TVS Supply

TVS Supply Chain Solutions reported a strong finish to FY26, with consolidated revenue reaching ₹3,032 crores in Q4, a 21.3% year-on-year and 11.7% sequential growth. This marks the first time the company has surpassed the ₹3,000 crore quarterly revenue milestone. For the full year FY26, consolidated revenue grew by 10.1% to ₹11,003 crores. Adjusted Profit Before Tax (PBT) for FY26 saw a significant 166% increase, reaching ₹99.3 crores compared to ₹37.3 crores in FY25, reflecting improved profitability and operational efficiency.

The Integrated Supply Chain Solutions (ISCS) segment demonstrated robust growth, with Q4 FY26 revenue at ₹2,283 crores, up 17.5% YoY and 15.4% QoQ. Its adjusted EBITDA margin improved to 9.3% in Q4 FY26 from 8.5% in Q4 FY25. The Global Forwarding Solutions (GFS) segment recorded Q4 FY26 revenue of ₹748.8 crores, a 34.8% YoY growth, primarily driven by strong India ocean freight volumes. Despite global freight rate pressures, GFS adjusted EBITDA margin improved to 2.4% in Q4 FY26 from 1.6% in Q4 FY25, aided by cost optimization initiatives.

Overall adjusted EBITDA for Q4 FY26 stood at ₹222 crores, a 37.5% YoY increase, with the margin expanding by 80 basis points to 7.3%. For the full year, adjusted EBITDA was ₹773 crores, up 14.5% from FY25. The company's cost initiatives, including 'Project One', have yielded positive results. Employee costs increased due to inflation and new projects, but the company is optimizing lease commitments to manage expenses, transitioning to medium and short-term rental arrangements where feasible.

TVS Supply Chain Solutions achieved record new business wins in Q4 FY26, totaling ₹523.7 crores, which represents 21% of Q4 FY25 revenue. For the full year, new business wins amounted to ₹1,206.7 crores, or 12.1% of FY25 revenue. The company added 9 new Fortune 500 customers, bringing the total to 100, signifying growing relevance in the global marketplace. The order pipeline remains robust at ₹6,100 crores, with a typical conversion ratio of around 22%.

The company completed the acquisition of Swamy & Sons 3PL, which is expected to strengthen its capabilities in the FMCG and consumption-led supply chain space in India and be margin accretive for the India business in FY27. TVS SCS continues to be a tech-led company, integrating AI and robotics in operations and has had a patent accepted for its unified logistics platform. The company is also exploring opportunities in the defense and aerospace sector through a recently signed MOU with ALA.

TVS SCS maintains an asset-light business model, with most assets related to warehouses. The company reported net debt of approximately ₹350-370 crores as of March 31, 2026. The majority of its debt is short-term working capital, with only about ₹120 crores being long-term. The company generated ₹243 crores of operating cash for FY26, reflecting improved profits and efficient working capital management, and holds strong India AA ratings.

Management is optimistic about achieving double-digit, potentially early teen, revenue growth for the upcoming year, with ISCS expected to be a strong contributor. They aim for ISCS adjusted EBITDA margins of 9.5% to 10% and overall adjusted EBITDA margins of 7.3% to 7.4%. The focus remains on increasing new business wins to 12-15% of revenue and improving the order conversion ratio. The company is committed to sequential PBT growth and leveraging its technology-led solutions and deep customer relationships to drive future expansion.