TCM Limited has launched a new poultry feed product at its leased facility in Palakkad, Kerala. The move adds approximately 1,500 tonnes of monthly production capacity to the company’s feed division.

The expansion is part of the company’s broader strategy to address evolving market demand within the feed sector. The facility, located in Pulinchode, operates from a commercial factory and office space of 10,760 sq ft owned by M/s Better Feeds Pvt Ltd.

Capacity and Utilization

The new capacity is exclusively for poultry feed production. TCM disclosed that initial utilization for the first six months is expected to be less than 20% of this proposed capacity.

This addition complements the company’s existing cattle feed operations at its Kalady plant, which has a current manufacturing capacity of 1,000 tonnes per month. For the quarter ended June 2026, the utilization of this existing cattle feed capacity stood at 50%.

Investment Details

The total investment required for the poultry feed launch is ₹2.50 crore. This amount covers machinery procurement and working capital needs. The entire expenditure will be financed through internal accruals.

What the Numbers Show

The capital structure of the investment highlights a heavy reliance on working capital rather than fixed assets. Working capital requirements account for 60% of the total ₹2.50 crore outlay, suggesting that raw material inventory and receivables management will be critical drivers of cash flow for this new vertical in its early stages.

TCM Limited reported a narrowing of losses and significant revenue growth for the first quarter of FY27. The company posted a standalone net loss of ₹121.69 lakh for the quarter ended June 30, 2026, compared to a net loss of ₹147.88 lakh in the corresponding period of FY26. On a consolidated basis, the group recorded a net loss of ₹160.13 lakh, down from ₹235.26 lakh in Q1FY26.

Revenue from operations expanded sharply, reflecting improved operational activity across key segments. Standalone revenue rose 32% year-on-year to ₹402.01 lakh, up from ₹304.87 lakh in Q1FY26. Consolidated revenue grew even more robustly by 52% to ₹487.97 lakh, compared to ₹320.97 lakh in the prior year quarter.

Segment Performance

The company’s diversified portfolio saw mixed results, with the trading segment emerging as a key profit contributor while manufacturing faced headwinds.

The trading segment, which includes solar, healthcare, autocare, and audio products, delivered a positive segment result of ₹30.87 lakh, a significant improvement from a loss of ₹72.74 lakh in Q1FY26. Conversely, the manufacturing segment, despite contributing the largest share of revenue at ₹308.61 lakh, incurred a segment loss of ₹37.22 lakh, widening from a profit of ₹22.79 lakh in the same period last year. The real estate segment contributed ₹12.54 lakh to the bottom line, while the educational unit reported a modest profit of ₹2.61 lakh.

What the Numbers Show

A critical divergence exists between top-line growth and bottom-line performance. While consolidated revenue surged 52% year-on-year, total expenses increased by 16% to ₹653.85 lakh. More notably, finance costs rose 35% to ₹52.16 lakh from ₹38.54 lakh in Q1FY26. This disproportionate rise in interest expenses relative to revenue growth indicates that debt servicing costs are currently outpacing operational leverage, limiting the translation of higher sales into profitability.

Corporate Developments

During its board meeting held on August 13, 2026, TCM Limited approved several administrative matters alongside the financial results. The board recommended the reappointment of independent directors Mr. Gopalakrishnan Mahesh and Mr. Jose Jacob for a second term of five years, subject to shareholder approval at the upcoming annual general meeting. The 82nd Annual General Meeting is scheduled for September 25, 2026.

The unaudited financial results were reviewed by S G M & Associates LLP, the statutory auditors, who issued a limited review report stating that nothing came to their attention to cause them to believe the statements contained material misstatements.