TCI Express (TCIEXP IN) – Q2FY27 Result Update – Guidance trajectory eyed – HOLD
Published on 06 Nov 2026
TCIEXP IN reported a broadly in-line operational performance with EBITDA margin at 10.8% (PLe 10.7%) while volumes grew by 6.0% YoY to 265,000 MT (PLe 266,000 MT). While TCIEXP IN’s volumes have started registering mid-single digit growth from 3QFY26 onwards with price hike ranging from ~0.5-3.4%; the operating leverage benefit has failed to materialize fully as EBITDA margins have remained range bound at ~10% odd levels amid cost inflation (fuel, wage etc). We expect volume/realization CAGR of 8%/2% over the next 3 years with EBITDA margin of 10.7%/11.6%/13.3% in FY27E/FY28E/FY29E respectively. Given persistent growth and margin headwinds, we cut our target multiple to 15x Sep-28E EPS (earlier 16.5x) and retain HOLD on the stock with a TP of INR504.
