TCI Express (TCIEXP) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 demonstrated steady financial and operational performance, with stable margins and volumes despite sectoral headwinds and GST-related disruptions.

• Network expansion included 35 new branches (25 rail, 10 surface), upgraded sorting centers, and enhanced multimodal logistics offerings.

• Multimodal and new service verticals (Rail, Air, C2C, Pharma Cold Chain) delivered strong growth, offsetting softness in Surface Express.

• Strategic focus on technology upgrades, automation, sustainability, and expansion into new verticals like defense, EV, and solar.

• Board approved acquisition of 100% equity in TCI Global (Singapore) Pte. Ltd. to enhance regional presence and optimize resources.

Financial highlights

• Q2 FY26 total income: INR 314.01 crore (up from INR 311.54 crore in Q1, nearly flat YoY); EBITDA: INR 39 crore (12.4% margin); PAT: INR 25 crore (8.1% margin).

• H1 FY26 income: INR 602 crore; EBITDA: INR 72 crore (12% margin); PAT: INR 46 crore (7.7% margin).

• Volumes: 2.5 lakh tons in Q2; 4.82 lakh tons in H1.

• Working capital cycle: receivables 55-60 days, payables 40 days, net working capital 20 days.

• Company remains debt-free with liquid assets of ~INR 150 crore; H1 cash from operations: INR 20 crore.

Outlook and guidance

• Management guides for 8% volume growth and 10% revenue growth for FY26, with higher single-digit growth expected in Q3.

• Margins targeted to improve to 12.5%+ for FY26, aiming for 14.5%-15% medium-term as truck utilization rises to 85%+.

• Strategic acquisition in Singapore expected to strengthen global logistics and express business.

• B2C business targeted to reach INR 100 crore in two years, focusing on smaller D2C clients.

• Targeting 20-22% revenue contribution from Rail, Air, C2C, cold chain, and e-commerce in 2-3 years.