Transport Corporation of India’s (TRPC) Q2FY26 EBITDA of INR 1,267mn was slightly below consensus estimates. Key points: 1) Revenue and EBITDA grew by 7.5% and 8.2% YoY, respectively. 2) Blended EBITDA margin remained range bound at 10.5%. 3) Freight division’s EBIT margin moderated to 2.3% (2.4% in Q1FY26) due to subdued demand. 4) New ships are likely to arrive next year. 5) Incurred capex of INR 1.7bn in H1FY26 with expected capex of INR 4bn in FY26. Management has maintained its volume growth guidance of 10–12% for FY26, while keeping EBITDA margins at existing levels. We maintain BUY with a TP of INR 1,500, based on 22x FY27E EPS.
OutlookWe believe margins in freight division are likely to have bottomed out and also JVs may continue to outperform. We maintain BUY with a TP of INR 1,500, based on 22x FY27E EPS.
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