TSF Investments Ltd (Q2FY26) – 7x Sales Growth, A New Avatar, and TVS Group Drama Served Hot
1. At a Glance
TSF Investments Ltd (formerly Sundaram Finance Holdings Ltd) has just dropped the mic in Q2FY26. A company once known for its boring dividend income and sleepy investment returns suddenly reported sales of ₹250 crore and PAT of ₹103 crore, with a 737% jump in quarterly sales. Yes, seven-hundred-and-thirty-seven percent – that’s not a typo, that’s corporate caffeine.
With a market cap of ₹13,386 crore, P/E of 28.4, and a ROE of 7.9%, TSF has quietly morphed from a dull holding structure into one of the most interesting finance plays under the TVS umbrella. The stock has been doing the Garba lately — up 81.5% in six months, and 73.5% in one year.
While some investors are still figuring out why their “Sundaram Finance Holdings” stock suddenly got renamed TSF Investments, insiders are busy counting profits and booking disinvestment cheques. In September 2025 alone, TSF offloaded 39% of Sundaram Composite Structures to Brakes India for ₹24.65 crore.
Who knew investment companies could have Bollywood-style plot twists?
2. Introduction – The Phoenix Rises From Sundaram Ashes
There’s boring finance, and then there’s the Sundaram brand of boring finance — reliable, clean, and almost zen-like. But suddenly, TSF Investments Ltd has gone full masala. A new name, a new focus, and a new avatar that screams, “Let’s make holding companies great again.”
Formerly Sundaram Finance Holdings, the company got its shiny new identity in October 2025, rebranding itself as TSF Investments Limited. The symbol changed from SUNDARMHLD to TSFINV. The rebrand isn’t cosmetic — it’s signaling a shift from passive finance to active investment management.
TSF’s DNA still runs deep in the TVS Group family tree, one of India’s most respected (and complex) business dynasties. With stakes in Axles India, Wheels India, Brakes India, and Flometallic, the company is practically the investment nerve center of the TVS industrial ecosystem.
But what really jolted markets awake was the Q2FY26 performance — a ₹250 crore sales quarter and ₹103 crore PAT. The “investment” company suddenly looked like it was running a business. Pair that with recent acquisitions (Forge 2000, Axles India) and you’ve got a holding company that’s behaving more like a private equity fund on filter coffee.
Is TSF now the Berkshire Hathaway of the South? Or just a very well-dressed dividend machine? Let’s investigate.
3. Business Model – WTF Do They Even Do?
TSF Investments is basically that one rich uncle who owns pieces of every family business — and collects dividends from all of them. Its business structure has two legs:
Investment Business: The core money-spinner. TSF earns dividends and capital appreciation from its holdings in automotive and manufacturing companies — primarily within the TVS Group ecosystem. Think of it as the “holding fund” that sits behind your favorite car parts.
Business Process Outsourcing (BPO): Through its 100% subsidiary Sundaram Business Services Ltd (SBSL), TSF runs an outsourcing arm that offers accounting, tele-calling, transaction processing, and training. Basically, while one hand collects dividends, the other processes invoices.
Its major holdings include:
Axles India Ltd (62.98%) – recently turned subsidiary after TSF bought an additional 24.16% for ₹182.68 crore in April 2025.
Brakes India Pvt Ltd (7.71%) – acquired for ₹350 crore from ZF International UK Ltd.
Flometallic India Pvt Ltd (40%) – a strong play in auto components.
Mind S.r.l., Italy (48.9%) – a composite materials firm in automotive, aerospace, and medical sectors.
Wheels India Ltd (23.28%)
Sundaram Clayton Ltd (11.24%)
The company’s investment portfolio (19 companies) cost about ₹286.6 crore, but its market value today is several times that. The “boring” investor quietly owns critical auto component companies that power India’s manufacturing backbone.
4. Financials Overview
Source table
Metric (₹ crore)
Q2FY26 (Sep’25)
Q2FY25 (YoY)
Q1FY26 (QoQ)
YoY %
QoQ %
Revenue
250
30
179
737%
39.7%
EBITDA
50
21
47
138%
6.3%
PAT
103
89
158
15.7%
-34.8%
EPS (₹)
4.52
4.00
7.13
13%
-36.6%
Annualised EPS: ₹4.52 × 4 = ₹18.1 → At ₹603, that’s a P/E of ~33.3x.
Commentary: In Q2FY26, TSF basically went from a sleepy dividend fund to a revenue-generating machine. The 737% YoY sales jump is the kind of number startups dream of, but it’s coming from a 70-year-old holding company. PAT growth of 13% YoY shows stability even as the company absorbs the impact of recent stake sales and revaluation gains.
EBITDA margin, however, dipped to 20% (from 76% last year) — perhaps because investment income doesn’t count as “sales” anymore. The financial statement now reflects real business activity, not just dividends.
5. Valuation Discussion – Fair Value Range (Educational)
Let’s use three simple lenses:
A. P/E Method:
Current EPS (TTM): ₹21.2
Industry P/E: 29.2
Applying a conservative range (25x–35x):
Fair Value Range = ₹530 – ₹740
B. EV/EBITDA Method:
EV = ₹13,595 crore
EBITDA (TTM) = ₹208 crore
EV/EBITDA = 65.4x (very high due to low operating base). A more sustainable fair range for a holding-cum-auto business is 25–40x.
