TVS SCS margin edges up but trails sector median by 7.24 points
Revenue growth outpaced expense growth in Q2, while a lower tax rate and other income supported the sequential profit increase.
Filed 13 Nov 2026, 19:34 IST · after market close · TVS Supply Chain Solutions Ltd (TVSSCS)
Key takeaways
- Consolidated revenue rose +10.55% QoQ to Rs 3,687.15 cr, while expenses grew +10.24%, lifting operating margin by 0.26 percentage points.
- Net profit increased +62.41% QoQ to Rs 36.51 cr, helped by a 2.20-percentage-point fall in the tax rate to 27.83%.
- Operating margin of 7.00% was 7.24 percentage points below the 14.24% median for 74 reported Services-sector peers.
Price around the results
Revenue growth translated into a modest margin lift
TVS Supply Chain Solutions reported consolidated revenue growth of +10.55% QoQ, slightly ahead of the +10.24% increase in expenses. That cost discipline lifted operating profit by +14.88% and widened operating margin by 0.26 percentage points to 7.00%. Interest expense still rose +6.81%, while depreciation increased +2.96%.
Lower tax rate amplified the profit increase
Profit before tax rose +57.45% QoQ, aided by the operating improvement despite other income falling -50.75% to Rs 6.91 cr. Other income still represented 13.66% of pre-tax profit, so reported profit retains a non-operating contribution. The tax rate fell 2.20 percentage points to 27.83%, helping net profit grow +62.41% to Rs 36.51 cr.
India and GFS were the growth engines
Management said India revenue grew 64% YoY in Q2, with ISCS up 36% and GFS up 136%; it also said GFS revenue rose 79% YoY and EBITDA increased 219%. The company said the Swamy & Sons acquisition expanded its India presence in FMCG, FMCD and regional distribution, while a strategic MoU with Sankyu Inc. is aimed at supply-chain and engineering opportunities. Management said it is targeting more than 20% revenue growth across both segments and is on track to double profits in FY27.
Margin remains below the Services-sector benchmark
TVS SCS's 7.00% operating margin was below the 14.24% median among 74 Services-sector peers that had reported the quarter, a gap of 7.24 percentage points. The presentation also said gross debt increased by Rs 140 cr, primarily to fund working capital for GFS growth. The consolidated results were filed after market close on 13 Nov 2026, so there is no session reaction to assess yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹3,687 cr | ₹3,335 cr | +10.55% |
| Other income | ₹7 cr | ₹14 cr | -50.75% |
| Expenses | ₹3,429 cr | ₹3,110 cr | +10.24% |
| Operating profit | ₹258 cr | ₹225 cr | +14.88% |
| Operating margin (%) | 7.00% | 6.74% | — |
| Interest | ₹48 cr | ₹45 cr | +6.81% |
| Depreciation | ₹166 cr | ₹161 cr | +2.96% |
| Profit before tax | ₹51 cr | ₹32 cr | +57.45% |
| Tax | ₹14 cr | ₹10 cr | +45.91% |
| Net profit | ₹37 cr | ₹22 cr | +62.41% |
| EPS (₹) | ₹0.80 | ₹0.47 | +70.21% |
Operating margin of 7.00% compares with a Services sector median of 14.24% across 74 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- India delivered 64% year-on-year revenue growth in Q2, with ISCS up 36% and GFS up 136%.
- GFS revenue grew 79% year on year and EBITDA increased 219% in the quarter.
Guidance & outlook
- The company is targeting more than 20% revenue growth across both segments.
- The company is on track to double its profits in FY27.
- The company expects the strong ISCS growth trend to continue into FY27.
Expansion
- The Swamy & Sons acquisition expanded the India business and strengthened FMCG, FMCD and regional distribution capabilities.
New initiatives
- The company institutionalized the TVS SCS Framework around business development, operational rigor, technology innovation and customer satisfaction.
- The company signed a strategic MoU with Japan’s Sankyu Inc. to pursue supply chain and engineering services opportunities.
Competition
- The company describes itself as India’s largest and among the fastest-growing integrated supply chain solutions providers.
- The company serves more than 7,100 active customers, including 100 Fortune Global 500 companies.
Problems & risks
- Gross debt increased by Rs 140 crore, primarily to fund additional working capital for significant GFS revenue growth.
What to watch
- Whether operating margin holds above 7.00% in the next quarter.
- Whether revenue growth remains ahead of expense growth after +10.55% versus +10.24% QoQ.
- Whether reported growth across both segments moves toward management's stated target of more than 20%.