TVSSRICHAK - TVS Srichakra

📊 NSE: TVSSRICHAK 🏢 Tyres 📅 Last Updated: 12/14/2025 14:36

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations increased 9.8% YoY to INR 3,022.90 Cr in FY25 from INR 2,754.03 Cr in FY24. The replacement segment, specifically Off-Highway Tyres (OHT), contributed approximately INR 780 Cr during the first nine months of fiscal 2024, though it faced headwinds due to a slowdown in export demand.

Geographic Revenue Split

The company expanded its geographic footprint in the USA through the acquisition of Super Grip Corporation (SG Corp) in Tennessee in November 2023. While domestic OEM and replacement markets are primary, the OHT segment is heavily export-oriented, though it witnessed a demand slowdown in fiscal 2024.

Profitability Margins

Net profit margin was reported at 3.76% for FY25, up from 1.22% in FY24. However, Profit Before Tax (PBT) decreased significantly by 65.0% YoY to INR 48.61 Cr in FY25 from INR 138.95 Cr in FY24, primarily due to higher finance costs and raw material pressures.

EBITDA Margin

Operating margins were projected to improve to 9-10% in fiscal 2024 due to moderating rubber prices. Standalone EBITDA margin for Q1 FY23 was 4.2%, impacted by front-loaded advertising spends (5.9% of sales) related to IPL sponsorship.

Capital Expenditure

The company maintains a prudently funded capex spend to support its manufacturing units in Vellaripatti (Madurai) and Uttarakhand. Specific planned capex for FY26 is not disclosed, but historical spend has focused on capacity for 2-wheeler and 3-wheeler tyres.

Credit Rating & Borrowing

CRISIL Ratings recently withdrew the A1+ rating for the INR 300 Cr Commercial Paper programme at the company's request. Total borrowings stood at INR 812.20 Cr as of March 31, 2025, with a Debt-Equity ratio of 0.73.

⚙️ Operational Drivers

Raw Materials

Rubber is the primary raw material, with raw material costs accounting for 61.4% of total income in Q1 FY23. Other inputs include chemicals and fabric used in tyre manufacturing.

Import Sources

Not disclosed in available documents; however, the company is sensitive to global rubber price fluctuations.

Capacity Expansion

The company operates major manufacturing units in Madurai and Uttarakhand. While specific MTPA figures are not disclosed, the acquisition of SG Corp in the USA adds specialized capacity for solid industrial and all-terrain vehicle tyres.

Raw Material Costs

Raw material costs remained elevated at 61.4% of income in Q1 FY23 compared to 55.1% in Q1 FY22. The company employs internal cost mitigation actions as high costs are not always fully passed on to OEM customers.

Manufacturing Efficiency

The company focuses on productivity through Kaizen competitions, winning awards for 'Productivity Improvement Kaizen' and 'Poka-Yoke' at national levels in FY25.

📈 Strategic Growth

Expected Growth Rate

9.80%

Growth Strategy

Growth is driven by the acquisition of Super Grip Corporation (USA) to penetrate the solid industrial and mining vehicle tyre markets. The company is also focusing on the high-margin replacement market and expanding its 'TVS Eurogrip' brand presence through aggressive marketing, such as IPL sponsorships.

Products & Services

2-wheeler and 3-wheeler tyres, off-highway tyres (OHT), solid industrial tyres, all-terrain vehicle (ATV) tyres, mining vehicle tyres, and port equipment tyres.

Brand Portfolio

TVS Eurogrip, TVS Srichakra, and Super Grip (SG Corp).

New Products/Services

Expansion into solid industrial tyres and specialized tyres for all-terrain and port equipment vehicles following the SG Corp acquisition.

Market Expansion

Targeting the North American market through the Tennessee-based SG Corp and strengthening the domestic replacement market for two-wheelers.

Market Share & Ranking

Not disclosed in available documents, though it is a leading player in the Indian 2-wheeler tyre segment.

Strategic Alliances

The company is a key supplier to major OEMs like Bajaj, Yamaha, and others, as evidenced by supplier awards.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized off-highway tyres and sustainable manufacturing. TVS Srichakra is positioning itself by achieving 80% renewable energy usage and expanding into niche industrial tyre segments.

Competitive Landscape

Competes with major Indian tyre manufacturers in the 2-wheeler segment and global players in the OHT/industrial segment.

Competitive Moat

The company's moat is built on its strong brand equity (TVS Eurogrip), deep relationships with major Indian OEMs, and a specialized product portfolio in the OHT and industrial segments which have higher entry barriers than standard tyres.

Macro Economic Sensitivity

Highly sensitive to global rubber prices and interest rate cycles. Finance costs increased 15.6% to INR 49.17 Cr in FY25 due to rising average interest rates.

Consumer Behavior

Increasing demand for premium 2-wheeler tyres and specialized all-terrain tyres in export markets.

Geopolitical Risks

Geopolitical uncertainties are cited as a factor that could materially impact operations, particularly affecting export volumes in the OHT segment.

⚖️ Regulatory & Governance

Industry Regulations

Complies with SEBI (LODR) Regulations, 2015 and the Companies Act, 2013. Operations are subject to environmental pollution norms and industrial relations standards.

Environmental Compliance

Maintains an Internal Financial Control Framework and monitors material effluent or pollution problems. 80% of energy is now from renewable sources.

Taxation Policy Impact

The company accounts for current and deferred tax; tax expense was INR 1.89 Cr in Q4 FY22.

Legal Contingencies

The company instituted a Voluntary Retirement Scheme (VRS) for workmen at the Madurai plant, incurring an exceptional expense of INR 5.06 Cr in Q1 FY23.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (rubber) and fluctuations in export demand are key risks that could impact margins by 2-3%.

Geographic Concentration Risk

While expanding globally, a significant portion of manufacturing and revenue remains concentrated in India, particularly the Madurai and Uttarakhand regions.