TVS Srichakra Limited has approved a capital investment of up to ₹220 crore to expand production capacity at its manufacturing units located in Vellaripatti, Madurai. The decision, taken by the Board of Directors on May 27, 2026, aims to address growing demand for the company's 2/3-wheeler and off-highway tyres. The expansion project will be financed through a combination of internal accruals and debt.

The investment is divided equally between the two-wheeler (2W) plant and the off-highway tyre plant, with an allocation of up to ₹110 crore for each facility. The 2W plant currently operates at a capacity utilization of about 80-85%, producing approximately 210 to 235 lakh tyres per annum. The proposed expansion will add about 5% to this capacity, targeted for completion in the first half of FY 2028-29.

The off-highway tyre plant, which currently produces approximately 75 to 85 metric tons per annum at a utilization rate of about 75 to 80%, will see a larger relative increase. The company plans to add about 25% to this capacity, with the new capacity expected to come online in the first half of FY 2027-28.

The following table outlines the details of the proposed capital investment and capacity expansion:

The disclosure was made to the National Stock Exchange of India Ltd. and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. Chinmoy Patnaik, Company Secretary & Compliance Officer, signed the filing on behalf of TVS Srichakra Limited.

TVS Srichakra Limited has received a significant reduction in its income tax demand for FY 2017-18 (AY 2018-19), following a rectification order issued by the Deputy Commissioner of Income Tax. The rectification order, dated 29th April 2026 and received by the company via email on 7th May 2026, has reduced the tax demand from ₹29,47,06,740 to ₹3,11,10,474 (comprising Tax Portion). The development was disclosed by the company under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 08, 2026.

Background of the Original Tax Demand

The original income tax demand was raised vide a notice issued by the Assessment Unit of the Income Tax Department bearing DIN No. ITBA/AST/S/156/2025-26/1087920366(1), dated 26th March 2026. The demand related to a disallowance under Section 14A of the Income-tax Act, 1961, for FY 2017-18 (AY 2018-19). TVS Srichakra had disclosed the receipt of this original order to the stock exchanges on 26th March 2026.

Rectification Order: Key Details

Pursuant to a rectification application submitted by the company, the Deputy Commissioner of Income Tax issued a rectification order reducing the tax demand substantially. The following table summarises the key details of the rectification:

Company's Response and Appeal Status

TVS Srichakra has stated that it will further evaluate the rectification order and shall take appropriate action as deemed necessary. In addition to the rectification application, the company had also filed an appeal against the original order dated 26th March 2026, before the Commissioner of Income Tax (Appeals). The said appeal remains pending for hearing.

Impact on Financial Position

The company has clarified that there is no material impact on its financial position, operations, or other activities arising out of the aforementioned rectification order. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and was signed by Chinmoy Patnaik, Company Secretary & Compliance Officer (Membership No. A14724).