TVS Supply Chain Solutions Ltd Management Discussions

Macroeconomic Outlook The Global Economy

The global economy endured in 2025; despite high policy uncertainty and trade tensions arising from US tariffs and global trade wars, the world economy stayed strong. This stability driven by robust investment in technology, supportive financial conditions, agile business strategies, and combined government and central bank support demonstrated the systems adaptability and core stability through a highly complex regulatory period.

While trade tensions and policy uncertainty persisted, 2025 ended on a high note. The private sector successfully navigated these challenges, cushioned by milder-than-expected US tariffs, fiscal support, favourable financing, and tech-driven productivity gains. This upward momentum was projected to carry into 2026, boosting the pre-conflict global growth forecast to 3.4% and signalling strong confidence in a steady, widespread recovery. However, instability increased following the escalation of Middle East tensions in early 2026. The crisis impacted critical energy networks, triggered price instability in raw materials, and disrupted both maritime and air transport systems. Higher crude oil prices and increased logistics costs contributed to renewed inflationary pressures across advanced and emerging markets alike.

Global growth is expected to ease to around 3.1% in 2026 under the baseline scenario, based on the assumption that geopolitical tensions remain contained. Inflation is projected to rise slightly in the short term before gradually stabilizing over the medium term. The slowdown is likely to be more evident in emerging and developing economies, especially those reliant on imported energy and food. Without the Middle East conflict in late February 2026, global growth projections would have been revised further upward, supported by strong economic indicators at the end of 2025 and lower effective US tariff rates. Economies that export energy, maintain sound fiscal positions, or benefit from trade shifts are better placed to manage short-term pressures, while ongoing transitions toward renewable energy, deeper regional trade integration, and productivity gains from artificial intelligence offer promising pathways for steady and inclusive medium-term growth.

			2026
Summary of World Output* (Annual % change)	2025
			(projections)
World output		3.4	3.1
Advanced economies		1.9	1.8
US		2.1	2.3
UK		1.3	0.8
Euro Area		1.4	1.1
Emerging market and developing economies		4.4	3.9
China		5.0	4.4
India		7.6	6.5

* According to the IMF World Economic Outlook April 2026.

Global inflation trends, which had shown gradual moderation during FY25 following aggressive monetary tightening by central banks over the preceding two years, witnessed renewed uncertainty entering FY26. Throughout FY25, easing supply chain bottlenecks, softer commodity prices in the first half of the year, and stabilizing food inflation helped suppress headline inflation across several major economies. However, core inflation in many advanced economies remained stubbornly above central bank targets, sustained by persistent wage pressures and robust consumer demand.

This trajectory was materially altered entering FY26 by the escalation of conflict in the Middle East. Disruptions in energy supply chains, elevated crude oil prices, higher freight and insurance costs, and heightened volatility across commodity markets reintroduced fresh inflationary pressures globally. Consequently, under the baseline scenario, the IMF projects global headline inflation to increase to 4.4% in 2026 before declining to 3.7% in 2027. This represents a significant reversal from the sustained disinflation trajectory of recent years, driven primarily by the geopolitical crisis and its cascading impact on global energy and commodity markets.

Under a severe-stress scenario where energy infrastructure sustains more extensive damage global inflation could spike to 5.8% in 2026 and reach 6.0% by

2027. Such an outcome would substantially erode global household purchasing power and severely complicate monetary policy decisions across both advanced and developing economies.

For advanced economies, the projected inflation rates for 2026 and 2027 stand at 2.6% and 2.2% for the Eurozone, and 3.2% and 2.1% for the United States, respectively. These regions benefit from relatively stronger institutional frameworks, anchored inflation expectations, and a greater capacity to buffer fluctuations in global energy prices compared to more vulnerable emerging markets. Conversely, the resulting growth deceleration and inflationary spike will be particularly pronounced in emerging market and developing economies. A number of these nations face elevated sovereign debt levels and limited fiscal space; consequently, any policy measures deployed to shield vulnerable populations from energy and food price shocks must be stringently targeted and strictly consistent with existing budgetary envelopes. Ultimately, a swift resolution of geopolitical tensions and the formal conclusion of trade agreements remain critical to restoring global price stability.

Indian Economy

India continued to strengthen its position as one of the fastest-growing major economies globally during FY25, supported by resilient domestic demand, strong public infrastructure spending, improving manufacturing activity, and sustained growth in the services sector. Despite global geopolitical uncertainties, supply chain disruptions, and external demand moderation, the Indian economy demonstrated resilience driven by robust consumption trends, policy reforms, and increasing investments across the infrastructure and manufacturing sectors.

India continues to lead the global economy with exceptional confidence in FY26. The nations real GDP growth for FY26 is estimated at 7.4%, reaffirming its status as the fastest-growing major economy for the fourth consecutive year, driven by the twin engines of consumption and investment. Furthermore, Indias FY27 growth projection stands at 6.5%, significantly outpacing projected global growth of 3.1% and peers like China at 4.4% and the United States at 2.3%, cementing its unrivalled position in the global macroeconomic landscape.

Private final consumption expenditure rose to 61.5% of GDP in FY26 the highest since FY12 while merchandise exports grew 2.4% and services exports surged 6.5% during April-December 2025 despite US tariffs. Gross FDI inflows reached USD 81 billion in FY25, with momentum strengthening further in FY26 to record the highest inflows in the first seven months of any financial year. Concurrently, PLI schemes across multiple sectors have attracted substantial investment, leading to significant production growth and creating a large number of jobs as of September 2025.

Indias consumption story in FY26 is broad-based and deeply encouraging. Easing food inflation, with headline CPI declining to historically low levels, has restored real purchasing power for both urban and rural households. Agriculture grew at a healthy pace, bolstering rural sentiment and consumer confidence. Urban consumption, particularly in discretionary and aspirational categories, has rebounded strongly, supported by rising incomes, improved employment conditions, and the governments income tax rationalization measures announced in Budget 2026-27.

On the investment front, the governments capital expenditure push continues to anchor growth momentum with remarkable resolve. Union Budget 2026-27 proposed a record infrastructure outlay, channelling resources into roads, railways, waterways, housing, and logistics. The Eastern Dedicated Freight Corridor and new national waterways are already yielding dividends in freight efficiency and supply chain competitiveness. Private investment, supported by deleveraged corporate balance sheets and rising capacity utilization, is showing early signs of a meaningful and broad-based revival across the manufacturing and services sectors.

Indias external sector reflects growing confidence and strategic positioning. A reduction in US tariffs on Indian goods from 50% to 10% has meaningfully improved the merchandise export outlook, while services exports particularly IT, financial services, and professional services continue to outperform global peers. Indias signing of landmark trade agreements with the EU and ongoing negotiations with the UK signal a decisive shift toward deeper global trade integration, strengthening its role as a trusted, rules-based partner in the evolving world trade architecture.

The countrys structural transformation story is gaining powerful momentum across manufacturing, technology, and clean energy. The India Semiconductor Mission 2.0, PLI schemes, and a thriving startup ecosystem are collectively positioning India as a preferred global manufacturing destination. Renewable energy capacity additions continue at a record pace, reinforcing Indias energy security ambitions. Even under adverse global scenarios, Indias growth remains well above 6% a testament to the resilience, depth, and dynamism of the Indian economy as it strides confidently toward its Viksit Bharat 2047 vision. However, certain risks remain for FY26, including global geopolitical uncertainties, elevated crude oil prices, external demand moderation, inflationary pressures, and financial market volatility. Indias dependence on imported crude oil continues to expose the economy to energy price fluctuations arising from geopolitical disruptions. Nevertheless, Indias large domestic market, improving infrastructure ecosystem, favourable demographics, policy reforms, and increasing manufacturing capabilities continue to anchor the countrys long-term structural growth outlook.

Global Logistics Industry overview

The global logistics industry enters FY26 navigating a complex environment shaped by geopolitical conflicts in the Middle East, accelerating supply chain rewiring, and a sustained, technology-driven transformation. Despite near-term disruptions to freight routes and elevated energy costs, the industrys long-term structural growth drivers including e-commerce expansion, AI adoption, and robust infrastructure investment remain firmly intact, creating sustained and compelling opportunities across all geographies and freight modes.

The global logistics market is projected to grow from USD 12.68 trillion in 2026 to USD 24.36 trillion by 2035, expanding at a CAGR of 8.05%. The Asia-Pacific region is poised to dominate this landscape, growing from USD 5.78 trillion in 2026 to USD 12.11 trillion by 2035 at a higher CAGR of 9.10%, thereby commanding 44.59% of the global market share.

This dynamic environment has incentivized nations to finalize long-standing trade negotiations and forge new partnerships to foster stronger economic ties, accelerating nearshoring and regional supply chain diversification worldwide. India is emerging as a pivotal force in this transformation. The countrys cargo transportation on national waterways has reached record levels, major port capacity has expanded significantly, and container turnaround times have improved markedly. Furthermore, Budget 2026-27 proposes the operationalization of twenty new national waterways, reinforcing Indias growing strategic importance as a high-growth, infrastructure-backed logistics hub.

Key Industry Trends Artificial Intelligence (AI)

The global AI in logistics market is projected to grow from USD 12.23 billion in 2026 to USD 196.61 billion by 2034, expanding at a CAGR of 41.50%. This exponential growth is driven by agentic AI systems that enable autonomous route rerouting, advanced demand forecasting, and real-time inventory management without human intervention

Automation

The global logistics automation market is projected to grow from USD 35.14 billion in 2024 to USD 52.53 billion by 2029, at a CAGR of 8.4%, with Automated Guided Vehicles (AGVs), automated storage and retrieval systems, and cloud-based platforms leading adoption across retail and e-commerce segments.

Internet of Things (IoT)

The IoT-powered logistics market was valued at USD 59.32 billion in 2025 and is projected to reach USD 102.42 billion by 2030, expanding at a CAGR of 11.54%. The Asia-Pacific region is poised to lead this growth with a CAGR of 14.93%, driven by extensive 5G rollouts and strategic smart-port investments.

Sustainability Initiatives

The global green logistics market is projected to grow from USD 1.94 trillion in 2026 to USD 3.75 trillion by 2034, expanding at a CAGR of 8.6%. This growth is primarily driven by regulatory frameworks such as the EU Green Deal and CSRD mandates, alongside widespread fleet electrification and rising corporate ESG commitments.

E-Commerce Influence

Global e-commerce is projected to reach USD 7.41 trillion in 2026, representing a 7.2% increase over 2025 and accounting for 21.1% of total global retail sales. This expansion is significantly driving demand for last-mile delivery, warehouse automation, and fulfilment infrastructure investment worldwide.

IMF Macro Overlay

All five trends face a common impact in FY26: the conflict in the Middle East has caused the largest disruption to the global oil market in its history, according to the International Energy Agency (IEA). This instability has driven up energy and input costs for logistics providers across all freight modes, including road, rail, air, and sea. Yet, the broader outlook remains cautiously optimistic. Current tailwinds particularly sustained fiscal policy support may endure long enough to carry the global economy through these war-related disruptions and toward a higher growth trajectory propelled by artificial intelligence-driven productivity gains. Ultimately, for the global logistics industry, the convergence of AI, automation, IoT, sustainability investments, and e-commerce demand establishes a resilient structural growth floor, even as geopolitical volatility introduces near-term turbulence.

United Kingdom

The IMF forecasts slower UK growth and higher inflation resulting from the Middle East conflict and subsequent disruptions to the energy supply. Concurrently, the OECD has lowered its forecast for UK GDP growth in 2026 from 1.3% to 0.8%, while raising its UK inflation forecast to 3.2% for the same period. This adjustment reflects Britains heightened exposure to volatile gas prices, constrained monetary policy space, and elevated gilt yields, all of which continue to weigh on private consumption.

The UK freight and logistics market is projected to increase from USD 142.33 billion in 2025 to USD 146.19 billion in 2026, ultimately reaching USD 167.10 billion by 2031 at a CAGR of 2.71%. Freight transport commanded 63.02% of market revenue in 2025, while courier, express, and parcel (CEP) services are projected to grow at a 3.12% CAGR through 2031, driven by autonomous sortation rollouts and rising parcel density across urban networks.

The UK contract logistics market is poised to grow from USD 21.16 billion in 2025 to USD 24.78 billion by 2030, expanding at a CAGR of 3.21%. Green logistics, fleet electrification, and AI-driven route optimization remain core strategic priorities, underpinning the sectors long-term resilience despite near-term macroeconomic headwinds.

Asia Pacific

Asia entered 2026 on a strong footing. Despite bearing the brunt of US tariffs in 2025, the region demonstrated remarkable economic fortitude and sustained trade activity. However, the regions 5.0% expansion in 2025 is projected to moderate to 4.4% in 2026 and 4.2% in 2027. This deceleration stems from the conflict in the Middle East and its subsequent impact on energy supplies, which continue to elevate inflation, weaken external balances, and compress fiscal policy options. Notably, China and India are expected to contribute 70% of this regional growth, even as expansion in emerging Asia slows by approximately 0.5 percentage points to 4.9% in 2026. This energy-driven disruption presents a defining macroeconomic headwind. In emerging Asia, inflation is projected to rise sharply from 1.1% in 2025 to 2.6% in 2026, driven in part by upward revisions in China and India. The ADBs April 2026 Asian Development Outlook reinforced this position, forecasting that growth across developing Asia will moderate to 5.1% in both 2026 and 2027, with inflation climbing to 3.6% in 2026 as higher energy prices filter through regional economies.

Within the logistics sector, the Asia-Pacific market was valued at USD 5.07 trillion in 2025 and is poised to reach approximately USD 12.11 trillion by 2035, expanding at a CAGR of 9.10% over the forecast period. The region firmly anchored the global logistics landscape in 2025, commanding a dominant 44.59% market share. Geographically, China led the region with 48.60% of 2024 revenue, while India is projected to chart the fastest expansion with a 9.32% CAGR between 2025 and 2030. Concurrently, courier, express, and parcel (CEP) services are advancing at a 6.81% CAGR, propelled by surging e-commerce volumes and the aggressive deployment of automated sortation centres and micro-fulfilment hubs. Despite these energy-related headwinds, Asia remains the primary engine of global logistics growth, underpinned by strategic infrastructure investments, accelerating e-commerce adoption, and ongoing supply chain diversification into Southeast Asia and India.

North America

The United States freight and logistics market is projected to grow from USD 1,381.09 billion in 2025 to USD 1,433.58 billion in 2026, ultimately reaching USD 1,724.60 billion by 2031 at a CAGR of 3.80%. Freight transport leads the sector, commanding 62.85% of the total market size, while courier, express, and parcel (CEP) services are expanding at a 4.38% CAGR. This expansion is primarily driven by surging e-commerce fulfilment and nearshoring-driven manufacturing flows that are actively reshaping domestic freight networks.

This growth occurs alongside broader macroeconomic shifts; the IMF projects US GDP growth to accelerate modestly to 2.4% in 2026, supported by strong, broad-based productivity gains, even as the applied effective tariff rate on imports is expected to settle at 7.0%-8.5% following recent adjustments to tariff authority. Against this backdrop, shippers are rapidly transitioning from asset-heavy models to digitally orchestrated networks. This operational evolution is heavily underpinned by Federal Infrastructure Investment and Jobs Act funds earmarked for roads, rail, and ports, while concurrent zero-emission truck pilots signal an accelerating industry pivot toward sustainable logistics.

India logistics industry overview

The Indian logistics sector ranks among the largest globally, presenting a vast addressable market opportunity. It plays a pivotal role in the nations economic development by seamlessly linking diverse value chains; beyond core transportation and warehousing, the sector encompasses a comprehensive suite of supply chain solutions that optimize the end-to-end movement of goods from suppliers to final consumers.

Structure of Indian logistics market

India logistics market can be segmented in two different types of market structures: (1) type of services and (2) logistics solutions.

Key factors driving growth in Indian logistics

Indias freight and logistics market is projected to grow from USD 383.77 billion in 2026 to USD 592.36 billion by 2031, expanding at a CAGR of 9.07%. Within this sector, freight transport leads with a 62.96% market share, while courier, express, and parcel (CEP) services are expanding at a 10.43% CAGR. Air freight is projected to grow the fastest among all modes, charting a 10.67% CAGR between 2026 and 2031. This remarkable expansion is further reinforced by the IMFs projection that Indias FY27 growth will stand at approximately 6.5%, underscoring a sustained and robust domestic demand outlook.

The Indian logistics sector is undergoing a decisive transformation, shifting from a fragmented, unorganized structure toward an integrated, technology-led, and organized ecosystem. The sustained momentum of Indias GDP growth the fastest among major economies for the fourth consecutive year is generating broad-based, compounding demand for freight, warehousing, and last-mile services. Concurrently, rising disposable incomes, expanding digital access, and deepening financial inclusion are elevating consumer expectations and strengthening the fundamental demand architecture for logistics services nationwide.

E-commerce remains the most powerful structural growth driver for Indian logistics in FY26. Over 60% of e-commerce demand is now expected to originate from Tier 2 to Tier

4 towns and rural India, driving the aggressive expansion of fulfilment networks in smaller cities. To meet surging order volumes, companies are rapidly deploying AI-driven inventory management, robotic sorting systems, and advanced route optimization algorithms. This technology-first approach is compressing delivery timelines, improving accuracy, and significantly enhancing customer satisfaction across all geographies.

On the digital and physical infrastructure front, Indias Unified Logistics Interface Platform (ULIP) reached a landmark milestone of 100 crore API transactions in March 2025. Additionally, 96.4% of the 2,843 km Dedicated Freight Corridors (DFCs) are operational as of March 2025, yielding measurable reductions in freight costs and transit times. These milestones are reinforcing Indias emergence as a globally competitive logistics hub, strengthening the backbone for manufacturing exports, domestic consumption, and multimodal supply chain integration. The domestic warehousing market is projected to grow at a CAGR of 15.00%, reaching an estimated USD 35.00 billion by 2027. Reflecting this momentum, India is poised to become one of the top six users of warehouse automation systems globally by 2026, with the automated market value expected to reach USD 2.00 billion annually. Large-scale logistics parks offering economies of scale, scalable infrastructure, and shared facilities are actively reshaping the landscape. Tier 2 and Tier 3 cities like

Lucknow, Jaipur, and Coimbatore are rapidly emerging as strategic fulfilment hubs, bringing infrastructure closer to consumption centres and meaningfully reducing last-mile delivery costs.

Workforce skilling remains a core focus area for the government, highlighted by the Union Budgets announcement to establish five National Centres of Excellence for Skilling to impart specialized, industry-ready expertise. Simultaneously, the warehousing and logistics industry is making concerted efforts to build a more diverse and gender-inclusive workforce, with public-private partnerships driving upskilling programs across smaller towns and cities. This focus on human capital development, alongside rapid technology adoption, is successfully equipping the workforce to navigate an increasingly automated and data-driven logistics environment.

Challenges

A landmark DPIIT-NCAER study has revised Indias logistics cost downward to 7.97%. This represents a decisive structural breakthrough from the historical estimate of 13%-14%, achieved through sustained policy interventions such as GST rationalization and FASTag tolling, alongside the comprehensive operationalization of the Dedicated Freight Corridor network. Furthermore, policy support from the ADB-backed SMILE program continues to advance reforms in warehousing standardization, improve external trade logistics efficiency, and promote smart, low-emission logistics systems strengthening Indias credible progress toward lowering logistics costs as a share of GDP.

Despite these encouraging advances, the sector continues to navigate structural complexities that demand sustained attention. Modal imbalance remains a defining inefficiency; road freight still carries a disproportionately large share of total cargo, while rail, waterways, and coastal shipping remain underutilized relative to their cost and carbon advantages. Concurrently, agricultural supply chains, cold chain logistics, and express freight segments operate with limited integration and scale, constraining service reliability in remote and semi-urban markets. The IMF cautions that energy price pressures from the Middle East conflict could impose fresh cost burdens on Indias road-dependent freight network, adding urgency to accelerating modal diversification, digital interoperability, and technology-driven supply chain consolidation across all segments. Other persistent challenges include regulatory complexity and cybersecurity vulnerabilities across supply chain touchpoints, alongside workforce skill gaps that constrain the adoption of advanced automation and digital logistics technologies.

In parallel, a robust policy ecosystem spanning PM Gati Shakti, the National Logistics Policy, and Production Linked Incentive (PLI) schemes complemented by Budget 2026-27s record infrastructure allocations is actively driving manufacturing growth in India, creating sustained and broad-based demand momentum across the logistics sector.

National Logistics Policy

Indias National Logistics Policy (NLP) aims to improve operational efficiency and reduce logistics costs to globally competitive levels. Official government releases highlight extensive reforms driven by PM GatiShakti, Multimodal Logistics Parks (MMLPs), and advanced digital platforms such as the Unified Logistics Interface Platform (ULIP) and the Logistics Data Bank (LDB), all of which streamline supply chains and enhance economic productivity. Collectively, these initiatives strengthen multimodal connectivity, elevate transparency, and support Indias broader GDP growth objectives by significantly improving overall logistics performance

Production linked incentive scheme

India is prioritizing sectors where it holds distinct competitive advantages, while concurrently strengthening its Production Linked Incentive (PLI) scheme to accelerate manufacturing and export growth. A recent strategic review emphasized the need to enhance skilled manpower, eliminate infrastructure bottlenecks, and establish a comprehensive five-year roadmap for investments and disbursements. To date, the PLI scheme across 14 target sectors has delivered significant milestones: attracting 1.76 lakh crore in investments, enabling 16.50 lakh crore in production value, generating 12 lakh jobs, and disbursing 21,534 crore in incentives.

Make in India

Launched in 2014, the Indian Governments Make in India campaign strategically positions the nation as a global design and manufacturing hub across 25 core sectors, targeting an annual manufacturing growth rate of 12%-14% (DPIIT). In FY26, real GDP growth is estimated at 7.4%, with manufacturing Gross Value Added (GVA) accelerating to 9.13% in Q2, according to the Economic Survey 2025-26. This momentum is heavily supported by Production Linked Incentive (PLI) schemes across 14 target sectors, which have generated over 18.7 lakh crore in cumulative production value (DPIIT). This domestic manufacturing expansion has directly amplified freight volumes and overall supply chain demand. Consequently, national logistics costs declined to 7.97% of GDP (DPIIT-NCAER Joint Report, Nov 2025) driven by systemic efficiencies from PM GatiShakti, the Dedicated Freight Corridor network, and the Unified Logistics Interface Platform (ULIP) further strengthening Indias global export competitiveness.

Dedicated Freight corridor

Indian Railways is expediting the 2,100 km DankuniSurat Dedicated Freight Corridor through an updated Detailed Project Report (DPR), advanced technical standards, and accelerated pre-construction activities to ensure timely execution. This initiative builds upon the momentum of the already operational Western (1,506 km) and Eastern (1,337 km) Dedicated Freight Corridors, which have successfully reduced logistics costs while enhancing freight speed and capacity. By linking these networks, the new corridor aims to further strengthen Indias freight architecture and enable seamless, high-velocity, port-linked cargo movement.

BS7 & CAFE III norms

For Indias logistics industry, these evolving regulatory frameworks signal a structural disruption to commercial fleets. The upcoming BS-VII standards (CPCB/MoEFCC, April 2026) mandate real-time emission monitoring across all commercial vehicles, directly escalating procurement costs for new assets while rendering older diesel fleets non-compliant. Simultaneously, the CAFE Phase III draft notification (BEE, September 2025; slated for FY27–FY32) enforces a strict fleet-average CO target of 91.7 g/km, compelling fleet operators and third-party logistics (3PL) providers to systematically retire high-emission vehicles. Given that 85% of Indias trucking fleet remains highly fragmented among small-scale operators (Ministry of Road Transport and Highways), this compliance burden falls disproportionately on unorganized players. Consequently, fleet electrification, vehicle scrapping incentives, and green financing are set to emerge as the defining operational and capital priorities for logistics enterprises through 2030.

Drone in Logistics Industry

Indias drone logistics ecosystem is transitioning decisively from pilot projects to mainstream commercial operations. This momentum is backed by the Civil Drone Bill 2025, the Production Linked Incentive (PLI) scheme for drones, and comprehensive GST rationalization, which are collectively lowering deployment costs and accelerating private sector participation. Supported by a rapidly expanding base of certified pilots, proven delivery use cases spanning e-commerce, cold-chain vaccine transport, and urban dispatch, alongside dedicated drone corridors that reflect strategic intent, India is actively building a globally significant aerial logistics network.

Logistics Efficiency Enhancement Programme

The program seeks to elevate freight transportation performance by driving systemic efficiency gains, minimizing costs and transit times, and strengthening operational practices such as cargo handling and tracking through integrated infrastructure, advanced technology, and streamlined process interventions.

Gati Shakti - National Master Plan

This policy continues to institutionalize integrated infrastructure planning through a Geographic Information System (GIS)-enabled digital platform, thereby facilitating seamless inter-ministerial coordination and data-driven decision-making. By systematically addressing critical infrastructure gaps, optimizing project synchronization, and enabling real-time monitoring, the framework significantly enhances multimodal logistics efficiency and strengthens supply chain resilience, ultimately driving investment-led economic growth.

Our company Overview

Our Company is an India based multinational company, who pioneered the development of the supply chain solutions market in India. We were promoted by TVS & Sons, one of the reputed business groups in India, and are now part of the TVS Mobility Group. For more than 20 years, we have managed large and complex supply chains across multiple industries in India and select global markets through customized tech-enabled solutions. During this period, we have grown significantly. Our total income was 11,040.76 crores in Fiscal 2026.

Our Segments

Our solutions spanning the entire value chain from sourcing to consumption can be divided into two segments: (i)Integrated Supply Chain Solutions (ISCS); and (ii) Global Forwarding Solutions (GFS). During the current year Fiscal 2026 key changes in our segment structure; in the new ISCS segment brings together ISCS and IFM under one unified model enabling bundled, end-to-end service tailored to client needs. GFS reflects our freight forwarding business. Our capabilities under the ISCS segment include sourcing and procurement, integrated transportation, logistics operation centres, in-plant logistics operations, finished goods distribution, warehousing aftermarket fulfilment, supply chain consulting, closed loop logistics and support including spares logistics, break-fix, refurbishment & engineering support, courier and consignment management. Our capabilities under the GFS segment include, managing end-to-end freight forwarding and distribution across ocean, air and land, warehousing and at port storage and value added services. Globally, we provided supply chain solutions to 7,124 customers during Fiscal 2026. We pride ourselves on the fact that we have over 100 of the Fortune 500 companies as our customers, which has increased from 91 a year ago. The steady growth of marquee customers positions us favourably in our stated goal to be among the top 50 logistics companies worldwide

Performance of Our Segments Integrated Supply Chain Solutions

In FY26, The Integrated Supply Chain Solutions segment continued the path of consistent growth in India, Europe, and North America despite facing a few regional challenges. In India, revenue growth was driven by key new business wins, while profitability improved through cost optimization and the exit of lower-margin accounts. The countrys strong economic momentum and rising outsourcing opportunities, supported by our global expertise in managing large-scale contracts, position us to enhance operational efficiencies, strengthen execution capabilities, and drive sustainable long-term growth. In Europe strategic realignment of business through Project One, a transformation journey designed to unlock long term value by driving integration across all aspects of our business in UK & Europe. The North America business continued its consistent performance in revenue; margin is partially impacted by initial set up delay in one of new business. Despite these headwinds, the segment achieved a year-over-year increase both in revenue and margin.

Margins growth driven by achievement of significant efficiencies in the segment through project one.

Global Forwarding Solutions

In the GFS, the revenue growth was primarily driven by increased volumes. The GFS business remained largely influenced by external factors geopolitical issue of U.S. trade tariff volatility. Despite these challenges, the segment benefited from significant cost-saving measures, including organizational rightsizing, which helped enhance overall resilience and operational agility

Our Strategy

Our growth strategy has been guided by C3 Framework, which centres on three Cs - Customer, Capability and Country. The C3 Framework focuses on opportunities that would increase business from existing customers, acquire new customers and / or increase our geographical presence. Additionally, the C3 Framework has enabled us to grow in our core sectors as well as capitalize on opportunities in adjacent sectors and new age sectors.

AI Initiative

Artificial Intelligence initiatives delivered measurable benefits through implemented solutions such as the Supply Chain Risk Resilience platform for procurement. This solution strengthens decision-making by improving sourcing strategies and enhancing overall supply continuity while supporting more resilient and agile procurement operations.

The enterprise-wide Gen AI conversational platform supports functional teams with real-time knowledge access and query resolution. This implementation enhances operational responsiveness, reduces dependency on manual processes, and enables faster, data-driven decisions, thereby improving productivity and efficiency across key business functions. Self-service Gen AI assistants are being built to resolve live issues within the WMS portal and improve operational responsiveness.

Key Operational Indicators

A summary of our key operational indicators is provided below:

Key Operational Indicators	FY25-26	FY24-25
Infrastructure (square feet) / logistics warehouse space	25,074,673	24,786,489
TEU of Sea Freight	112,007	91,608
Permanent Employees	16,601	16,801
Number of customers	7,124	6,277
Number of warehouses	435	441

Consolidated Financial Performance

Analysis of our financial performance for the current and previous financial year is provided below: ( in Crores)

	Particulars	FY25-26	FY24-25
Revenue from Operations		11,002.97	9,995.72
Other income		37.79	33.16
Total income		11,040.76	10,028.88
Freight, clearing, forwarding and handling charges		3,005.66	2,816.23
Sub-contracting costs and casual labour charges		1,554.71	1,438.63
Cost of materials consumed		8.98	12.06
Purchase of stock-in-trade		2,150.58	1,741.54
Changes in inventory of stock-in-trade		-110.13	14.11
Material & related costs		2,049.43	1,767.71
Impairment losses on financial instrument		56.01	20.68
Employee benefits expense		2,502.37	2,353.40
Finance costs		157.89	156.72
Depreciation and amortisation expense		570.4	543.56
Foreign exchange loss / (gain) (net)		-13.94	-25.23
Other expenses		1066.13	932.97
Total expenses		10,948.66	10,004.67
Share of profit from investments		182.03	5.15
Profit / (loss) before tax		274.13	29.36
Exceptional items gain / (loss)		-105.63	0.00
Profit / (loss) before tax after exceptional items		168.50	29.36
Tax expense		51.48	39.00
Profit / (loss) for the year		117.02	-9.64

Revenue & Segment-wise split

The following is a table with a breakdown of our consolidated revenue from operations, across our business segments: ( in Crores)

	FY25-26	FY25-26	FY24-25	FY24-25
Business Segment
	Amount	% Share	Amount	% Share
Integrated Supply Chain Solutions	8,238.85	75%	7,514.90	75%
Global Forwarding Solution	2,764.12	25%	2,480.82	25%
Revenue from Operations	11,002.97	100%	9,995.72	100%

The ISCS segment delivered year-over-year revenue growth of 9.63%, supported mainly by strong new business wins. This positive momentum was partially counterbalanced by lower volumes from existing customers, particularly in specific geographies. Overall, performance remained steady, reflecting a continued focus on improving business quality and profitability. In addition, ongoing management led cost optimization efforts helped drive further cost efficiencies, supporting margins. The GFS segment delivered a 11.42% year-over-year revenue growth, primarily fuelled by new business wins and volume increases.

The following table provides a breakdown of our consolidated revenue from operations, across our geographic segments: ( in Crores)

		FY25-26	FY25-26	FY24-25	FY24-25
	Geographic Segment
		Amount	% Share	Amount	% Share
India		3,037.47	28%	2,701.84	27%
Rest of the World		7,965.53	72%	7,293.88	73%
Revenue from Operations		11,002.97	100%	9,995.72	100%

From a geographical perspective, India had a strong 12.42% overall revenue growth. This was as a result of new business. The GFS business in India delivered a strong 38.37% revenue growth, driven by increased volumes and new business wins. The Rest of the World business delivered overall revenue growth of 9.21%, led by a 11.47% increase in ISCS and a marginal growth of 2.65% in the GFS segment. This reflects new business wins and effective execution across key international markets.

Operating Expenses

We remain committed to enhancing operational efficiency and maintaining disciplined cost management to strengthen our profitability margins. The primary elements of our operating expenses are as follows: Material related expenses increased by 15.94% from 1,767.71 crores in FY24-25 to 2,049.43 crores in FY25-26 driven by new customers in Europe in the Retail and automotive sector and India in the renewable energy sector. Employee benefits expense increased by 6.33% from 2,353.40 crores in FY24-25 to 2,502.37 crores in FY25-26. The increase was primarily attributable to inflation and manpower deployment, particularly for new business in the India and North America.

Other expenses increased by 14.27% from 932.97 crores in FY24-25 to 1066.13 crores in FY25-26 driven by cost inflation in short-term rentals and repairs and maintenance and cost incurred for transformation project in Europe

Adjusted EBITDA

EBITDA is calculated as the sum of profit / (loss) for the year, total tax expenses, finance costs, depreciation and amortization expense reduced by exceptional items, share of profit from investments accounted for using the equity method (net of income tax) and other income. Adjusted EBITDA is calculated as the sum of EBITDA, share based payments and foreign exchange loss/(gain) (net).

EBITDA Reconciliation

Particulars	FY25-26	FY24-25
Profit / (loss) before tax	168.50	29.36
Add: Finance costs	157.89	156.72
Add: Depreciation and
	570.40	543.56
amortization expense
Add: Exceptional items (gain)
	(105.63)
/ loss
Less: Share of profit of equity
	(182.03)	(5.15)
accounted investees
Less: Other income	(37.79)	(33.16)
EBITDA	782.60	691.33
Add: Share-based payments	2.04	1.27
Less: Foreign exchange loss /
	(13.94)	(25.23)
(gain) (net)
Adjusted EBITDA	770.70	667.37

Adjusted EBITDA improved by 15.48%, from 667.37 Cr to 770.70 Cr, primarily driven by strong recovery by ISCS segment. ISCS adjusted EBITDA grew by 16.94%, from 627.3 crores to 733.6 crores, mainly due to strong growth in ISCS Europe and India. In the GFS segment, adjusted EBITDA declined by 8.99%, from 66.7 crores to 60.7 crores, despite higher volumes driving a strong revenue increase of 11.42%, the overall impact was primarily influenced by freight rate volatility.

Other Costs

Depreciation & Amortization increased 4.94% from 543.56 crores in FY24-25 to 570.40 crores in FY25-26 due to capitalisation of cost related to a new project in North America.

Finance Expenses increased 0.75% from 156.72 crores in FY24-25 to 157.89 crores in FY25-26 due to increase in borrowings for new projects.

We had an exceptional item loss 105.63, the cost pertains to the implementation of Project One, a group-wide strategic transformation initiative undertaken to streamline operations, rationalize cost structures, and consolidate business activities across UK and Europe and the incremental impact on employee benefit obligations resulting from the changes in new labour code in India as it is regulatory-driven and non-recurring in nature.

Capital expenditure

We operate as an asset-light business wherein our warehouses are operated through leases. While we do not have ownership of these assets, we have control over the capacity and space, and the scheduling, routing, storing, and delivery of goods are managed by us. Our capital expenditures in: (i) ISCS segment is primarily for customers in warehousing and material handling segments of the business; and (ii) GFS segment is primarily for intangible assets such as computer software and others.

During FY25-26, our capex spending was 265.36 crores towards purchase of property, plant and equipment mainly for the new project in North America and intangible assets, net of proceeds from disposal. As at 31 st March 2026, Capital work in progress was 8.50 crores and intangible assets under development were 6.93 crores.

Discussion on certain balance sheet items Goodwill

Goodwill increased by 9.64% from 600.64 crores as of 31 st Mar 2025 to 658.56 crores as of 31 st Mar 2026 due to exchange differences on translation of foreign operations of 57.92 crores.

Right of use asset

Right-of-use asset increased by 41.76% from 1,000.70 crores as of 31 st Mar, 2025 to 1,418.60 crores as of 31 st Mar 2026 primarily due capitalisation relating to a new project

Inventories

Inventories increased by 39.97% from 380.99 crores as of 31 st Mar 2025 to 533.27 crores as of 31 st Mar 2026 primarily due to onboarding of a new customer, resulting in higher stock requirements to support the additional business volume.

Trade Receivables

Net trade receivables (current and non-current) increased by 14.67% from 1,442.11 crores as of 31 st Mar 2025 to 1,653.62 crores as of 31 st Mar 2026 in line with the growth of business. However, the DSO days has increased from 54 days in Fiscal 2025 to 55 days in Fiscal 2026 in line with increase in business in Fiscal 2026.

Lease Liability

Lease liability (current and non-current) increased by 33.89% from 1,228.67 crores as of 31 st Mar 2025 to 1,645.05 crores as of 31 st Mar 2026 primarily due to payments of lease liability of 505.13 crores, reversal of lease liability of 18.44 crores offset by additions to lease liability of 699.30 crores, accretion of interest of 82.89 crores.

Borrowings

Total borrowings on a consolidated basis, comprising of current and non-current borrowings increased from 859.44 crores as on 31 st Mar 2025 to 1110.31 crores as on 31 st Mar 2026 majorly due to new project in North America.

Trade Payables

Trade payables increased by 26.74% from 1,410.54 crores as of 31 st Mar 2025 to 1,787.76 crores as of March 31, 2026 in the ordinary course of business.

Other Financial Liabilities

Other financial liabilities (current and non-current) increased by 55.92% from 136.76 crores as of 31 st Mar 2025 to 213.23 crores of March 31, 2026 primarily due to increase in capital creditors by 41.52 crores, Amount due to employees by 26.54 crores and payable to factor by 9.36 crores.

Key Performance Indicators and Key Financial Ratios

Particulars					FY25-26	FY24-25
Growth Rate of Revenue from
					10.08%	8.60%
Operations (%)
EBITDA Margin (%)					7.11%	6.90%
EBITDA Growth Rate (%)					13.20%	-0.90%
Adjusted EBITDA Margin (%)					7.00%	6.67%
Adjusted EBITDA Growth Rate (%)					15.48%	-6.00%
PBT Margin (%)					2.49%	0.30%
PBT Growth Rate (%)					833.69%	403.90%
Profit / (Loss) Margin for the year (%)					1.06%	-0.10%
Profit / (Loss) Growth Rate for the
					1313.90%	83.30%
year (%)
ROCE (%) 1					7.47%	4.70%
ROE (%)					6.00%	-0.52%
RoIC Pre-Tax 2					11.12%	5.11%
RoIC Post-Tax 2					8.77%	3.08%
1.	Return on Capital		Profit Before Tax after
		Employed		Exceptional + Finance Cost
				Average Capital Employed*
2.		Return on Invested		Profit Before Tax after
		Capital		Exceptional + Finance Cost-
				Finance cost on Lease liability
			Average Invested Capital #

* Average Capital Employed comprises Total Equity plus Borrowings plus Lease liability.

# Average Invested Capital comprises Total Equity plus Borrowings reduced by Goodwill and Acquisition related other Intangible Asset.

Key financial ratios

In compliance with the requirement of SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015, the key financial ratios of the Group have been provided hereunder along with the explanation only for the significant changes, i.e., change of 25% or more as compared to the previous financial year.

Particulars	FY25-26	FY24-25
PBT Margin (%)	2.49%	0.29%
Profit / (Loss) Margin for the year (%)	1.06%	-0.10%
Trade Receivables Turnover	54.55	52.60
Interest Coverage Ratio 1	1.29	0.81
Current Ratio	1.02	1.08
Debt Equity Ratio	0.54	0.47

(i) PBT and PAT margins are improved by lower finance costs and foreign exchange gains and partially offset by higher tax expenses while Adjusted EBITDA improved by 15.48% impacted by higher revenue and improved volume in GFS.

(ii) Interest coverage ratio improved primarily due to flat finance expense and improvement in EBIT.

1.	Interest Coverage	Profit Before Tax before
	Ratio	Exceptional + Finance Cost -
		Other Income \u2013 Foreign exchange
		(gain) /loss - Share of Profit from
		Joint Venture (One-off gain)
		Finance Cost

Risks to the industry and our business

As a global company operating across multiple geographies, we navigate an increasingly complex risk landscape shaped by geopolitical conflicts, energy price volatility, evolving trade architectures, and rapid technological disruption. The IMF has flagged slowing global growth, renewed inflationary pressures, and heightened policy uncertainty as defining macro risks. Our management team remains deeply committed to proactively identifying, assessing, and mitigating both internal and external risks, ensuring sustained operational resilience and long-term value creation for all stakeholders.

The key risks the Company is exposed to are:

Macroeconomic trends in the industries our customers operate

As a global logistics enterprise, our growth, operational results, and financial condition remain intrinsically linked to end-consumer demand and the macroeconomic health of the markets our customers serve. Key demand drivers encompass per capita disposable income, consumer spending patterns, business investment cycles, aggregate logistics expenditures, interest rate fluctuations, fuel and energy pricing, government policy shifts, and broader geopolitical developments that influence global consumption and trade activity. Consequently, our performance is highly sensitive to recessionary conditions or periods where compounding macroeconomic headwinds simultaneously weigh on consumer and business confidence.

The escalation of conflict in the Middle East in late February 2026 has introduced a notable impact on global operations, disrupting key energy routes, escalating maritime insurance premiums, and extending shipping timelines. These developments have injected a pronounced degree of uncertainty across regional supply chains. Additionally, disruptions to air traffic around major Gulf transit hubs have further inflated air freight costs and complicated cross-border cargo movements for our customers.

Simultaneously, the structural reconfiguration of global trade flows stemming from US tariff policies while partially moderated following reductions in effective tariff rates in mid-2025 continues to reshape supply chain investment decisions, procurement strategies, and cross-border project timelines across the manufacturing, retail, and technology sectors. Furthermore, energy price inflation catalysed by the Middle East conflict poses a direct cost pressure on our road-dependent freight networks. This trend concurrently dampens consumer purchasing power and business investment confidence in key emerging markets, adding further complexity to near-term demand forecasting and capacity planning across our network.

Demand for outsourced supply chain solutions and logistics service

The global logistics outsourcing landscape is undergoing a structural shift, with enterprises increasingly prioritizing supply chain resilience alongside cost efficiency amid evolving geopolitical dynamics. Organizations are redesigning supply networks, diversifying sourcing strategies, and partnering with specialized logistics providers to navigate elevated freight costs, shifting shipping routes, and trade policy uncertainties.

In India, sectors such as pharmaceuticals, semiconductors, automotive, and quick commerce are anchoring this outsourcing momentum, generating sustained demand for integrated third-party logistics (3PL) solutions. Driven by these tailwinds, Indias 3PL market is estimated at $38.18 billion in 2026 and is projected to reach $50.55 billion by 2031, expanding at a Compound Annual Growth Rate (CAGR) of 5.78%. Within this space, asset-light operators command a 41.60% market share, while hybrid models exhibit the fastest acceleration with a 6.55% CAGR through 2031.

Concurrently, the contract logistics segment is expanding from $22.28 billion in 2026 to $31.58 billion by 2031 at a CAGR of 7.22%. This robust growth is catalysed by the infrastructure expansion under PM GatiShakti, deeper e-commerce penetration across Tier-2 and Tier-3 cities, and an escalating enterprise demand for digitally integrated, flexible supply chain solutions across all key industry verticals.

Customer concentration risk:

Our business is anchored in robust, long-standing relationships with tier-one clients, underpinned by an unwavering focus on nurturing and expanding these partnerships. By consistently delivering exceptional service quality, engineering competitive, value-driven solutions, and maintaining proactive engagement, we reinforce our position as an indispensable strategic logistics partner. Concurrently, we remain committed to anticipating evolving client needs and continuously enhancing our operational capabilities to support their long-term supply chain success.

In an environment characterized by decelerating global growth and heightened cost pressures, enterprises are scrutinizing logistics partnerships with greater rigor, favouring providers that demonstrate measurable efficiency gains, advanced technological capabilities, and systemic operational resilience. This market dynamic strengthens our mandate to deepen existing client relationships while simultaneously capturing new client segments seeking dependable, innovation-led logistics partners.

Furthermore, our diversified exposure across high-growth industries including pharmaceuticals, retail, automotive, quick commerce, and technology acts as a natural hedge against sector-specific volatility. Because no single industry downturn can disproportionately impact our aggregate performance, this structural breadth continues to attract organizations that value a logistics partner with proven cross-sector expertise, deep operational capacity, and the agility to scale alongside their evolving commercial requirements.

Ability to effectively invest in technological capabilities:

Technological capability continues to serve as a defining competitive differentiator across the global logistics industry in FY26. We are reinforcing our market position through sustained investments in automation, advanced warehouse management systems (WMS), real-time visibility solutions, and data-driven route optimization ensuring our service offerings remain precisely aligned with evolving industry requirements.

Our approach is centred on engineering scalable, future-ready digital infrastructure, supported by targeted investments in specialized talent across automation, analytics, and digital transformation. Concurrently, we are enhancing our proprietary platforms to meet the dynamic expectations of our clients and enable seamless, integrated supply chain solutions.

While these capital deployments require disciplined execution, they yield structural improvements in asset utilization, operational efficiency, client engagement, and overall market competitiveness. Furthermore, our rigorous focus on technology governance, cybersecurity, and system resilience ensures uninterrupted service delivery. By remaining at the forefront of digital innovation, we are well-positioned to drive sustained value and deepen long-term client partnerships.

Global operations and foreign exchange

We operate across four continents and 26 countries, serving more than 100 Fortune 500 clients. As of Mar26, our business development pipeline stands at 6,100 crore, reflecting the expansive breadth and depth of a diversified global footprint that spans Europe, the United Kingdom, North America, and Asia-Pacific across a multi-currency revenue base. Our international revenues, denominated in several key global currencies, are managed within a disciplined treasury framework engineered to mitigate foreign exchange volatility arising from divergent monetary policies, inflationary pressures, and shifting macroeconomic conditions across our operating geographies.

Simultaneously, Indias macroeconomic resilience anchored by robust foreign exchange reserves and the Reserve Bank of Indias (RBI) proactive monetary management provides a stable foundation for our Rupee-denominated reporting. Favourable currency movements across our primary operating markets continue to deliver natural tailwinds to our consolidated international revenues. Furthermore, our strategic hedging programs and natural currency offsets within our multi-geography cost base ensure financial predictability and margin stability for our stakeholders.

Inflation risk:

Global headline inflation has reversed from its recent downward trajectory, driven primarily by the escalation of conflict in the Middle East and its cascading impact on global energy and commodity markets. In response, our diversified multimodal transport network spanning air, sea, rail, and road provides crucial operational flexibility to dynamically rebalance freight mode allocation amid fluctuating fuel prices across our operating geographies. Conversely, Indias domestic inflation outlook remains constructive, supported by healthy agricultural output, proactive monetary policy management by the Reserve Bank of India (RBI), and easing food price pressures that have collectively anchored consumer price expectations. Concurrently, the governments sustained infrastructure push encompassing Dedicated Freight Corridors, national waterways expansion, and multimodal logistics park development is structurally reducing per-unit transportation costs and driving freight efficiency across all modes in which we operate.

Our proactive cost-management framework, which integrates fuel hedging strategies, AI-powered route optimization, modal-shift capabilities, and technology-driven asset utilization improvements, positions us strongly to absorb inflationary input pressures without compromising our customer value propositions. We demonstrated robust operational discipline through FY26; our consistent margin expansion and improving profitability reflect an ability to effectively mitigate cost headwinds while sustaining a resilient growth momentum across our global operations.

Working capital risk

Our business requires disciplined, forward-looking working capital management as operations expand across geographies and service segments with increasing complexity. These capital requirements are directly influenced by operational scale, client mix, and evolving market dynamics, and they may fluctuate based on shifts in underlying commercial assumptions.

Parallel to the ongoing expansion of our business, working capital demands have naturally increased. However, robust internal accruals, enhanced profitability, and prudent capital allocation have enabled us to optimize liquidity and meet these operational needs effectively.

While we remain confident in our ability to secure funding on commercially viable terms backed by a strong financial profile and established banking relationships any unexpected constraints in systemic liquidity or credit availability could restrict operational flexibility and compress future growth initiatives.

Geopolitical Risk

The ongoing geopolitical tensions stemming from the conflict in the Middle East have introduced a period of protracted uncertainty across global energy markets, with notable implications for fuel availability along key international supply corridors. As a global logistics enterprise, our operations are inherently linked to the consistent availability and pricing stability of fuel across our network. Consequently, sustained instability in the region could place upward pressure on our operating cost structure over the medium term.

Internal controls

TVS SCS is committed to ensuring effective internal control systems commensurate with the size and the complexity of our business. We have established adequate and effective internal controls to achieve its compliance and reporting objectives. These controls are deployed through various policies and procedures and are periodically revisited to ensure they are in line with changes to our business environment. Our Audit Committee, composed of Independent and Non-Executive Directors, regularly reviews significant audit findings, adequacy of internal controls, audit plans, reasons for changes in accounting policies and practices, if any, and monitors the implementation of audit recommendations. Our internal audit functions make an evaluation of the adequacy and effectiveness of internal systems on an ongoing basis so that our operations adhere to our policies, compliance requirements and internal guidelines. Our internal control system is supplemented by an internal audit carried out by Deloitte, a third-party internal audit firm. We ensure that preventive and detective controls are embedded in all the business processes. Significant audit observations and follow-up actions thereon are reported to the Audit Committee. Further, the Directors Report and Corporate Governance Report sections contain comprehensive details pertaining to corporate governance and statutory compliances.

Human Resources Management

At TVS Supply Chain Solutions (TVS SCS), the Human Resources Management (HRM) function continues to play a strategic role in enabling business growth and operational excellence across 25 countries. Supporting a diverse workforce of over 16,601 on-roll employees and 15,000 off-roll employees, the HR function remains closely aligned with the Companys global business objectives and supply chain operations. Guided by the core values of Trust, Value and Service, TVS SCSs people practices are designed to foster an inclusive, performance-driven, and innovation-led work culture.

VIBE 2026 11 th Edition of the Employee Engagement Survey

VIBE 2026 was the most comprehensive edition of TVS SCSs Employee Engagement Survey. Designed to assess employee satisfaction, engagement, NPS and overall employee experience. It provides valuable insights into organizational culture, leadership effectiveness, career development opportunities, and overall job satisfaction. With participation spanning 22 countries and 17 languages, VIBE 2026 reinforced TVS SCSs commitment to fostering an inclusive and globally connected workplace.

Key Highlights from VIBE 2026

1. Overall Participation

An exceptional 88% participation rate, reflecting strong employee involvement and engagement across the organization.

2. Global Reach

Employees from all major regions contributed to the survey, highlighting the truly global and inclusive nature of the initiative.

3. Net Promoter Score (NPS)

Employee advocacy continued its upward trajectory, with the NPS improving to 67%.

4. Overall Satisfaction

Employee satisfaction reached an all-time high of 95%, demonstrating continued progress in enhancing the employee experience.

5. Introduction of New Metrics

VIBE 2026 also introduced two new measures the Engagement Index and Experience Index to further strengthen the organizations understanding of employee engagement and workplace experience across the enterprise.

Every submission was carefully reviewed, categorized, and analysed to identify actionable insights. These findings are now being leveraged to address organizational priorities, strengthen employee experience, and align strategic initiatives with the long-term Vision of TVS SCS.

Cautionary statement

Statements in this Management Discussion and Analysis and this Annual Report describing our vision, projections, estimates, expectations, plans or predictions or industry conditions or events may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results, performance or achievements could differ materially from those expressed or implied. Several factors could make a significant difference to the Companys operations. These include economic conditions affecting demand and supply, government regulations and taxation, natural calamities, pandemics etc. over which the Company does not have any direct control.