Transport Corp. Q2 FY27 Results (NSE: TCI)
Signal: Growth reaccelerated
The read
The quarter marks a revenue acceleration to ₹13,880 million, +15.2% YoY, but the earnings conversion remains subdued: operating margin slipped to 10.4% and PAT grew only 3.0% to ₹1,169 million, with Seaways growth and ₹217 million of JV income cushioning higher depreciation and finance costs. This is the second consecutive quarter of roughly 10-11% operating margin rather than a clear margin expansion inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,388 Cr | +15.2% | +11.2% |
| Net profit | ₹116.9 Cr | +3.0% | |
| EPS | ₹15.08 | +2.7% | |
| EBIT margin | 10.4% |
P&L walk
Consolidated revenue increased to ₹13,880 million, +15.2% YoY and +11.2% QoQ, while EBITDA rose to ₹1,443 million, +13.9% YoY, with margin easing to 10.4%; PAT growth was limited to 3.0% because other income fell and JV profit share declined 6.5% YoY.
Segments
Seaways was the main growth and profit driver, with revenue up 29.0% YoY to ₹1,836 million and segment result up 12.2% to ₹598 million; Supply Chain Solutions remained the largest contributor at ₹6,443 million revenue and ₹369 million result, while consolidation added ₹217 million of JV and associate profit share over standalone PAT.
Key positives
- Seaways revenue reached ₹1,836 million, +29.0% YoY, while its segment result was ₹598 million, +12.2% YoY, making it the strongest reported growth engine.
- Consolidated revenue growth accelerated to +15.2% YoY from +8.9% in Q3FY26 and +12.3% in Q4FY26, led by Seaways and Supply Chain Solutions.
- Asset investment is progressing: consolidated PPE plus CWIP rose to ₹16,947 million from ₹12,177 million, while depreciation increased 26.1% YoY to ₹748 million in H1FY27.
Key concerns
- PAT growth of 3.0% to ₹1,169 million materially lagged revenue growth of 15.2% because operating margin declined to 10.4% and finance costs rose 23.7% to ₹73 million.
- H1FY27 operating cash flow declined 25.6% YoY to ₹2,046 million while PPE purchases rose 93.3% YoY to ₹3,902 million, increasing execution and cash-conversion requirements.
- Standalone PAT was ₹917 million versus consolidated PAT of ₹1,169 million, leaving ₹252 million of the group result dependent on JV and associate contribution and minority interests.
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