Ladies and gentlemen, good day and welcome to TCI Express Q1 FY 2027 earnings conference call hosted by PhillipCapital (India) Private Limited . Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and they may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshal Shah from PhillipCapital (India) Private Limited .
Thank you, and over to you, sir.
Thank you. Good day and a very warm welcome to everyone. Thank you for being on the call of TCI Express Limited. We are happy to have the management with us here for a Q&A session with the investment community. The management will be represented by Mr. Chander Agarwal, Managing Director, Mr. Mukti Lal, Executive Director and CFO, and Mr. Pabitra Panda, Chief Business Officer. Before we start with the Q&A session, we will have opening comments from the management. I will now hand over the call to Mr. Chander Agarwal for the opening remarks. Over to you, sir.
Thank you. Good evening, everyone, and welcome to the Q1 Financial Year 2027 earnings conference call of TCI Express Limited. I would like to thank all of you for joining us today. I hope you and your families are doing well. Our earnings presentation for the quarter has already been shared on the company's website and with the stock exchanges, and I trust you have had the opportunity to review it. I will start with an overview of our business performance and key strategic initiatives for the quarter. Following this, our Executive Director and CFO, Mr. Mukti, will take you through the financials in detail. The first quarter of financial year 2027 marked a positive start to the financial year, with the company delivering strong, broad-based growth across every operating segment.
Total income was INR 315 crore, up 9% year-on-year, powered by customer additions, expansion of our operating network, and sharp execution across the business. Demand continued to be healthy across manufacturing, especially in pharmaceuticals, engineering, heavy vehicles, and SME-led shipments. The accelerating shift towards outsourced logistics players added directly to our strengths. The industry as a whole saw elevated operating costs and competitive pricing in certain segments, but our discipline and our focus on service quality and investment in technology kept us firmly ahead of the curve. Surface Express remained the largest contributor of our business, growing at a healthy 9% year-on-year, strong volumes from existing customers, new accounts, and robust industrial growth. We expanded our branch network and opened new facilities at strategic locations, cementing our positions across key commercial corridors. The momentum wasn't limited to the Surface Express.
Domestic Air Express grew at an outstanding 29% year-on-year, driven by enterprise account growth, more direct airport deliveries, and a dedicated key account management team we built to raise the bar on customer service, backed by automation across flight management, pricing, and invoicing. International Express grew a strong 27% on new customers, win-backs, and expanded global carrier partnerships. Rail Express added operational branches, sharp end pickup density, and transit connectivity across major commercial corridors. The star of the quarter was our E-Commerce Express business, which surged 63% year-on-year to become our fastest-growing service vertical by a wide margin, driven by rising volumes from e-commerce platforms and direct-to-consumer brands, along with our continued investment in fulfillment and last-mile delivery. C2C Express also stepped up impressively, adding new clients, wider regional branch coverage, and a larger dedicated vehicle fleet.
Across these business verticals, we continued to invest in technology integration, sharpen operational visibility, and deepen customer engagement to deliver faster, more efficient, and reliable logistics solutions for our customers. Meanwhile, we remain completely debt-free, a position that gives us real strategic flexibility with continued discipline on cost and operational efficiency. This quarter, we also continued to strengthen our multimodal logistics capabilities through technology-led initiatives. We have launched an upgraded Android and iOS mobile app along with an enhanced customer portal, giving customers greater convenience, enhanced shipment visibility, and a better experience end to end. Beyond business performance, we continued our commitment towards community development through the TCI Express Foundation. During the quarter, our artificial limb center supported 217 beneficiaries with artificial limbs and other mobility devices.
Our archery academy in Jharkhand also continued to nurture young sporting talent by providing structured coaching and regular training to at least 50 young athletes reflecting our continued commitment towards inclusive and sustainable social development. Looking ahead, we are excited to keep investing in multimodal logistics capabilities, technology-led operations, and customer engagement across every vertical. With a strong balance sheet, an expanding network, and with the real momentum with us, TCI Express is exceptionally well-positioned to capitalize on the opportunities ahead and deliver lasting value for all our stakeholders. With that, I will hand over to Mr. Mukti to take you through our financials. Thank you.
Yeah. Thank you, sir, and good evening, everyone. Following on from our Managing Director, it was a strong quarter for TCI Express financially, and I will now take you through the numbers in more details. During the quarter, income from operation came in at INR 312 crore, up almost 9% from INR 287 crore a year ago. Total income was INR 315 crore, up around 9% year-on-year. EBITDA grew 11%, to INR 37 crore from last year, with margin expanding to 11.7% from 11.5% of last year. Profit after tax rose to 6% to INR 22.4 crore, compared to INR 21 crore in Q1 of last year, with a margin of 7.1%. Overall, it was a solid quarter operationally with costs well managed across our businesses.
Surface Express had another excellent quarter as our largest contributor to revenue, driven by customer additions, network expansion, and deeper engagement across key industrial sectors. We grew our branch footprint and built our service capabilities in important markets, making us more accessible to customer and driving steady healthy growth in coming quarters. Our multimodal service portfolio had a strong quarter as well. As mentioned by Mr. Chander, Domestic Air Express recorded strong growth driven by customer additions, expanded airline partnerships, and technology-led efficiency gains. International Air Express different ties with global carriers and expanded export consolidation. Rail Express expanded its network across key commercial corridors, while C2C Express grew its footprint through customer acquisition, branch expansion, and a larger dedicated fleet. Across the board, we are investing in network reach, digital tools, and a person excellence to keep this momentum going.
Our balance sheet is in great shape with net cash of around INR 118 crore as on June 30th, 2026. I would also like to highlight that our working capital moved in the right direction this quarter. Receivables stood around 58 days. Payables improved to 32 days. Net working capital, therefore it is 26, 27 days, a strong sign of better cash conversion in company. Apart from that, we put around INR 19 crore to work this quarter in branch expansion, network infrastructure, and technology initiatives. These investments are in line with our long-term plan to build a foundation for the growth ahead. Looking forward, we are confident in our path. Running an efficient business while investing in the technology and network capabilities that will sincerely drive longer sustainable growth. With this, I conclude my remark. We are happy to take your questions.
Thank you very much.
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question, then please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Chirag from Keynote Capitals. Please proceed with your question.
Yeah, thank you for the opportunity. Chander, sir, if you could provide me the volume numbers for this particular quarter.
Yeah. Mr. Chirag, volume number for this quarter is 250,000 metric ton in Q1. It is a growth of around, and volume wise, it is a growth of around 7.5% in this current numbers.
Got it.
Yeah.
Just for the sake of understanding, on an overall basis where I'm able to see in players in the industry are taking almost 3 percentage - 6 percentage price hike, our price hikes looks slightly lower than that. Any particular reason behind it? Because I believe in this industry, realization price hike takes place across the board.
Yeah. This is true, and we have also taken that price hike from the customer. As you aware, this fuel had hiked in mid-May, though it was supposed to be increased because the war has started in end of February, and then it was held up by the government due to ongoing elections, and ultimately it increased in mid-May. So we are also almost passing on to 90% customer this fuel. So ultimate, this price hike has came into in overall June month. So in this quarter, only June month is having positive impact. This will be showing in our second quarter onwards in a very well manner.
Obviously, you're talking about the fuel-based price hike, right? I'm asking what apart from fuel is a natural realization hike that we take about 2 percentage, which has been the industry norm, but it was expected that we are expected to take almost mid-single digit kind of a price hike this year.
Yeah. I just missed that. So, we held the price hikes because we know about that government will certainly increase the prices after election. That's why we held up and see. That's why we had taken the good price hike in June month and combined with, obviously, annual price hikes also and diesel hike load also. Both put together, is a handsome price which we have taken.
It is fair to assume that it would be in mid-single digits?
Sorry?
Will it be fair to assume that it would be in mid-single digits, the price hike?
Yes.
Got it. My second question is, what would be the mix of SME and B2B?
This time again, in this quarter, SMEs has really bounced back. Earlier in last whole FY 2026, our mix was 48/52. 48 SME and 52 B2B, means big customers. Now in this quarter, start with a very good note as a 50/50, which we desire for that actually. That ratio is also like, yeah, come back to 50/50.
Got it. Can you just highlight what would be a mix from e-coms in terms of SMEs?
E-com, that was very low amount, is not more than 2%. This is grown. Now we are refocusing, as we mentioned in two, three last calls. Because now is a stabilized process, is a standardized kind of pricing is there. It is profitable now. We also refocusing that and gaining good market from small customer, not the big one. This will be again, I think is a high-growth segment for this whole year for us. We are making various efforts in this one, in e-com segment. Around 2%-2.5% of overall revenue part, yeah.
Got it. The timing is not wrong. Generally, e-com business is also a lower EBITDA margin business compared to what we used to earlier have about 15 percentage, 16 percentage kind of level that we used to have. As earlier said that we did get into the e-com business because of the competition and the kind of margin it used to get. The strategy shift that you are taking, will it be fair to assume that there have been significant volume developments that are taking place due to which you are exploring this as a segment?
We are taking it as a overall because there is so various advantage of that. One is D2C segment is also growing very well, and this is a profitable one in the EBITDA range, if you talk about. It is in the range of 16%-18%, and that is why we continue with that. Second also, delivery to these e-com, this platform is increasing day by day, means more merchants are sending the goods to them. If we have the relationship with these all platforms, then we have the advantage to the green channel and fast deliveries and also. Ultimately, this is also support to our surface business also, which we found once we were in touch with these all kind of e-com players. Direct business we are gaining.
That is also in our strategy where we have to regain the businesses from the small B2C players. D2C market is also there. E-com related B2B market is also big, as you are aware about that. We targeting that market as well. It is an overall strategy. We creating a team on regional level also. We expanding team. We opened up the branches to gain the more regional kind of deliveries because as you know, these e-com deliveries are basically on a city level. We expanding that footprint also. We are hiring bikers and all. This way it is overall strategy taking in a very big way.
Got it. Just for sake of understanding, sir. It's been five years-
Next question, please.
Sorry. I will join after.
Next participant, please.
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time.
Yes, Mr. Koundinya.
The next question is on the line of Koundinya from Jefferies. Please proceed with your question.
Yeah. Hi, sir. Thanks for the opportunity. Sir, can you help us understand what all parts of e-commerce that you have present and what are the services that you are offering in? Because it appears it is primarily focused on first mile or last mile. But I also understand that you have strengths on the mid mile. Just trying to understand this business a bit better, please.
Yeah. So it is very much visible. We targeting obviously last mile, first mile deliveries also with the small customer, like one of the customer is delivering 5,000 dockets in a month. Regional level, supposing from Mumbai to all Maharashtra. So we are doing that. Again, targeting below 5 kg kind of packet has to be delivered through the biker. Second, D2C obviously. Again, every company, beauty companies or other pharmaceutical companies sending directly to last mile customers. And third thing, we also focusing to fulfill these all dark stores. Companies also sending or merchants sending the goods to them. So these kind of put together, we are overall making efforts. We also registered ourselves on a Unicommerce platform where thousands of merchants are there and we approaching them.
That is why we taking overall steps to see how we can increase our footprint and this e-commerce is overall e-com business.
Sir, just trying to understand, you did speak about 16%-18% EBITDA margin. But from our understanding, the last mile is very taxing and it is not so profitable. Just like, please help us understand how easy it is to make money here.
Yeah. So for again, we are not going into much competitive market where there are less profits. We are going on the small customer, which is allow us to be getting the margin. This is very clear strategy actually from Deva. Again, this is not like we are not doing crores of business in that. It is a very small business, and we will be thoughtfully with the margin, we will be only going with that. This is very clear.
Sure. Got it, sir. My second question is actually on the core business. This is the third consecutive quarter where you reported double digit EBITDA growth, and then the volumes is also decent now at 7% vis-a-vis after a period of lackluster growth. Can you help us understand what has changed, A, and B, from your presentation, it appears that you also are pressing the gas, turning a bit more aggressive. What are the opportunities that you are seeing here? What is the current momentum like? If you can maybe help us understand the outlook out here, please.
Chander sir, you would like to answer on that?
You can go ahead, Mukti.
Yeah. Koundinya, basically, lot has been changed as we have used this downtime to re-strengthen our various services, even in our flagship services of Surface Express, where we also grown 9% and aggressively, we will be accelerated further in double-digit growth also. What we did, we have specifically focused on vertical wise. We strengthen the regional team for that. Secondly, we strengthen all other services, which is whether it's air, Domestic Air Express or International Air Express or Rail Express or C2C Express. All products, we have created a regional level structure, and we put on a team, and now they started to giving a result and also you see our branch expansion also going on these services. We getting more customers like, as you know, in this quarter, we've grown around 28% in air. This is basically auto-driven growth, and you're seeing a good auto growth.
We are also getting more client for that. Further thing, now it's a good thing where we have the pipeline in for the coming future business. That is also very good thing. We have very clearly laid down pipeline where we will be have the visibility of the growth in coming quarter for sure. All kind of things we did, like training, we expanded to our team where how we can be put more digitalization in the company, how we can be put more aggression on the billing level also. So many things we did internally, and visibility is very clear there. Again, obviously, overall market for the manufacturer side is also going well. SMEs also started doing well. I think overall, positive scenario is there and we are hopefully accelerate the growth further in coming quarters.
And with the obviously different margin level which we targeted to be improved at least 100 basis points - 150 basis points in this overall year. Surely we going on that path.
Sir, if I may ask one question. You obviously gave a guidance on margin front. Can you speak a little bit on the volume side and also the pricing aspect a little bit better, please? What is it that you're targeting this year and also the price hike that you are effectively taking?
Yeah, so we are very much clear about the volume growth in the range of 11%-12% volume growth and price hikes net of around 3%. So overall, in the range of 13%-15% on overall growth, we will go with that. And obviously then it will be my profit will be increased in the range of certainly 20%-25% for the overall year.
Wow. That's good to hear, sir. Thank you very much and all the best.
Thank you.
Thank you, sir. The next question is from the line of Chirag from Keynote Capitals. Please proceed with your question.
Yeah, thank you for the opportunity. Just from the sake of understanding from what the last participant asked. When we are seeking for 10 percentage-11 percentage volume growth, if you could just highlight certain pointers, because if I am not wrong, the target industry, the top five industries where we cater to, have seen some significant jumps in terms of their sales. Our expectation of growth is backed by the target industry growth, or it is backed by adding more clients into new industry?
Certainly both ways. Obviously, new clients acquisition is also in line with that and increase the growth with the existing one. The both way we will go. Again, higher growth in other services in comparison to my surface level. Just put together, same results, we will be further accelerated. This is very clear path. Market is very big and we are expanding our branch network, so hopefully we will acquire more customers. This is a visible pipeline we have in front of us. That is giving a confidence to us to accelerate the growth in coming quarters.
Got it. Thank you so much, sir. That is it from my side.
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Anshul Agrawal from Emkay. Please proceed with your question.
Hi. Thank you for the opportunity. Mukti, could you let us know the status of our hub automation program? How many hubs have we automated, and what is the plan going forward?
Yeah. Hi, Anshul. We already did two automation. One, again, in Taj Nagar, North India, and Chakan, Pune. And two are in pipeline. Next would be Kolkata and Ahmedabad, and they are right now under construction. I think Kolkata might be automated by this year-end, March 2027 or max June 2027. And same way, Ahmedabad will be also, I think, mid of next year. That way, I think by next year, four would be there.
Got it, sir. And the CapEx guidance for the current year and the next year also, if you may?
Yeah. This year CapEx guideline is around INR 125 crore -I NR 140 crore, and out of that, we already did around INR 20 crore expenditure in that because as we mentioned, we have ongoing constructions at three, four sites. One is Ahmedabad, second one is Kolkata, and our corporate office also, and fourth one is Lucknow. So four construction is going on, and we also have a planning to buy land out of these three places, Mumbai and Chennai and Bangalore. Out of these three places, we're looking for the land. Hopefully, we are very near to crack a deal for land in either these three cities. Hopefully, we will be across INR 125 crore kind of CapEx in this year.
Got it, sir. Just one question on the fuel surcharge or fuel rate hikes.
Yeah.
You would have absorbed some of these increases in the month of May, and to that tune, I think margins could have been depressed in the current quarter because of that. Do we expect the margins to sort of improve in Q2? The guidance that you have provided of about 150 basis point improvement in margins in the current year factor, these kind of things for the remainder of the year to sort of come in.
Yes
Q2 onwards?
It is true. Yeah, it is true. Because again, because we couldn't increase the prices effective from April because we know that there would be an increase in fuel price also. To going customer two, three time is not a wise decision. That's why we wait for that, and ultimately, prices has increased. It is again, two, three tranches. Ultimately, in two, three phases. Ultimately, given that fact, and I am really happy to inform, we are already passing on to 90% + customer in June month itself. Yes, in quarter ahead, you will see the very good increase in that margin level.
Got it, sir. Would it be possible to share the contribution of multi-modal logistics to our revenues currently? This used to be 17%, 18%, if I am not mistaken.
Yeah, it is in the same way, yes. It is around that only.
Do we have any targets for the current year or the next year?
This year we are targeting to have around from 17%, 18% to 19%. In the longer term, by 2030, we want to be in the range of 22%-25%. Again, obviously, having the growth in our flagship service or surface also. This way, we will have slightly higher growth in other services. We want in a tier of 22%-25% in the longer term.
Got it. Those were my questions. All the very best for the year.
Thank you.
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions may please press star and one at this time. As there are no further questions from the participants, I now hand the conference over to management for closing comments.
Thank you very much for attending today's Q1 call. I wish everyone a Happy Independence Day. We'll talk again next quarter. Thank you.
Thank you, everyone.
Thank you.
Thank you.
Thank you.
Thank you, sir. On behalf of PhillipCapital (India) Private Limited , that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you.