1.At a Glance
Imagine running a ₹10,198 crore logistics empire that moves everything from automotive parts to tech gizmos across 26 countries — and still struggles to move its stock price. That’sTVS Supply Chain Solutions Ltd (TVS SCS)for you, the logistics arm of the legendary TVS Group that’s currently delivering one thing consistently — investor anxiety at 42.3x P/E.
As of21 November 2025, TVS SCS trades at₹114 per share, down a thudding-36.9% YoY, with amarket cap of ₹5,025 crore. Despite clocking₹2,663 crore revenuein Q2FY26 (up 5.96% QoQ) and₹15.6 crore PAT(up a spicy 67.6% QoQ), investors are yet to feel the love. The company’sROCE sits at 4.83%(barely above inflation), andROE is negative (-0.72%), making even your savings account look alpha-positive.
Debt? Oh, just a casual₹2,221 croreon the books. Promoters still clutch43.03%holding, but29.2% of that is pledged— almost like a credit card with no cashback.
So yes, it’s a ₹10,000+ crore revenue machine operating on AI, ML, robotics, and global networks, but its biggest challenge remains:returning something to shareholders other than PowerPoint decks.
2.Introduction
If India’s logistics sector were a movie, TVS Supply Chain Solutions would be that overworked supporting actor who appears in every scene but never gets the award. With operations across continents, high-tech warehouses, and 6,900+ customers, the company is basically a global courier with a tech degree — minus the glamour.
Founded under the formidableTVS Group, this company promises “asset-light” efficiency but delivers “profit-light” results. Its story reads like a cross between a corporate thriller and a reality show: 20 acquisitions in 17 years, complex amalgamations, an ever-changing C-suite (the latest CEO,Siddharth Jairaj, took over onNov 1, 2025), and, of course, a tax department that also decided to join the party with a₹4.9 crore GST penalty.
In theory, logistics is supposed to be boring. But TVS SCS has somehow turned it into a Bollywood plot — full of mergers, AI experiments, and quarterly suspense where profits play hide and seek. Yet beneath all that drama, the fundamentals are slowly shaping up. TheQ2FY26numbers show life signs. The company’sintegrated supply chain segmentis now 55% of revenue (up from 40% in FY22), which basically means they’ve started focusing on doing one thing well instead of fifty halfway.
Question for you, dear reader: if a logistics company can move your goods across 26 countries, can it finally move its EPS north too?
3.Business Model – WTF Do They Even Do?
Let’s simplify: TVS Supply Chain Solutions (TVS SCS) helps large enterprises and government departmentsmove stuff smarter, not necessarily cheaper. It’s a mix ofIntegrated Supply Chain (55%)andNetwork Solutions (45%)— think of it as a logistics buffet where you can choose between managing warehouses, transportation, or freight forwarding.
Integrated Supply Chain Solutions (ISCS):This is where the company acts like your business’s logistics brain — from sourcing raw materials, managing plants, to shipping finished products. They even handle aftermarket fulfillment and supply chain consulting. Basically, if you manufacture, they make sure it reaches customers — and maybe even your mother-in-law on time.
Network Solutions (NS):Here they become your international freight partner, managing your cargo via air, sea, or road — basically making sure your container doesn’t end up in the wrong hemisphere.
The company operates anasset-light model— meaning the warehouses and trucks aren’t owned but leased. Think of it like being an Uber driver for global logistics — low asset burden, but also low control when things go wrong.
Fun stat: they run459 warehouses covering 25.5 million sq. ft.of space. To put it in perspective, that’s like having 500 Big Bazaars but with forklifts and barcode scanners instead of cash counters.
And yes, they do it in26 countries, with big names likeSony, Hero MotoCorp, Ashok Leyland, and TVS Motorrelying on them.
So, WTF do they even do? Everything. Except, apparently, please the markets.
4.Financials Overview
| Metric | Latest Qtr (Q2 FY26) | Same Qtr Last Yr (Q2 FY25) | Prev Qtr (Q1 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹2,663 Cr | ₹2,513 Cr | ₹2,592 Cr | 5.96% | 2.74% |
| EBITDA | ₹182 Cr | ₹169 Cr | ₹177 Cr | 7.7% | 2.8% |
| PAT | ₹15.6 Cr | ₹11 Cr | ₹9.3 Cr | 41.8% | 67.6% |
| EPS (₹) | 0.35 | 0.21 | 0.20 | 66.6% | 75.0% |
Annualised EPS ≈ ₹1.4 →P/E = 81x, which makes no sense in
this sector — but neither did GameStop once upon a time.
Witty Commentary:The sales are up, profit has doubled, and the EPS is crawling out of the ICU. But when your operating margin is just6–7%, every diesel price hike feels like a heart attack. The revenue growth is steady, but the profit looks like it’s on a diet.
5.Valuation Discussion – Fair Value Range Only
Let’s crunch like a CA who’s had too much filter coffee.
- EPS (TTM):₹1.28
- P/E (Current):42.3
- Industry P/E:25.2
So, if TVS SCS trades at peer median (25x), fair value = ₹1.28 × 25 =₹32.If it earns a premium (35x), fair value = ₹45.If it achieves its dream ROCE of 10% (now 4.8%), maybe ₹60.
EV/EBITDA method:EV = ₹6,425 Cr, EBITDA (FY25) = ₹900 Cr approx. → EV/EBITDA = 7.1xPeers trade 8–10x → fair EV range = ₹7,200–₹9,000 Cr → Implied price =₹128–₹160.
DCF (educational purpose):Assuming mid-teens growth (15%) and WACC of 10%, fair value range =₹120–₹150.
✅Fair Value Range (Educational Only): ₹120–₹150 per shareDisclaimer: This is purely educational. Not a buy/sell suggestion. Please don’t blame us if diesel prices or pledges go up.
6.What’s Cooking – News, Triggers, Drama
Ah, where to start?
- CEO Swap:OnOct 31, 2025, CEOVittorio Favatiresigned, andSiddharth Jairajtook over. Nothing screams “new strategy” like the old CEO quietly exiting stage left.
- GST Saga:August 2025, the tax department dropped a ₹4.9 crore ITC penalty bomb. The company’s response? “We’ll handle it.” Translation: “Our lawyers just got a bonus.”
- Iowa Expansion:In September 2025, they inaugurated a225,000 sq ftfacility in Iowa, USA, aiming for$500 millionrevenue from North America. Another 225,000 sq ft facility is “coming soon.” Looks like TVS SCS wants to become the Amazon of B2B logistics — without the stock split happiness.
- Amalgamation Spree:NCLT finally waved the green flag on mergingfive subsidiariesinto the parent company. The balance sheet is officially on steroids now.
- AI Everywhere:FromAI-led damage detectionfor UK beverage clients toAI-led auction biddingfor couriers in Europe, they’re
