TVS Supply Chain Solutions LimitedLogistics & TransportationTVSSCS
Q1 FY27 concall · earnings callTVS Supply Chain Solutions Limited
TVSSCS delivered record quarterly revenue and new business wins, with both segments showing strong growth and a clear path to improved profitability.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹3,335.2 Cr | 28.7% | |
| Adjusted EBITDA | ₹232.2 Cr | 34% | |
| Adjusted EBITDA Margin | 7% | 30 bps | |
| Adjusted PBT | ₹32.1 Cr | 70.7% | |
| New Business Wins | ₹543 Cr | — | |
| ISCS Revenue | ₹2,417 Cr | 21.9% | |
| GFS Revenue | ₹918 Cr | 50.6% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹2,444.62 Cr+10% YoY-2.7% QoQ | ₹-23.80 CrTurned loss-making YoYTurned loss-making QoQ | ₹-0.56Turned negative YoYTurned negative QoQ |
| Q2 FY25 | ₹2,512.88 Cr+11% YoY-1% QoQ | ₹10.61 CrTurned profitable YoY+42% QoQ | ₹0.21Turned positive YoY+40% QoQ |
| Q1 FY25 | ₹2,539.39 Cr+8.4% YoY+4.7% QoQ | ₹7.47 CrTurned profitable YoY+38.8% QoQ | ₹0.15Turned positive YoY+50% QoQ |
| Q4 FY24 | ₹2,426.31 Cr— YoY+9.2% QoQ | ₹5.38 Cr— YoY-46.1% QoQ | ₹0.10— YoY-54.5% QoQ |
| Q3 FY24 | ₹2,221.84 Cr— YoY-1.8% QoQ | ₹9.99 Cr— YoYTurned profitable QoQ | ₹0.22— YoYTurned positive QoQ |
TL;DR
- Consolidated revenue reached a quarterly high of Rs 3,335.2 crores, up 29% year-on-year.
- New business wins hit an all-time high of Rs 543 crores, representing 21% of Q1 FY26 revenue.
- Adjusted PBT grew 70.7% year-on-year to Rs 32.1 crores.
- GFS segment margins improved significantly to 4.1%.
- Order pipeline remains robust at Rs 7,500 crores plus.
- Management is focused on growth, technology, and strategic partnerships.
Said on the call
“Q1 FY '27 marked a pathbreaking performance for us. I don't think we could have asked for a better start for team TVS SCS.”
From the Q&A
| Topic | What management said |
|---|---|
| ISCS Margin Decline | Management attributed the dip from 9.3% to 8.1% to initial implementation costs for new contracts and the absence of Q4's price correction benefits. They expect margins to improve sequentially, targeting 9% in Q2 and 9.5%-10% by Q4. |
| 4% PBT Margin Aspiration | While Q1 PBT margin was 1%, management reaffirmed the aspiration to reach 4%, though they indicated it may be achieved in FY28. They expect margins to improve with revenue growth and operating leverage. |
| Defence & Aerospace JV | The joint venture with ALA Group is in the certification phase, with revenue expected in H2 FY27. Management sees potential for the JV to reach Rs 2,000 crores in revenue in its fifth year, and expects it to be margin-accretive. |
| Growth vs. Margin Focus | Management emphasized a focus on 'profitable growth', stating all new contracts are margin-accretive and that profit growth will have a bigger multiple than revenue growth. |
| Business Conversion Pipeline | With a pipeline of Rs 7,500+ crores, management expects a conversion rate of 20-25% over the next 12-18 months. Of the recent new business wins, roughly two-thirds came from existing customers and one-third from new logos. |
| GFS Margin Sustainability | Strong Q1 GFS margins (4.1%) were driven by volume growth, cost optimization, and better sourcing. While volume growth may moderate, management expects margins to 'by and large, remain around this number'. |
| Fuel & Cost Risks | Management stated that fuel cost increases are contractually passed on to customers, albeit with a potential time lag. Manpower cost increases are also passed through. |
| Merger of Subsidiaries | The amalgamation of certain 100% subsidiaries is aimed at reducing compliance costs and easing operations, with no equity dilution expected. |
Guidance
- Aspire to grow revenues by mid-teen growth for the full year.
- ISCS margins expected to sequentially improve, targeting 9% in Q2 and 9.5%-10% by Q4.
- Aspire to reach a 4% PBT margin, potentially in FY28.
- Expect GFS EBITDA margins to remain around 4.1% and target reaching 5%.
- Defence & Aerospace JV revenue to commence in H2 FY27.
- Expect order pipeline conversion rate of 20-25% over the next 12-18 months.
- H2 is typically stronger than H1 for the business.
Source
Summary written from the transcript filed by TVS Supply Chain Solutions Limited for the call held on 11 Aug 2026; published 20 Aug 2026, 19:06 IST.
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