TVS Supply Chain Solutions has announced the establishment of a new warehouse facility at the Free Trade and Warehousing Zone to strengthen Caterpillar's global supply chain network. The strategic development marks a significant expansion in the company's logistics infrastructure capabilities and reinforces the 'Make in India for the World' initiative.

New Warehouse Facility Details

The company has developed a substantial warehouse facility with key specifications that enhance its operational capacity:

Strategic Location and Connectivity

The warehouse's location at the Free Trade and Warehousing Zone in Mannur Village provides exceptional operational advantages for supply chain management. Positioned along the Chennai–Bengaluru Industrial Corridor, the facility offers strong connectivity to Chennai, Ennore, and Kamarajar ports, which together handle nearly 20.00 percent of India's container traffic. This strategic positioning enables faster and more efficient global supply chain movements.

Enhanced Supply Chain Capabilities

The modern facility will enable Caterpillar to optimize lead times, reduce landed costs, and respond swiftly to global demand and supply needs. The FTWZ model allows for parts procurement from multiple countries, supporting Caterpillar's manufacturing operations while providing supply chain resilience amid global trade volatility.

Management Perspectives

Ravi Viswanathan, Managing Director of TVS Supply Chain Solutions, emphasized that their tailored solution strengthens supply chain resilience amid global trade volatility. The combination of the FTWZ model with end-to-end warehousing capabilities enables faster and more efficient global supply chain movements.

Ramesh Muthuraman, Director of Operations at Caterpillar India Private Limited, highlighted how the FTWZ facility enhances their sourcing flexibility, noting TVS SCS's deep expertise in managing complex, multi-country supply chains.

Expanded Partnership

Beyond this new facility, TVS SCS also manages Caterpillar's external warehouse operations in Hosur, India, as well as their In-Plant Warehousing operations. Over the past five years, the companies have established a collaborative relationship built on operational excellence, trust, and a shared commitment to creating resilient, future-ready global supply chains.

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.