TVS Srichakra Profits Quadruple in Q2 FY27 as Revenue Scales to ₹1,273 Crore

Key numbers

P/E Ratio	35.94Sector 33.1
Market Cap	₹3,319.85 CrAutomobiles
Promoter Holding	45.7%Unpledged
1-Year Return	4.05%Price change

Key highlights

• Consolidated revenue from operations rose 37.5% year-on-year to reach ₹1,273 crore
• Net profit surged to ₹44.4 crore in Q2 FY27, up from ₹11.0 crore in the same period last year
• Operating margins more than doubled, expanding from 2.0% to 4.5% year-on-year
• Exceptional items included a ₹0.69 crore expenditure related to a Voluntary Retirement Scheme
• The company reported a sequential net profit growth of 30.6% compared to Q1 FY27

TVS Srichakra Revenue Hits ₹1,273 Crore as Profits Surge

TVS Srichakra achieved a significant scale-up in its financial performance during Q2 FY27, with consolidated revenue from operations hitting ₹1,273 crore. This represents a 37.5% increase compared to the ₹926 crore recorded in the same quarter of the previous year. The bottom line showed even more pronounced growth, as net profit accelerated to ₹44.4 crore, a 303.6% rise over the ₹11.0 crore reported in Q2 FY26.

On a sequential basis, revenue grew by 19.2% from ₹1,068 crore in Q1 FY27, while adjusted profit for the quarter saw a strong quarter-on-quarter increase of 73.8%.

Operational Efficiency Drives Margin Expansion to 4.5%

The company experienced a notable improvement in its operational efficiency, with the operating margin expanding to 4.5% in the September quarter, up from 2.0% in the year-ago period. This expansion comes despite a rise in total expenses, which reached ₹1,217.07 crore on a consolidated basis. Cost of materials consumed remained the primary expenditure at ₹773.31 crore, while employee benefit expenses stood at ₹119.57 crore.

The company also reported other income of ₹2.4 crore during the quarter, providing a stable contribution to the total income of ₹1,275 crore.

Workforce Strategy and Voluntary Retirement Impact

• Exceptional items for Q2 FY27 included ₹0.69 crore spent on a Voluntary Retirement Scheme (VRS).
• Cumulative VRS spending for the half-year ended September 2026 reached ₹1.69 crore.
• The company continues to carry a ₹7.21 crore receivable related to US tariff refunds (IEEPA).
• Consolidated depreciation and amortisation expenses stood at ₹37.71 crore for the quarter.
• Net unrealised foreign exchange gain for the quarter contributed ₹0.44 crore to the results.

Strategic Capacity Expansion at Madurai and Rudrapur

Looking ahead, TVS Srichakra is focused on strategic capacity additions at its primary manufacturing hubs. In May 2026, the board approved a capital expenditure of up to ₹220 crore for the Madurai plant, specifically targeting the expansion of off-highway and two-wheeler tyre production. This was followed by a further ₹49.20 crore capex approval in October 2026 for debottlenecking and curing capacity additions at both the Madurai and Rudrapur plants.

These investments are intended to bring off-highway additions online by H1 FY28, followed by enhanced two-wheeler capacity by H1 FY29, strengthening the company's position in the rubber products sector.

What to watch next

• Completion of off-highway tyre capacity expansion at Madurai plant by H1 FY28
• Scheduled addition of two-wheeler tyre capacity at manufacturing units by H1 FY29
• Execution of the ₹49.20 crore debottlenecking capex approved in October 2026
• Monitoring of notification of state rules for the four new Labour Codes effective since 2025

TVS Srichakra · financial snapshot

Share price	₹4335.7
Market capitalisation	₹3,319.85 Cr
Revenue (annual)	₹3,643.35 Cr
Net profit (annual)	₹71.23 Cr
Revenue (latest quarter)	₹1,067.61 Cr+8.84% vs previous quarter
Net profit (latest quarter)	₹34.02 Cr-5.74% vs previous quarter
P/E (TTM)	35.94×Sector 33.1×
Promoter holding	45.7%0.00% QoQ
FII holding	1.27%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.