01 — At a Glance
The Tyre Maker That Tried to Climb a Mountain Made of Rubber
- 52-Week High / Low₹4,788 / ₹2,430
- Q3 FY26 Revenue (Consolidated)₹917 Cr
- Q3 FY26 PAT (Consolidated)₹11 Cr
- TTM EPS₹58.4
- Annualised EPS (Q3 Avg)₹58.1
- Book Value / Share₹1,508
- Price to Book2.36x
- ROCE5.36%
- ROE (Last Year)2.35%
- ROCE (3-Yr)6.93%
Flash Summary: TVS Srichakra just posted Q3 FY26 consolidated revenue of ₹917 crore (up 14.2% YoY), but PAT collapsed to ₹11 crore due to raw material inflation and margin compression. The stock trades at 58.2x P/E — roughly 2.5x the industry median — on the back of one assumption: that the capex story is ending, margins return, and those ₹10 billion in capacity expansion finally justify the hype. The betting man awaits. The smart man? He’s still reading.
02 — Introduction
Welcome to Rubber’s Roulette Wheel: TVS Srichakra Edition
TVS Srichakra is not a household name. But if you own a two-wheeler in India — and one in four people do — the tyre under that bike or scooter has a decent chance of being a TVS Srichakra product. Founded decades ago, part of the storied TVS group (which also owns TVS Motor), TVSSC makes tyres for 2-wheelers, 3-wheelers, industrial applications, and export markets. Think of them as the quiet OEM supplier that sells to every major two-wheeler maker in India: Bajaj, Hero, Honda, Suzuki, Yamaha, even TVS Motor itself. Nothing sexy. Everything essential.
The company has two manufacturing plants: one in Madurai (Tamil Nadu) and another in Rudrapur (Uttarakhand). FY25 saw consolidated revenue of ₹3,254 crore and net profit of ₹21 crore. TTM numbers sit at ₹3,481 crore in revenue and ₹45 crore in PAT. The business is straightforward: buy raw materials (60-65% of revenue), make tyres, sell to OEMs and aftermarket, ship exports. Rinse, repeat. Watch margins vanish when natural rubber prices moon. Which, spoiler alert, they did in the second half of FY25.
But here’s the twist. The management launched a ₹1,000 crore capex plan in FY22 to double capacity in the off-highway tyre (OHT) segment and expand 2-wheeler capacity. By end-FY26, they’ll have spent ₹900+ crore. The final ₹100 crore is trickling in through Q4 FY26 and beyond. The bet: OHT margins are fatter, exports are growing, and once the capex burden subsides, the profitability story resets. Q3 FY26 results suggest we’re not there yet. But maybe — just maybe — we’re getting closer.
India Ratings Insight (Nov 2025): Ind-Ra affirmed TVSSC’s bank loan facilities at IND AA-/Stable and CPs at IND A1+. The agency expects margins to stabilize in FY26 on the back of moderating raw material prices and improved operating leverage. Translation: the rating agency believes in the turnaround. The market? Still pricing in the chaos.
03 — Business Model: WTF Do They Even Do?
Making Tyres for Two-Wheelers, OHT, and Prayer-Wheels
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