TVS Supply Chain Solutions (TVSSCS) Q1 25/26 earnings summary

Executive summary

• Achieved year-on-year and sequential growth in consolidated revenue and profitability for Q1 FY2026, supported by disciplined execution, cost focus, and strategic investments, including Project One and segment integration in the U.K. and Europe.

• Major turnaround in Integrated Final Mile (IFM) business in the U.K. and Europe, reflecting benefits from structural changes and Project One transformation.

• Asset-light strategy delivered value via TVS ILP InvIT, transferring 11 million sq. ft. to an InvIT and realizing a one-time profit share of ₹177 crore.

• Board approved unaudited financial results for the quarter and appointed Deloitte Touche Tohmatsu India LLP as internal auditor for FY 2025-26.

• ISCS business remains resilient, IFM shows strong performance, while GFS faces macroeconomic pressures but is supported by group-wide initiatives.

Financial highlights

• Consolidated revenue reached ₹2,592 crore, up 3.7% sequentially and 2.1% year-on-year, with new business wins contributing ₹124 crore.

• Adjusted EBITDA was ₹173 crore with a margin of 6.7%, showing recovery from Q4 FY2025 but a 6.5% decline year-on-year.

• Adjusted PBT (excluding associate profits) improved to ₹19 crore, up 29.3% year-on-year; including TVS ILP share, Adj. PBT reached ₹196 crore.

• Reported PAT for the quarter was ₹71.2 crore, up from ₹7.5 crore year-on-year and a loss of ₹3.9 crore in Q4 FY2025.

• Basic consolidated EPS was ₹1.60, compared to ₹0.15 year-on-year and a loss of ₹0.11 sequentially.

Outlook and guidance

• Targeting 4% PBT margin by Q4 FY2027, driven by IFM turnaround, Project One cost savings, and operating leverage.

• Robust business development pipeline of ₹5,300 crore supports confidence in double-digit growth.

• Medium-term goal to achieve industry best-in-class PBT margin of 8–11%.

• ISCS segment expected to achieve 10–10.5% EBITDA margin and 15% revenue growth in the medium term.

• GFS segment normalized EBITDA margin expected at 3–3.5%.