TCI Navigates Mixed Economic Currents with Steady H1 FY26 Performance

Transport Corporation of India Limited (TCI), a prominent player in India's logistics sector, has demonstrated resilience and strategic focus in its H1 FY26 performance. Despite a mixed economic environment, the company reported its 21st consecutive quarter of growth, underscoring its robust operational model and diversified service portfolio. For the half-year ended September 30, 2025, TCI's consolidated revenue reached 2,368 crore, marking an 8.3% year-on-year increase. Profit After Tax (PAT) also saw a healthy rise of 11.0% to 220.7 crore, while EBITDA grew by 9.3% to 312.8 crore. This consistent performance highlights TCI's ability to adapt and grow amidst evolving market dynamics.

The company's growth in H1 FY26 was primarily propelled by its Supply Chain Division, which delivered a strong performance with revenue reaching 917.9 crore, a 14% increase year-on-year. This segment benefited from new contract additions, expansion in existing contracts, and significant traction in warehousing and multimodal services, particularly from the burgeoning quick commerce and FMCG sectors. In contrast, the Freight Division experienced a slight revenue decline of 0.9% to 836.4 crore. Management noted that some contracts were transferred to TCI Chemlog, and the division is strategically shifting towards a higher Less Than Truck Load (LTL) mix, which improved by 2 percentage points to 38%. This shift is anticipated to enhance margins in the future. The Seaways Division reported a 2% decline in revenue to 282.4 crore, primarily due to two ships undergoing dry-docking during the period, although favorable fuel prices helped maintain margins.

TCI's joint ventures also contributed positively to the overall performance. TCI Concor, focused on multimodal logistics solutions, reported a revenue of 245.5 crore in H1 FY26, growing by 28.3%. Transystem, specializing in automotive logistics for Japanese clients, achieved a revenue of 638.7 crore, an increase of 10.9%. TCI Cold Chain Services also saw robust growth of 17.4%, with revenue reaching 52.8 crore. While competition is intensifying in certain segments, particularly in container transportation with new entrants like Adani and DP World, TCI's management emphasizes its end-to-end solution capabilities and niche market focus to counter these pressures.

Strategic Initiatives and Future Outlook

TCI is actively pursuing several strategic initiatives to sustain its growth trajectory and enhance operational efficiency. The company is investing significantly in its multimodal network, including placing an order for two new train rakes expected by mid-FY27, which will bolster its rail logistics capabilities. Capital expenditure for H1 FY26 stood at 167 crore, with a full-year budget of approximately 450 crore. A notable expansion includes a new 285,000 square feet warehouse facility in the Kolkata region, part of its ongoing capacity additions. Furthermore, TCI is leveraging technology and automation, with its Center of Excellence working on AI/ML projects aimed at improving manpower productivity and process optimization.

Management maintains a positive outlook, guiding for a 10-12% top-line growth at the consolidated level for the full financial year. They anticipate an uptick in demand driven by the consumption story, continued government spending on infrastructure, and growth in the MSME sector. The company's focus on sustainable solutions is evident through its green trucking initiatives, which saved 90K tonnes of e-CO2 in H1 FY26. TCI's diversified service portfolio, strong customer base, and continuous investments in technology and infrastructure position it well to capitalize on the evolving opportunities in the Indian logistics industry.

Conclusion

TCI's H1 FY26 performance reflects a company that is not only growing consistently but also strategically adapting to market changes. The emphasis on multimodal solutions, digital transformation, and sustainable practices underscores a forward-thinking approach. While challenges like muted freight margins and increased competition exist, TCI's management is proactively addressing these through network expansion, service diversification, and technological integration. The company's strong liquidity and disciplined capital allocation further reinforce its foundation for sustained growth and value creation for stakeholders.