TCIEXP - TCI Express Limited Share Price

During the Q2 and H1 FY 2025-26 earnings call on November 12, 2025, TCI Express management provided an optimistic outlook for the business. They highlighted a steady recovery despite facing challenges in certain industrial segments and global trade. Key forward-looking points from management included:

1. Volume and Revenue Growth: Management indicated a projected volume growth of 8% and revenue growth of 10% for the fiscal year, aiming for higher single-digit growth in the following quarters.

2. Strong Performance Across Segments: The Rail Express segment reported a 25% year-on-year growth, while the International Air Express business grew 40% due to increased import-export activities. The C2C Express vertical also registered a 15% growth.

3. Branch Expansion and Infrastructure: The company opened 10 new branches in the Surface Express division and 25 branches in the Rail segment, with plans to maintain this momentum. Total capital expenditure was Rs. 28 crores in H1, focusing on branch and sorting center expansions.

4. Operational Improvements: A new sorting center in Mumbai, three times the size of the previous one, is expected to enhance operational efficiency. Automation technologies are also set to be replicated at new branches, impacting costs positively.

5. Adaptation Strategies: Management is keen on diversifying services into emerging verticals such as defense, electric vehicles, and solar energy, aligning with market trends.

6. Market Position and Utilization: Despite facing some pressures from price competition, TCI Express is focused on maintaining margins, targeting to improve EBITDA margins to around 12.5% to 13% in future quarters.

Overall, TCI Express is poised for recovery and growth, backed by strategic expansions, operational efficiencies, and a strong emphasis on service diversification.

Q&A Section

Question 1: Krupashankar NJ: "What would have been the volumes for this quarter?"

Answer: "The volumes for this quarter were 2.5 lakh tons, and for the half-year, it amounted to around 482,000 tons."

Question 2: Krupashankar NJ: "How has the GST-related impact affected tonnage growth? What could have been the tonnage growth without it?"

Answer: "Without the GST impact, we could have achieved a single-digit growth of 2% to 3%. In October, we're seeing good traction, which we expect to carry forward, plus we are aiming for 10%-plus growth for the year."

Question 3: Ravi Naredi: "Can we say the worst is over and that we will pick up from here?"

Answer: "Yes, I believe the economic landscape is stabilizing. We expect an upward trajectory moving forward."

Question 4: Anshul: "What are the timelines and capex involved for the automation at Kolkata and Ahmedabad?"

Answer: "It will take over a year as construction has started. Automation will finish around December next year, with a capex of about Rs. 150 crores remaining from a total of Rs. 500 crores planned over five years."

Question 5: Anshul: "How will the demand during the festive season impact Surface Express revenue trajectory?"

Answer: "The demand largely depends on economic factors. We're enhancing our SME outreach and expanding teams in underperforming regions, particularly focusing on verticals like EVs and home furnishing."

Question 6: Alok Deora: "What margin improvements do you anticipate for Q3 and Q4?"

Answer: "We're targeting a margin increase to around 12.5%-13% over the next two quarters. We expect to sustain healthy margins as volumes grow."

Question 7: Anurag: "What are the current utilization levels for trucks?"

Answer: "Truck utilization for this quarter was around 83.5%, and for the first half of FY '26, it was about 83%."

Question 8: Thomas: "How does TCI Express manage pricing pressures while maintaining margins?"

Answer: "Pricing challenges aren't significant in our express business as our charges are relatively low compared to product value. The main challenge is volume growth, which should improve with the economic recovery."

Question 9: Pravesh: "What was the SME-corporate mix for this quarter?"

Answer: "The current mix is 52% corporate and 48% SMEs. We aim to increase the SME share further, targeting around 55% in the future."

Question 10: Rohit: "What areas are you focusing on for the B2C segment?"

Answer: "We're targeting smaller B2C customers and leveraging strategic partnerships to boost margin, aiming for a significant ramp-up in the coming years."