TCI Express E-Commerce growth led Q2 FY27 service gains

TCI Express reported 51.6% year-on-year revenue growth in E-Commerce Express in Q2 FY27, the company’s fastest-growing service vertical, ahead of Domestic Air Express at 29.4%, International Air Express at 26.1% and Surface Express at 9.4%. Surface Express nevertheless remained the largest contributor to revenue and profitability during the quarter.

How fast did TCI Express E-Commerce Express grow in Q2 FY27?

TCI Express E-Commerce Express revenue rose 51.6% year on year and 23.8% quarter on quarter in Q2 FY27. In H1 FY27, or the first half of fiscal year 2027, the business reported 56.1% year-on-year revenue growth, extending its pace above the company’s other disclosed service verticals.

Management attributed the Q2 FY27 increase to the onboarding of major enterprise marketplaces, additions to dedicated sales and operations teams, and digital integrations. TCI Express also said it went live on the Open Network for Digital Commerce, or ONDC, and Unicommerce platforms, while enhanced order management and automation support scalable e-commerce operations.

The E-Commerce Express offering covers vendor-to-warehouse, inter-warehouse and warehouse-to-customer movements. It also includes packaging-material distribution, fulfilment support, appointment-based delivery, next-day delivery and fulfilment-centre-to-last-mile services for e-commerce and quick-commerce requirements.

Which TCI Express services grew faster than Surface Express?

E-Commerce Express, Domestic Air Express and International Air Express each grew faster than Surface Express in Q2 FY27. E-Commerce Express led with 51.6% year-on-year growth, compared with 29.4% for Domestic Air Express, 26.1% for International Air Express and 9.4% for Surface Express.

YoY means year on year. Domestic Air Express also increased 13.8% quarter on quarter, or QoQ, in Q2 FY27, which TCI Express linked to new customers, increased business from existing accounts and an improved air network. The service has more than 150 air gateways, serves more than 6,000 customers and states delivery timelines of 24 hours for metro cities and 48 hours for Tier 2 and Tier 3 cities.

International Air Express rose 24.9% QoQ in Q2 FY27, supported by new key accounts, wider overseas partnerships and additional route coverage. TCI Express reported service coverage across more than 200 countries and territories, more than 3,000 pickup points, import-network span in 46 countries and export services in 63 countries.

What supported TCI Express E-Commerce Express growth?

TCI Express said marketplace customer onboarding, dedicated teams and technology integration supported E-Commerce Express growth in Q2 FY27. The company cited continued additions of enterprise and business-to-consumer customers, plus expanded last-mile delivery capabilities, as contributors to the 51.6% year-on-year increase.

The service includes intra-city and Tier-1 city distribution, Sunday and holiday deliveries, and a real-time tracking dashboard. The dashboard provides shipment visibility, customer transparency and automated exception alerts, while TCI Express said digital integrations support fulfilment and operational automation.

TCI Express disclosed that its digital wallet system for e-commerce customers was in the final stages of preparation ahead of launch. Management’s stated outlook also includes adding enterprise marketplaces, expanding dedicated sales and operations teams, building on ONDC integration and launching the wallet system.

How did Surface Express compare with the faster-growing services?

TCI Express Surface Express remained the largest contributor to revenue and profitability in Q2 FY27, but its 9.4% year-on-year growth trailed the e-commerce and air businesses. Surface Express also grew 7.4% QoQ in Q2 FY27 and 9.1% year on year in H1 FY27, supported by higher yields, enterprise-customer growth and network expansion.

The Surface Express network includes more than 500 express routes, over 2,500 feeder routes, more than 5,500 fully containerized vehicles and over 60,000 delivery locations. TCI Express added 10 Surface Express branches in Q2 FY27, while management cited higher business from its top 100 enterprise customers following pricing revisions.

Rail Express, another multimodal service, recorded 25.9% QoQ revenue growth in Q2 FY27. TCI Express reported rail presence on more than 165 routes and a customer base exceeding 5,000, and management linked the sequential increase to improved shipment activity and operational execution rather than providing a year-on-year comparison.

What did service growth mean for TCI Express financial results?

TCI Express reported Q2 FY27 total income of Rs 339.3 crore, up 8.8% year on year, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 10.8% to Rs 43 crore. EBITDA margin increased to 12.7% from 12.4% in Q2 FY26, while profit after tax increased 6.0% year on year to Rs 26.7 crore.

For H1 FY27, total income was Rs 654.6 crore, up 8.7% year on year, and EBITDA increased 10.8% to Rs 80 crore. Profit after tax rose 6.1% to Rs 49 crore, while its margin was 7.5%, compared with 7.7% in H1 FY26; capacity utilisation in Q2 FY27 stood at 84%.

The presentation identifies Surface Express as the largest revenue and profitability contributor but does not disclose revenue or margins in rupees by service line. Therefore, the precise revenue contribution and profitability of E-Commerce Express, Domestic Air Express and International Air Express cannot be calculated from the disclosed figures.

Conclusion

TCI Express reported markedly different growth rates across its portfolio in Q2 FY27: E-Commerce Express expanded 51.6% year on year, while Domestic Air Express and International Air Express rose 29.4% and 26.1%, respectively. Surface Express grew 9.4% but remained the principal contributor to revenue and profitability, alongside total-income growth of 8.8% to Rs 339.3 crore.

Next, management plans to expand air sales and operations teams at Delhi, Mumbai, Bengaluru, Chennai, Kolkata and Hyderabad, establish a standalone Delhi Air Hub, and launch the e-commerce digital wallet system after its final preparation stage. TCI Express also plans additional enterprise marketplace additions, ONDC-related expansion and network-capacity investments, but it has not provided segment-level revenue or margin targets for these initiatives.