TVS Supply Chain shares locked upper circuit as company forms JV to expand into aerospace and defence segment

TVS Supply Chain Solutions shares hit a 5% upper circuit at ₹122.65 apiece on Thursday, June 4, as the company formed a joint venture with Italy-based firm ALA Group to enter into the aerospace and defence sectors of India.

TVS SCS will hold a 51% stake in the JV, while ALA will own the remaining 49%. The JV is expected to emerge as a significant growth driver for TVS Supply Chain in India, with cumulative revenues projected to exceed ₹2,000 crore by 2031.

TVS Supply Chain said in a regulatory filing on Thursday that following the signing of a Memorandum of Understanding (MoU) earlier this year, its collaboration with ALA Group saw strong engagement and active interest from multiple participants across the aerospace and defence ecosystem, which accelerated the decision to formalise the partnership through a dedicated joint venture platform.

The joint venture will initially focus on opportunities in India, while TVS SCS and ALA will continue to evaluate opportunities to support aerospace and defence supply-chain requirements across select international markets over time.

“ALA brings deep domain expertise, strong global customer relationships and proven capabilities in specialised aerospace and defence supply chain solutions, which complement TVS SCS’ extensive network, digital capabilities and execution strength. Together, we are building a scalable and future ready platform for global aerospace and defence companies to serve Indian requirements for both the aerospace and defence sectors,” said R. Dinesh, Executive Chairman, TVS Supply Chain Solutions.

The joint venture will specialise in end-to-end integrated supply chain solutions, including sourcing and supply of aerospace and defence components, kitting and sub-assembly operations, as well as consolidation, imports, warehousing and delivery. India’s defence logistics market is expected to grow at a CAGR of around 8.6%.

Aerospace and defence supply-chain solutions globally are characterised by specialised procurement, inventory management and mission-critical fulfilment capabilities, making them structurally higher-margin businesses with strong returns on capital employed (RoCE).

Quality companies in this sector have consistently delivered strong profitability metrics, with PBT margins in the range of 8-9%, reflective of this high-value segment. “Given the specialised and high-value nature of this business, we expect the venture to become profitable within its first twelve months of operations and be a meaningful contributor to our growth and profitability in India,” said Vikas Chadha, Global CEO, TVS Supply Chain Solutions.

TVS Supply Chain Solutions share price

On Thursday, TVS Supply Chain Solutions shares closed at ₹122.65 apiece on the National Stock Exchange, gaining 5%.

Shares of the firm have jumped 4.8% over a month, while they have climbed 16% in the past six months. From the beginning of the year, shares of TVS Supply Chain Solutions have soared 7.4%.

The company has a market capitalisation of ₹5,411.07 crore.

Shares of the company had touched their one-year high of ₹147 apiece on June 18, 2025, while their 52-week low of ₹90.32 was hit on March 30, 2026.