TCI - Transport Corp.

📊 NSE: TCI 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 14:30

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 11.5% YoY to INR 4,507.9 Cr in FY2025. By segment: Freight division (48% of revenue) saw a -0.9% decline in 6M FY2026 to INR 836.4 Cr; Supply Chain Solutions (39% of revenue) grew 14% in 6M FY2026 to INR 917.9 Cr; Seaways division (13% of revenue) grew 12.5% in 9M FY2025 to INR 3,313 Cr (consolidated 9M).

Geographic Revenue Split

Primarily India-based with cross-border deliveries across SAARC-BBIN regions. Specific regional % splits are not disclosed, but the company operates 25 strategically located hubs across India.

Profitability Margins

Operating Profitability Margin (OPM) remained steady at 10.6% in FY2025. PAT margin (including JV profits) was 8.8% in FY2024 (INR 354 Cr) and improved to 9.3% in FY2025 (INR 419 Cr).

EBITDA Margin

EBITDA margin (excluding JV profit) was 10.2% in 9M FY2025. Segmental EBIT margins: Seaways improved from 25.1% to 32.3% in FY2025 due to steady freight rates; Freight declined from 3.2% to 2.6% due to subdued volumes and fixed costs; SCS remained stable at 6.1% in 6M FY2026.

Capital Expenditure

Planned capex of INR 1,000 Cr over the medium term (3 years). FY2026 budget is INR 450 Cr, including INR 132 Cr for Hub centers/warehousing, INR 135 Cr for ships, INR 128 Cr for trucks/rakes, and INR 43 Cr for IT/equipment.

Credit Rating & Borrowing

Reaffirmed [ICRA]AA (Stable) for long-term facilities and [ICRA]A1+ for commercial paper. Interest coverage ratio stood at 23.8 times in FY2025, down from 32.3 times in FY2024 due to marginal debt increases.

⚙️ Operational Drivers

Raw Materials

Fuel (Diesel) is the primary operational cost, representing a significant portion of freight and shipping expenses. Lower fuel prices in Q2 FY2026 helped maintain Seaways margins despite lower volumes.

Import Sources

Domestic procurement for fuel and equipment; ships are often sourced or built internationally (e.g., new ship delivery expected by Q1 FY2027).

Key Suppliers

Mitsui & Co. (JV partner for Cold Chain and Transystem), Container Corporation of India (JV partner for TCI-CONCOR), and various shipbuilders for fleet expansion.

Capacity Expansion

Adding 2 new ships by Q1 FY2027 to address retirement of older vessels. Added 100 trucks in the SCS division in H1 FY2026. Expanding hub-and-spoke network with 25 existing hubs.

Raw Material Costs

Fuel costs are highly volatile; Seaways EBIT margin improved to 30.9% in 9M FY2025 partly due to fuel price stabilization and steady freight rates.

Manufacturing Efficiency

Asset-light model in the Freight division allows for high ROCE (14.9% in 6M FY2026) despite low EBIT margins (2.7%).

Logistics & Distribution

Distribution network includes 25 hubs and a focus on LTL to optimize truck utilization and increase yield per kilometer.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Focus on increasing LTL share in freight to improve margins; expanding 3PL services in the SCS division (industry growing at 15% CAGR); adding 3 ships to the seaways fleet; and leveraging JVs with Mitsui for cold chain and Concor for rail-road multimodal services.

Products & Services

Full Truck Load (FTL), Less Than Truck Load (LTL), Coastal Shipping, 3PL Supply Chain Management, Temperature-controlled Warehousing (Cold Chain), and Multimodal Rail-Road transport.

Brand Portfolio

TCI Freight, TCI Supply Chain Solutions, TCI Seaways, TCI-CONCOR (JV), TCI Cold Chain, Transystem (JV).

New Products/Services

Expansion of 'TCI Chem Log' via slump sale and increased focus on 'Quick Commerce' and FMCG restructuring in the SCS segment.

Market Expansion

Deepening presence in SAARC-BBIN regions for cross-border logistics and expanding the hub-and-spoke network for the auto sector.

Market Share & Ranking

Market leader in the organized logistics segment in India.

Strategic Alliances

49% JV with Container Corporation of India (TCI-CONCOR); 20% JV with Mitsui & Co. (TCI Cold Chain); 49% JV with Mitsui (Transystem Logistics) for Toyota Kirloskar.

🌍 External Factors

Industry Trends

3PL penetration in India is 4.5% vs 11% globally, providing a 15% CAGR growth opportunity. Shift toward multimodal transport to reduce carbon footprint and logistics costs.

Competitive Landscape

Faces intense competition from unorganized players in road freight and new-age tech startups in the 3PL space.

Competitive Moat

Durable moat through an integrated multimodal network (Road-Rail-Sea), asset-light freight model, and long-standing JVs with global leaders like Mitsui and Concor.

Macro Economic Sensitivity

Highly sensitive to GDP growth and infrastructure spending. GST implementation has accelerated the shift from unorganized to organized players.

Consumer Behavior

Rising demand for 'Quick Commerce' and integrated customized solutions is driving SCS growth.

Geopolitical Risks

Global supply chain disruptions and fuel price volatility impact shipping and freight costs.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with GST and e-way bill regulations; maritime regulations regarding ship safety and age; road safety norms for driver training.

Environmental Compliance

Ship operations are subject to age-factor regulations, necessitating the retirement of older vessels and investment in new fleet.

Taxation Policy Impact

Effective tax rate not specified, but PAT includes significant dividend income from JVs (expected INR 60-65 Cr in FY2025).

Legal Contingencies

No significant pending court cases or values disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Vulnerability of the FTL segment to economic downturns (44% of revenue). Potential margin compression in SCS if capacity addition (trucks/warehouses) outpaces revenue recognition.