Thank you, moderator. Good morning, and welcome all to TVS Supply Chain Solutions earnings call for Q3 FY26.

I hope everyone had a chance to look at the financial results, which were posted on the company's website and also on the stock exchange. We have with us today, Mr.

Ravi Viswanathan, our Managing Director, and Mr. R.

Vaidhyanathan, our Global CFO. We commence the call now with opening remarks from our management, along with a business performance update.

It will be followed by an open forum for Q&A. Before we begin, a customary remark: I would like to point out that some of the statements made during this call may be forward-looking in nature and must be reviewed in conjunction with the risks that the company faces.

A disclaimer to this effect has been included in the investor presentation. Now, I request and hand it over to Ravi to make the opening remarks.

Over to you, Ravi.

Thank you, Prabhu. Good morning to all of you.

First, let me welcome all of you once again to our earnings call to discuss the performance for the third quarter ended December 31st, 2025. I will share with you the highlights of our performance, and my colleague Vaidhi, our Global CFO, will take you through the analysis of our numbers.

We look forward to interacting with you as part of the Q&A session. For the benefit of those participants who might be joining the call for the first time, please note that TVS Supply Chain Solutions is a tech-led and asset-light supply chain solutions provider.

We have two main business segments, namely the Integrated Supply Chain Solutions, or ISCS, and the Global Forwarding Solutions, or GFS. We operate across four continents: Asia, Europe, North America, and Oceania, where we offer bespoke and tailor-made solutions in the 3PL space, and also offer 4PL services in select markets.

For more details about the company, you may please refer to our website at www.tvsscs.com. Let me start with the key highlights for Q3.

Q3 was a strong quarter for us, marked by double-digit growth. Our consolidated revenue grew 11.1% year-on-year, and adjusted EBITDA saw a step change, as it grew by 31.2%.

The adjusted EBITDA margins on year-on-year basis expanded by 110 basis points to 7.3%, and by 60 basis points sequentially. As a result of this operating performance, the profit before tax grew from a loss of ₹15 crore in Q3 last year, to a profit of ₹25 crore in Q3 FY26, with margins improving from -0.6% to +0.9%.

On a nine-month basis, our revenue grew by 6.3%, and adjusted EBITDA grew by 7.2%. From a segment perspective, the quarter was led by strong growth in India, supported by new business wins and improved profitability.

This points to a healthy demand environment and strong execution on the ground in both segments, ISCS and GFS in India. Our India geography grew by 11.8% on a year-on-year basis, and by 5.5% sequentially.

In ISCS Europe, we saw a clear profitability inflection. We delivered a strong margin expansion, supported by disciplined cost actions and better business mix.

Robust new business wins further supported our outlook for this region. You may recall from the past that Q3 is normally a soft quarter given the holiday season in Europe.

In North America, we launched one of our large engagements which went live in Q3, and we expect the volumes to start ramping up in the coming quarters. You may recall last earnings call, I had mentioned about inaugurating a new build-to-suit facility in the beginning of Q3 to serve key clients on manufacturing support services, and this is the facility which has gone live in Q3.

Overall, our ISCS segment revenue for Q3 FY26 grew by 8.3% year-on-year, and nine-month FY26 grew by 6.9%, with adjusted EBITDA growing at 23.4% year-on-year in Q3 FY26 and at 11.3% on nine-month FY26 basis. The margins improved from 8.1% in Q3 FY25 to 9.2% in Q3 FY26, and on a nine-month basis, we saw that improve from 8.4% to 8.7%.

With respect to GFS, the revenue grew by 19.3% year-on-year and 10% sequentially, and this came on the back of some very sharp rebound in India volumes. Global freights, however, remain under pressure, but our cost initiatives and volume rebound helped expand our adjusted EBITDA margins from 1.9% last year and 2.2% in Q2 FY26 to 2.3% in Q3 FY26.

Let me now briefly talk about our other key initiatives. The Project One program in the UK and Europe continues to progress well.

As we outlined earlier, we are seeing the benefits of this program reflect in the margin recovery in ISCS Europe and the overall improvement in profitability. Vaidhi, our CFO, will elaborate more on this.

Alongside Project One, we continue to execute on a broader cost takeout, including right-sizing, right-shoring, and tighter overhead control across regions. We also announced the acquisition of Swami and Sons 3PL in India.

This is a strategically important acquisition that strengthens our capabilities in the FMCG and consumption-led supply chain space in India and deepens our presence in key consumption markets. The transaction is expected to be EBITDA, PBT, and ROCE accretive, and is fully funded through internal accruals.

Overall, Q3 demonstrates that the building blocks we have been putting in place over the last few quarters are now translating into stronger growth and profitability. India is growing with better margins, Europe continues to strengthen, GFS shows volume-led growth, and our cost and transformation programs are yielding tangible results.

With this, I hand over to Vaidhi, our Global CFO, and he will walk you through the financial highlights for the company in detail.

Thank you, Ravi. Good morning to all.

Thank you for joining us today. Q3 FY26 was a strong financial quarter for TVS Supply Chain Solutions, characterized by healthy top-line growth, significant margin expansion in both adjusted EBITDA and PBT.

Our consolidated revenue for the quarter is ₹2,715.8 crore versus ₹2,444.6 crore in Q3 FY25 and ₹2,662.6 crore in Q2 FY26, reflecting a year-on-year growth of 11.1% and a sequential growth of 2%. From a segment perspective, ISCS segment delivered a strong year-on-year growth of 8.3% with revenue at ₹1,979.5 crore versus ₹1,827.4 crore in Q3 of last year and a flat sequential growth due to expected lower seasonal volumes in Europe and North America.

Within the ISCS segment, ISCS India, as Ravi highlighted, had a strong Q3. It grew by 4.2% sequentially, supported by strong revenue from new business wins and improved profitability.

This is also translating into a margin improvement in the in the India ISCS business. ISCS Europe delivered a strong profitability as a result of our Project One initiatives, along with other cost control measures and better product mix.

Moving on to the GFS segment, our revenue for Q3 FY26 is ₹736.3 crore compared to ₹669.6 crore in Q2 FY26 and ₹617.2 crore in Q3 FY25, marking a 10% sequential growth and 19.3% year-on-year growth, largely led by growth in ocean freight volumes in India. Freight rates continue to be under pressure, as Ravi mentioned earlier.

GFS India revenue grew from Q3 FY25 of ₹147.9 crore and Q2 of ₹201.1 crore to ₹219.5 crore in Q3 FY26, with 48.4% growth on a year-on-year basis and 8.8% on quarter-on-quarter basis, largely led by the volume growth in India. With respect to the nine-month FY26, our consolidated revenue stood at ₹7,970.7 crore with INR ₹7,496.6 crore in the previous year, at a growth rate of 6.3%.

The growth was driven by our ISCS segment with revenues of ₹5,955.4 crore, reflecting a 6.9% improvement compared to ₹5,571.5 crore in the previous year. The GFS segment reported a revenue of ₹2,015.3 crore, grew by 4.7% from ₹1,925.4 crore in the previous year, largely led by volumes in India.

However, rates continue to remain under stress, and the macroeconomic uncertainties and the tariff volatility continue to impact this segment. On the strategic cost takeout initiatives, the Project One in the UK and Europe is tracking as per plan.

As previously communicated, we expect an annualized savings of around ₹110 to ₹120 crore and in-year savings of about ₹50 to ₹60 crore from this program. These benefits are already visible in the overall ISCS margin improvement in Q3 and year-to-date.

We continue to drive the operating leverage through structural cost takeout initiatives across the geographies, including through right-sizing and right-shoring. Now moving to the cost structure, our movement in freight, clearing, forwarding, and handling expenses on a quarterly basis and nine-month basis is in line with the revenue growth in the GFS segment, offset by decline in ISCS segment due to the change in the business mix.

Material-related costs increased from ₹391.4 crore in Q3 FY25 and ₹444.3 crore in Q2 FY26 to ₹475 crore in Q3 FY26 on a year- in year-on-year and sequential basis. On a YTD basis, material costs increased from ₹1,314.5 crore to ₹1,408.7 crore.

Other expenses increased from INR ₹251.6 crore in Q3 FY25 to ₹269.8 crore in Q3 FY26, and on a sequential basis, it declined from ₹298.1 crore to ₹269.8 crore. On a YTD basis, it increased from ₹679.6 crore to ₹824 crore.

The movement in the material costs and other expenses are in line with the change of business mix in the ISCS segment. Subcontracting expenses increased from ₹356.2 crore in Q3 FY25 and from ₹369.4 crore in Q2 FY26 to ₹389.5 crore in Q3 FY26.

This is in line with the revenue growth in new customers and change in the business mix. Employee cost marginally increased from ₹590.3 crore in Q3 FY25 to ₹598.6 crore in Q3 FY26, mainly due to the cost inflation and in line with the revenue growth, partially offset by the cost takeout initiatives.

On a sequential basis, it declined from ₹644.4 crore in Q2 FY26 to ₹598.6 crore in Q3 FY26, mainly due to an exit of large project in Europe, as earlier communicated, and also the benefits of cost takeout initiatives and savings from other in Project One. On a YTD basis, the employee costs rose from ₹1,743.3 crore in previous year to ₹1,861.9 crore in YTD FY26.

This increase was primarily driven by impact of annual inflation, also in line with the growth in the revenue. Depreciation of right-of-use assets and interest on lease liabilities under Ind AS 116 increased on year-on-year, with depreciation increasing from ₹99.4 crore to ₹105.9 crore, and the interest cost on 116 increasing from ₹21.6 crore to ₹23.2 crore.

This increase is due to the launch of a new warehouse and go-live of a key project in North America in Q3 FY26, as highlighted by Ravi. In terms of profitability, our adjusted EBITDA grew by 31.2% year-on-year, with margins expanding by 110 basis points to 7.3%.

This growth was driven by a combination of strong performance by India and Europe, and the benefits of the cost takeout programs, including the Project One. Sequentially as well, adjusted EBITDA grew 11.7% and margin expanded by 60 basis points, demonstrating demonstrating the consistency of the underlying earnings trajectory.

Within the ISCS within the segments, ISCS delivered strong performance in Q3 FY26 with adjusted EBITDA of ₹182.9 crore at 9.2% margin, up from ₹148.2 crore at 8.1% in Q3 FY25 and ₹173.8 crore at 8.7% in Q2 FY26. The significant margin improvement in ISCS is mainly on account of recovery of our ISCS Europe business, with ISCS India continuing to deliver consistent growth in profitability.

GFS delivered sequentially improved performance in Q3 FY26 with adjusted EBITDA of ₹17.3 crore at 2.3% margin, up from ₹14.6 crore at 2.2% margin in Q2 FY26 and from 1. and ₹11.5 crore at 1.9% in Q3 FY25.

The segment continues to face macroeconomic headwinds, reflected in the subdued rates. On a sequential basis, both the businesses showed improvement, ISCS with continued growth and GFS improving on the back of volume growth in India.

At the at the bottom line, sorry, we delivered adjusted PBT of ₹24 crore compared to a loss of ₹16 crore in Q3 last year. Our PBT margin expanded significantly from -0.7% to +0.9%.

On a nine-month basis, the adjusted PBT has increased more than four times, which is an important indicator of the continuous uptick in our in our earnings. Our reported PBT for the quarter stands at ₹16 crore after exceptional cost of ₹9.1 crore relating to the impact of the new labor codes.

To summarize, in Q3, we delivered double-digit top-line growth, strong adjusted EBITDA margin expansion, and continued uptick in the profitability. With regard to our recent announcement of entering into definitive agreement for the acquisition of Swami and Sons, I would like to point out that acquisition is fully funded through internal accruals and is expected to be EBITDA, PBT, and ROCE accretive.

This will strengthen our presence in the attractive FMCG and consumption-led supply chain space in India. With this, I will hand it back to Ravi.

Thank you, Vaidhi, for the detailed analysis. Let me now take a few minutes to walk you through the business update and key customer wins and the demand outlook across our markets.

We continued to build solid traction in new business development during the quarter. In Q3, we have generated revenue of over ₹319 crore from new business wins, representing 13% of our Q3 FY25 revenue.

For the first nine months of the year, our revenue from new business wins stands at ₹683 crore, which represents 9.1% of our nine-month FY25 revenue, with a healthy and diversified funnel across India, Europe, and North America. Our overall pipeline remains very strong at about 6,300 crore rupees, providing clear revenue visibility for the coming quarters.

Across both ISCS and GFS, we saw wins from several notable contracts: global renewable energy leader, global automotive and industrial majors, technology service providers, and consumer and mobility clients, reflecting the breadth of trust we hold with global customers. A sample of the mandates that we have secured on the ISCS side: a global renewable energy leader in India, a world-class commercial vehicle pioneer in India, an integrated clean energy specialist in India, a world-class building mobility systems leader in India, a top energy storage manufacturer in India, a leading European passenger vehicle manufacturer in India, a global heavy equipment manufacturing pioneer in India, a Europe-based global IT infrastructure services provider, one of the top global technology services firms in Europe, an urban rapid transit operator in Europe, and an international enterprise technology provider in Europe.

These wins reflect the strength of our tech-enabled execution, our domain depth in industrial and mobility verticals, and the trust our customers place in TVS SCS. Particularly, India continued to deliver exceptionally well on business development with multiple large strategic wins across automotive, renewables, and industrials.

These wins will support revenue scale-up in the quarters ahead, especially in the ISCS business, where our positioning continues to strengthen across production, aftermarket, and distribution-led supply chains. On the GFS side, we added several marquee customers, including a global automotive technology pioneer, a global solar solution expert, a world-class engineering and manufacturing solutions leader, a leading material handling technology platform, and one of Europe's top renewable energy specialists.

Let me summarize by saying that Q3 has been another strong quarter of customer conversions, with high-quality wins across geographies. The strength of our ISCS proposition and the resilience of our diversified pipeline positions us well for the quarters ahead.

We'll now open the forum for Q&A.

To the team, I have two questions. My first question to Mr.

Ravi is, as TVS Supply Chain built on this profitability turnaround, what will be the key priorities guiding your growth strategy over the next few quarters? How do you see the balance between strengthening India operations and scaling global businesses evolving?

Thank you.

Thank you, Sucrit. We have said that in the past that for us, all the geographies, all the regions provide us with the opportunity to grow.

India specifically, given its strong economic climate, presents a wonderful opportunity. This quarter has been a quarter where we've been able to capitalize on a lot of these opportunities and converted those into meaningful revenues and margins.

We continue to stay very focused on our India business, and we are very confident that we'll continue on this trajectory of growth. Last quarter, if you remember, I had mentioned that we will get to about 4% sequential growth, and we did that in the ISCS segment itself and overall 5.5% in the India market.

We are confident that this trajectory will continue given the strength of the business wins that we have. On what we remain focused, of course, the focus is staying very close to our customers and ensuring that we continue to execute with the same level of discipline that we have shown over the last few quarters.

That's really what has been the key. What is also exciting for us is the M&A that we have announced with Swami and Sons, which will further strengthen our expertise into the FMCG segment, which, as all of us know, India is a very large consumption-led economy, and that provides TVS SCS with a great opportunity to further expand the pie in India.

India is clearly right in the middle of our strategy, and the opportunity to grow India at a differential growth rate compared to the rest of the world simply exists because of the economic activity that we see in India. Sukrit, I hope that it answers your question.

Thank you very much. My second question is to Mr.

Vaidya Vaidhyanathan. Along similar lines, what financial signals will shape the company's approach to cost discipline, cash flow management, and capital allocation?

How do you see these signals influencing long-term investment choices and margin protection? Just want to understand your plan of action and point of view on this.

Thank you.

Sure. Thanks, Sukrit.

I think now, as we previously communicated, our capital allocation decisions are primarily towards our ISCS business, which is in a strong growth trajectory. I think one of the key things for us is to know the revival of the Europe business from where it was, say, six, four or five quarters back, the actions that we have taken there, and also the investment we are making in the India business.

As Ravi mentioned, the M&A that we are doing, the amount of capital that we are allocating for the India business, all this is some of the things which we have taken in the last few quarters, and we will continue to see that in the next few quarters as well, as we strengthen the ISCS segment.

Thank you, and best wishes.

Thank you.

Hi, good morning, and congrats to the team for good numbers. Sir, I wanted to know, seen there are a lot of trade deals happening with EU and now again with US, what's your views on this?

How this is going to benefit our company, and are we seeing some benefits already coming through in this quarter?

That's a very relevant question, which is occupying our time and mind space too. We'll wait, Somil.

As we are some time away before we get into the implementation stage of many of these FTAs. It provides us an exciting opportunity.

Specifically, we have said in the past over the last three, four quarters, there's been a big, I would say, challenge in the global forwarding business because of the global macro. While our ISCS segment has grown handsomely, the GFS segment is really based on volumes, and the rates continue to be under pressure.

We expect with the macro hopefully turning in the right direction, the global freight business, both air and ocean, will significantly pick up with rates stabilizing. That'll mean that opportunity to be a partner to our customers from India on forwarding business both to Europe and to the US will expand.

I would wait and watch. I think it's too early for us to say whether that's going to have an impact.

Definitely, we are not factoring that in our Q4, but we are very bullish about what it could present with for us in the next fiscal year. With the US trade deal hopefully getting commenced in phases from March and the European FTA, I think the opportunity for us to see the global forwarding business stabilize in the next fiscal is something which we are looking forward to.

I would still say, for the GFS segment, we continue to be cautiously optimistic, while we remain fairly strongly motivated in the ISCS segment, both in India and outside of India.

Okay. Not only on the GFS, but even on the ISCS side, once the trade deal happens, we should see some benefits, no?

Because there would be a lot of shift from Europe to India and a lot of transfer of services. Are we going to benefit in that also?

No, there will definitely be an upside. Like I said, Somil, as we have said before, the pipeline takes anywhere between six to 18 months to conclude based on the kind of solution that we provide.

GFS is far more transient, we could submit a proposal today and close the deal three weeks from now. The immediate impact can be seen in the GFS side.

You're absolutely right. There will be an uptick in the ISCS business too.

Overall, it augurs very well for the supply chain business.

Okay. If we see our first nine months, we have done a growth of 6% YoY.

Going forward for next quarter also, how shall we look at our growth? Because I think we had guided for a double-digit growth.

To grow at double digit, I think the Q4 has to be bumper one. Just wanted your views on that.

We continue to push very hard for double-digit growth. To my entire leadership team, we push the messaging that we need to be focused on this double digit.

However, given the product mix that we have, which is got a fair amount of GFS, we'll have to wait for the GFS business also to start firing before we can say that we are firing in all cylinders. In spite of all of that, I will call out GFS for a stellar quarter three, simply on the back of some incredible volumes.

We've seen pricing pressure in GFS. Prices have constantly come down in the last nine months, and the volumes have been phenomenal, and we've been able to expand absolute EBITDA, and that's really something which we'll continue to be focused on.

Again, the freight business is very simple math, right? Volume times price.

We had to push volume multiple times to manage the decline in price, and that decline in price is really a factor of the global macro. For us to get double-digit growth, we got to get both the product sets or both the segments to be firing extremely well in terms of revenue growth.

We have seen early signs in GFS, but we need to at least have three points before we can say it's a trend, but we'll wait for that. When I look forward, given all the headwinds at least subsiding, we think FY27 would provide us with a clear opportunity for us to double down on GFS, while we continue to build on the ISCS momentum.

I think we are very well placed as an organization. We continue to wait for some tailwinds on the GFS side, and that should be, in our view, possible with all the FTAs that could come in play over the next couple of quarters at least.

Okay. Sir, what is the reason our employee cost last quarter was around ₹644 crore, and currently it is ₹598?

Are we reducing our employees, or what is the reason for such a drop in employee costs?

Somil, as I explained, there was one large project in Europe where the customer had decided to insource it, which we had exited in Q2. That is why you'll see a reduction in the employee cost, plus also the Project One savings and other things getting reflected in the reduction in the employee cost.

That's it from my side. Thank you, and all the best.

Sure, thank you, Somil.

Thank you, Somil.

Good morning. My first question is regarding the GFS business.

Can you help with a volume uptick or a volume growth number for the GFS business for this particular quarter on a year-on-year basis?

Disha, normally we don't give a quarter-wise volume, but I can tell you in terms of percentage how we have grown. In terms of ocean freight, right, compared to the last Q3, we have grown by about 29.6%, and in terms of air freight, I think we have grown by about 18.7%.

On a consolidated basis, can you just help me with the same?

Consolidated, this is correct. This is what Ravi was also mentioning about the significant uptick in the volumes in the current quarter.

Yes. All right.

My second question is regarding our FY27 performance. The last year had guided to be able to reach a 4% PBT margin, are we still on track for the same?

If you could guide a revenue growth number as well?

We continue to remain focused on the 4%. It's an aspirational number that we will keep pushing at.

Like I said to the previous question from, I think, Somil, we hope to get some tailwinds from the GFS business, and that should help us from that perspective. Are we on track?

I think we have got all the building blocks in place. I think the foundations are well established, and we continue to go on a positive trajectory.

We'll hopefully get a better view of things as we exit Q4 and get into the new fiscal, but we remain steadfastly focused on the 4% PBT. It is something which the entire leadership team is aligning towards, and as we start the planning process of the next fiscal year, as we hope to conclude that in the next few weeks, that's the singular focus of all of the regions and the segments.

At this point, I guess that's the place we are in, and we'll be happy to share that as we go forward.

All right. My last question is regarding the recent acquisition of Swami and Sons.

Just wanted to understand what was our position in the Indian FMCG supply chain network before this acquisition and what was the need for this acquisition, and what incremental margin or incremental revenue growth are you seeing from this acquisition in the next financial year?

Okay. From a strategic perspective, FMCG was important because India is a very strong consumption-led economy.

We had a strong play in the FMCD segment, but FMCG is an area where, I would say, we needed to strengthen our base, and that's the reason why we looked at a strategic opportunity in Swami and Sons. For us, that's a very strategic play.

FMCG in India in the consumption-led economy with the economy numbers being what it is, it is a great opportunity for us to participate, and it is not a white space that sits well in our overall strategy map, and that drove our decision on the Swami and Sons acquisition. On the specific financials, I let Vaidhi walk you through.

Swami and Sons, on an as-is basis, their revenue is about ₹200 crore, and their margins are slightly higher than our current business. This transaction would be, from a margin point of view, it will be accretive both on EBITDA and PBT basis.

In terms of what is the outlook for FY27 and on, the transaction is still not closed. I think we are expecting to close this in Q4, and as we take control over the company, I think we'll be able to come to a better conclusion what are the opportunities and how best we can expand this business after we take control over them.

All right. Thank you.

That's it from my

end. Thanks, Disha.

Hi, good morning, sir. In terms of if we look at profitability impact, we have good amount of new business win and also we have some customer churn.

Is there any impact on margin also that new businesses are at better margin and customer churn mix is also impacting the profitability going forward, or that was not much in terms of margin improvement?

Vikram, could you please repeat the question, Vikram?

I hope I'm audible now.

A little bit. If you could repeat the question.

Sure. I was just trying to understand the impact on margin because of the new business, as well as the customer churn.

Have we seen that new businesses are at better margin compared to what customer churn we had seen in the quarter?

No, I would say that, from a margin point of view, we will not dilute the margin. I think as of now, the focus is on taking out the cost and keeping the margin profile as it is, right?

All the new business wins, we will continue to hold on to our margins that we are currently generating. The customer churn that you see here is, as I was explaining to the previous participant, Somil, where the customer had to insource their activity, and that is the customer churn that you would see there.

From a margin point of view, the new business continued to come at a healthy margin, and we will continue to maintain that.

Okay. Sir, just as a curiosity, customer insourcing, probably I think our whole model is that really giving of customers to better service at a better price.

What was the particular case where customer find value in insourcing? If you can just highlight as a curiosity.

Sure. It's a good question.

It's a relevant question. This particular customer in Europe decided to insource because of what I would call challenges internally.

It was a very large outsourcing engagement, and I think the organization wasn't quite ready from a change management perspective to roll out that. Within a year of outsourcing, there was a change in their management, and the new management came and decided that insourcing of a crucial activity like supply chain needed to happen.

That's the reason. It is not normal that you would find large engagements getting reversed, but it's not the first time that's happened.

In an organization's journey, we need to be very close to the customers, be very aligned to what the customers' needs are. We continue to work with the same customer on other engagements, but we respect the sentiments of the customer, and that's really what drove the customer towards it.

It was a change of management slash their ability to manage the change, which decided to the program getting brought back in-house. We had to move out a lot of the people.

That's one of the reasons why Vaidhi spoke about employee costs coming down. A lot of the employees were also transferred back to the customer.

Like I said, relationship with the customer drives the SCS model, and that's key.

Understood. Within ISCS, if you can give comment on how was the performance of integrated final mile in terms of trajectory?

I'll have Vaidhi answer the question. Again, we have, as we have combined IFM as one entity, we report ISCS as one entity.

Vaidhi, if you want to throw any color to Sure. Vikram, IFM, which is now part of the ISCS, in the current year, after the merger, both through the initiatives that we have taken in the IFM business in terms of price corrections and other site consolidation, plus also the benefit of the Project One, which is the merged business in the Europe.

Both are tracking very well as per plan. I think I would say, from an IFM turnaround point of view, I think all the building blocks of turnaround of that business has been completed, and going forward, the focus will be on the growth in that business.

Got it. Just on one more point on Project One, I guess we were targeting almost close to 120 basis point improvement from the Project One in terms of profitability side.

How much of that is materialized so far the efforts what we have put and how much further scope is there, and by when we can almost see that full benefit?

In the current year, Vikram, in FY26, we expect about ₹50 to ₹60 crore savings coming out of it, and you will see, the benefits in Q3 as well. The the improvement in the ISCS in Q3 is also one of the key factor is the Project One benefit.

As we said, on a full-year basis, annualized basis next year, we see about ₹110, ₹120 crores of, savings. All these things are permanent savings, which will flow into the next next year as well.

Understood. I think that was helpful, sir.

Thank you very much.

Thanks, Vikram.

Hello, am I audible?

You're audible.

Yeah. See, sir, I have two questions.

One is when we are talking of rationalizing some of the business, low-margin or loss-making kind of a business, in the pruning of such journey, where are we? Still how much do you think we will have to prune out so to consistently improve the profitability, part one.

Second, I missed your answer on this, what are the levers that we have further to what Project One you said, and Is that Project One is only thing, or beyond that also we are looking for improvement on sustainable basis over next two, three years? How do we see in totality?

Okay. Bharat, I think probably I will answer the first question, which is on the projects, that we exited.

I think we have done this project exit in the India region in the last 18 months or last couple of years, and the focus has been on, trying to reprice the low margin or a loss making and exit some of the projects. I think that is what we have done.

I would say the broadly I would say the correction has been done, and going forward, we will not see any big exit, and the focus will be on growth going forward, right? In terms of the second question with respect to the Project One, as I was explaining to Vikram as well, we we, we have seen about ₹50, ₹60 crores of savings in the current we will see about ₹50, ₹60 crores of savings in the current financial year, and then the annualized savings will be about ₹110, ₹120 crores.

This is one of the key levers for us, as we move into FY27 from a profitability point of view. Plus also the the ISCS, which is in a very strong growth trajectory, especially India, Europe, and the North America business, where we're expecting good revenue growth.

All these things are some of the levers for us in the ISCS business. GFS, as Ravi mentioned, it is still going through some kind of macroeconomic.

We'll have to wait for the the overall industry to, revive and turn around. Hopefully, as Ravi mentioned, we're expecting something to happen in FY27.

Okay. Thank you, and all the best, sir.

Sure, thanks, Bharat.

Good morning, gentlemen. Just a few data points to begin with, if you can share those.

Can you share the number of customers as on date, as on end of 31st December, number of employees, warehouse space in million square feet, if you can?

I think the warehouse space is part of the investor deck, Rajit. If you can refer it, I think you will be able to figure it.

We've given it for each geography. You would be able to look at.

From a number

I think it's as of end of FY25, the data which is given in the deck.

We publish that on an annual basis, Rajit, actually.

Okay. Fair enough.

Yeah.

The others, employees, number of customers, that also will be on an annual basis?

All these data points are published on an annual basis, Rajit. If you could please wait for one more quarter, we will be able to publish that.

All right. Can you share the gross debt as on date?

As of 30th September, we had about eight

Prefer to 0 including lease liabilities?

Not the lease liability. I'm only talking about the bank debt, borrowings.

That would be about 850, ₹850 crores at the end of September.

Okay. You did share the order book, but would it be possible to share, in terms of number of customers, what's the outlook for whether you maintain a pipeline or for Q4, if you can share a tentative number?

Just want to understand. See, the reason I'm asking is, after all, the logistics business is more a business of volume, and there's only as much we can do on pricing and margin improvement.

If there is anything you can share in terms of number of subjective, qualitative, or quantitative.

Rajit, Ravi here. We have two segments, right?

There's an ISCS segment and the global forwarding segment. The ISCS segment, typically, I would say the number of customers would be in the hundreds, and the global forwarding business with the number of customers will be in the thousands.

Because if you take a container or if I take a cargo, I may have one main customer and then I stuff it with a whole bunch of other customers. There'll be a lot of transient customers in the GFS business.

Typically, the number of customers is something which you can take a look at it from our end-of-year statements. To give you a broad perspective, the ISCS would be in hundreds and GFS would be in thousands.

Right. No, I actually wanted a bit more on the outlook in terms of onboarding of new customers, but I guess I'll wait for the data points for the year-end.

The deck mentions the breakup of our customers into various industries, and it says consumer 13%. That is inclusive of FMCG, right?

Or is it pure FMCG, and there's nothing else?

It's predominantly what I would call FMCD, with the acquisition of Swami and Sons, it'll give us an entry into the FMCG space.

All right. That would include e-commerce as well?

We don't do B2C business, I want to qualify that, but yes, it will include e-commerce, where we work with e-commerce companies on their fulfillment side.

All right. Understood.

Yeah. Okay.

Just one last question. Any outlook on any large organic CapEx or inorganic spend in going forward?

If you have any concrete plans.

On the CapEx, we spend about 1 1.1% of our revenue, Rajit. I think we will continue to do that, especially for the new projects, which will continue as per the previous years.

In terms of inorganic, now we just announced our Swami and Sons acquisition, right? That'll be one key acquisition.

We keep looking at it. If something is materializes, probably we will keep all of you informed.

All right. Thank you, sir.

Thanks a lot.

Thank you, Rajit.

Thank you.

Thank you. It was a very interactive Q&A, and hopefully we were able to provide all of you with the answers.

Before we wrap up, I just want to reiterate the key takeaways from this quarter. Let me just close by saying that Q3 has been a quarter of solid performance for TVS Supply Chain Solutions, with clear progress on growth, profitability, and execution across our portfolio.

We delivered double-digit revenue and adjusted EBITDA growth, strong margin expansion at adjusted EBITDA and also at PBT level, supported by disciplined execution and improving business mix. Our focus as a leadership team remains very clear: driving profitable growth, continue the margin expansion through Project One and cost initiatives, improving the cash generation, and build sustained revenue visibility through a strong, diversified pipeline.

With the momentum we have built so far this year and with disciplined execution across regions, I'm confident that we are moving steadily towards strengthening our financial profile and delivering on our medium-term objectives. Thank you once again and for your continued trust and support.