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    TCI Express

    TCIEXP
    Services·4 Jun 2026
    Management Summary

    TCI Express reported a resilient Q4 FY26 with 6% revenue growth and 11% EBITDA growth, driven by multimodal expansion and operational efficiencies. Despite geopolitical tensions and elevated fuel prices impacting volume growth (4% YoY) and margins, the company maintained a debt-free balance sheet and strong liquidity. Management is focused on achieving double-digit revenue growth and margin improvement in FY27 through strategic investments in infrastructure and technology.

    Highlights

    5

    • Q4 FY26 Revenue grew 6% to ₹327 crores, showing sequential improvement.

    • Q4 FY26 EBITDA increased 11% YoY to ₹37 crores, with EBITDA margin at 11.3%.

    • FY26 Total Income reached ₹1,236 crores, marking a 2% growth YoY, and volume surpassed 1 million tons.

    • Maintained a debt-free balance sheet with a healthy net cash position of ₹136 crores as of March 2026.

    • Receivable days reduced by 1 day to 58 days, indicating improved working capital management.

    Concerns

    3

    • Q4 FY26 volume growth was 4% YoY, below the initial high single-digit guidance due to geopolitical situations and ATF price disruptions.

    • PAT margin for FY26 reduced to 7.2% from 11.2% in 2023, attributed to market cycles and external cost pressures.

    • EBITDA per kg declined from historical INR 1.8-2 to INR 1.25-1.27, impacted by fuel price volatility and other operating costs.

    Key financials

    Metrics

    18

    Periods

    3

    Headline

    7
    • Revenue
      ₹327 Cr
      YoY+6%QoQ+4%
    • Total Income
      ₹331 Cr
      YoY+6%
    • EBITDA
      ₹37 Cr
      YoY+11%
    • EBITDA Margin
      11.3%
    • PAT
      ₹21 Cr

    Q4 FY26

    2
    • Volume
      2,67,000 tons
      YoY+4%
    • Capacity Utilization
      83.3%

    FY26

    9
    • Total Income
      ₹1,236 Cr
      YoY+2%
    • EBITDA
      ₹146 Cr
    • EBITDA Margin
      11.7%
    • PAT
      ₹90 Cr
    • PAT Margin
      7.2%

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹400 crores

    cut — revised plan for FY23-FY27

    Debt

    Net ₹136 crores

    Liquidity

    Cash ₹136 crores

    Strong liquidity position and robust cash flow from operations of INR 112 crores during the year.

    Guidance & targets

    9
    CategoryTargetPriority
    Volume
    Q4 FY26 Volume Growth
    9-10%
    		Medium
    Volume
    FY27 Volume Growth
    10% plus
    		High
    Revenue
    FY27 Revenue Growth
    15% plus
    		High
    Profitability
    EBITDA Margin Improvement
    100-150 basis points
    		High
    Multimodal Share
    Multimodal Revenue Share
    22-25%
    		Medium
    E-commerce Share
    E-commerce Business Share
    5%
    		Medium
    Branch Expansion
    New Branches
    100
    		High
    Depreciation
    Quarterly Depreciation Expense
    ₹6-6.25 crores
    		High
    Automation
    Ahmedabad and Kolkata Automation Ramp-up
    Ramped up
    		High

    Q1 FY27 Volume Growth

    next quarter
    CurrentQ4 FY26 at 4% (below 9-10% target)
    TargetHigh single-digit growth

    Why it matters

    To assess recovery from geopolitical and fuel price impacts and alignment with management's stated expectations for Q1 FY27.

    Yes. So I think for us even April was not that bad, what we thought up and May is also, I think, is going good. So I think quarter 1 will be given with again kind of like high single digit growth and subsequently, in a quarter-on-quarter basis, we will be improved because now I think you must be going through with our presentation where in multimodal all the services, we've grown almost 20% plus.

    How to verify

    key_financials.metrics[label='Volume'].yoy_growth

    Risks & concerns

    4
    RiskSeverity

    Geopolitical uncertainties and conflicts

    Conflict in West Asia resulted in elevated airline fuel prices and increased logistics costs, impacting operating conditions. — Management acknowledged

    high

    Elevated fuel prices (ATF and diesel)

    ATF price increased by 50%, causing disruption in air business and impacting overall logistics costs, with a time lag in passing on to customers. — Management acknowledged

    high

    Higher labor costs and temporary business disruptions

    Voter-related SIR activities and general industry-wide labor cost increases (100 bps impact) affected operating conditions. — Management acknowledged

    medium

    Airline consolidation and airport privatization

    Beyond company control, these factors disrupt pricing and operational stability in the air express segment. — Management acknowledged

    medium

    Q&A highlights

    6

    “I also said this many times, like in the last concall also that it was a cycle that we cannot really avoid. When we had the COVID, there was zero business and you can see the graph went below the line. And when COVID was over, we shot up to like 30% growth. So that was a knee-jerk reaction. And then slowly, it came down to 18% and then 15% and then 5% and so forth. So this is something which we are again playing the cycle, the demand and supply cycle, which has taken 5 years, please settle down in at least the logistics industry.”

    Analyst questioned the company's declining growth and profit margins over several years, prompting management to explain it as a cyclical phenomenon exacerbated by post-COVID effects and current market conditions.

    asked by Ravi Naredi

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 FY26 Performance and FY26 Overview

    TCI Express reported a Q4 FY26 revenue of ₹327 crores, marking a 6% year-on-year growth and a 4% sequential improvement. EBITDA for the quarter stood at ₹37 crores, an 11% increase YoY, with an EBITDA margin of 11.3%. For the full fiscal year 2026, the company's total income reached ₹1,236 crores, growing 2% YoY, and total volume surpassed 1 million tons (1,004,000 tons). The PAT margin for FY26 was 7.2%, down from 11.2% in 2023, reflecting challenging operating conditions.

    02

    Multimodal Expansion and Diversification

    The company is actively expanding its multimodal logistics capabilities, with multimodal revenues contributing approximately 18.5% to the total in FY26, growing at 20%. The strategic goal is to increase this share to 22-25% in the next 2-3 years to de-risk the business model. This involves strengthening rail and air express services, which are reported to be highly profitable with gross margins over 30%, and expanding the e-commerce segment from 2.5% to 5% of the business.

    03

    Operational Efficiency and Network Development

    TCI Express maintained a healthy current ratio of 3x and reduced receivable days by 1 day to 58 days, demonstrating strong working capital management. The company incurred ₹67 crores in capital expenditure in FY26, primarily for branch expansion, sorting center construction, and technology enhancements. The overall capex plan for FY23-FY27 was revised from ₹500 crores to ₹400 crores, with ₹270 crores already spent in the last four years. The company plans to open 100 new branches this year, with 40 for surface and 60 for multimodal services.

    04

    Impact of External Factors and Margin Outlook

    The operating environment in Q4 FY26 was challenging due to geopolitical tensions, a 50% increase in ATF prices, and higher labor costs (100 basis points impact). These factors restricted volume growth to 4% YoY, below the initial high single-digit guidance. Management expects to improve EBITDA margins by 100-150 basis points in FY27, contingent on the stabilization of fuel prices and successful pass-through of costs to customers, which is currently happening for about 85% of clients.

    05

    Infrastructure Automation and Future Plans

    The company is progressing with automation initiatives, with the Nagpur sorting center commencing operations. Construction for automation in Ahmedabad and Kolkata is expected to finish this year, with ramp-up by the first half of FY28. Depreciation expense is projected to be around ₹6-6.25 crores per quarter from next year onwards, primarily due to new ROU assets from long-term leases for sorting centers. Future plans include building new facilities in Chennai and Bangalore.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.