TVS Supply Chain Solutions announced robust Q3 FY26 results, achieving double-digit revenue growth of 11.1% YoY to ₹2,716 Crore. Adjusted EBITDA surged by 31.2% YoY, leading to a margin expansion to 7.3%. A key highlight was the significant profitability turnaround, reporting an Adjusted PBT of ₹24 Crore against a loss of ₹16 Crore in Q3 FY25. The results were driven by strong momentum in India and stabilizing global businesses, further supported by a strategic acquisition in the FMCG sector.
Q3 FY26 Financial Performance Snapshot
TVS Supply Chain Solutions delivered a strong performance in Q3 FY26, marked by double-digit growth across key financial metrics. Revenue from operations grew by 11.1% YoY, reaching ₹2,715.8 Crore. The underlying profitability showed significant improvement, with Adjusted EBITDA growing by 31.2% YoY to ₹199.3 Crore, boosting the margin by 110 bps YoY to 7.3%.
The company achieved a notable turnaround in profit before tax (PBT). Adjusted PBT stood at ₹24 Crore in Q3 FY26, a significant improvement from the loss of ₹15.2 Crore recorded in Q3 FY25. This equates to an Adjusted PBT margin of 0.9%, compared to a negative margin of 0.7% in the prior year period.
Nine-Month (9M) FY26 Performance
For the first nine months of FY26, total revenue grew by 6.3% YoY to ₹7,970.8 Crore. Adjusted EBITDA increased by 7.2% YoY to ₹551.1 Crore, maintaining a steady margin of 6.9%. Adjusted PBT saw a dramatic increase of approximately 4.4 times YoY, rising to ₹66 Crore from ₹15 Crore in 9M FY25, with margins expanding to 0.8%.
Growth Drivers: New Business and Segment Performance
The strong top-line conversion continues to fuel growth. New Business Wins contributed ₹319 Crore to Q3 FY26 revenue, representing 13.0% of Q3 FY25 revenue. For the 9M period, new wins accounted for ₹683 Crore (9.1% of 9MFY25 revenue). The Business Development Pipeline remains robust at ₹6,300 Crore as of Q3 FY26.
ISCS Segment Deep Dive
The Integrated Supply Chain Solutions (ISCS) segment showed margin expansion, with Q3 revenue at ₹1,980 Crore (up 6.9% YoY sequentially) and an Adj. EBITDA margin of 9.2% (up 5.2% sequentially). ISCS India continues its strong trajectory, with Q3 revenue of ₹537 Crore.
GFS Segment Highlights
The Global Forwarding Solutions (GFS) segment delivered double-digit growth, with Q3 revenue reaching ₹736 Crore (up 19.3% YoY). GFS margins faced temporary pressure, with Q3 Adj. EBITDA margin at 2.3%, though 9M Adj. EBITDA improved by 11.3% YoY.
Strategic Moves: Acquisition of Swamy & Sons 3PL
TVS SCS announced the acquisition of Swamy & Sons 3PL Services Private Limited (“S&S3PL”), a key move to strengthen its capabilities in the high-growth FMCG sector in India. The transaction enterprise value is set at INR 88 Crore (4.7x EV/FY25 EBITDA) and is expected to be EBITDA, PBT, and RoCE accretive upon closing in Q4 FY26.
S&S3PL brings deep customer relationships, with over 70% of its FY25 Revenue derived from FMCG players, operating 116 warehouses across 5 states in India, totaling approximately 4 million sq. ft.
Global Footprint and Customer Strength
The company operates across four continents and 26 countries. As of FY25, the total warehouse capacity managed stood at 24.7 Million Sq. Ft, with 19.9 Million Sq. Ft located in India. TVS SCS serves over 16,800+ employees and 91 Fortune 500 customers as of FY25.
Key Customer Wins in Q3 FY26
Domain expertise translated into high-profile wins across segments, including securing contracts with a Global renewable energy leader (India), a World-class commercial vehicle pioneer (India), and a Global automotive technology pioneer for GFS. A significant win included a three-year, end-to-end in-plant logistics contract with Daimler India Commercial Vehicles (DICV).
Source: BSE
