TCI Supply Chain lifts EBITDA margin to 10.3% as ROCE falls

TCI Supply Chain increased its earnings before interest, tax, depreciation and amortisation (EBITDA) margin to 10.3% in H1 FY27 from 9.5% a year earlier, while revenue rose 8.2% to Rs 992.7 crore. Capital employed reached Rs 799.7 crore and return on capital employed (ROCE) declined to 16.5% from 18.9%.

How did TCI SCS perform in H1 FY27?

TCI SCS grew H1 FY27 revenue by 8.2% year on year to Rs 992.7 crore, compared with Rs 917.9 crore in H1 FY26. EBITDA rose faster than revenue, increasing 17.3% to Rs 102.1 crore from Rs 87.1 crore, producing an 80-basis-point EBITDA-margin increase to 10.3%. A basis point is one-hundredth of a percentage point.

The second quarter showed a similar pattern. Q2 FY27 revenue increased 9.7% to Rs 538.7 crore from Rs 490.9 crore in Q2 FY26, while EBITDA grew 22.4% to Rs 55.6 crore from Rs 45.5 crore. The resulting Q2 EBITDA margin was 10.3%, compared with 9.3% a year earlier, showing that the half-year margin expansion was also present in the latest quarter.

What changed in TCI SCS operating profitability?

TCI SCS increased earnings before interest and tax (EBIT) by 9.8% in H1 FY27 to Rs 61.1 crore, from Rs 55.7 crore in H1 FY26. EBIT margin increased to 6.2% from 6.1%, a smaller movement than the EBITDA-margin gain, while Q2 EBIT margin rose to 6.3% from 6.0%. Operating profit therefore expanded in both reported periods despite management describing revenue growth as moderate because of the prior year's higher base.

The annual record provides further context. Revenue rose from Rs 1,450.2 crore in 2023-24 to Rs 1,636.7 crore in 2024-25 and Rs 1,861.7 crore in 2025-26, but EBIT margin decreased from 6.5% to 6.3% and then 5.9%. H1 FY27 reversed part of that margin movement, with EBIT margin at 6.2%, although it remained below the 6.5% reported in 2023-24.

Management attributed current performance to moderate growth on the higher prior-year base, margins that remained resilient despite near-term cost pressure, and a robust pipeline intended to support growth. The presentation also reported multimodal demand of 1,076 rakes in H1 FY27, compared with 1,141 rakes in the previous-year period. The presentation does not quantify the revenue or margin contribution of individual transport modes.

Why did TCI SCS ROCE decline as capital employed rose?

TCI SCS reported capital employed of Rs 799.7 crore in H1 FY27, up Rs 183.3 crore from Rs 616.4 crore in H1 FY26, while ROCE fell 2.4 percentage points to 16.5% from 18.9%. Capital employed also increased from Rs 679.5 crore in 2025-26, when ROCE was 17.9%. The reported figures show a rising capital base across the latest periods alongside a declining return measure.

The longer comparison is consistent. Capital employed rose from Rs 427.1 crore in 2023-24 to Rs 558.7 crore in 2024-25, Rs 679.5 crore in 2025-26 and Rs 799.7 crore in H1 FY27. Over the same sequence, ROCE moved down from 23.6% to 20.8%, 17.9% and 16.5%. TCI SCS does not provide a separate breakdown identifying which assets, contracts or investments account for the additional capital employed.

What supports TCI SCS growth?

TCI SCS became TCI's largest business segment in FY26, crossing Rs 1,862 crore of revenue, up 14% year on year according to the presentation. It provides end-to-end supply-chain work as a single-window lead logistics provider, including third-party logistics (3PL), fourth-party logistics (4PL), warehouse management, inbound and outbound logistics, yard management, inventory management and transport-management-system route optimisation.

The operating platform reported Rs 1,861.7 crore of FY26 revenue, more than 4,500 vehicles under operation, 17 million square feet of warehousing space managed and more than 180 trains operated per month. TCI SCS identifies demand for integrated customised logistics, warehouse network optimisation, omni-channel service to Tier 3, Tier 4 and Tier 5 cities, and automation-led services as industry growth drivers.

India's 3PL penetration was 4.5%, compared with 11% globally, while about 60% of movements were road-based, according to the presentation. TCI SCS's stated services combine lead-logistics-provider offerings with supply-chain design and re-engineering, warehouse planning and management, and proprietary transport-management-system route optimisation. The presentation does not provide segment-level pricing, customer concentration, contract duration or warehouse-utilisation data.

Conclusion

TCI SCS improved operating profitability in H1 FY27: revenue increased 8.2% to Rs 992.7 crore, EBITDA increased 17.3% to Rs 102.1 crore and EBITDA margin reached 10.3%. At the same time, capital employed reached Rs 799.7 crore and ROCE declined to 16.5%, extending a movement from 23.6% in 2023-24. The segment's reported margin improvement and return-on-capital trend are therefore moving in different directions.

The next reported periods should indicate whether TCI SCS can convert its stated robust pipeline into revenue growth while sustaining its 10.3% EBITDA margin amid near-term cost pressure. Multimodal activity is also a disclosed point to watch after H1 FY27 rakes declined to 1,076 from 1,141, alongside any further change in capital employed and ROCE.