TCI FY26: Supply Chain takes the lead as Seaways stays strong and Freight fights margin pressure

Transport Corporation of India (TCI) closed FY26 with steady consolidated growth, even as March volumes were disrupted by the Gulf crisis and fuel prices turned volatile. Consolidated revenue for FY26 stood at 49,650 million rupees, up 9.4 percent year-on-year. EBITDA rose 8.8 percent to 6,500 million rupees, while PAT increased 10.5 percent to 4,599 million rupees.

The year also marked an internal shift in the business mix. Management highlighted that the Supply Chain division has become TCI’s largest business. At the same time, the Freight division saw continued margin compression and lower returns, while the Seaways division delivered strong profitability and high ROCE, supported by higher voyages and pricing actions.

Consolidated performance and what shaped FY26

The company’s quarterly revenue trend shows broad-based expansion through the year, with Q4 FY26 revenue at 13,361 million rupees, up 11.6 percent versus Q4 FY25. Management noted that growth was expected to be higher, but the Gulf crisis that began in late February affected March, typically one of the strongest months.

Management also stated that consolidated growth was slightly below their earlier expectations, with topline growth around 9.5 percent versus an expected 10 to 12 percent range, and bottom line growth at 10.5 percent versus their expectation of 12 to 15 percent. The reason given was cost pressures that were higher than anticipated.

A key balance sheet highlight in the investor deck was liquidity. The company cited surplus cash of 2,500 million rupees. The deck also provides market metrics as of 31 March 2026, including EV/EBITDA of 11.6 and P/E of 15.9.

Segment snapshot: Supply Chain expands, Seaways prints profits, Freight under pressure

Supply Chain division: largest and still growing

Supply Chain revenue grew 14 percent year-on-year to 18,617 million rupees in FY26. Q4 FY26 revenue was 4,694 million rupees, up 11 percent versus Q4 FY25. EBITDA for the full year rose 14 percent to 1,785 million rupees, with an EBITDA margin shown at 9.6 percent.

Management attributed performance to retention and expansion with existing clients, rollout of new contracts, and underlying demand in retail, consumer, and e-commerce and quick commerce. They also highlighted traction for multimodal logistics and warehousing services. At the same time, they acknowledged that EBIT growth was relatively muted because of investments made in people and infrastructure ahead of contract ramp-ups.

Seaways division: strong profitability but fuel-sensitive

Seaways revenue increased 5 percent year-on-year to 6,151 million rupees in FY26, but earnings grew much faster. FY26 EBITDA was 2,885 million rupees, up 17 percent, and FY26 EBIT was 2,522 million rupees, up 26 percent. The investor deck shows FY26 EBIT margin at 41.0 percent.

In the concall, management said Q4 was strong due to higher voyages and absence of dry docks in the quarter, while bunker price increases were largely passed through to customers. They also warned that higher bunker pricing could impact the next few months, and that the timing of ship additions later in the year could lead to operational or margin compression.

Freight division: revenue stable, margins compressed

Freight remained a sizeable revenue contributor at 17,543 million rupees in FY26, but profitability declined. FY26 EBITDA fell 11 percent to 477 million rupees, and EBIT fell 14 percent to 413 million rupees. The deck shows FY26 EBIT margin at 2.4 percent.

Management described the freight business as being close to the bottom, with margins compressed due to competitive pressure and cost increases. They pointed to a leadership change in recent months and said the shift toward LTL has started again, with LTL share moving to about 63 percent.

Strategy, capex and outlook: pushing multimodal while staying cautious

TCI’s strategy narrative remains built around providing a wide range of services through a single window, backed by multimodal capabilities and technology-enabled operations. Management expects higher road transport costs to support a shift toward rail and sea, increasing multimodal penetration. The deck highlights operating scale such as 2,826 rake movements in FY26 versus 2,350 in FY25, TEUs handled at 165K in FY26 versus 154K in FY25, and CBUs handled at 391K in FY26 versus 304K in FY25.

Capex is set to rise meaningfully. The investor deck shows FY27 budgeted capex of 6,000 million rupees versus FY26 actual of 3,690 million, with a higher allocation to ships and other investments such as warehouse equipment and IT. Management stated that two new ships are expected in FY27, around Q3 and end of Q4, and indicated that the two ships together add roughly 15,000 to 16,000 tonnes of capacity. They also said they are exploring an additional new ship order, while noting that second-hand ships are not readily available in the market.

On forward guidance, management kept expectations measured. They cited uncertainties including fuel price increases, inflationary pressures, Middle East crisis risk and suboptimal monsoon forecasts. Against this backdrop, they reiterated an overall revenue and profit growth outlook of 10 to 12 percent.

Key takeaways

TCI ended FY26 with steady consolidated growth, strong liquidity, and a clear tilt toward expanding capacity in multimodal and contract logistics. The Supply Chain division has become the primary growth engine, Seaways remains highly profitable but exposed to bunker price swings and operational scheduling, and Freight is under margin pressure with management signalling a turnaround effort focused on LTL and leadership changes.

FY27 will likely be shaped by two factors management repeatedly returned to: fuel-driven shifts in mode choice and the pace at which new capacity, especially in Seaways and warehousing-related infrastructure, is deployed without compromising profitability.