Neutral TCI Express; target of Rs 600: Motilal Oswal

Motilal Oswal recommended Neutral rating on TCI Express with a target price of Rs 600 in its research report dated February 03, 2026.

Broker Research

February 06, 2026 / 17:55 IST

Neutral

Motilal Oswal's research report on TCI Express

TCI Express’s (TCIE) 3QFY26 revenue grew 6% YoY to INR3.1b (+2% QoQ) and was in line with our estimate. Volume grew 2% YoY. EBITDA stood at INR336m (+16% YoY/-5% QoQ), 4% above our estimate. EBITDA margin came in at 10.7% in 3QFY26 vs. our estimate of 11.2%. APAT rose ~19% YoY to INR229m (-9% QoQ) vs. our estimate of INR246m. For 9MFY26, TCIE’s revenue/EBITDA/APAT stood at +1%/-1%/+2% YoY. Management expects volume growth to improve going forward, supported by a recovery in SME demand. A favorable mix driven by domestic consumption underpins a steady demand outlook across segments, while ongoing contract renewals are expected to support margins.

Outlook

We largely maintain our estimates for FY26/FY27/FY28. We expect TCIE to clock a 6%/8%/13% volume/revenue/EBITDA CAGR over FY25-28. We reiterate our Neutral rating with a revised TP of INR600 (based on 18x FY28 EPS).

For all recommendations report, click here