TGV Sraac Reports Record Sales Amid Rising Interest Expenses and Liquidity Challenges

TGV Sraac, a microcap player in the commodity chemicals sector, has recently undergone a financial trend adjustment reflecting its performance metrics for the quarter ending September 2025. The company reported its highest net sales at Rs 499.94 crore, alongside a robust operating profit to interest ratio of 15.04 times. Additionally, TGV Sraac achieved a dividend per share of Rs 1.00 and maintained cash and cash equivalents at Rs 109.33 crore, indicating solid liquidity.
However, challenges persist for the company. The interest expense for the first nine months has risen to Rs 21.74 crore, marking a significant growth of 28.87%. Furthermore, the debtors turnover ratio has dropped to 6.89 times, suggesting potential issues in receivables management.

In terms of market performance, TGV Sraac's stock has shown mixed results compared to the Sensex. Over the past year, the stock has returned 5.99%, while the Sensex has outperformed with a return of 9.03%. Notably, over a five-year period, TGV Sraac has significantly outpaced the Sensex, achieving a remarkable 404.68% return. This juxtaposition highlights the company's volatility and the need for strategic adjustments to enhance its market position.