Are TCI Express Ltd latest results good or bad?

TCI Express Ltd's latest financial results indicate a mixed performance in Q2 FY26. The company reported a net profit of ₹23.91 crore, reflecting a quarter-on-quarter increase of 22.80%, although this represents a year-on-year decline of 4.09%. Revenue for the same quarter was ₹308.53 crore, showing a sequential growth of 7.60%, but a slight year-on-year decrease of 0.97%. Operating margins, excluding other income, improved to 10.86% from 9.80% in the previous quarter, yet this is a decline from the 11.82% margin achieved in Q2 FY25. The PAT margin also saw a sequential increase to 7.75%, up from 6.79% in Q1 FY26, but down from 8.00% in the same quarter last year. The results highlight a recovery in profitability on a sequential basis, primarily driven by margin expansion rather than significant revenue growth. However, the overall revenue trend remains a concern, as it continues to reflect a lack of organic growth amidst a backdrop of steady demand in the sector. Additionally, TCI Express has faced challenges with operational efficiency, as indicated by a declining return on capital employed (ROCE) and a reduced debtor turnover ratio, suggesting potential issues with working capital management. The company’s financial position remains strong with a net cash position and no debt, but this has not translated into improved operational performance. In light of these results, TCI Express has experienced an adjustment in its evaluation, reflecting the complexities of its current operational landscape. The company continues to navigate structural challenges while attempting to stabilize its financial metrics in a competitive express logistics market.