TCI Express , a leading express logistics provider, reported a flat revenue performance for Q2, with total income at Rs. 312.00 crores compared to Rs. 314.00 crores in the same quarter last year. The company faced headwinds from GST rate cuts and challenges in the MSME segment but saw strong growth in its newer verticals.

Financial Highlights

• Revenue: Rs. 312.00 crores (Q2) vs Rs. 314.00 crores (Q2 previous year)
• EBITDA: Rs. 39.00 crores with a 12.4% margin
• Profit After Tax: Rs. 25.00 crores with an 8.1% margin
• H1 Total Income: Rs. 602.00 crores vs Rs. 609.00 crores in H1 previous year

Operational Performance

The company handled 2.5 lakh tons of cargo in Q2, with volumes remaining flat. The Surface Express division, TCI Express' largest revenue contributor, faced challenges due to reduced manufacturing activity in paper and plastic industries. However, other segments showed promising growth:

• Rail Express: 25% year-on-year growth
• International Air Express: 40% expansion
• C2C Express: 15% growth

Strategic Initiatives

TCI Express continued its expansion efforts during the quarter:

• Opened 35 new branches (25 for Rail Express, 10 for Surface Express)
• Leased a larger sorting center in Mumbai, tripling the size of the existing facility
• Maintained focus on network productivity and cost optimization

Management Commentary

Chander Agarwal, Managing Director of TCI Express, stated, "The second quarter showed consistent progress over the previous quarter, supported by stable volumes, network expansion, and growing contribution from our multimodal services."

Mukti Lal, Executive Director and CFO, added, "We are targeting to increase our margin from 11.5% to 12.5%-13% in the remaining two quarters. For the whole year, we aim to finish around 12.5% plus."

Future Outlook

Management expects:

• Volume growth of 8% for the full year
• Revenue growth of 10% for the full year
• Margins targeting 12.5% plus

The company maintains a debt-free status with liquid assets of Rs. 150.00 crores and spent Rs. 28.00 crores on capex in H1.

Segment-wise Performance

TCI Express is focusing on expanding into new verticals such as defense, EV, and solar energy to align with emerging trends and growth opportunities in the logistics space. The company has already signed an agreement with an EV vehicle provider in South India, with volumes expected to start from November.

Despite short-term challenges, TCI Express remains optimistic about its growth prospects, banking on its multimodal capabilities, technology integration, and disciplined approach to cost management and capital allocation.

TCI Express , a leader in B2B express logistics, is embarking on an ambitious expansion strategy to strengthen its network and enhance operational efficiency through cutting-edge automation and infrastructure development.

AI-Powered Sorting Centers

The company is implementing AI-enabled sorting centers at its Gurugram and Pune facilities, which are expected to significantly boost throughput by 40%. These state-of-the-art centers represent a major leap in TCI Express's technological capabilities, positioning the company at the forefront of logistics innovation in India.

Expanding Branch Network

In a move to extend its reach and improve last-mile delivery, TCI Express plans to add over 100 new branches across the country. This expansion will not only enhance the company's geographical coverage but also strengthen its ability to serve a wider customer base, particularly in tier II and tier III cities.

Focus on Specialized Services

TCI Express is also growing its pharma cold-chain services, catering to the increasing demand for temperature-controlled logistics in the pharmaceutical sector. This strategic focus aligns with the company's commitment to diversifying its service offerings and tapping into high-growth segments of the logistics market.

Operational Excellence

The company operates with a fully containerized fleet and employs digital tracking systems to support faster delivery and cost efficiency in its B2B logistics operations. This approach underscores TCI Express's commitment to maintaining high standards of service quality and reliability.

Market Outlook

The logistics sector in India is poised for significant growth, driven by increasing e-commerce penetration, government initiatives like 'Make in India', and overall economic expansion. TCI Express's strategic investments in technology and infrastructure position it well to capitalize on these market trends.

As TCI Express continues to execute its expansion strategy, investors and industry observers will be keen to monitor the impact of these initiatives on the company's market share, operational metrics, and financial performance in the coming quarters.