TVS Supply Chain Solutions announced a strong performance for Q3 FY26 (quarter ending December 31, 2025), marked by double-digit revenue growth of 11.1% year-on-year. Adjusted EBITDA saw a step change growth of 31.2%, expanding margins to 7.3%. The company also highlighted significant new business wins totaling INR319 crores in Q3 and confirmed the acquisition of Swamy & Sons is proceeding, expected to be accretive.
Q3 FY26 Financial Highlights
TVS Supply Chain Solutions reported a robust performance for the third quarter of FY26, ending December 31, 2025. Consolidated revenue grew by 11.1% year-on-year. A significant highlight was the 31.2% growth in adjusted EBITDA, pushing the adjusted EBITDA margin up by 110 basis points year-on-year to 7.3%. Consequently, the profit before tax transitioned from a loss of INR15 crores in Q3 last year to a profit of INR25 crores in Q3 FY26, with the PBT margin improving from negative 0.7% to positive 0.9%.
Segmental Performance Update
The Integrated Supply Chain Solutions (ISCS) segment showed strong underlying performance, with revenue growing 6.9% year-on-year. Adjusted EBITDA margin for ISCS expanded to 9.2% in Q3 FY26. The Global Forwarding Solutions (GFS) segment revenue grew by 19.3% year-on-year, driven by volume increases in ocean freight (up 29.6%) and air freight (up 18.7%) on a consolidated basis.
Management noted that the turnaround efforts in the erstwhile IFM business (now merged into ISCS) are complete, contributing to the improved profitability, particularly through Project One benefits, which are expected to yield permanent savings of INR110 to INR120 crores next year.
Business Development and Outlook
The company secured over INR319 crores in revenue from new business wins in Q3 FY26, representing 13% of the Q3 FY25 revenue base. The overall pipeline remains strong at approximately INR6,300 crores, providing clear forward visibility across both ISCS and GFS.
Regarding the strategic acquisition of Swamy & Sons, management confirmed the deal is fully funded through internal accruals and is expected to be accretive to EBITDA, PBT, and ROCE. This move is specifically aimed at strengthening the company’s presence in the high-growth Indian FMCG supply chain sector.
Management Commentary on Profitability and Future Focus
Management confirmed a sustained focus on cost optimization and maintaining the current healthy margin profile, despite absorbing new business growth. While customer churn occurred due to insourcing by one large European client, the new business wins are compensating for this mix shift with healthy margins. The long-term target remains the aspiration of achieving a 4% PBT margin in FY27, with leadership fully aligned toward this goal.
Source: BSE
