• Strategic partnership: TVS Supply Chain Solutions signed an MOU with Japan's Sankyu Inc to provide integrated engineering, installation, maintenance, and warehousing solutions in India. Additionally, Sankyu plans to acquire a 0.5% stake in the company at market valuation within the next 3 to 4 months, subject to regulatory approvals.
• Revenue growth outlook: Management maintained its FY27 top-line growth guidance of mid-teens to high-teens, supported by 28% top-line growth in Q1, over ₹500 crore in new contract wins across the last two quarters, and an order pipeline of around ₹7,500 crore.
• ISCS margin recovery: Following Q1 softness caused by upfront investments in new projects, Integrated Supply Chain Solutions (ISCS) EBITDA margins are projected to normalize to 9% to 9.5% from the second quarter onwards.
• Incremental revenue opportunity: The collaboration targets an estimated $15 billion to $17 billion per annum engineering services market in India, with incremental revenue primarily contributing from FY28 onwards and potentially starting in Q4 FY27.