TCI Express Eyes Strong H2 On GST Boost, Targets 8-10% Volume Growth In FY26
TCI Express is diversifying its portfolio to stay competitive. It is also banking on a likely surge in demand due to the recent GST rate cuts.
Logistics firm TCI Express is expecting a significant rebound in the second half of the current financial year, according to its Executive Director (ED) and Chief Financial Officer (CFO) Mukti Lal. The company is banking on a surge in demand due to the recent GST (Goods and Services Tax) cuts, enhanced income tax limits and diversification into new business segments.
“SMEs (Small and Medium Enterprises) are also getting very good thrust due to this double bonanza the government has given: tax cut by enhancing the limits for the income tax and then the GST cut in this festival time. Certainly, this H2 would be fantastically well and even Q2 numbers would be good,” he said during a recent conversation with NDTV Profit.
“So, the first half is slightly weaker and then the second half is much better,” he added. According to Lal, the company is targeting volume growth of 8-10% in FY26. It will be accompanied by price increases that have been received well by customers, he said. “We are aiming for 8-10% kind of volume growth.”
To de-risk its business from dependency on a single segment, TCI Express is actively expanding its portfolio. The company has launched several multimodal services, including rail, air (both domestic and international) and customer-to-customer (C2C) logistics, which are growing fast, the top executive emphasised.
TCI Express is targeting new high-potential verticals, which are seeing premiumisation, such as the solar, defence, bathware and kitchenware sectors. Additionally, the company is capitalising on the quick commerce boom, servicing dark stores for FMCG, footwear and lifestyle products in the B2B segment.
“The movement from warehouses to dark stores is increasing our business,” Lal explained. Addressing the gap between TCI Express’ projected high single-digit growth and the higher growth rates (up to 25%) reported by new-age tech-driven logistics firms, Lal underscored the company’s focus on sustainable and profitable growth.
“Our motto is to have qualitative growth first. We are not gung-ho about taking the growth on a slightly lower margin level,” he said. The CFO explained that while TCI Express focuses on the B2B space, newer players mostly operate in the B2C sector. “These new-age companies are completely dependent on the B2C. We are like majorly focusing on B2B,” Lal concluded.
