rs 1.05 crore in Q4 FY26. One report gives PAT as Rs 22.64 crore. These figures are the company's and have not been independently assessed.

For the full year, the company recorded sales of Rs 1,373 crore in FY26, according to the press reports reviewed.

Filings in the same period

On 30 September 2026, TARC notified BSE and NSE that its trading window for dealing in company securities would close from Thursday, 1 October 2026. Kalkine describes this as a routine compliance measure under the SEBI (Prohibition of Insider Trading) Regulations, 2015.

On 9 October 2026, TARC filed a compliance certificate with both exchanges. It covers the quarter ended 30 September 2026 and confirms that dematerialisation formalities were completed by the registrar, Skyline Financial Services Private Limited. The registrar's Regulation 74(5) certificate is dated 3 October 2026. Neither filing refers to the MarketsMojo rating.

What it changes for buyers, investors and the market

For investors: the story is about the share price. MarketsMojo framed the downgrade as a caution signal and attributed the 4.29% weekly fall to growing investor caution and weaker technical momentum.

For homebuyers: the reports reviewed contain no statement that the rating affects bookings, possession timelines or project delivery. No regulator, lender or company statement reacting to the rating was found.

For the market: one week of price action and one research-service grade do not establish a trend. The rating does not change TARC's reported results.

What comes next

• Q2 FY27 results: the trading window remains closed until 48 hours after the unaudited results for the quarter and half year ended 30 September 2026 are declared.
• Project revenue: the company states that FY 2026-27 includes revenue recognition of over about Rs 1,000 crore from TARC Tripundra in New Delhi.
• Projected cashflows (company presentation, as summarised by Multibagg): Rs 1,600 to 1,800 crore for FY27, Rs 1,800 to 2,000 crore for FY28, Rs 2,300 to 2,500 crore for FY29 and Rs 2,800 to 3,000 crore for FY30. These are projections, not results.

The next scheduled data point for investors is the Q2 FY27 results release. Whether the MarketsMojo rating changes will depend on the numbers reported then.

Background on TARC projects

TARC Tripundra is a boutique development in Pushpanjali Greens, New Delhi, which comprises three towers and 187 luxury residences. TARC Ishva is in Sector 63A along Golf Course Extension Road, Gurugram. In November 2024, the company reported that it had sold 50% of TARC Ishva, worth Rs 1,350 crore, and the stock rose 3.31% that day.