Transport Corporation of India Limited (TCI) has received a vote of confidence from ICRA Limited, which reaffirmed the company's credit rating for long-term fund-based term loans. Simultaneously, TCI has opted to withdraw its Commercial Paper rating, signaling a shift in its financial strategy.

Credit Rating Reaffirmation

ICRA Limited has reaffirmed Transport Corporation of India's credit rating for long-term fund-based term loans at [ICRA]AA with a Stable outlook. This rating applies to facilities totaling Rs. 200 crore, broken down as follows:

The [ICRA]AA rating indicates a high degree of safety regarding timely servicing of financial obligations, suggesting that TCI carries very low credit risk.

Commercial Paper Rating Withdrawal

In a strategic move, Transport Corporation of India requested ICRA to withdraw the credit rating for its Commercial Paper (CP) issuance. The details are as follows:

The [ICRA]A1+ rating, which was reaffirmed before withdrawal, signifies the highest level of safety for timely payment of short-term debt obligations.

Implications and Outlook

The reaffirmation of TCI's long-term credit rating at [ICRA]AA (Stable) reflects the company's strong financial position and its ability to meet its financial commitments. This rating could potentially help TCI in securing favorable terms for future borrowings and enhance its credibility with stakeholders.

The withdrawal of the Commercial Paper rating, initiated at TCI's request, may indicate a shift in the company's short-term financing strategy. It's possible that TCI is exploring alternative funding sources or adjusting its capital structure to align with its current business needs.

Investors and stakeholders should note that these ratings will be due for surveillance within one year from the rating communication date. As always, market participants are advised to conduct their own analysis and due diligence when making investment decisions.

Transport Corporation of India Limited continues to demonstrate financial stability, as reflected in these recent rating actions. The company's proactive approach to managing its credit ratings suggests a strategic focus on optimizing its financial structure in the evolving market landscape.

Transport Corporation of India Limited (TCI), a leading integrated multimodal logistics provider, has reported a mixed performance for the second quarter and half-year ended September 30, 2025. The company's consolidated revenue grew by 8% to Rs 23,680.00 million in H1 FY26, demonstrating resilience in a challenging economic environment.

Divisional Performance

TCI's performance across its various divisions showed mixed results:

The freight division experienced flat revenue growth due to softness in infrastructure and capital goods sectors. Some contracts were transferred during a slump sale to TCI ChemLog, which impacted the division's performance.

The supply chain division showed strong momentum with a 14% revenue growth, driven by new contracts and expansion in existing ones. This division's performance highlights TCI's ability to capitalize on the growing demand for integrated logistics solutions.

The seaways division faced challenges with a 2% decline in revenue, primarily due to two ships being dry-docked during the period. However, favorable fuel prices helped mitigate some of the impact on profitability.

Strategic Investments and Outlook

TCI continues to invest in strategic asset classes, with planned investments worth Rs 170.00 crore for the fiscal year. The company maintains its revenue and profit growth outlook at 10-12%, reflecting confidence in its business model and market positioning.

Diversified Service Portfolio

Transport Corporation of India operates across multiple logistics segments, including freight, supply chain, and coastal shipping. The company's diversified service portfolio spans various industries, which has helped it maintain resilience in the face of sector-specific challenges.

Investor Presentation and Transparency

In compliance with SEBI regulations, TCI has made its investor presentation for Q2 and H1 FY26 available on its website. The company also conducted an analyst/investor conference call on October 30, 2025, demonstrating its commitment to transparency and shareholder communication.

Conclusion

Despite the mixed performance across divisions, Transport Corporation of India's overall growth and maintained outlook suggest a stable position in the logistics sector. The company's strategic investments and diversified portfolio are likely to support its long-term growth objectives in the evolving logistics landscape.