TCI Express (TCIEXP IN) – Q1FY27 Result Update – Resurgence in volumes continue – Downgrade to ‘HOLD’
Published on 07 Aug 2026
TCIEXP IN reported a broadly in-line operational performance with EBITDA margin at 10.0% (PLe 10.1%) while volumes grew by 7.3% YoY to 250,000 MT (PLe 248,000 MT). The surface express business reported a growth of 8.7% YoY driven by customer additions, higher wallet share from existing clients and steady demand from pharma, manufacturing, EV & engineering sectors. Ancillary segments like rail express, air express, C2C and e-commerce services also registered a healthy performance in 1QFY27. With price hike taken in June-26, margin trajectory will be keenly eyed from hereon. Overall, we expect volume CAGR of 7% over the next 2 years along with EBITDA margin of 11.1%/12.1% in FY27E/FY28E. Given the recent rally in stock price, we downgrade our rating to HOLD (earlier BUY) with a TP of INR576 (19x FY28E EPS; no change in target multiple).
