Financial Performance Summary (FY 2025-2026)
TCM Limited reported a consolidated total comprehensive loss of ₹599.59 lakhs for FY26, a severe deterioration from a profit of ₹151.38 lakhs in FY25. Consolidated revenue declined to ₹2,070.03 lakhs from ₹3,047.53 lakhs in the previous year. The loss before tax stood at ₹602.47 lakhs compared to a profit of ₹136.53 lakhs in FY25. Basic and diluted earnings per share were (₹7.78) for FY26, down from ₹2.31 in FY25.
Segment Performance Analysis
The Group operates in four segments, all showing deterioration:
- Trading (solar, healthcare, autocare): Revenue of ₹524.97 lakhs with segment loss of ₹62.09 lakhs
- Manufacturing: Revenue of ₹1,054.46 lakhs with segment loss of ₹2.44 lakhs
- Educational: Revenue of ₹205.15 lakhs with segment loss of ₹63.88 lakhs
- Real Estate: Revenue of ₹189.26 lakhs with segment profit of ₹74.33 lakhs (down from ₹557.25 lakhs)
Total segment results were a loss of ₹54.08 lakhs compared to a profit of ₹632.62 lakhs in FY25.
Subsidiary Companies Performance
TCM Limited has four subsidiaries that reported combined losses of ₹191.46 lakhs:
1. iSpark Learning Solutions Pvt Ltd (76% ownership): Loss of ₹73.51 lakhs
2. TCM Healthcare Private Ltd (100% ownership): Loss of ₹62.00 lakhs
3. TCM Properties Pvt Ltd (100% ownership): Loss of ₹1.02 lakhs
4. TCM Solar Private Ltd (100% ownership): Loss of ₹54.92 lakhs
Strategic Developments
The company entered a binding memorandum of understanding to acquire Better Feeds Private Limited for ₹765 lakhs, with an advance of ₹119.76 lakhs already paid. For real estate development, TCM has an MoU with Asset Homes TCM Townships Pvt Ltd for joint development of approximately 11 acres at Kalamassery, with construction expected to commence during FY 2026-27 subject to statutory approvals.
Financial Position and Risk Management
Net debt increased substantially with borrowings rising to ₹2,216.46 lakhs from ₹1,122.35 lakhs in FY25. The gearing ratio worsened to 0.92 times from 0.37 times. The company is exposed to interest rate risk on variable rate borrowings of ₹884.47 lakhs, where a 100 basis points change would impact annual profit by ₹8.84 lakhs. Assets classified as held for sale include land parcels at Ulundurpet and Mettur with carrying value of ₹1,892.24 lakhs.
Corporate Governance and Appointments
The 82nd Annual General Meeting is scheduled for September 25, 2026. The company proposed reappointment of two independent directors for second terms: Mr. Gopalakrishnan Mahesh and Mr. Jose Jacob (Chairman of Audit Committee). Mrs. Rani Jose retires by rotation and offers herself for reappointment. No dividend was recommended for FY 2025-26 due to losses incurred.
Related Party Transactions
Key transactions included managerial remuneration totaling ₹74.67 lakhs to key personnel including Managing Director Joseph Varghese (₹29.56 lakhs). Loans were availed from related parties including ₹221.74 lakhs from Joseph Varghese. A term loan from a bank is secured by personal guarantees of Mr. Joseph Varghese and Ms. Rani Jose.