Motilal Oswal has maintained a positive outlook on Transport Corporation of India (TCI) with a target price of ₹1,100, citing strong growth in its seaways and supply chain operations. While the company posted a solid second-quarter revenue of ₹13.9 billion, investors may monitor how it manages rising bunker fuel costs and its planned ₹600 crore capital spending project.
Motilal Oswal has maintained a 'Buy' rating on Transport Corporation of India (TCI), setting a target price of ₹1,100 per share. This update follows the company’s second-quarter financial results for fiscal year 2027, where it reported consolidated revenue of ₹13.9 billion, a 14.8% increase compared to the same period last year. Net profit also rose, reaching ₹1.16 billion, slightly higher than the ₹1.13 billion reported in the previous year.
The brokerage's outlook is driven by the consistent performance of TCI’s seaways and supply chain business divisions. The seaways segment performed well in terms of top-line growth, recording a 27.9% rise in revenue. However, this segment also experienced a contraction in profit margins, primarily due to higher bunker fuel costs. This underscores a key investor focus: while the demand for shipping services remains strong, profitability in this division is sensitive to energy price fluctuations.
Looking forward, the company has announced plans for significant capital spending of ₹600 crore. To fund this, TCI expects to utilize external borrowing for approximately 20% to 25% of the total cost. This will be a key area for investors to watch, as the company’s current net debt is in the range of ₹90 to ₹100 crore. The ability of the business to execute this expansion without putting undue pressure on its balance sheet will be a critical factor for long-term value creation.
In terms of capital allocation, TCI also recently completed a share buyback program on October 22, 2026, where it bought back 1.56 million shares at ₹960 per share. As the company continues to focus on integrating new ships and rakes into its multimodal logistics network, the primary monitorables for shareholders will be the management of operating expenses against revenue growth, the impact of fuel costs on shipping margins, and the progress of the planned infrastructure spending.