Thank you, Pallavi. 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 is 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'll have opening comments from the management. I will now hand over the call to Mr.

Chander Agarwal for the opening comments. Over to you, sir.

Thank you. Good evening, everyone, and welcome to the Q1 financial year '27 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've 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 '27 marked a positive start to the financial year, with the company delivering strong, broad-based growth across every operating segment. Total income was ₹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, electric vehicles, and SME-led shipments. The accelerating shift towards outsourced logistics players played directly 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, strengthening pickup density and transit connectivity across major commercial corridors. The star of the quarter was our e-commerce business 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 costs 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 the 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're excited to keep investing in multimodal logistics capabilities, technology-led operations, and customer engagement across every vertical. With a strong balance sheet and 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 the hand over to Mr. Mukti to take you through our financials.

Thank you.

Thank you, sir, and good evening, everyone. Following on from our Managing Director, it was a strong quarter.

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 operations came in at ₹312 crore, up almost 9% from ₹287 crore a year ago.

Total income was ₹315 crore, up around 9% year-on-year. EBITDA grew 11% to ₹37 crore from last year, with margin expanding to the 11.74 11.7% from 11.5% of last year.

Profit after tax rose to 6% to ₹22.4 crore compared to ₹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 in coming quarters.

Our multimodal service portfolio had a strong quarter as well. As Mr.

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 expand depend ties with global carriers and expanded export consolidation. Rail Express ended 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 operational excellence to keep this momentum going. Our balance sheet is in great shape with net cash of around ₹180 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, payable improved to like 32 days, and net working capital cycle that therefore it is 26, 27 days, a strong sign of better cash conversion into the company.

Apart from that, we put around ₹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 the 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 remarks.

We are happy to take your answers. Thank you very much.

Thank you for the opportunity. Chander sir, if you could provide me the volume numbers for this particular quarter?

Mr. Chirag, volume number for this quarter is 2,50,000 metric ton in Q1.

In volume wise this is a growth of around 7.5% in this tonnage numbers.

Got it. Just for the sake of understanding, on an overall basis, where I am able to see players in the industry are taking almost 3% to 6% price hike.

Our price hike looks slightly lower than that. Any particular reason behind it?

Because I believe in this industry realization price hikes takes place across the board.

Yeah. This is true and we have also taken that price hike from the customer, but as you aware this fuel has hike in mid-May, though it was supposed to be increased because the war has started in end of Feb and then it was held up by the government due to ongoing elections and ultimately is increased in mid-May.

We are also almost passing on to 90% customers this fuel, but ultimate this price hike has came in overall June month. In this quarter, only June month is having positive impact and this will be showing in a second quarter onwards in a very well manner.

Mukti sir, you're talking about the fuel-based price hike, right? I'm asking about apart from fuel-based, a natural realization hike that we take about 2%, which had been the industry norm, but it was expected that we are expected take a almost mid-single-digit kind of a price hike this year.

No, so,

yeah. I just missed that.

We held the price hike because we know about that government will be certainly increase the prices fuel after elections. That's why we held up.

That's why we had taken the good price hike in June month, in combined with our obviously annual price hikes also and diesel hike clause also, both put together. It's a handsome price hike we had taken.

It is fair to assume that it would be in mid-single digit?

Sorry?

Will it be fair to assume that it would be in mid-single digit, 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 is really bounce back. Earlier in last whole FY '26, our mix was 48:52, 48 SME and 52 B2B, means big customers, and now in this quarter start with the very good note as a 50:50, which we desire for that actually.

That ratio is also, yeah, come back to 50:50.

Got it. Could you just highlight what would be our mix from e-commerce in terms of revenues?

E-com, that was very low amount, is not more than 2%. This is now we refocusing as we mentioned in a two, three last calls.

Because now is stabilized process, is standardized kind of pricing is there. It is profitable now.

We also refocusing that, and getting good market from small customers, not the big one. This will be again I think is a high-growth segment for this whole year for us.

We making various efforts in this one, in the e-com segment. Around 2% to 2.5% of overall revenue part, yeah.

Got it. If my understanding is not wrong, generally e-com business is of a lower EBITDA margin business compared to what we used to earlier have about 15%, 16% kind of levels that we used to have.

Earlier stand that we didn't get into the e-com business because of the competition and the kind of margins it used to get. The strategy shift that you're 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 is the overall because there is a 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% to 18%, and that's why we continue with that. Second also these platform is increasing day by day, means more merchants are sending to 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 in once we were in touch with these all kind of e-com players. Direct business we're gaining, that is also in our strategy where we have to be gain the businesses from the small, small B2C players.

Then D2C market is also there, and then e-com related B2B market is also big as you aware about that, we targeting that market as well. It is an overall strategy.

We're creating a team on now regional level also. We're expanding team.

We opened up the branches to gain the more regional kind of deliveries because as e-com deliveries are basically on a city level. We're expanding that footprint also.

We're hiring bikers and all. This way it is overall strategy taking in a very big way.

Got it. Just for the sake of understanding, sir, why is it

Next question, please.

Sure, I'll join back the queue.

Next participant, please.

Yes, Mr. Koundinya.

Hi, sir. Thanks for the opportunity.

Sir, just can you help us understand what all parts of e-commerce that you are present and what are the services that you're offering in? Because it appears it's primarily focused on first mile and last mile, but I also understand that you have strengths on the mid mile.

Just trying to understand this business a bit better, please.

It is very much visible we targeting obviously last-mile, first-mile deliveries also with the small customer. Like one customer is delivering 5,000 dockets in a month regional level, supposing from Mumbai to all Maharashtra, we doing that.

Again targeting below 5 kg kind of packet has to be delivered through the biker. Second, D2C obviously, again beauty companies or other pharmaceutical companies sending directly to last-mile customers.

Third thing, we also focusing to fulfill these all dark stores, companies also sending or merchant sending the goods to them. These kind put together, we overall making efforts.

We also registered ourselves on a Unicommerce platform where thousands of merchants are there and we approaching them. That's why we taking overall steps to see how we can be increase our footprint in this 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's not so profitable. Please help us understand how easy is it to make money here?

Again we are not going into much competitive market where there are less profits. We are going on the small customers, which is allow us to be getting the margins.

This is very clear strategy actually from day one. Again, this is not we are not doing crores of business in that, it is a very small business, and we will be thoughtfully with the margins, we will be only going with that.

This is very clear.

Sure. Got it, sir.

Sir, my second question is actually on the core business. Now this is the third consecutive quarter where you reported double-digit EBITDA growth and then the volume growth is also decent, now at 7% vis-à-vis after a period of lackluster growth.

Can you help us understand what has changed: A? 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, a lot has been changed as we have used this downtime to re-strengthen our various services, even in our flagship services of surface where we also grown 9% and aggressively we will be accelerated further in double-digits growth also.

What we did we have specifically focused on vertical-wise. We strengthened the regional team for that.

Second, we strengthen all other services, which is whether is air domestic or air international or rail or C2C. All products, we are created regional level structure and we put in a team.

Now they started to give you a result and also you see our branch expansion is also going on these services, we getting more customers. As in this quarter, we've grown around 28% in air, this is basically auto-driven growth, and you seen 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 for this coming future business, so 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 the sure.

This 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. Many things we did internally, and visibility is very clear there.

Again, obviously, overall market for the manufacture side is also very 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. With the obviously decent margin level, which we targeted to be improve at least 100 basis to 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?

We are very much clear about volume growth in the range of 11% to 12% volume growth and price hikes net of around 3%. Overall in the range of 13% to 15% on overall growth we will be go with that.

Obviously then my profit will be increased in the range of certainly 20% to 25% for the overall year.

That's right, yeah. That's great.

That's good to hear, sir. Thank you very much, and all the best.

Thank you.

Thank you for the opportunity. Just for the sake of understanding, from what the last participant asked, when we are speaking for 11 to 10% to 11% volume growth, if you could just highlight certain pointers because if I'm not wrong, the target industry, the top five industries where we cater to, have seen some significant jumps in terms of their sales.

Is it our expectation of growth is backed by the target industry growth, or it is backed by adding more clients into new mix?

Certainly both ways. Obviously, new client acquisition is also in line with that and increase the growth with the existing one is a both way will be go.

Again, higher growth in other services in comparison to my surface level, this put together as same result, we will be further accelerated. This is very clear path, market is very big and we're expanding our branch network, hopefully we will be acquired the more customer.

This is a visible pipeline we have in front of us. That's giving a confidencer to us to accelerate the growth in coming quarters.

Got it. Thank you so much, sir, and that's it from my side.

Thank you.

Hi, thank you for the opportunity. Mukti sir, 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?

Hi, Anshul. Basically, yeah, we already did two automation: one again in Tajnagar, North India, and Chakan, Pune.

Two are in pipeline, next would be Kolkata and Ahmedabad, and they are right now in under construction. I think Kolkata might be automate in by this year-end, means March '27 or max June '27, and same way, Ahmedabad would be also I think mid of next year.

That way, I think by next year, four would be there.

Got it, sir. The capex guidance for the current year and the next year also, if you may?

This year capex guideline is around ₹125 crore to ₹140 crore, and four out of that, we already did around ₹20 crore expenditure in that. Because as we mentioned, we ongoing constructions at three, four site: one is Ahmedabad, second one is Kolkata, and our corporate office also, and fourth one is Lucknow.

Four construction is going on, and we also have a planning to buy land in out of these three places: Mumbai, and Chennai, and Bangalore. Out of these three places, we looking for the land, hopefully we are very near to crack a deal for land, either these three cities.

Hopefully, we will be cross ₹125 crore kind of capex in this year.

Got it, sir. Just one question on the fuel surcharge or fuel rate hikes.

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 some 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 Q2 onwards?

It is true. It's true 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 times is not viable, not is a wise decision.

That's why we wait for that, and ultimately prices have increased. It is again two, three tranches.

Ultimately, in three two, three phases, ultimately we given that effect, and I am really happy to inform we are already passing on to 90% plus customer in June month itself. Yes, in quarter ahead, you will be see the very good increase in that margin level.

Got it, sir. Would it be possible to share the contribution of multimodal logistics to our revenues currently?

This used to be 17%, 18% if I'm not mistaken.

It is in the same range, yes. It's around that only.

Do we have any targets for the current year or the next year?

This year, we targeting to be have around from 17%, 18% to 19%, and in the longer term, by 2030, we want to be in the range of 22% to 25%. Again, obviously, having the growth in our again flagship service of surface also, this way.

There will be have slightly higher growth in other services. We want in a share of 22% to 25% in the longer term.

Got it, sir. Those were my questions.

All the very best for the year.

Thank you.

Thank you very much for attending today's Q1 call, and I wish everyone a happy Independence Day, and we'll talk again next quarter. Thank you.

Thank you, everyone.

Thank you.

Thank you.