Ladies and gentlemen, good day and welcome to TCI Express Q2 and H1 FY 2026 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Lohia from ICICI Securities. Please go ahead, sir.
Hi. Good evening, everyone. Thank you for joining us today for Q2 and H1 of FY 2026 earning call of TCI Express Limited. First of all, I would like to thank management for providing us the opportunity to host the call. From the management side, we have Mr. Chander Agarwal, Managing Director; Mr. Mukti Lal, Executive Director and CFO; Mr. Pabitra Mohan Panda, Chief Business Officer.
Without further delay, I would now hand over the call to the management for the opening remarks. Thank you, and over to you, sir.
Thank you, Mr. Mohit. Good evening, everybody, and welcome to the Q2 and H1 financial year 2026 earnings conference call of TCI Express Limited. I would like to thank all of you for joining us here today. I hope you and your families are keeping well. We have already circulated our earnings presentation on the company's website and the stock exchanges, and I trust you have a chance to review it. To begin, I will provide an overview of our business and operational performance during the quarter and first half of financial 2026. Following this, our Executive Director and CFO, Mr. Mukti, will take us through the financial results in detail. The second quarter showed consistent progress over the previous quarter, supported by stable volumes, network expansion, and growing contribution from our multimodal services.
Despite moderation in certain industrial segments and global trade headwinds, the company maintained its operational efficiency and margin profile through disciplined cost control and consistent service execution. The Surface Express division continued to be the largest contributor to overall business, driven by steady volumes across sectors like retail, automotive, and industrial goods. We saw improvement in MSME business and demand from lifestyle and garments during the festive season. However, performance was temporarily impacted as supply paused by manufacturers due to the GST rate cuts and system realignments. Furthermore, we also added 10 new branches in this segment, strengthening last-mile connectivity. The Railway Express segment delivered another strong quarter from 25% year-on-year growth, supported by 25 new branch openings and growing adoption of appointed-based deliveries that improve planning and service reliability. The Air Express segment performed well and with growth in both the domestic and international sectors.
We continued to expand our capacity by securing direct space with new international carriers, enhancing our customer experience, and increasing cargo handling efficiency. The International Air Express business grew 40% year-on-year, driven by higher import/export volumes across the trade routes. The C2C Express vertical continued to expand, recording 15% growth during the quarter on the back of new customer additions and team expansion across regions. Our Pharma Cold Chain Express service is gaining steady traction driven by demand from temperature-sensitive shipments, including through rail transport, ensuring faster and reliable logistics for pharmaceutical clients. During the quarter, we leased the largest sorting center in Mumbai, which is 3x the size of the existing one. The new facility will improve the operation efficiency, reduce cost, and support future growth and expansion in western part of India.
Plans are in place to replicate automation technologies deployed at our Gurugram and Pune facilities at upcoming sorting centers in Kolkata and Ahmedabad. These upgrades, along with implementation of a new CRM, will further enhance operation visibility, customer engagement, and efficiency. Our asset-light model continues to be the foundation of our business, allowing high network utilization, better cost management, and consistent service reliability. Capital expenditure of INR 28 crore was incurred in H1 financial 2026 towards the branch expansion, sorting centers, and IT infrastructure upgrades. I am pleased to share that TCI Express continues to be recognized for its commitment to excellence and sustainability. During the quarter, we were honored with the Iconic Brands of India 2025, Sustainable Organization 2025, and the Rajasthan Business Award 2025, reaffirming our leadership in the express logistics sector.
Through the TCI Express Foundation, we continue to advance our CSR and sustainability initiatives. The annual blood donation drive was organized nationwide in September to commemorate our Founder, Chairman, Late Shri P.D. Agarwal-ji , on his Punya Tithi. Our Jaipur Foot and Rehab Center in Lucknow has empowered many beneficiaries this year with artificial limbs and assistive devices while ongoing initiatives at the Archery Academy in Jharkhand. Looking ahead, the company remains focused on expanding its infrastructure and strengthening multimodal operations. We are also expanding into new verticals such as defense, EV, and solar energy, which align with emerging trends and growth opportunities in the logistics space. With a strong balance sheet and consistent investment in technology, TCI Express is well positioned to capture emerging opportunities in India's logistics sector and deliver sustainable value to its stakeholders in the quarter ahead.
With this, I would like to now hand over the call to Mr. Mukti to take you through our financial performance for the quarter and half year. Thank you.
Thank you, sir, and good evening, everyone. I will now take you through the financial and operational performance of our company for the second quarter and first half of this current year. As our Managing Director has already shared the business overview and key developments, I will focus on the financial highlights, service performances, operational updates, and our strategic priorities for the upcoming quarters. Basically, the second quarter reflected a steady financial performance supported by consistent cost management and balanced growth across our service offerings. Total income for the quarter was INR 312 crore compared to INR 290 crore in Q1, and INR 314 crore in last year's same quarter. EBITDA for the quarter is INR 39 crore, translating to a margin of 12.4%, while profit after tax is INR 25 crore with a margin of 8.1%.
For the first half of FY 2026, income is INR 602 crore compared to INR 609 crore in the same period last year. EBITDA during the period is INR 72 crore with a margin of 12%, and profit after tax is INR 46 crore with a margin of 7.7%. Despite moderate top-line performance, our discipline focused on network productivity, cost optimization, and improved service mix helped sustain margins within our guided range. Our core services vertical continued to perform steadily during this quarter, supported by the festive demand environment and consistent network expansion. The Surface Express division remained obviously the primary contributor, benefiting from stronger momentum in lifestyle, garment, and consumer goods. While MSME activity improved across key regions, though not up to that level, it has improved slightly.
In terms of our other services like Air and Rail and C2C segment delivered robust performance as did in quarter one, driven by network expansion, capacity enhancements, and strategic client growth, highlighting sustained operational excellence and business resilience. Our working capital cycle remains efficient with the receivable days at 60 days, payable at 40, and net working capital requirement is 20 days, reflecting strong control over collections and payments. The company continues to operate debt-free, maintaining liquid assets of INR 150 crore- odd . Cash from operation during this H1 is INR 20 crore. It will be improved over the period, obviously.
In summary, Q2 reflected consistent financial performance with healthy margins, stable volumes, and strong operational execution. We remain focused on expanding our multimodal capabilities, enhancing technology integration, and maintaining a disciplined approach to cost management and capital allocation. These efforts will ensure continued value creation for all stakeholders as we move forward.
Thank you, and now we can open the floor for question and answer please. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the 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 Krupashankar NJ from Avendus Spark. Please go ahead.
Yeah. Good evening, and thank you for the opportunity. First, a bookkeeping question. What would have been the volumes for this quarter?
Yeah. Volumes is 2.5 lakh tons for this quarter, and for the half year it is almost 482,000 tons.
Okay. All right. When I look at the tonnage growth on YoY basis, it's still being quite flattish despite the underlying trend. What would be attributable to the GST related impact, and if not for that, what could have been the tonnage growth? Have you seen that spill-over in the month of October? Any light on that, please?
Yeah, very well. You asked very good question. Basically, yes, we could have a positive revenue growth of 2%, 3%, single low digit growth in this quarter if we could not have factored this through this GST impact. That we also, as rightly said, is a spill-over in October month, and we are seeing a good traction in October. October also slightly impacted because Diwali is mid of that and last year it was end of the October, so that was not impacted. If you put together these two months, October and ongoing November, put together, we have very good growth this year. We certainly, as we guided, we will be certainly put the growth in that.
You are talking about the 10%+ growth. Is that the number we should read for the year?
Yes. We guided 8% kind of growth in volumes and 10% kind of growth in revenue. We are on that verge. Hopefully, in the next quarter, we will be giving a growth of higher single-digit growth in the next quarter.
Got it, sir. I have one fundamental question out here. While your press release, it talks in detail about International Air Express growing at 40%, Rail growing quite strong, C2C also growing at mid-teens sort of a thing. Is it just fundamentally the fact that the Surface business is the only underperforming business in our entire spectrum, and that is one of the reasons why our revenue growth has been flattish over the period? Is that how one has to read it? What has to fundamentally change with our operations to get back, because we have seen that the underlying industry is growing at around 9%- 10%. What has to change from here on, sir?
Yeah. You rightly said. My other service other than Surface is gaining traction, and we are getting good revenue growth on these. Though it is a small portion of overall revenue, but yes. Surface , we also did so many efforts, like we are adding the new verticals. What was the main reason on Surface , there is I think two aspects of that. One is paper and plastic industry is also slightly reduced on that part. That was the one reason. Second part, MSMEs really hit. Still they are trying to recover from that, and they are gradually recovering from that, because everybody, if you see industry-wide, everybody has impacted due to this MSMEs not improving.
That is, I think, one of reason where we also impacted, and hopefully, in next quarter onward, we will have the growth obviously in Surface product as well. We will be on the right path. Even we will be flattish in Surface, if we could have no GST impact of that and growth in other products. Ultimately, that impact will be, I think, gone, and now on the right path to be growing this segment also.
What I was actually looking for is there any aggression required from the marketing team, or is there any requirement of new branch addition, any change in strategy which has to be implemented to boost up this growth from a flattish sort of a trend? Is something which I was looking for. Anything which is fundamentally you are planning to implement because you are seeing this trend over quite some time now.
Yeah. It is nothing permanent there. It is temporary in nature. Manufacturing is not increasing. Numbers are there. In India is not where we work, whatever kind of segment we are, that is really not increasing. Again, in last call, we also mentioned we are not depending on only one product. That is why we are de-risking ourself to putting other services in place. We are cross-selling. Each other product is helping to growing together. That is also a good strategy we put in. We are also putting additional marketing team to how to improve business in Surface segment. Branch expansion, I think, not needed because we already have enough branches.
Obviously, we have the plan to be increased. But once we will stabilize or getting into in a breakeven point on this Surface more, then now we are also focusing to open the branch in other services. These are put together as a mixed strategy where we need to go ahead with that.
Got it, sir. Got it. Thank you for your patient answers. All the best.
Thank you.
Thank you. The next question is on the line of Ravi Naredi from Naredi Investment. Please go ahead.
Chander-ji, can we tell now worst is over and we pick up from here?
Yes, I know. Really. Yes, I also think so because all the dents in the economy and everywhere, it's quite evening out. Looking at that, everything should be in the upward trajectory.
Okay. This Bombay location you have take on the lease, how many years it will take to start?
It already started, sir.
It started.
Yes.
You will do modernization there?
No, because we will do automation in.
Oh, automation.[crosstalk].
The location of where we buy our own sorting center. This is not on our own land, so we will not probably do automation. We need a certain scale for automation, like at least 1.5 lakh sq ft. Once we attain that only, we will go for automation. Yes, Mukti?
So basically, this is on a strategic location. To add that what Chander-ji is saying. There is a strategic location, and ultimately it will reduce turnaround time because maximum movement of where we have taken this new sorting center on Nashik road. This is the maximum load go out from Mumbai or in and out from the Mumbai on that location. So it will ultimately help us to maintain our direct costs for that purpose.
Right. Thank you.
Thank you.
A reminder to all participants, anyone who wishes to ask a question may press star and one on the touchtone telephone. The next question is from the line of Anshul from Emkay Global. Please go ahead.
Hi. Good evening. Thank you for the opportunity. Hope I am audible.
Yes, Anshul.
Great. First question is on the pending automation at Kolkata and Ahmedabad, as Chander-ji mentioned. What would be the timelines of this and the CapEx involved for the same?
Well, it will take time because construction has started on both the locations. I think it will take time, actually. More than one year time is still there because construction will be finished in six to nine months, and then we will start to put an automation. Then I think finish will not be before December next year, you can say.
Okay, so mid FY 20--
2027.
Mid FY 2027, we should. CapEx involved for the same, sir? Remainder of CapEx [audio distortion] and probably for FY 2027, if you could just guide us for the CapEx.
Yeah. As we have taken INR 500 crores CapEx in three year back, now is the fourth year running. We spent almost INR 240 crores and remaining, we will be, I think, finish on INR 400 crores. You can say in remaining 1.5 year, we will be spend around INR 150 crores more. Against taking a target of INR 500 crores, we will be ending with spend INR 400 crores in five years. Then we will be carve out the new strategy with the wherever location we will want to this implementation of sorting center and all. We will be, I think, putting into the next year for that.
Got it. This plan includes only automating these two hubs, correct?
Oh, yes, as Mr. Chander has mentioned, because it is not feasible to have less than that. If we facilities, in a smaller in size like below 1.5 lakh sq ft, that is not feasible to have automation. That is why wherever we have, like Kolkata is around 1.5 lakh and then Ahmedabad is almost like 2.5 lakhs, these are the biggest ones. These type of facilities really feasible to have this automation and then everything is suitable there. Otherwise, no meaning to we have this automation. So, that way.
Got it. Second question that I had was on our revenue trajectory in the Surface Express business. If I assume that our new services are contributing roughly 17%, 18% odd percentage of our total revenue, Surface Express business seems to be sort of declining by 4%- 5% mid-single digit that continues. Do we foresee that despite your commentary that festive season demand sort of has benefited the current quarter as well, how likely would this demand push up Surface Express business revenue trajectory in the coming few quarters? If you could just shed some light or color on this, it will be useful.
Yeah. Well, because it's all depending upon how economy is, because it's our biggest contributor on that. SME sale increase is very important for us. That's why we putting effort to expanding branch network and now strengthening team at branch level to knock the more doors to getting more businesses from that SMEs. As mentioned in last call, we also putting effort to more businesses in this. Usually empty routes like eastern part of India and southern part of India, we're strengthening team there, so they can get more businesses because these areas maximum depending upon the SME customer. There are no big manufacturing as such. This is our strategy to be putting more team there to get more businesses in eastern part of India, like again, Bengal and Odisha and Jharkhand and all, everywhere.
This is getting good results, and we will keep continue on that strategy. Second strategy to be putting direct sales team for this Surface, we enhancing that. We already put almost 30, 40 more people on controlling level because as you are aware, we have the structure of 60 controlling offices we have. We have already put more team. These are the strategy. Third thing, we also putting a particular focus on new verticals, as we mentioned on this EV vehicle. There's a good news. We already made an agreement with the one EV vehicle provider in South India. We will get that, start the volume from next month. I'm mentioning this November month. We get the sign in the last month.
These kind of strategy to adding new verticals, and we're also focusing major for home furnishing and paint division, which is new companies is coming as you seen, as in a high, heavy competition on that. These kind of exclusive strategies will be works well and we will be certainly coming doing out of this degrowth of this main segment. Other thing also, Anshul, what happened in Diwali time as you seen, up to that 22nd September, there was a GST rate cut which started with that. People convert from there also, like surface business into rail and air because there was an urgent requirement for that. One, 1.5% reason is also there because they demanded to be delivered very fast, whatever way we can do. That's one of reason also where surface was slightly down.
These are the things which we are putting as a strategy for the future.
Got it. One final question from my end, if I may. You had earlier mentioned that new services are margin dilutive in nature, so till surface picks up, margin should remain muted. Would that understanding be correct or with new services, operating leverage helps top line improves, so margin should sort of firm up. How should we look about this?
Not really. Other services also not diluting margins. They are also similar margins except Air International having slightly less margin, which is very small amount in a percentage terms of revenue. Otherwise all services are the same. But why our margin has diluted is different reasons. One is because we expanding network for Rail and Air, and Air rates has also increased arbitrarily by these all airlines. That's why there is a reason where cost has been increased almost 150 basis point in overall basis due to these reasons. That's why my margin has been diluted. And other reason is because as volumes has not picked up, so my utilization level of truck has dropped. That's the main reason where we almost reduced by 300, 350 basis point. Otherwise, margin level for all services are okay.
There is no problem for any services, even rather similar or slightly higher in other services, rail or air or so. Margin is not challenge. I think it's again temporary. Once we reach back. My target is to once we reach back in a truck utilization of 85%, then we will be again back to improve margin and we will be jumped from by at least 150 basis point, and that's the thing, I think. And slight challenges was also there in front of to cost increases due to, again for the increase by the toll charges and labor charges, which we faced the challenge last year only. This year you seem like we have maintained the direct cost and gross margin we maintained over last year or almost same of last year.
These challenges we already overcome and I think air expansion or rail network expansion is also still will be going on, but we building up the revenue on that network so it is maintainable. That's why my gross margins are improving or rather we can say sustainable and will further improve in quarter three and quarter four.
Got it. Many thanks for a detailed answer. All the very best for the remainder of the year.
Thank you.
Thank you. The next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.
Hi, sir. Good evening. Just one question. When in 3Q and 4Q we will see higher volume than this margin, which we are already at 11.5%, where could that reach in the next two quarters? Because we will be at almost, I think 6%, 7% volume of at least in next two quarters. At higher volume we can definitely expect some improvement here. Can it become more like a 13%, 14% margin? That's the only question I had. Thank you.
Yeah. Yes, we are also targeting to increase that margin from 11.5%- 12.5%- 13% in that range in these remaining two quarters. For whole year we will be finished around 12.5%+ . That's our target. You're right, you said. And reason as already mentioned in last answer.
Yeah.
We will be through our efficiency in truck and, yeah.
Got it. Just one more. On a steady state basis, can this 13%, 14% could be considered as a new normal now, as compared to two years back, we used to talk about 16%- 18%. Now it's more like a 13%, 14% should be considered as a good margin.
Not really. We again are making effort to back to 15%+ margin because again, once the volume will be picked to, supposing we grow in a 10%- 12% in volume, then it will be my again, utilization of truck will be further improved to 85%, 86%, that range. That directly add to my profit so there is no challenge. Further, other services will also improve. There is an urgent positive arbitrage on terms of other cost because this is also not, it means you can say steady and sustainable. It is not increasing much. So ultimately, we will be very soon, if we attend the revenue growth of 10%+ in volume, then certainly we will be jump to margin level of 14.5%- 15%. So for us normal is not below 15%.
Got it, sir. That is all from my end. Some of the questions were answered previously. Thank you so much, sir, and all the best.
Thank you.
Thank you. The next question is from the line of Anurag from Equirus Securities. Please go ahead.
Hello. Am I audible?
Yes, you are audible. Please go ahead.
Yeah, very good evening, sir. I just wanted to know the utilization levels for trucks, please.
Sorry, can you come again?
Sir, utilization of trucks.
Yeah. Utilization of trucks in this quarter was around 83.5%.
Okay. For the first half of FY 2026?
Sorry?
For the first half of FY 2026?
It was 83%. Yes.
Okay. Thank you, sir.
Thank you. The next question is from the line of Thomas. As an individual investor, please go ahead.
Hi, good evening. I just want to understand something. When it comes to what I have been hearing in the surface of this business, there is a lot of undercutting on prices. How does TCI Express manage these pricing pressures while trying to maintain margin?
Yeah, your voice was not clear, but what I understand, you are talking about price cut by the competition and price pressure, right?
Yeah.
Basically, Mr. Thomas, price is really not worrisome in express industry, because what we are charging from customer as from their product value is very minuscule, kind of like 1.5%. Really, price cut is not main thing in this industry. We do not see any challenge on that way. Challenges are only volumes, which we, as the overall industry is not growing, means manufacturing is not happening. India is more depending upon the service sector. That is the only challenge. Hopefully, this GST cut will also improve customer confidence, which is clearly visible in October also. With that, once these volumes will be increased, then certainly everything will be improved. Price, I think, is not any challenge for anyone.
Okay.
In express industries. Yes. It is a challenge for B2C industries, yes, but not B2B industry as such.
Okay. When it comes to your product mix, can you help me understand[crosstalk].
Sorry to interrupt, Thomas. Hello, sorry to interrupt. Please could you speak a little louder? Your sound is not clear.
When you are talking about your product mix, can you tell me which is the segments that has the highest amount of revenue contribution, which segment, and in this quarter, which was the one that was growing the fastest?
Mr. Thomas, basically, highest contributor is first, Air, Domestic and International put together. And of that, International is very small amount right now, even below 2% of overall revenue.
Is it pharma? Is it auto, automotive? What is the--
Yeah. Basically, this festival season, we have seen a traction obviously in electronics, garment, that has been picked up.
Okay. Can you give me the product mix on the top segment?
Product mix, basically vertical. These top five vertical giving 55% revenue to us, and these are pharma, electronics, engineering, and the garment, lifestyle products, and auto.
Okay.
These are the main contributor of overall revenue.
You have made some automation in [audio distortion] The Talegaon and Chakan and all. Is there any, can you help me understand how that helped improve cost or improve throughput or anything like that?
Yeah, because, again, this automation helped us to improve our efficiency levels by reducing turnaround time of this holding cargo at the sorting center. Because earlier we were doing everything as manually loading, unloading. It takes time, almost eight hours, and now it is reduced to almost two hours. Further, consolidation of that cargo and shorting of that cargo is also taken time. So whole process is taking in the range of 12-18 hours, which has been reduced to half of that. Basically, that has impacted because that is and certainty is also there, where we can think, yes, cargo will be reached there, then we can be processing for our time. But earlier, that might be not so sure about that. These are one aspect.
Second aspect of that, manual intervention has been slightly reduced for that because now it is doing cargo process as automation. Third thing, time for these trucks has been also improved, where, supposing one truck is getting trip from Delhi to Mumbai like four trip, now they can be made 4.5 , because now their holding time is reduced at this particular center. These are the things which is really benefited, and that is why we are able to maintain our direct cost and this gross margin, basically.
Okay. You had mentioned earlier about doing milk runs and using AI to get better routes and all. Is there any gauge on how much this has helped when it comes to cost or helping in gaining revenue? Anything like that you can help me understand in this quarter?
Yeah. I think you are talking about milk run for my reduction, my cost, right?
Cost, yes.
Because we are not told on that perspective where we, supposing one vehicle is directly going one place to another, only supposing A to K. But then supposing one or two branch in middle of that, then they are not touching that. But now, sometime because it depends. Sometime it is supposing is killing my time, is not reaching on time because somehow it is possible only on metro cities where we have the high density of branches, then we need to use this as a milk run. We still using that, and we are doing that wherever is required is highly dynamic because we need to see the time. For example, every city have their entry barrier in the city. Supposing in Mumbai, my vehicle starts from sorting center to deliver to that branch because they have the only window of five, six hours.
They cannot touch two, three branches in that time. This is a problem. Somewhere it is possible, somewhere it is not possible because more and more branches come under city limits. Sometime it is not feasible to touch two, three branches in that very limited window because vehicle has to go inside the city then unload the material from that branch and then pick the material and then must come out from there. Otherwise, they will be, supposing it will not cross that limit before that entry barrier is removed, then they will be stuck there for the 24 hours. It depends on the various things. But yes, wherever is possible, we are doing that. This is very basic thing or hygiene thing for us to doing continuous basis.
Okay. Thank you.
Thank you. The next question is from the line of Pravesh from FourLion Capital . Please go ahead.
Hi, sir. Just some guiding question. What was the corporate SME mix for this quarter?
Yeah. It is on 48:52. 52 is corporate and 48 is SMEs. Our endeavor to anyhow to grow 50, and it is good to, supposing we reach to 55% in future. That endeavor is going on. But right now it is mixed, it is 48:52.
Understood. Did we take any price hikes this quarter on the express business?
Not much. We've taken almost, in overall basis, is not more than 25 basis points. Last quarter, we've taken almost 50 basis points. So put together is not more than 75 basis points.
Understood. I think at the start, we were trying to get to around 2%. Is that still likely to happen by the end of the year, or you think that's unlikely?
It is ongoing process, but major impact is coming on either on start of the financial year or calendar year. Because usually what happen, Indian companies is like, whatever price hike they're giving is around start of financial year, and MNCs is usually giving again their start their financial year as a calendar year. So usually that happens. Still our plan is on to get them the price hike, and hopefully we will freeze it at 1.5%-2% for sure in this year.
Understood. September plus October, you said we should look it together, right, in terms of the recovery?
No, October and November.
October and November. Okay.
Yeah.
That you are saying is expected volume growth will be highest in the digits, October plus November?
Yes.
Understood. Got it, sir. Last question on the branch network side. Are we still on track for those 80 branches, or there's some change in the thought process?
No, so mix is, you rightly said. As you've seen, we opened the branches of rail branches, those very small branches because we are building our capabilities and business is building on that. We open up the rail branches, 25, and 10 branches in surface. As you've seen, 35 branches we opened that, and we will be on the same path. By year-end, I think we will be finishing all the services put together again, in the range of 60- 80, for sure. We again in expansion mode to be in air and rail. We will put more branches for that. And surface, obviously, the established product. So might be having 10- 15 more branches in this remainder part of this year.
Got it. The non-surface business would be what percentage of revenue now this quarter because of the strong growth, et cetera?
It's approximately 18%.
Got it. The B2C business decline is still continuing, is that what you are saying? I would have expected with that 25% growth, the share would be much higher.
No, we are also increasing our B2C business. Mukti, you can say that also.
Yeah.
Okay. My only question was this 17%-18% range has been constant for some time while the other businesses have been growing quite fast, as you have also reported. I am just trying to understand if there is something else in that mix that is bringing it down to the non-surface.
In fact, B2C, we are planning to make it INR 100 crore product by next financial, in two years' time. I think that is what the plan is. Mukti?
Yes, sir.
Understood. Thanks very much. All the best.
Thank you. The next question is from the line of Rohit from Samatva Investments. Please go ahead.
Hi, sir. Thank you for the opportunity. Just on your last comment where you spoke about the B2C segment, just wanted your thoughts on which areas are you particularly focusing on the B2C part. Just take it further, historically, B2C, when you alluded to the fact margins pricing has been an issue in the B2B segment. How do you see the margins ramping up in that segment, maybe in the next one or two years?
Yeah. So basically, again, earlier we were in a 4%-5% in B2C, but over the period it reduced to around 2.5%. Now we again refocusing with the newer strategy to be taking small B2C customer, which is every door now, which we study in the market where we seen various small companies directly, you can say D2C. They directly send to customer. They are selling on their own platform. We hiring team for these kind of businesses, and their rate is not challenged at all. So that we founded and now started also, like a small customer. That is why Mr. Chander has mentioned we have a big plan for that, and we will be go on that path.
Again, our target is not these big boys. But for that also, we are talking about, again, like category 2 B2C player, not these big two boys like, again, Amazon and Flipkart. But again, Flipkart is also, we are discussing with them. So once it will be ramp up or we will be reach on some agreement, then restart the things for B2C. But again, margin is our key fundamental, so we cannot lose that proposition and we will be focusing on that, and then we will be do the business. We will not do everything. Wherever we have a stronghold, wherever we have the margin, then we will be do that. That is very clear, actually.
Okay, sir. Thank you so much, sir. All the best.
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on the touchtone telephone.
Yeah, we can close now. If there are no question, we can be like
Yes, sir. As there are no further questions, I would now like to hand the conference over to management for closing comments. Over to you, sir.
I thank everybody for attending the Q2 H1 con call for TCI Express, and I look forward to speaking to you again in near future. Thank you very much for your attendance.
On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.
Thank you, everyone.