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    TVS Supply

    TVSSCSGood
    Services·14 Nov 2025
    Management Summary

    TVS Supply Chain Solutions reported a strong Q2 FY26, marked by robust revenue and profit growth, particularly driven by its Integrated Supply Chain Solutions (ISCS) segment. Consolidated revenue grew 6% year-on-year to INR2662.6 crores, with PBT and PAT seeing significant increases of 30.8% and 54% respectively. While the Global Forwarding Solutions (GFS) segment faced macro headwinds, management expressed cautious optimism for its stabilization and continued focus on margin expansion across the business.

    Highlights

    8

    • Consolidated revenue for Q2 FY26 stood at INR2662.6 crores, up 6% YoY.

    • Adjusted EBITDA was INR178.5 crores, with a healthy margin of 6.7%.

    • PBT improved by 30.8% YoY to INR23.32 crores.

    • PAT increased by 54% YoY to INR16.31 crores.

    • ISCS segment delivered strong performance with EBITDA margins expanding to 8.7% in Q2 FY26.

    • GFS segment revenue was flat YoY at INR669.6 crores, with margins at 2.2%.

    • New business wins in the quarter amounted to INR204 crores.

    • Order pipeline remains healthy at INR6,200 crores.

    What Changed2

    vs Q3 FY26

    Guidance items5 → 11 (+6)Q&A highlights8 → 3 (-5)
    Key financials

    Metrics

    7

    Periods

    2

    Headline

    6
    • Revenue
      ₹2,662.6 Cr
      YoY+6%QoQ+2.7%
    • Adjusted EBITDA
      ₹178.5 Cr
    • Adjusted EBITDA Margin
      6.7%
    • PBT
      ₹23.32 Cr
      YoY+30.8%
    • PAT
      ₹16.31 Cr
      YoY+54%

    H1 FY26

    1
    • Cash from Operations
      ₹105 Cr

    Segment breakdown

    • Integrated Supply Chain Solutions (ISCS)₹1,993 Cr74.9%
    • Global Forwarding Solutions (GFS)₹669.6 Cr25.1%
    Donut· Share of Revenue

    Guidance & targets

    11
    CategoryTargetPriority
    Profitability
    PBT Margin
    4%
    		High
    Profitability
    GFS EBITDA Margin
    3.5% to 4%
    		Medium
    Savings
    Project One Annualized Savings
    INR110 crores to INR120 crores
    		High
    Savings
    Project One In-year Savings
    INR50 crores to INR60 crores
    		High
    Revenue Growth
    India Business QoQ Growth
    4% to 5%
    		High
    Revenue Growth
    North American Business Growth
    150 to 200
    		Medium
    Revenue Growth
    Overall Revenue Growth
    Mid-teen growth
    		Medium
    New Business Contribution
    New Business as % of Revenue
    10% to 12%
    		Medium
    New Business Wins
    New Business Wins (Quarterly)
    INR300 crores to INR350 crores
    		Medium
    Revenue
    North American Business Top Line
    $0.5 billion
    		Low
    Margin
    ISCS Margin Improvement
    Sequential improvement
    		High

    Risks & concerns

    5
    RiskSeverity

    Challenging macro environment for GFS segment.

    GFS segment faced headwinds from challenging macro, leading to flat revenue YoY and declining margins, though sequential improvement was noted. Management is cautiously optimistic and expects stabilization by fiscal year-end. — Management acknowledged

    medium

    Persistent pricing pressure in GFS segment.

    Despite volume recovery, GFS margins are impacted by continued rate pressures, with the decline primarily driven by price. — Management acknowledged

    medium

    Impact of tariffs on GFS business.

    Tariffs are impacting only a very small portion of the India GFS business and do not have an overall significant impact on TVS Supply Chain Solutions as a whole. However, India export perspective needs a watch. — Management downplayed

    low

    Areas of Evasion(2)

    • Specific timeline for North America $0.5 billion revenue target
    • Exact quantification of tariff impact on GFS beyond 'small portion'

    Q&A highlights

    3

    “Out of the INR6,200 crores, roughly one-third is from the India business. And like I said, we have had some significant wins in Q2, which will start giving us revenue in Q3. So it goes very well from a revenue growth perspective for India. ... we were exiting a a significant amount of what I would call low-margin accounts in India and many of the business wins that we had filled that gap and some of the projects that we were expecting to start last quarter actually -- got delayed and started only by the end of last quarter.”

    Clarifies the reasons for flat India ISCS revenue despite a strong pipeline and provides specific data on India's contribution to the overall order book, indicating future growth potential.

    asked by Disha Giria

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Driven by ISCS Segment

    TVS Supply Chain Solutions delivered a landmark Q2 FY26, with consolidated revenue growing 6% year-on-year to INR2662.6 crores. This growth was primarily fueled by the Integrated Supply Chain Solutions (ISCS) segment, which saw an 8.4% year-on-year revenue increase to INR1,993.0 crores. The ISCS segment also demonstrated significant margin expansion, with EBITDA margins reaching 8.7% in Q2 FY26, up from 8.2% in the prior year.

    02

    Profitability Surges with PBT and PAT Growth

    The company reported a substantial improvement in profitability, with PBT increasing by 30.8% year-on-year to INR23.32 crores in Q2 FY26, and PAT surging by 54% year-on-year to INR16.31 crores. This marks the best PBT since public listing and the second consecutive quarter of positive PAT, reflecting focused execution and disciplined cost management. Consolidated adjusted EBITDA for the quarter stood at INR178.5 crores, maintaining a healthy margin of 6.7%.

    03

    GFS Segment Faces Headwinds but Shows Sequential Improvement

    The Global Forwarding Solutions (GFS) segment experienced macro headwinds🌐, resulting in flat year-on-year revenue at INR669.6 crores and a decline in EBITDA margins to 2.2% from 4.2% in Q2 FY25. However, the segment showed sequential improvement, with revenue growing 9.9% from INR609.4 crores in Q1 FY26 and EBITDA margins modestly increasing from 2.1% to 2.2% sequentially, signaling early signs of stabilization. Management is cautiously optimistic💬 about its recovery, targeting 3.5-4% EBITDA margin in the near term.

    04

    Strategic Initiatives and Cost Management Drive Future Profitability

    TVS Supply Chain Solutions is actively implementing "Project One" in the UK and Europe, which is on track to deliver annualized savings of INR110-120 crores, with INR50-60 crores expected in-year. These initiatives, coupled with rightsizing and right-shoring, are expected to further enhance profitability. The company aims to achieve a 4% PBT margin by Q4 FY27, driven by these strategic actions and an improving business mix.

    05

    Robust Business Development and Healthy Order Pipeline

    The company secured new business wins totaling INR204 crores in Q2 FY26, representing 8.1% of Q2 FY25 revenue. The order pipeline remains strong at INR6,200 crores, providing solid revenue visibility. Approximately one-third of this pipeline, or INR2,066 crores, is attributed to the India business, which is expected to see 4-5% quarter-on-quarter growth going forward⏳, supported by new contract wins and anticipated uptick in volumes due to GST changes.

    06

    North America Expansion and Debt Position

    TVS Supply Chain Solutions has an aspiration to achieve $0.5 billion in top line for its North American business, with plans to grow it by 150-200 (likely percentage) over the next year or so. The company's net debt as of September 2025 stood at INR285.7 crores, an increase from INR232.2 crores in March 2025, primarily due to capex funding for a major project in SCS North America. Cash from operations for H1 FY26 was INR105 crores, reflecting improved financial discipline.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.