TCI Q2 FY27 Revenue Up 15% with Seaways Expansion

The document is a transcript of an earnings conference call held on Friday, October 30, 2026, to discuss the company's Unaudited Financial Results (Standalone and Consolidated) for the second quarter and half year ended September 30, 2026.
The event was an interactive Q&A session following opening remarks by management. Participants were in listen-only mode, and the call was recorded.
Management participants included Mr. Vineet Agarwal (Managing Director), Mr. Ashish Tiwari (Group Chief Financial Officer), and Ms. Simran Sharma (Investor Relations) as the moderator.
The presentation referenced during the call was stated to be available on the company's website and had been sent to the stock exchanges.
A standard caveat was provided that the discussion might contain forward-looking statements that may not coincide with actual future performance.

Overall Performance:

Consolidated revenue grew by 14.85% YoY in Q2 FY27.
Growth was driven by a combination of value growth (freight rate increases, new contracts) and some volume growth, though volumes were muted in certain areas.
Profit After Tax (PAT) was flat YoY, attributed to slightly lower profits/dividends from joint ventures.
The company is in a phase of significant investment, with Capex for H1 FY27 already matching the full-year Capex of the previous year. The guided Capex for FY27 is approximately ₹600 crore.
A buyback of ₹150 crore was completed and was oversubscribed by 2x, increasing promoter holding to 70%.
Net debt was around ₹90-100 crores, with an expectation it could reach ₹150-200 crores by FY27-end due to Capex timing.

Segment-wise Performance:

Freight Division: Revenue grew ~12% in Q2 and ~11.5% for H1. Growth was driven ~2/3 by pricing (pass-through of higher diesel costs) and ~1/3 by volume. Margins and EBIT were under pressure, described as a "period of rebuilding." The Less-Than-Truckload (LTL) share was 37%.
Supply Chain Solutions Division: Revenue grew ~10% YoY. The division has a strong contract pipeline. Margins were slightly up. Capex is high due to investments in trucks, warehouses, and handling equipment.
Seaways Division: Revenue grew 28% YoY. Growth was impacted by a significant increase in bunker fuel prices (from ~₹70-80k/ton to ~₹95-98k/ton), which led to freight rate increases. EBIT growth was muted due to these higher costs. The company expects normalized EBITDA margins for this business to be in the 35-40% range.
Joint Ventures:
Concor JV grew at ~10.5% with stable profitability.
Cold Chain JV grew ~50% on new contracts (especially quick commerce) with doubled profitability.
Transition JV profitability was muted, impacting overall dividends received.

Strategic Updates & Guidance:

Fleet Expansion: The first new 500 TEU ship, TCI Setu, was delivered and is expected to begin operations by end-November 2026. A second identical vessel is expected to be delivered in the first half of January 2027. This will add ~18% capacity, with full impact expected in FY28.
The operational life of some existing ships has been extended to FY30.
The company is also adding one new railway rake in the current quarter.
Full-Year Guidance: Management reiterated revenue growth guidance of 10-12% for FY27. The second half is typically stronger for the company.
Long-term Outlook: For FY28, with both new ships operational, revenue growth is expected to be in the 12-15% range.

The transcript was submitted to the BSE and NSE in compliance with SEBI LODR Regulations (Regulation 30).
The transcript and presentation are available on the company's website at https://tcil.com/investor-analyst-corner/.
No standalone financial figures were disclosed in the provided transcript excerpt; the discussion was based on the already published results.