Revenue and Profit Growth
Over the past seven years, TVS Holdings has seen its net sales surge from approximately ₹21,548 crores in March 2019 to nearly ₹44,993 crores by March 2025. This represents a compound growth trend, with particularly strong jumps in recent years. The total operating income mirrors this pattern, indicating consistent top-line expansion without reliance on other operating income streams.
Operating profit margins have improved steadily, rising from 10.85% in 2019 to 15.89% in 2025, signalling enhanced operational efficiency. Correspondingly, the operating profit (PBDIT) increased from around ₹2,339 crores to nearly ₹6,958 crores over the same period. Profit after tax (PAT) also followed an upward trend, climbing from ₹746 crores in 2019 to ₹2,454 crores in 2025, with the consolidated net profit reaching ₹1,164 crores in the latest fiscal year.
Earnings per share (EPS) have reflected this growth, rising from ₹213.51 in 2019 to ₹575.19 in 2025, underscoring the company’s ability to generate increasing returns for shareholders.
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Cost Structure and Margins
The company’s raw material costs have risen in line with revenue growth, increasing from ₹14,309 crores in 2019 to ₹25,978 crores in 2025. Employee costs have also grown steadily, reflecting expansion and possibly wage inflation, moving from ₹1,713 crores to ₹3,677 crores over the period. Other expenses have seen a notable increase as well, from ₹3,027 crores to ₹7,295 crores, which may indicate higher operational activities or inflationary pressures.
Despite these rising costs, TVS Holdings has managed to improve its gross profit margin from 7.65% in 2019 to 10.88% in 2025, suggesting effective cost management and pricing power.
Balance Sheet and Debt Profile
TVS Holdings’ total assets have expanded significantly, from ₹20,612 crores in 2020 to ₹53,324 crores in 2025, driven by increases in both non-current and current assets. Non-current assets, including long-term loans and advances, have grown substantially, indicating investments in long-term projects or subsidiaries.
However, the company’s debt levels have also escalated sharply. Total debt rose from around ₹6,991 crores in 2020 to ₹32,488 crores in 2025, with short-term borrowings constituting the majority of this increase. This rise in leverage could pose risks related to interest obligations and liquidity, although interest expenses have increased moderately in line with debt growth.
Shareholders’ funds have increased from ₹2,463 crores in 2020 to ₹4,687 crores in 2025, reflecting retained earnings and reserves accumulation. The book value per share has also improved, though it experienced some fluctuations, standing at ₹2,316 in 2025.
Cash Flow Trends
Cash flow from operating activities has been volatile, with negative cash flows recorded in some years, notably in 2023 and 2024, before recovering to a positive ₹3,534 crores in 2025. Investing activities have generally been cash outflows, consistent with capital expenditure and investments, while financing activities have provided inflows, likely from borrowings and capital injections.
The net cash inflow in 2025 was ₹1,886 crores, contributing to a healthy closing cash and bank balance of ₹4,707 crores, up from ₹2,820 crores the previous year. This improvement in liquidity is a positive sign amid the company’s expanding scale and debt burden.
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Summary and Investor Considerations
TVS Holdings has exhibited strong revenue and profit growth over the last several years, supported by improving margins and expanding asset base. The company’s ability to increase earnings per share and maintain a rising book value per share highlights its value creation for shareholders.
Nevertheless, the sharp increase in debt, particularly short-term borrowings, warrants careful scrutiny. Investors should weigh the benefits of growth and profitability against the risks posed by leverage and cash flow volatility. The company’s recent positive operating cash flow and improved liquidity position are encouraging signs, but ongoing monitoring of debt servicing and capital allocation will be crucial.
Overall, TVS Holdings presents a compelling growth story with a notable turnaround in profitability, yet it remains essential for investors to consider the balance sheet dynamics and cash flow patterns when assessing its long-term investment potential.
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