Logistics stock in focus after promoter pledges additional 1.2 Cr shares

Synopsis: This logistics solution company was in the news following the company pledging a greater number of shares, from 10.99% to 13.71%, aggregating to 6.05 crore shares pledged, and involves big lenders like Jio Finance, J.P. Morgan and Nomura.

This company, which provides supply chain management services for international organisations, government departments, and large and medium-sized businesses, was in the news today as the company increased its pledged number of shares from 10.99% to 13.71%. 

With a market cap of Rs 4,652 crore, the shares of  TVS Supply Chain Solutions Ltd reached a low at Rs 103.05 compared to its previous day’s closing price of Rs 104.55, giving a fall of 1.5% in today’s trading session. The shares are trading at a PE of 39.1, whereas their industry PE is 24.8.

About the pledging of shares. 

TVS Supply Chain Solutions has reported a notable rise in pledged shares linked to its borrowing arrangements. Catalyst Trusteeship Limited, acting on behalf of major debenture holders such as OMERS, J.P. Morgan, Nippon India, DSP Finance, Nomura, Kotak Private Credit, RV Capital, OCM Asia Credit and Jio Finance, has added more shares to the encumbered pool.

Earlier, 4.85 crore shares, which were 10.99%, were pledged, but with an additional 1.2 crore shares, which is 2.72% of the total shares, now encumbered, the total rises to 6.05 crore shares, representing 13.71% of the company’s equity.

The new pledges stem from two events: 70 lakh shares pledged on April 11, 2025, which did not trigger a disclosure at the time, and 50 lakh shares pledged on December 8, 2025. These pledges are tied to debenture covenants and may require further shares to be pledged if the security cover falls below the required threshold. The company’s overall equity base remains the same, with 44.11 crore shares outstanding and 44.57 crore diluted shares.

In essence, the company’s encumbrance level has moved from 10.99% to 13.71%, signalling increased reliance on pledged shares to secure its debt obligations. While this does not directly affect day-to-day business operations, investors generally monitor such changes closely, as higher pledging can reflect greater leverage and may add sensitivity during uncertain or volatile market conditions. 

Financials and more. 

The revenue from operations for the company stands at Rs 2,663 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 2,513 crores, growing by about 6 per cent YoY. Similarly, the net profit stood at Rs 11 crore in Q2 FY25, increasing to Rs 16 crore in Q2 FY26.

TVS Supply Chain Solutions is one of India’s largest and fastest-growing integrated logistics and supply chain service providers. Backed by the legacy of the erstwhile TVS Group and now part of the TVS Mobility Group, the company operates with a strong culture rooted in the core values of trust, value, and service principles that have shaped how it builds relationships and delivers solutions.

With a presence in over 25 countries and its headquarters in India, TVS SCS has been a pioneer in shaping the Indian outsourced logistics industry. The company handles large and complex supply chains across multiple industries, in both India and select global markets, offering customised, technology-enabled solutions that cater to diverse operational needs.

TVS SCS continues to grow through a mix of organic expansion and activities that support inorganic growth. Its team of approximately 17,000 people works with international organisations, government departments, and large and mid-sized businesses, helping them navigate supply chain challenges across sectors. The company’s global reach, tech-driven approach, and deep industry experience make it a prominent player in the logistics ecosystem.

Written by Leon Mendonca. 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Logistics stock in focus after promoter pledges additional 1.2 Cr shares appeared first on Trade Brains.