TVSELECT - TVS Elec.
📢 Recent Corporate Announcements
TVS Electronics reported a 13.6% YoY revenue growth in Q3 FY26, reaching ₹1,136 million, primarily driven by a 19.7% surge in the Product & Solutions Group. The company achieved a quarterly turnaround with a PAT of ₹4 million, compared to a loss of ₹7 million in Q3 FY25. EBITDA margins expanded significantly by 262 basis points YoY to 5.72%, supported by reduced material costs and lower expenses. While the nine-month (9M) period still reflects a net loss of ₹16 million, it is a notable improvement from the ₹32 million loss recorded in the same period last year.
- Q3 FY26 Revenue grew 13.6% YoY to ₹1,136 Mn, led by the Product & Solutions segment contributing ₹826 Mn.
- EBITDA for the quarter rose to ₹65 Mn from ₹31 Mn in the previous year, with margins improving to 5.72%.
- Net Profit (PAT) turned positive at ₹4 Mn for Q3 FY26 against a loss of ₹7 Mn in Q3 FY25.
- 9M FY26 net loss narrowed to ₹16 Mn from a loss of ₹32 Mn in 9M FY25, indicating a recovery trend.
- The company reported an exceptional item of ₹7 Mn during the quarter related to the impact of the new labor code.
TVS Electronics reported a return to profitability in Q3 FY26, posting a Net Profit of ₹41 Lakhs compared to a loss of ₹65 Lakhs in the same period last year. Revenue from operations grew 13.6% YoY to ₹11,359 Lakhs, primarily driven by the Products & Solutions segment. However, the Customer Support Services segment remains a drag, reporting a loss of ₹262 Lakhs. The company also completed the amalgamation of TVS Investments Private Limited during this quarter.
- Revenue from operations increased 13.6% YoY to ₹11,359 Lakhs from ₹10,000 Lakhs.
- Net Profit turned positive at ₹41 Lakhs vs a loss of ₹65 Lakhs in Q3 FY25.
- Products & Solutions segment profit grew significantly to ₹433 Lakhs from ₹262 Lakhs YoY.
- Exceptional item of ₹74 Lakhs recognized due to statutory impact of new Labour Codes.
- Amalgamation of TVS Investments Private Limited with the company became effective on December 19, 2025.
TVS Electronics Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by Integrated Registry Management Services Private Limited, confirms the processing of dematerialization requests for the quarter ended December 31, 2025. This filing ensures that share certificates received were duly cancelled and the names of depositories were updated in the company's records. As a routine administrative disclosure, it confirms the company's adherence to standard regulatory procedures regarding shareholding maintenance.
- Compliance with Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Covers the reporting period for the quarter ended December 31, 2025
- Certificate issued by Registrar and Share Transfer Agent (RTA), Integrated Registry Management Services Private Limited
- Confirms that security certificates received for dematerialization have been mutilated and cancelled
TVS Electronics Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the declaration of the unaudited financial results. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure commences on January 1, 2026.
- Closure pertains to the financial results for the quarter ending December 31, 2025.
- Window will reopen 48 hours after the official announcement of financial results.
- Complies with SEBI (Prohibition of Insider Trading) Regulations, 2015.
TVS Electronics has completed the allotment of 1,11,60,093 equity shares to the shareholders of TVS Investments Private Limited as part of a court-sanctioned Scheme of Amalgamation. This restructuring involved the cancellation of an equal number of shares previously held by the transferor company, meaning there is no net dilution to the total equity base. The primary beneficiaries of this allotment are promoters Mr. Gopal Srinivasan and Mrs. Srilalitha Gopal. This move simplifies the promoter holding structure by transferring shares from a private holding entity directly to individual promoters.
- Allotment of 1,11,60,093 fully paid-up equity shares to shareholders of TVS Investments Pvt Ltd
- Cancellation of 1,11,60,093 existing shares held by the transferor company, resulting in zero net share capital change
- Scheme sanctioned by the Hon’ble National Company Law Tribunal (NCLT), Chennai Bench on November 27, 2025
- New shares allotted on December 23, 2025, to promoters Mr. Gopal Srinivasan and Mrs. Srilalitha Gopal
- Disclosure filed under Regulation 10(6) of SEBI (SAST) Regulations for exemption from open offer requirements
TVS Electronics has completed a key procedural step in its merger with TVS Investments Pvt Ltd (TVSIPL) by allotting 1,11,60,093 equity shares to TVSIPL's shareholders. This allotment follows the cancellation of an identical number of shares previously held by TVSIPL in the company. Importantly, there is no change in the total issued and paid-up equity share capital of TVS Electronics as a result of this transaction. The newly issued shares will rank pari-passu with existing shares and are set to be listed on both the BSE and NSE.
- Cancellation of 1,11,60,093 fully paid-up equity shares of Rs 10 each held by the Transferor Company.
- Allotment of 1,11,60,093 new equity shares to the shareholders of TVS Investments Pvt Ltd.
- Zero net increase in the total issued and paid-up equity share capital of the company.
- Record date for the entitlement of shares was fixed as December 15, 2025.
- New shares will be listed on BSE and NSE and rank equally with existing equity.
TVS Electronics Limited has announced that its Scheme of Amalgamation with TVS Investments Private Limited has become effective as of December 19, 2025. This follows the filing of the NCLT order with the Registrar of Companies after all conditions were met. The merger carries a retrospective 'Appointed Date' of April 1, 2023. This restructuring is expected to simplify the group's corporate structure and consolidate holdings.
- Scheme of Amalgamation between TVS Investments Pvt Ltd and TVS Electronics Ltd is now fully effective.
- The official effective date is December 19, 2025, following the ROC filing of e-Form INC-28.
- The retrospective Appointed Date for the merger is set as the closing business hours of April 1, 2023.
- The Hon'ble National Company Law Tribunal (NCLT) sanctioned the scheme on November 27, 2025.
TVS Electronics Limited (TVSELECT) announced an update on a material pending litigation with the Uttar Pradesh Goods & Services Tax Department. The department had issued a show cause notice demanding ₹25.65 Cr for the financial year 2021-22 related to Input Tax Credit (ITC). However, after reviewing the company's submitted documents, the department vacated the show cause notice, resulting in no actual demand. This resolves a potential financial risk for the company.
- Initial demand from Uttar Pradesh GST Department: ₹25.65 Cr
- Penalty included in initial demand: ₹2.33 Cr
- Actual demand after review: NIL
- Show Cause Notice issued under u/s 73(1) of CGST/UPGST Act 2017
TVS Electronics Ltd. announced the record date as December 15, 2025, for the Scheme of Amalgamation between TVS Investments Pvt Ltd. and TVS Electronics Ltd. Shareholders of the Transferor Company will be issued new shares of TVS Electronics as per the scheme. The Appointed Date for the scheme is the closing business hours of April 01, 2023. The Effective Date depends on fulfilling conditions in clause 21 and filing the NCLT order dated November 27, 2025.
- Record date is December 15, 2025
- Appointed Date is April 01, 2023
- NCLT order dated November 27, 2025
- Scheme of Amalgamation between TVS Investments Pvt Ltd. and TVS Electronics Ltd.
TVS Electronics Limited (TVSELECT) announced an update regarding a litigation with the Uttarakhand Goods & Services Tax Department. The dispute arose from a Show Cause Notice u/s 73(1) of CGST/Uttarakhand GST Act 2017 concerning Credit Notes for the financial year 2021-22, with an initial demand of ₹25.6 Lakh (including interest & penalty of ₹12.9 Lakh). However, after the company submitted supporting documents, the department vacated the Show Cause Notice, resulting in NIL actual demand. This resolves a potential financial risk for the company.
- Initial demand from Uttarakhand GST Department: ₹25.6 Lakh
- Penalty included in initial demand: ₹12.9 Lakh
- Actual demand after review: NIL
- Show Cause Notice issued under section 73(1) of CGST/Uttarakhand GST Act 2017
The National Company Law Tribunal (NCLT) Chennai has sanctioned the Scheme of Amalgamation between TVS Investments Private Limited and TVS Electronics Limited. The 'Appointed Date' for the scheme is the closing business hours of April 01, 2023. The 'Effective Date' will be determined upon fulfilling conditions in clause 21 of the scheme and filing the NCLT order with the Registrar of Companies. The company will announce the Effective Date to the stock exchanges in due course. Investors should monitor further announcements regarding the Effective Date and any potential impact on shareholding.
- NCLT Chennai sanctioned the Scheme of Amalgamation on 27th November, 2025.
- The 'Appointed Date' for the Scheme is April 01, 2023.
- The order approving the Scheme is available on NCLT website: https://nclt.gov.in
- Company website where the order is available: https://www.tvselectronics.in
TVS Electronics Limited is facing litigation from the Karnataka Goods & Services Tax Department regarding vendor payments made after 180 days in FY 2021-22. The initial demand was ₹2.31 Cr, including a penalty of ₹0.96 Cr. However, after the company submitted supporting documents, the demand has been reduced to ₹48,190, which includes interest and penalty. The company plans to remit the reduced amount and conclude the proceedings. Investors should monitor the resolution of this issue.
- Initial GST demand was ₹2.31 Cr including penalty of ₹0.96 Cr
- Demand reduced to ₹48,190 after submission of documents
- Litigation pertains to vendor payments made after 180 days in FY 2021-22
Financial Performance
Revenue Growth by Segment
In Q2 FY26, the Product & Solutions Group (PSG) grew 27.2% YoY to INR 93 Cr, while Customer Support Services (CSS) grew 9.5% YoY to INR 34.5 Cr. Total consolidated revenue for Q2 FY26 was INR 127.5 Cr, a 21.9% increase YoY.
Geographic Revenue Split
As of FY25, the geographic contribution was led by South India at 37%, followed by West India at 23%, North India at 21%, and East India at 19%.
Profitability Margins
Q2 FY26 PAT margin stood at 1.25% (INR 1.6 Cr), a significant recovery from a negative margin of 1.24% (INR -1.3 Cr) in Q2 FY25. However, H1 FY26 remains at a net loss of INR 2 Cr with a PAT margin of -0.89%.
EBITDA Margin
EBITDA margin for Q2 FY26 was 3.76% (INR 4.8 Cr), improving by 127 bps YoY from 2.49% (INR 2.6 Cr). The improvement is attributed to operating leverage as revenue scaled against fixed costs.
Capital Expenditure
The company invested INR 15 Cr to establish a new Electronic Manufacturing Services (EMS) line. Future CAPEX will be demand-driven based on business requirements.
Credit Rating & Borrowing
The company maintains a BWR A/Stable (Long Term) and BWR A1 (Short Term) rating. Total rated bank facilities amount to INR 67 Cr, including INR 46 Cr in long-term and INR 21 Cr in short-term facilities.
Operational Drivers
Raw Materials
Specific raw material names like copper or plastics are not listed, but the cost of materials consumed and purchase of stock-in-trade represents the bulk of the INR 122.7 Cr total expenses in Q2 FY26.
Key Suppliers
Not disclosed in available documents; however, the company operates under NDAs with several Electronic Manufacturing Services (EMS) customers.
Capacity Expansion
The Tumakuru facility currently operates on a single-shift basis. The company has the infrastructure to move to a three-shift operation, which would effectively triple current production capacity without additional major structural expansion.
Raw Material Costs
Total expenses grew 20.3% YoY to INR 122.7 Cr in Q2 FY26, closely tracking the 21.9% revenue growth, indicating stable procurement costs relative to sales.
Manufacturing Efficiency
Capacity utilization is currently at approximately 33% (one out of three possible shifts). Moving to full capacity is expected to significantly improve EBITDA margins through operating leverage.
Strategic Growth
Expected Growth Rate
18%
Growth Strategy
Growth will be driven by scaling the EMS division (INR 15 Cr initial investment), expanding Solar O&M services (currently 2-3 GW range), and launching new products like TVS Aikya and TVS AIDC. The company is also targeting the manufacturing and logistics segments for its automation solutions.
Products & Services
Dot matrix printers, keyboards, mice, Touch POS systems, thermal printers, mobile phone/IT repair services, and Solar O&M services.
Brand Portfolio
TVS Electronics, TVS-E, TVS Aikya, TVS AIDC.
New Products/Services
New launches include TVS Aikya and TVS AIDC solutions. R&D investment is targeted at 2% to 3% of revenue to develop proprietary IT products.
Market Expansion
The company is expanding its focus from BFSI, Retail, and Government into the Manufacturing and Logistics sectors to drive volume growth in its Products and Solutions Group.
Market Share & Ranking
The company identifies as a market leader in Touch POS systems and Thermal printers in India.
Strategic Alliances
The company is undergoing a Composite Scheme of Arrangement to merge its holding company, TVS Investments Private Limited, into TVS Electronics to simplify the corporate structure.
External Factors
Industry Trends
The industry is shifting toward local electronics manufacturing (EMS) and renewable energy support services. TVS-E is positioning itself as an integrated hardware and software solution provider rather than just a peripheral seller.
Competitive Landscape
Competes with global and local IT peripheral brands and emerging EMS players in India.
Competitive Moat
The moat is built on a 3-decade brand heritage, a pan-India service network for CSS, and market leadership in niche categories like Dot Matrix printers and POS systems. Sustainability is driven by the 'Make in India' local value addition.
Macro Economic Sensitivity
The business is sensitive to 'Make in India' policy shifts and general economic activity in the retail and BFSI sectors which drive automation demand.
Consumer Behavior
Increased demand for transaction automation in retail and logistics is driving the shift toward Touch POS and thermal printing solutions.
Regulatory & Governance
Industry Regulations
The company is subject to regulatory changes in electronics categories, specifically mentioned regarding its camera business portfolio. It must also comply with 'Make in India' value-addition norms for government tenders.
Taxation Policy Impact
The company reported a tax credit/benefit of INR 0.9 Cr in H1 FY26 due to overall losses.
Risk Analysis
Key Uncertainties
Market fluctuations and the ability to maintain growth in the PSG segment (which saw a 27% spike in Q2) are primary uncertainties. Potential impact of 5-10% on margins if operating leverage does not materialize.
Geographic Concentration Risk
High concentration in South India (37% of revenue) makes the company vulnerable to regional economic downturns.
Third Party Dependencies
Dependency on global component suppliers for electronic manufacturing, although specific names are not disclosed.
Technology Obsolescence Risk
Risk of Dot Matrix and legacy peripherals being replaced by newer digital technologies; mitigated by R&D into POS and AIDC solutions.
Credit & Counterparty Risk
Trade receivables of INR 79.4 Cr represent a significant portion of current assets (approx 40%), requiring strict credit monitoring of retail and government clients.