TVS Supply Chain Solutions Limited delivered a strong financial performance in Q3 FY26, demonstrating significant progress across key operational and financial metrics. The tech-led, asset-light supply chain solutions provider reported robust growth driven by strong execution in India and margin recovery in Europe.

Financial Performance Highlights

The company's consolidated revenue reached INR2,715.8 crores in Q3 FY26, representing an 11.1% year-on-year growth from INR2,444.6 crores in Q3 FY25. Sequential growth stood at 2% from INR2,662.6 crores in Q2 FY26. The adjusted EBITDA performance was particularly impressive, growing 31.2% year-on-year with margins expanding by 110 basis points to 7.3%.

For the nine-month period FY26, consolidated revenue stood at INR7,970.7 crores compared to INR7,496.6 crores in the previous year, reflecting a 6.3% growth rate.

Segment-Wise Performance

Integrated Supply Chain Solutions (ISCS)

The ISCS segment delivered strong performance with revenue of INR1,979.5 crores in Q3 FY26, marking an 8.3% year-on-year growth from INR1,827.4 crores in Q3 FY25. The segment's adjusted EBITDA grew 23.4% year-on-year to INR182.9 crores, with margins improving from 8.1% in Q3 FY25 to 9.2% in Q3 FY26.

ISCS India was a standout performer, growing 11.8% year-on-year and 5.5% sequentially, supported by new business wins and improved profitability. ISCS Europe showed clear profitability inflection through disciplined cost actions and better business mix, benefiting from the Project One program.

Global Forwarding Solutions (GFS)

The GFS segment reported revenue of INR736.3 crores in Q3 FY26, representing a 19.3% year-on-year growth from INR617.2 crores in Q3 FY25 and 10% sequential growth. This performance was driven by a sharp rebound in India volumes, with GFS India revenue growing 48.4% year-on-year to INR219.5 crores.

Strategic Initiatives and Business Development

The company continues to execute its transformation programs effectively. The Project One program in the U.K. and Europe is progressing well, with expected annualized savings of INR110-120 crores and in-year savings of INR50-60 crores. These benefits are already visible in the ISCS margin improvement.

TVS Supply Chain Solutions generated revenue of over INR319 crores from new business wins in Q3 FY26, representing 13% of Q3 FY25 revenue. For the first nine months of FY26, revenue from new business wins stands at INR683 crores, representing 9.1% of nine-month FY25 revenue. The company maintains a strong pipeline of approximately INR6,300 crores, providing clear revenue visibility for coming quarters.

Strategic Acquisition

The company announced the acquisition of Swamy & Sons 3PL in India, a strategically important move to strengthen capabilities in the FMCG and consumption-led supply chain space. The transaction is expected to be EBITDA, PBT and ROCE accretive and will be fully funded through internal accruals. Swamy & Sons generates average revenue of approximately INR200 crores with margins slightly higher than the current business.

Cost Management and Operational Efficiency

Employee costs showed disciplined management, declining from INR644.4 crores in Q2 FY26 to INR598.6 crores in Q3 FY26, primarily due to the exit of a large project in Europe and benefits from cost takeout initiatives including Project One. The company continues to execute broader cost takeout measures including rightsizing, right-shoring and tighter overhead control across regions.

Outlook and Growth Strategy

Management remains focused on achieving the aspirational 4% PBT margin target, with all building blocks in place and positive trajectory continuing. The company expects potential tailwinds from global forwarding business as macroeconomic conditions improve and trade agreements with EU and U.S. materialize. India operations remain a key growth driver, supported by the strong economic climate and successful customer conversions across automotive, renewables and industrial sectors.

TVS Supply Chain Solutions has announced a strategic partnership with Italy-based ALA Group to enter India's lucrative aerospace and defence supply chain market. The Memorandum of Understanding (MoU) signed on February 16, 2026, positions both companies to capitalize on India's rapidly expanding defence sector, estimated at approximately $28 billion.

Strategic Partnership Framework

The MoU establishes a comprehensive framework for the two companies to jointly pursue aerospace and defence supply chain opportunities, with particular emphasis on defence offset programmes. The collaboration will initially concentrate on the Indian market, with potential expansion to other geographies over time.

Combined Capabilities and Market Position

The partnership leverages the complementary strengths of both organizations. TVS SCS brings its long-standing defence and utilities supply chain experience from UK operations, alongside strong domestic presence in India. This includes procurement capabilities, market access, government engagement, regulatory expertise, warehousing infrastructure, and digital platforms.

Leadership Perspectives

R. Dinesh, Executive Chairman of TVS Supply Chain Solutions, emphasized the strategic importance of the collaboration: "This partnership with ALA Group reflects our long-term strategy of building globally relevant capabilities in complex and regulated sectors. By combining our scale, digital platforms, and strong presence in India with ALA's aerospace and defence domain expertise, we are positioning the company to participate meaningfully in the evolving global aerospace and defence supply chain ecosystem."

Ravi Viswanathan, Managing Director of TVS Supply Chain Solutions, highlighted India's market potential: "India's aerospace and defence sectors are at a clear inflection point, driven by indigenisation and global supply chain realignment. This MoU brings together our proven defence supply chain experience with ALA's global aerospace expertise to build a credible platform for defence offset and aerospace programmes in India."

Operational Excellence and Service Portfolio

The partnership will explore comprehensive aerospace and defence supply chain services spanning multiple areas:

• Production support and spare parts distribution
• Inventory optimisation and defence-grade logistics solutions
• Logistics engineering and aftermarket support
• MRO (Maintenance, Repair, and Operations) services
• End-to-end programme lifecycle support

Global Expertise and Standards

ALA Group brings over 35 years of specialized experience as an aerospace and defence supply-chain integrator. The company operates globally with state-of-the-art logistics facilities, managing over 200,000 SKUs through a qualified supplier base of more than 1,500 vendors worldwide.

Vittorio Genna, CEO and Co-Founder of ALA Group, stated: "The collaboration with TVS Supply Chain Solutions reflects our vision of combining technical depth, operational excellence, and long-term partnerships. This creates a solid platform for sustainable growth across multiple regions, supporting both civil and defence aerospace programs."

The strategic partnership positions both companies to address India's growing defence modernisation requirements while leveraging their combined global expertise and operational capabilities in the aerospace and defence supply chain ecosystem.