TVS Electronics Limited disclosed a material pending litigation with the Employees' Provident Fund Organisation (EPFO) involving damages of ₹12.78 Lakhs. The dispute pertains to the assessment period from April 2014 to June 2015, stemming from a difference in the interpretation of "Basic Wages" for provident fund contributions. The EPFO had included certain allowances for employees whose basic wages were below the statutory wage ceiling, leading to the demand. The company has already paid the differential provident fund contribution amount during 2020.

The Central Government Industrial Tribunal-CUM-Labour Court, Chennai, granted partial relief by reducing the damages by 45% from ₹23.24 Lakhs to ₹12.78 Lakhs. Of the reduced amount, ₹6.00 Lakhs has already been deposited by the company. The remaining liability represents the financial implication currently disclosed under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Following the Tribunal's order, TVS Electronics has filed a Writ Petition before the Madras High Court in the first appeal. The company is seeking further relief against the damages awarded by the Tribunal. The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the relevant SEBI Master Circular.

Details of the Litigation

TVS Electronics has returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹13 Mn, reversing the net loss of ₹39 Mn incurred in the previous year. The company posted a net profit of ₹29 Mn for the quarter ended March 31, 2026, compared to a net loss of ₹5.7 Mn in the corresponding quarter of the previous year. Revenue from operations for the quarter stood at ₹1,174 Mn, representing a year-on-year increase of 2.4%. The Board of Directors approved the audited financial results during a meeting held on May 22, 2026. In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the earnings conference call for the quarter and year ended March 31, 2026, is now available on the company's website at https://www.tvselectronics.in/videos/Concall-TVS_Electronics250526.mp3 .

Q4 FY26 Financial Performance

For the quarter ended March 31, 2026, the company delivered a strong operational performance with EBITDA rising to ₹70 Mn against ₹21 Mn in Q4 FY25. The EBITDA margin expanded to 5.96% from 1.83% year-on-year, reflecting improved operational efficiency. Profit before tax for the quarter was ₹31 Mn, compared to a loss before tax of ₹31 Mn in the prior year period. The earnings per share (EPS) for the quarter improved to ₹1.53 from a negative ₹0.35 in the same quarter of the previous year.

FY26 Annual Results

For the full financial year, TVS Electronics recorded a net profit of ₹13 Mn, reversing the net loss of ₹39 Mn incurred in the previous year. Total revenue from operations rose to ₹4,552 Mn from ₹4,305 Mn in the prior year. The EBITDA for the year stood at ₹195 Mn, a 77.3% increase from ₹110 Mn in FY25. The EBITDA margin for FY26 improved to 4.28% from 2.56% in the previous year. The company's EPS for the year improved to ₹0.67 from a negative ₹2.08 in the previous year.

Segment Performance

The company operates in two primary segments: Products & Solutions and Customer Support Services. The Products & Solutions segment reported revenue of ₹3,164 Mn for the year, while the Customer Support Services segment contributed ₹1,388 Mn. The Customer Support Services vertical registered a growth of 12.7% in revenue in FY26 as compared to FY25, driven by an uptick in volumes across business verticals. Overall entity revenue for FY26 stood at ₹4,552 Mn, representing an increase of 5.7% on a year-on-year basis.

The following table summarizes the key financial figures for the quarter and year ended March 31, 2026: