TCI

Balances Segmental Pressures with Strong JV and Seaways Performance

, a leading multi-modal logistics provider, reported 9% YoY revenue growth to ₹1,249 crore in Q3FY26, supported by festive demand. Operating profit grew in line, with margins stable at 10.2%. While freight remained subdued, strong contributions from Supply-Chain Solutions (SCS), Seaways, and joint ventures underpinned overall resilience. The company reaffirmed FY26 guidance of 10–12% revenue growth, backed by capex investments and a robust balance sheet. Segmental Performance - Freight: Flat revenue; festive demand offset weakness in infra/capital goods. - LTL share rose to 37% of freight revenue, targeted to reach ~40% in 12–18 months. - EBIT margin declined to 2.1%, pressured by competition, weak SME demand, and higher costs. - Supply-Chain Solutions (SCS): Strong growth from automotive, retail, consumer durables, and quick-commerce. - Profitability lagged revenue due to ramp-up costs, leading to modest margin compression. - Seaways: Revenue up 9% YoY despite three vessels in dry dock. - EBIT surged 25% YoY, aided by firm freight rates and lower fuel costs. - Return ratios remain >50% due to fully depreciated fleet. - Two new vessels (14,600 DWT) to be acquired from Japan, deliveries in FY27. - EBIT margin expected to stabilise near 30% in FY27 as depreciation and fuel costs rise. Joint Ventures (JVs) - CONCOR JV: Revenue up 21%, profitability tight amid pricing pressure. - Cold Chain JV: Revenue up 17%, margins improved on efficiencies. - Mitsui JV: Revenue up 12%, profitability moderated by higher costs. - JV portfolio strengthens TCI’s diversified logistics footprint. Guidance & Capex - FY26 revenue growth guidance: 10–12%, supported by seasonal Q4 strength. - Capex plan: ₹400–450 crore, with ₹266 crore deployed in 9M FY26. - Investments in vessels, automotive rakes, trucks, containers, and infra upgrades. - Balance sheet robust: ₹255 crore surplus cash, ensuring flexibility for growth.