TCI Freight revenue rises 11.5% as EBIT margin narrows in H1

TCI Freight reported revenue of Rs 932.5 crore in H1 FY27, up 11.5% from Rs 836.4 crore in H1 FY26, while its earnings before interest and tax margin declined to 2.5% from 2.7%. TCI Freight plans to raise its less-than-truckload mix to 40% in FY27 through branch-network expansion.

How fast is TCI Freight growing?

TCI Freight’s H1 FY27 revenue grew faster than its operating earnings. Revenue increased by Rs 96.1 crore to Rs 932.5 crore, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 7.0% to Rs 27.1 crore and earnings before interest and tax, or EBIT, increased 4.0% to Rs 23.4 crore.

The same pattern appeared in Q2 FY27. Revenue rose 11.9% to Rs 475.8 crore from Rs 425.2 crore in Q2 FY26, whereas EBITDA increased 6.8% to Rs 13.7 crore and EBIT increased 4.4% to Rs 11.9 crore. Management attributed consecutive quarterly growth to new contracts and inventory pre-stocking ahead of the festive season.

TCI Freight’s reported revenue has increased through the disclosed annual series. Revenue rose from Rs 1,639.9 crore in 2023-24 to Rs 1,711 crore in 2024-25 and Rs 1,754.3 crore in 2025-26, before the Rs 932.5 crore reported for the first half of FY27. The H1 FY27 result exceeded the prior corresponding half-year revenue of Rs 836.4 crore.

Why did TCI Freight’s EBIT margin narrow?

TCI Freight’s EBIT margin narrowed because EBIT grew more slowly than revenue in both reported periods. The H1 FY27 EBIT margin was 2.5%, down from 2.7% in H1 FY26, while the Q2 FY27 margin was also 2.5%, compared with 2.7% a year earlier.

EBITDA margin was 2.9% in H1 FY27 and Q2 FY27, compared with 3.0% in the respective prior-year periods. The figures show that additional sales converted into EBITDA and EBIT at lower percentages than in H1 FY26 and Q2 FY26; the presentation does not identify a specific cost item causing the change.

The longer EBIT series shows a decline before the latest half year. EBIT margin was 3.4% in 2023-24, 2.8% in 2024-25 and 2.4% in 2025-26, then measured 2.5% in H1 FY27. The latest reading was 0.1 percentage point above the FY26 full-year figure but 0.9 percentage point below the 2023-24 level.

What is TCI Freight’s LTL mix target for FY27?

TCI Freight estimates that less-than-truckload, or LTL, services will account for 40% of its mix in FY27. LTL represented 37% in H1 2026-27 and in 2025-26, while full-truckload, or FTL, services are estimated to decline to 60% in FY27 from 63% in both periods.

The planned change would be larger than the recent shift in the mix. LTL accounted for 36% in both 2023-24 and 2024-25, increasing to 37% in 2025-26; FTL moved from 64% in each of the first two years to 63% in 2025-26. The FY27 estimate implies a three-percentage-point increase in LTL from the H1 FY27 level.

TCI Freight links network expansion to increasing LTL mix and deeper reach. It had planned 30 new branches and opened 11 when the presentation was issued. This disclosed programme is the operational mechanism management identifies for pursuing the FY27 mix estimate.

How does TCI Freight’s network support its mix plan?

TCI Freight operates a hub-and-spoke surface-transport network reaching more than 19,000 pin codes, supported by 25 strategic hubs, more than 750 branches and information-technology-enabled offices, and more than 5,000 trucks under operation. The network also has cross-border linkages into Nepal and Bangladesh.

TCI Freight’s stated services include LTL, FTL, project and heavy haul, storage solutions, over-dimensional cargo, containerised services, cross-border logistics and value-added services. Its hub-and-spoke model also covers part-load, full-truckload, project-cargo movement and control-tower services, rather than a disclosed revenue split by individual service.

The presentation identifies in-transit small storage and packaging for high-value or fragile items as LTL growth drivers. It also says customers increasingly require FTL and LTL from one provider on an anywhere-to-anywhere model, alongside control-tower-enabled visibility and customised freight solutions.

How have TCI Freight’s capital employed and ROCE changed?

TCI Freight reported capital employed of Rs 313.7 crore in H1 FY27, compared with Rs 297.4 crore in H1 FY26 and Rs 335.5 crore in FY26. Return on capital employed, or ROCE, was 14.4% in H1 FY27, above 12.9% for FY26 but below 14.9% in H1 FY26.

Across the completed financial years, capital employed increased from Rs 294.5 crore in 2023-24 to Rs 306 crore in 2024-25 and Rs 335.5 crore in 2025-26. Over the same annual periods, ROCE declined from 20.0% to 16.0% and then 12.9%. The presentation reports these movements without specifying why capital employed was lower in H1 FY27 than at FY26 year-end.

The figures place the 2.5% H1 FY27 EBIT margin alongside a 14.4% ROCE, showing that the presentation tracks operating margin and capital returns separately. The stated FY27 LTL estimate, branch plan and mix data provide the disclosed measures for assessing the network expansion programme.

Conclusion

TCI Freight increased H1 FY27 revenue by 11.5% to Rs 932.5 crore, supported by new contracts and festive-season inventory pre-stocking, but EBITDA and EBIT grew at slower rates. Its EBIT margin declined to 2.5% from 2.7%, while the business reported a 37% LTL mix and a 14.4% ROCE.

The next disclosed markers are progress on the 30-branch plan, of which 11 branches had opened, and delivery of the estimated 40% LTL mix for FY27. The presentation also makes subsequent revenue growth, the EBIT margin and ROCE relevant measures to track as the network expands.