This article first appeared on GuruFocus .
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Revenue:INR 314 crores for Q3 FY26, a 6% year-on-year growth from INR 296 crores.
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Total Income:INR 317 crores for Q3 FY26.
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EBITDA:INR 37 crores for Q3 FY26, up from INR 33 crores in the same quarter last year.
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EBITDA Margin:11.6% for Q3 FY26.
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Profit After Tax:INR 23 crores for Q3 FY26, with a margin of 7.2%.
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Income from Operations (Nine Months):INR 909 crores, a 1% growth from INR 901 crores in the previous year.
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EBITDA (Nine Months):INR 109 crores, with a margin of 11.9%.
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Profit After Tax (Nine Months):INR 69 crores, with a margin of 7.5%.
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Return on Capital Employed:19.6% for the nine months.
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Current Ratio:3.38 times, indicating strong liquidity.
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Net Cash Position:INR 146 crores.
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Cash Flow from Operations (Nine Months):INR 29 crores.
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Capital Expenditure:INR 45 crores for the nine months.
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Free Cash Flow (Nine Months):INR 15 crores.
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Projected CapEx:Revised to INR 400 crores from INR 500 crores for completion by FY27.
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Surface Express Contribution:Largest contributor to revenue.
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Rail Express Growth:24% year-on-year growth in Q3 FY26.
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Domestic Air Express Growth:14% year-on-year growth in Q3 FY26.
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International Air Express Growth:28% year-on-year growth in Q3 FY26.
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C2C Express Growth:32% year-on-year growth in Q3 FY26.
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Release Date: February 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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TCI Express Ltd ( NSE:TCIEXP ) reported a 6% year-on-year growth for the quarter, indicating stable performance despite a mixed operating environment.
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The company announced an interim dividend of INR7 per share, representing a payout of 350% on the face value, showcasing its commitment to shareholder value.
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The Rail Express segment delivered a robust 24% year-on-year growth, driven by higher pharma volumes and technology-led improvements.
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Customer acquisition remained strong, with registered customer additions more than doubling on a year-on-year basis.
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TCI Express Ltd ( NSE:TCIEXP ) maintained a debt-free balance sheet with a strong net cash position of INR146 crores, supporting ongoing investments and operational requirements.
Negative Points
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Certain industrial and export-linked segments showed moderation, impacting overall growth potential.
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The company's EBITDA margin for the quarter was 11.6%, which is lower than its historical peak EBITDA margin of 16%.
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Working capital days increased due to festive season volumes and timing of collections, although it remains within manageable levels.
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The company revised its projected CapEx from INR500 crores to INR400 crores, indicating potential scaling back of expansion plans.
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Employee costs increased due to labor code impacts and expansion of the sales team, which could pressure margins if not offset by revenue growth.
Q & A Highlights
Q: Given the current headwinds faced by SMEs, how sticky are our SME clients to the express model versus shifting to 3PL or other affordable models? Have we seen any SME clients move away from us? A: SMEs are not significantly impacted, and our relationship with them remains strong. Our ratio with SMEs is maintained at around 49%, and we continue to receive regular business from them. The government is also supporting SMEs, which helps in maintaining their presence in the system. We have not seen any SME clients leave us, and they continue to prefer the express model for its reliability and timely delivery.
Q: If we win a contract that significantly increases capacity utilization, would our existing infrastructure be able to handle the incremental volume, or would it require further CapEx? A: We are future-ready with our infrastructure, which includes separate facilities for rail, air, and C2C services. Our current infrastructure can handle a 30-40% revenue growth. Fleet capacity is variable, and we can adjust it as needed by shifting to higher capacity trucks. Our existing sorting centers and branch network are sufficient, but we can add fleet capacity dynamically.
Q: What is the company's priority between improving capacity and top line versus improving margin? Would the company accept lower realization for higher utilization and top line growth? A: Our approach is to maintain a balance between SME and larger institutional clients, focusing on profitable growth. We aim to keep a 50-50 revenue split between SMEs and larger clients. While institutional clients offer volume, SMEs provide better margins. We prioritize both top line growth and maintaining margins.
Q: How has the Air Express segment performed, and what has changed since you were previously unsure about air cargo due to handling issues? A: The business environment evolves, and while air cargo was slow before COVID, it picked up significantly afterward. We have developed a strong base, allowing us to show growth even with lower volume increases. The market changes, and we adapt accordingly.
Q: What is the outlook for FY27, and what growth targets do you have? A: We are targeting a 15% volume growth with a 2% price hike, aiming for 17-18% revenue growth. We expect profit margins at the PAT level to increase by over 20%. We are expanding our team and capabilities across different services, including rail, C2C, air, and international, and focusing on B2C and D2C segments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
