Motilal Oswal kept a Neutral rating on TCI Express with a target price of Rs 530. The company reported a 9% revenue growth to INR3.3b in 2QFY27. Management said they expect volume growth of 11-12% in 2HFY27 as SME demand improves. Overall, the firm showed a steady performance this quarter.
Motilal Oswal's research report on TCI Express TCI Express's (TCIE) 2QFY27 revenue grew 9% YoY to INR3.3b (in line). EBITDA stood at INR396m (+12% YoY), 4% above our estimate. EBITDA margin came in at 11.8% in 2QFY27 vs. our estimate of 11.6%. APAT rose ~6% YoY to INR267m (in line). Volumes grew 6% YoY to 0.265m tons. TCIE reported a steady performance in 2QFY27, backed by healthy surface segment growth, which was driven by higher yields and increased business from large enterprises. Management targets volume growth of 11-12% in 2HFY27 as it expects further improvement in SME demand to drive a recovery in overall demand.
We broadly retain our FY27 and FY28 estimates and expect TCIE to deliver a CAGR of 6%/8%/11% in volume/revenue/EBITDA over FY26-28. We reiterate our Neutral rating with a TP of INR530, based on 18x FY28E EPS. Outlook We largely maintain our estimates for FY27 and FY28. We expect TCIE to clock a CAGR of 6%/8%/11% in volume/revenue/EBITDA over FY26-28. We reiterate our Neutral rating with a revised TP of INR530 (based on 18x FY28E EPS). For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management.
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