TVS Supply Chain Solutions · forward-looking guidance across the available source record.
Guidance tracker
Three levers drive the target: IFM turnaround (0.4% PBT), Project One savings (1.2% PBT from Rs 110-120 crore annualized savings), and operational leverage (1.9% PBT from revenue growth at lower overhead growth rate). Benefits will be back-end weighted towards FY27.
Management confirmed the revenue growth outlook of mid-single digits (mid-teens range) for FY26, supported by the Rs 5,300 crore pipeline and expected volume ramp-up in new contracts.
Total cash restructuring cost of Rs 53 crore (of Rs 91 crore exceptional items) will be incurred in FY26 (Q2-Q3), while savings of Rs 50-60 crore will begin reflecting in FY26, making the program roughly cost-neutral this fiscal.
ISCS segment (including IFM post-reclassification) currently at 8.3% adjusted EBITDA margin, targeting 10-10.5% in the medium term as IFM turnaround and Project One synergies materialize.
Medium-term target with Project One annualized savings of ₹110-120 crores and in-year savings of ₹50-60 crores expected to drive margin expansion from Q3 onward.
Currently ~8.5% with sequential improvement expected in Q3 and Q4 due to Project One benefits beginning to flow through.
Segment historically delivered 3.5-4% EBITDA margin; recovery to this level expected as macro headwinds stabilize and tariff impact subsides.
Flat Q2 performance attributed to delayed project starts and low-margin account exits; management confident of 4-5% linear quarterly growth from Q3 onward.
Management reiterated the aspirational 4% PBT margin target for FY27, citing all building blocks in place and continued focus across all regions and segments.
Full annualized savings from Project One program in UK and Europe expected to be ₹110-120 crore, with ₹50-60 crore in-year savings already realized in FY26.
Management continues to push for double-digit revenue growth, though success depends on both ISCS and GFS segments firing well given product mix includes significant GFS exposure.
With anticipated FTA benefits from US and EU trade deals potentially commencing from March, management expects FY27 to provide opportunity to double down on GFS while maintaining ISCS momentum.
Management expressed confidence in delivering double-digit growth, possibly early teens, for FY27, supported by strong Q4 new business wins and robust pipeline conversion.
Current ISCS margin of 9.3% is expected to be rangebound between 9.5% to 10% going forward, supported by operating leverage actions and large customer wins.
Overall group EBITDA margin expected around 7.3-7.4%, with GFS trajectory being the key variable, given cautious view on freight rate volatility.
GFS segment margins expected to move closer to 5% over the next 4-8 quarters from current 2.4%, though timing dependent on macroeconomic conditions.