TVS Supply Chain STUNS With 53% Profit Jump! Is This Just the Beginning?

Industrial Goods/Services

|

Updated on 13 Nov 2025, 02:21 pm

TVS Supply Chain Solutions Ltd. has announced its financial results for the quarter ended September 2025 (Q2 FY26). The company reported a net profit of ₹16.3 crore, marking a significant increase of 53.77% compared to ₹10.6 crore in the same quarter last year. This profit growth was attributed to effective operational execution, better cost management, and steady business activity. Revenue for the quarter grew by 6% year-on-year, reaching ₹2,663 crore from ₹2,513 crore. However, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a decline of 4.9% to ₹181.15 crore from ₹190.57 crore. Consequently, the operating margin contracted to 6.8% from 7.6% in the previous year's corresponding quarter. The company also reported a Profit Before Tax (PBT) of ₹23.32 crore, up 31% year-on-year. For the first half of FY26 (H1 FY26), the net profit stood at ₹87.47 crore, a substantial rise from ₹18.08 crore in H1 FY25. Managing Director Ravi Viswanathan described it as a 'stellar quarter', highlighting success in navigating challenges in the Global Forwarding Solutions (GFS) segment while performing well in the Integrated Supply Chain Solutions (ISCS) segment. CFO R Vaidhyanathan noted the second consecutive quarter of profit despite macro challenges and emphasized strategic cost reduction initiatives and strong cash flow generation of ₹105 crore in H1 FY26, indicative of disciplined working capital management.

Impact: The market reaction to these results appears mixed. While the substantial jump in net profit is a positive indicator, the decrease in EBITDA and operating margins could raise concerns among investors. The company's stock saw a minimal increase of 0.12% in early trading, suggesting that the market is weighing the profit growth against margin pressures. Investors will be keenly observing TVS Supply Chain Solutions' ability to sustain profitability while improving its operating margins and managing costs effectively in the upcoming quarters. Rating: 6

Difficult Terms: Net Profit: The profit remaining after all expenses, including taxes and interest, have been deducted from total revenue. Revenue: The total income generated from the sale of goods or services related to the company's primary operations. EBITDA: An acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operational profitability, excluding the impact of financing decisions and accounting depreciation policies. Operating Margin: A profitability ratio that shows how much profit a company makes from its core business operations for every dollar of sales. It is calculated as Operating Income / Revenue. Profit Before Tax (PBT): The profit a company makes before any income taxes are deducted. GFS segment: Global Forwarding Solutions - This typically refers to the part of the business that handles international freight movement, customs brokerage, and related logistics services. ISCS segment: Integrated Supply Chain Solutions - This usually refers to services where the company manages multiple stages of a client's supply chain, such as warehousing, inventory management, and distribution.