The company recorded steady revenue growth driven by strong performance in its Rail and International Air segments. Investors note the continued expansion of the branch network and a 350% interim dividend payout.
TCI Express Limited (NSE: TCIEXP) shares closed at INR 570.20 on December 31, 2025. The stock maintains a 52-week high of INR 870 and a low of INR 484. Analysts observe moderate momentum as the company sustains an industry-leading margin profile. The recent trend shows a 6% CAGR return for the company compared to 14% for the S&P BSE Sensex.
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TCI Express reported a total income of INR 317 crore for the third quarter of FY2026, a 6.1% year-over-year increase. Profit after tax (PAT) rose to INR 23 crore, up from INR 20.7 crore in the previous year. This performance reflects steady execution across core business verticals and disciplined cost management. The company announced an interim dividend of INR 7.00 per share, representing a 350% payout on face value.
Company Profile
TCI Express is a leading B2B delivery company in India with a workforce of over 3,000 employees. It operates an asset-light business model with a 100% company-owned network. The company serves 98% B2B and 2% B2C customers across 200+ countries. Operations are supported by 28 sorting centers and a fleet of over 5,500 containerized vehicles.
Performance by Business Vertical
• Surface Express: This vertical remains the largest contributor, recording 3% year-over-year growth in Q3 FY2026. It covers 29,000+ PIN codes.
• Rail Express: The segment grew by 24% year-over-year. It focuses on temperature-sensitive deliveries and pharmaceutical shipments.
• Domestic Air Express: Revenue rose 14.1% year-over-year, supported by direct connections from major metro airports.
• International Air Express: This segment achieved 28% year-over-year growth. The company recently joined JC Trans, a global B2B logistics platform.
• C2C and E-Commerce: C2C Express recorded 32% growth, while E-Commerce momentum was driven by expanded B2C biker deliveries.
Latest Quarterly Results and Highlights
For Q3 FY2026, EBITDA stood at INR 37 crore with a margin of 11.6%. The capacity utilization during the quarter was 83.25%. Profit before tax (PBT) reached INR 30.5 crore, a 11.2% increase over the previous year. Total income for the first nine months (9M) of FY2026 reached INR 919 crore, with a PAT of INR 69 crore.
Core Growth Strategies and Strategic Expansion
The company plans to drive growth through cross-selling Air, Rail, C2C, and E-Commerce services to existing enterprise accounts. It added 60+ branches in 9M FY2026 to deepen its national reach. Capital expenditure (CapEx) for 9M FY2026 was INR 45 crore, used for branch expansion and IT infrastructure. TCI Express aims for a total CapEx of INR 400 crore by FY2027.
Operational Scale and Market Leadership
Operational efficiency is driven by automated sorting centers in Taj Nagar and Chakan. These facilities reduce sorting time by 40%. The company utilizes AI-led logistics and GPS-enabled vehicles for real-time monitoring. Market leadership is reinforced by specialized services for the automotive, defense, solar, and EV sectors.
Regulatory Milestones and Management Commentary
TCI Express achieved certifications for ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 during the period. Management reports that economic activity rebound in November 2025 supported quarterly momentum. The board approved an updated policy on Related Party Transactions in February 2026.
Guidance and Future Outlook
By 2030, strategic priorities include scaling multimodal capabilities and expanding airport-linked operations. The company intends to automate new centers in Kolkata and Ahmedabad. TCI Express targets higher wallet share from existing Key Account Management (KAM) customers.
Broader Industry Trends and Market Situation
The Indian logistics sector is projected to grow at an 8.8% CAGR by 2029. Government initiatives like PM Gati Shakti and the operationalization of Dedicated Freight Corridors (DFCs) support faster freight movement. The ICRA Business Activity Monitor recorded a 10.3% year-over-year growth in December 2025.
Where Does TCI Express Limited Today?
The company has completed nine years post-demerger and is positioned as a market leader in express cargo. It is ranked 1040 by market capitalization, which stood at INR 2,191 crore as of December 31, 2025. TCI Express serves over 60,000 locations and handles a customer base of approximately 2.25 lakh. It maintains a debt-free balance sheet with healthy liquidity.
Reasons to Pass
Investors should note that Manufacturing PMI remained soft in October 2025. The industry faces headwinds including infrastructure bottlenecks, urban congestion, and shortage of skilled manpower. TCI Express is currently contesting a GST demand of INR 51.36 crore related to reverse charge mechanism liabilities from 2017-2022. While the company is confident of a favorable outcome, the appeal was recently rejected by the Commissioner (Appeals) in December 2025.