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.

Transport Corporation of India Ltd (TCI), a leading integrated supply chain and logistics solutions provider, has announced a strategic restructuring plan that involves the sale of its entire stake in TCI Global (Singapore) Pte. Ltd. The decision was approved by the company's Board of Directors at a meeting held on October 29, 2025.

Key Details of the Restructuring

• Divestment: TCI Holdings Asia Pacific Pte. Ltd, a step-down wholly owned subsidiary of Transport Corporation of India Limited, will sell its 100% equity stake in TCI Global (Singapore) Pte. Ltd.

• Buyer: The stake will be acquired by TCI Express Pte. Ltd, a subsidiary of TCI Express Limited.

• Transaction Value: The consideration for the sale is set at SGD 18,000, subject to the prevailing foreign exchange rate.

• Completion Timeline: The proposed transaction is expected to be completed within three months.

Impact on TCI's Structure

Post-completion of the transaction, TCI Global (Singapore) Pte. Ltd will cease to be a step-down wholly owned subsidiary of Transport Corporation of India Limited. Instead, it will become a step-down wholly owned subsidiary of TCI Express Ltd.

Financial Implications

The divested entity, TCI Global (Singapore) Pte. Ltd, had minimal impact on TCI's financials in the last fiscal year:

This suggests that the divestment is more of a strategic move rather than a significant financial restructuring.

Related Party Transaction

It's worth noting that this transaction falls under the category of a related party transaction. TCI Holdings Asia Pacific Pte. Ltd (the seller) and TCI Express Pte. Ltd (the buyer) are related parties through common control by the promoter group.

Strategic Rationale

While specific details about the strategic rationale behind this move were not provided, such restructuring efforts often aim to streamline operations, focus on core competencies, or realign business units for improved efficiency and growth.

Market Reaction and Future Outlook

As this news breaks, market participants will likely be keen to understand the broader implications of this restructuring on TCI's overall strategy and future growth plans. Investors and analysts may look for further clarity on how this move fits into TCI's long-term vision for its global operations and its focus on the Indian logistics market.

The completion of this transaction will mark a significant step in TCI's corporate restructuring efforts. As the logistics landscape in India continues to evolve, TCI's strategic moves will be closely watched by industry observers and stakeholders alike.

Transport Corporation of India Ltd's management may provide more insights into this strategic decision and its potential benefits in upcoming investor communications or during the next quarterly results announcement.