**TSF Investments Limited (SFHL)** is a public limited company and a core pillar of the **TSF Group**. Operating as an exempted **Core Investment Company (CIC)**, the entity serves as the strategic investment arm for the group’s interests in the automotive and manufacturing sectors. Beyond its role as a holding company, it provides critical business process outsourcing (BPO) and support services to group entities. --- ### **Strategic Realignment: The Transition to TSF Investments** In **September 2025**, the company underwent a significant rebranding from **Sundaram Finance Holdings Limited** to **TSF Investments Limited**. This change was designed to align the corporate identity more closely with the **TSF Group** brand. The company’s overarching strategy is focused on: * **Core Consolidation:** Increasing ownership in market-leading automotive component manufacturers where the group has long-standing expertise. * **Capital Recycling:** Systematically exiting non-core, underperforming, or minority investments to unlock capital for higher-growth industrial opportunities. * **Operational Control:** Transitioning from a passive investor to a controlling stakeholder in key manufacturing entities. --- ### **Portfolio Architecture and Subsidiary Operations** As of **February 2026**, the company manages a diverse portfolio of subsidiaries and associates that dominate the Indian automotive supply chain. #### **Key Subsidiaries and Associates** | Entity Name | Relationship | Stake | Core Activity | |:---|:---|:---|:---| | **Axles India Limited** | Subsidiary | **62.98%** | Axle housings for Commercial Vehicles (CVs) | | **Sundaram Business Services (SBSL)** | Subsidiary | **100%** | Global BPO and outsourcing services | | **Forge 2000 Private Limited** | Subsidiary | **100%** | Forged components and metallurgy platform | | **Brakes India Private Limited** | Associate | **23.57%** | Market leader in braking systems | | **Turbo Energy Private Limited** | Associate | **32.00%** | Leading manufacturer of turbochargers | | **Wheels India Limited** | Associate | **23.96%** | Wheels and air suspension components | | **India Motor Parts & Accessories (IMPAL)** | Associate | **20.00%*** | Largest distributor of automotive spare parts | | **Dunes Oman LLC (FZC)** | Associate | **43.69%** | Iron castings (Oman-based) | | **Sundaram Dynacast Private Ltd** | Associate | **26.00%** | Precision Zinc and Aluminium die-cast parts | *\*Note: Acquisition of an additional **4.99%** in IMPAL is targeted for completion by **June 2026**, bringing the total stake to **24.99%**.* --- ### **Capital Allocation and Portfolio Restructuring** The company has been aggressive in restructuring its balance sheet to focus on high-conviction industrial assets. * **The Axles India Acquisition:** In **April 2025**, SFHL and its subsidiary **Forge 2000** acquired the entire stake held by **Dana Global Products Inc.** in Axles India. This increased SFHL’s holding from **38.81%** to **62.98%**, granting management control. The effective group stake (direct and indirect) now stands at **89.42%**. * **Strategic Divestments:** * **Delphi-TVS Technologies:** Exited the entire **3.19%** stake for **₹40.00 crore** in FY25. * **Sundaram Composite Structures (Suncomp):** Sold the entire **39%** stake to Brakes India in **September 2025** for **₹24.65 crores** to halt capital infusion into a loss-making entity. * **TVS Holdings Limited:** Reduced exposure via block deals, including a **1%** sale in FY24 and an approved sale of a further **2.75%** in **April 2025**. * **Full Exits:** Divested holdings in **D2C Consulting Services** (**₹3.85 crores**), **Vishnu Forge Industries**, and **Mind S.r.l Italy**. * **Governance of Investments:** Shareholders approved an omnibus limit of **₹500 crore** for group investments/disinvestments through **2025**, with individual transaction caps set at **₹300 crore**. --- ### **Financial Performance and Revenue Drivers** SFHL’s financial health is primarily dictated by dividend inflows and the valuation of its investment holdings. #### **Consolidated Financial Summary** | Metric (₹ in Crores) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Consolidated Net Profit** | **412.09** | **533.14** | **237.55** | | **Standalone Net Profit** | **236.01** | **321.57** | **94.75** | | **Dividend Income Received** | **209.52** | **160.40** | **97.44** | *Note: The FY24 profit included a one-time gain of **₹175.67 crores** from TVS Holdings. Excluding this, FY25 consolidated net profit grew by **15.28%**.* #### **Revenue from Shared Services** The company provides BPO and support services to **Sundaram Finance Limited** and other group entities. Revenue is recognized via per-employee, per-transaction, or cost-plus models. * **Support Services Revenue (FY25):** **₹56.54 crores**. * **Learning Income (FY25):** **₹29.14 lakhs**. * **Operational Shift:** In **2025**, non-voice BPO employees were absorbed directly by clients to streamline operations, though SFHL maintains the core service infrastructure. #### **Asset Valuation and Shareholder Returns** * **Investment Portfolio:** Valued at **₹5,738.41 crores**, accounting for **98.32%** of total assets. * **Accounting Shift:** The company moved the valuation of associates from **Deemed Cost** to **Fair Value Through OCI (FVTOCI)**, resulting in a net OCI impact of **₹1,677.48 crores**. * **Dividends:** For FY25, the company declared a total dividend of **₹5.85 per share (117%)**. --- ### **Operational Infrastructure and Risk Management** SFHL leverages the robust governance framework of the TSF Group to mitigate operational and financial risks. * **IT and Continuity:** Operations are supported by a Data Centre with **>99.5% uptime** and real-time data replication. * **Risk Oversight:** A dedicated **Risk Management Committee (RMC)** monitors sectoral concentration and market volatility. * **Taxation Adjustments:** Following the **Finance Act 2024**, the company remeasured deferred tax liabilities due to the withdrawal of indexation benefits, resulting in a **₹341.76 crore** reduction in liabilities recognized in OCI. * **Credit and Liquidity:** Trade receivables were aggressively managed, dropping from **₹92.79 lakhs** in 2024 to just **₹0.64 lakhs** in 2025. --- ### **Sectoral Outlook and External Drivers** The company’s future growth is intrinsically linked to the Indian automotive sector's performance. * **Commercial Vehicles (CV):** Growth is expected to be driven by infrastructure spending and replacement demand. **LCVs** (60% of CV volumes) are benefiting from the expansion of Tier 2/3 warehousing. * **Passenger Vehicles:** Forecasted growth of **4-6%**, though a shift toward **Utility Vehicles (65% of volumes)** and **Electrification (18% of scooters)** requires portfolio companies to adapt their product mixes. * **Macro Indicators:** With India’s economic growth expected to exceed **6%**, supported by strong GST collections and e-way bill trends, the demand for automotive components remains fundamentally strong.