TVS Electronics · risk themes across the available quarters.
Bear-case history
Memory prices increased significantly (described as double to triple) impacting product costs. While long-term customers must accept market prices, short-term order decisions have been delayed by 1-2 quarters, affecting near-term revenue visibility.
Debt-to-equity increased from 0.34x to 0.43x due to increased inventory (supply chain challenges) and extended receivable cycles, requiring higher working capital deployment.
Management declined to provide specific margin targets despite EBITDA margin expanding 413 bps to 5.96%, citing company policy against forward guidance. Investor requested management to provide at least broad guidance ranges.
FY26 revenue growth of approximately 6% significantly moderated from FY25's 17.6%, reflecting management's conscious decision to sacrifice volume for profitability.