TCI Express

TCI Express reported a Q4 FY25 revenue from operations of ₹307 crores, marking a ~3.15% decline year-on-year from ₹317 crores in Q4 FY24, though it grew ~3.71% quarter-on-quarter. The EBITDA for Q4 stood at ₹34 crores, with a margin of 10.80%, and Profit After Tax was ₹21 crores (6.6% margin). For the full fiscal year FY25, revenue from operations was ₹1,208 crores, down ~3.67% from ₹1,254 crores in FY24. FY25 EBITDA was ₹143 crores (11.7% margin), and PAT was ₹91 crores (7.5% margin), with the company generating ₹118 crores in cash flow from operations.

The company continued its strategic focus on expanding its multimodal service portfolio. In FY25, TCI Express added 10 new branches for the Surface segment, and 25 new branches each for the Rail and Domestic Air segments, totaling about 60 new branches. The Domestic Air Express division expanded its pincode coverage by over 1,000, while the Rail Express segment achieved approximately 25% growth year-on-year. The multimodal offerings (Rail, Air, C2C, e-commerce, cold chain pharma) collectively contributed 17% to 17.5% of the total revenue for FY25.

TCI Express invested ₹37 crores in capital expenditure during FY25, primarily for branch network expansion, sorting center upgrades, and IT infrastructure to enhance automation. The company faced persistent operational cost pressures from increased toll fees, labor expenses, and air costs, which contributed to a 150 basis point increase in overall costs for FY25. To counter this, management plans to implement a ~3% price hike for FY26 and rationalize costs, aiming for a 150-200 basis point margin improvement for the year.

The SME segment, which historically contributed 50% of TCI Express's business, underperformed in FY25, accounting for 48% of the business. This was attributed to high inflation (around 9%), high interest rates (around 8%), and liquidity issues in the market, particularly during the election year. Management believes the SME segment has bottomed out and expects a recovery, with a goal to restore the 50-50 business mix between SME and institutional clients.

TCI Express plans a CAPEX of ₹80-100 crores for FY26, with a similar amount projected for FY27. The major portion of this investment is allocated to creating automated sorting centers. The company's overall plan to establish 10 automated sorting centers by FY27, with a total investment of ₹500 crores, has been extended by one year due to challenges in land acquisition. Two new centers in Ahmedabad and Kolkata are expected to be ready by FY27, with the full network anticipated by 2030.

For FY26, TCI Express has guided for a tonnage growth of 7-8% and an overall revenue growth of 10-12%. The company expects to improve its margin by 150-200 basis points, driven by cost rationalization and a planned ~3% price hike. Strategic priorities include strengthening multimodal capabilities, expanding customer access, and leveraging technology to drive operational excellence, with a focus on high-yield segments like Rail and Air Express.