TVS Srichakra swings to profit in Q3 on strong operating performance

TVS Srichakra reported a sharp turnaround in performance for the December quarter, driven by strong operating leverage and margin expansion. The company posted a net profit of ₹11.2 crore in Q3FY26, compared with a loss of ₹6 crore in the same quarter last year.

Revenue from operations rose 14.2% year-on-year to ₹916.5 crore, up from ₹802.7 crore in Q3FY25, aided by improved demand and better execution across segments.

EBITDA jumped 76.4% YoY to ₹78.3 crore, compared with ₹44.4 crore a year ago, while EBITDA margin expanded to 8.5% from 5.5%, reflecting improved cost efficiencies and operating leverage.

On the cost front, total expenses stood at ₹886.5 crore during the quarter. Cost of materials consumed came in at ₹515.7 crore, while purchases of stock-in-trade were ₹19.7 crore.

The company reported a reduction in inventories of ₹13.0 crore, which supported profitability.

Employee benefit expenses were ₹105.6 crore, finance costs stood at ₹11.9 crore, and depreciation and amortisation expenses were ₹36.4 crore. Other expenses during the quarter amounted to ₹210.3 crore.

TVS Srichakra is a tyre manufacturer (TVS Eurogrip/TVS Tyres) focused on 2‑ and 3‑wheelers and off‑highway/industrial tyres, earning most of its money by supplying OEMs, the replacement market, and exports.

For the nine months ended December 31, FY26, TVS Srichakra reported revenue from operations of ₹2,662.4 crore, compared with ₹2,435.5 crore in the corresponding period last year. Net profit after tax for the nine-month period rose to ₹35.0 crore, from ₹10.9 crore a year ago, underlining a sustained improvement in operating performance over the fiscal year so far.

TVS Srichakra shares were trading 1.7% below at 4,446.5 at 13:25 IST on the NSE. The shares were hovering above 4% before the result was announced.