TVS Srichakra Q2 profit quadruples to Rs 44.43 crore

TVS Srichakra Limited reported consolidated net profit of Rs 44.43 crore for the quarter ended September 30, 2026, up from Rs 10.96 crore a year earlier, as revenue from operations increased 37% to Rs 1,272.63 crore and profit before exceptional items and tax reached Rs 57.96 crore.

How did TVS Srichakra perform in Q2 2026?

TVS Srichakra reported a more than fourfold year-on-year increase in consolidated net profit to Rs 44.43 crore in the quarter ended September 30, 2026. Revenue from operations rose from Rs 926.49 crore in the corresponding quarter of 2025 to Rs 1,272.63 crore, while total income increased to Rs 1,275.03 crore from Rs 929.42 crore.

The September-quarter profit was also above the Rs 34.02 crore reported in the preceding quarter ended June 30, 2026. Profit before exceptional items and tax rose to Rs 57.96 crore from Rs 20.77 crore a year earlier, and profit before tax reached Rs 57.27 crore compared with Rs 18.21 crore. Basic and diluted earnings per share, not annualised, were Rs 58.02 against Rs 14.52.

What drove TVS Srichakra's higher quarterly profit?

TVS Srichakra's operating profit increased because its Rs 346.14 crore rise in revenue from operations exceeded the Rs 308.42 crore increase in total expenses. Total expenses were Rs 1,217.07 crore in the September 2026 quarter, compared with Rs 908.65 crore a year earlier, resulting in a Rs 37.19 crore increase in profit before exceptional items and tax.

Cost of materials consumed rose to Rs 773.31 crore from Rs 487.20 crore, while other expenses increased to Rs 269.98 crore from Rs 200.58 crore. Employee benefit expense was Rs 119.57 crore against Rs 108.71 crore, finance costs declined to Rs 11.32 crore from Rs 12.42 crore, and depreciation and amortisation increased to Rs 37.71 crore from Rs 35.57 crore. Inventory changes were a credit of Rs 22.02 crore, compared with an expense of Rs 46.22 crore in the prior-year quarter.

TVS Srichakra recorded Rs 0.69 crore of voluntary retirement scheme expenditure as an exceptional item in Q2 2026, down from Rs 2.56 crore in Q2 2025 and Rs 1 crore in Q1 2026. This charge reduced September-quarter profit before tax from Rs 57.96 crore to Rs 57.27 crore. The filing identifies Automotive Tyres, Tubes and Flaps as the reportable segment, with other operations not meeting the reporting criteria under Indian Accounting Standard 34, or Ind AS 34.

What do TVS Srichakra's half-year results show?

TVS Srichakra reported consolidated net profit of Rs 78.45 crore for the half year ended September 30, 2026, compared with Rs 23.79 crore in the corresponding half of 2025. Half-year revenue from operations grew to Rs 2,340.24 crore from Rs 1,745.90 crore, while total income increased to Rs 2,356.85 crore from Rs 1,750.93 crore.

Profit before exceptional items and tax for the six-month period was Rs 104.20 crore, versus Rs 23.13 crore a year earlier. Finance costs declined to Rs 22.96 crore from Rs 26.92 crore, despite the higher revenue base, while depreciation and amortisation increased to Rs 74.85 crore from Rs 69.08 crore. The half-year voluntary retirement scheme charge of Rs 1.69 crore was below the Rs 3.81 crore charge in the prior-year half.

First-half net profit exceeded the Rs 71.06 crore reported for the full year ended March 31, 2026. Total comprehensive income was Rs 82.89 crore for the half year, compared with a loss of Rs 16.70 crore in the corresponding 2025 period. Other comprehensive income was positive at Rs 4.44 crore, compared with negative Rs 40.49 crore a year earlier.

How did TVS Srichakra's working capital and cash flow change?

TVS Srichakra generated net cash from operating activities of Rs 181.01 crore in the half year ended September 30, 2026, down from Rs 206.38 crore in the prior-year half. Operating profit before working-capital changes nevertheless increased to Rs 194.98 crore from Rs 129.54 crore, showing that working-capital movements reduced the cash conversion of the higher reported profit.

Trade receivables used Rs 177.15 crore of cash in the six months, compared with Rs 60.47 crore in the corresponding period of 2025, while other receivables used Rs 59.04 crore. Inventories generated a cash inflow of Rs 113.94 crore, compared with Rs 188.06 crore a year earlier, and trade and other payables generated Rs 124.72 crore against Rs 26.03 crore.

Trade receivables on the consolidated balance sheet rose to Rs 580.51 crore at September 30, 2026, from Rs 410.46 crore at March 31, 2026. Inventories declined to Rs 634.86 crore from Rs 742.21 crore. Payments for acquisition of assets increased to Rs 127.19 crore from Rs 70.97 crore, lifting net investing cash outflow to Rs 150.90 crore from Rs 66.79 crore.

What changed in TVS Srichakra's borrowings and balance sheet?

TVS Srichakra's current borrowings increased to Rs 540.83 crore at September 30, 2026, from Rs 492.60 crore at March 31, 2026. Over the same period, non-current borrowings declined to Rs 237.99 crore from Rs 269.91 crore. Movement in working-capital loans generated Rs 37.60 crore in the first half, compared with an outflow of Rs 0.68 crore in the prior-year half.

Cash and cash equivalents rose to Rs 26.37 crore at September 30 from Rs 19.66 crore at March 31. The half-year cash-flow statement shows a Rs 6.11 crore net increase in cash and cash equivalents, plus Rs 0.61 crore added on acquisition of a subsidiary. Total assets increased to Rs 3,265.06 crore from Rs 3,042.88 crore, while total equity increased to Rs 1,239.97 crore from Rs 1,190.18 crore.

Current liabilities included Rs 520.34 crore of trade payables owed to creditors other than micro and small enterprises, compared with Rs 517.97 crore at March 31. Other financial liabilities increased to Rs 453.67 crore from Rs 322.05 crore. Capital work in progress more than doubled to Rs 89.36 crore from Rs 40.48 crore, while property, plant and equipment declined to Rs 1,018.83 crore from Rs 1,026.66 crore.

What corporate and regulatory matters did TVS Srichakra disclose?

TVS Srichakra added Weber Drivetrain Private Limited to its consolidated results from August 31, 2026. TVS Sensing Solutions Private Limited, a step-down subsidiary, acquired 51% control by purchasing 51,000 equity shares for Rs 0.10 crore. Weber Drivetrain contributed Rs 3.70 crore of revenue and Rs 0.01 crore of profit after tax for September 2026.

TVS Srichakra continued to carry a Rs 7.21 crore receivable, net of estimated customer pass-through obligations, for refunds of tariffs previously paid under the United States International Emergency Economic Powers Act. The receivable was recognised in the quarter ended June 30, 2026, and TVS Srichakra said that, based on its September 30 assessment, no adjustment to its carrying value was required.

The filing also said state rules, including those for Tamil Nadu, remained awaited after central rules for four labour codes were notified on May 8, 2026. TVS Srichakra had recognised Rs 11.09 crore of past-service cost in the year ended March 31, 2026 on first-time application of the labour codes. Management said it was evaluating employee-benefit policy changes and would monitor state notifications and further clarifications for any financial effect.

Conclusion

TVS Srichakra combined 37% revenue growth with expenses that rose more slowly in the September 2026 quarter, lifting profit before exceptional items and tax to Rs 57.96 crore and net profit to Rs 44.43 crore. The first-half outcome also showed higher profitability, although operating cash flow declined year on year as receivables absorbed substantially more cash.

The next results will show whether trade receivables, which reached Rs 580.51 crore at September 30, 2026, and current borrowings of Rs 540.83 crore change with sales and working-capital requirements. Management's treatment of the Rs 7.21 crore tariff-refund receivable and the effect of pending state labour-code rules remain matters it has said it will monitor.