TCI revenue grows 11.17%, but faster costs squeeze operating margin
Net profit rose 9.66% QoQ, though other income supplied 24.33% of pre-tax profit and the tax rate increased.
Filed 27 Oct 2026, 15:06 IST · Transport Corporation of India Ltd (TCI)
Key takeaways
- Consolidated revenue grew 11.17% sequentially, but expenses grew faster at 11.71%, narrowing operating margin by 0.43 percentage points.
- Net profit rose 9.66% sequentially to Rs 116.9 cr, helped by other income contributing 24.33% of pre-tax profit.
- TCI's 10.40% operating margin was 35.14 percentage points below the 45.54% median of nine Services peers that had reported.
Price around the results
Revenue growth did not fully convert into operating profit
TCI's consolidated revenue increased 11.17% sequentially to Rs 1,388.0 cr, while operating profit grew 6.73% to Rs 144.3 cr. Expenses rose 11.71%, outpacing revenue growth and reducing operating margin by 0.43 percentage points to 10.40%.
Other income supported pre-tax profit
Pre-tax profit rose 11.22% sequentially, faster than operating profit, as other income increased 27.94% to Rs 31.6 cr. Other income accounted for 24.33% of pre-tax profit, making reported profit less dependent on operations. The tax rate increased by 1.28 percentage points to 10.01%, limiting the conversion of pre-tax growth into net profit growth of 9.66%.
Margin remains below the reported Services peer median
TCI's 10.40% operating margin was 35.14 percentage points below the 45.54% median for nine Services peers that had reported the quarter. It ranked fifth from the bottom on this measure, so the margin gap remains a notable feature of the quarter.
The initial stock response was limited
At the reported reaction point, the stock was up 0.16% after opening 0.63% below the prior close. It was 0.17% ahead on a relative basis, with traded volume at 0.32 times the reference level.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,388 cr | ₹1,249 cr | +11.17% |
| Other income | ₹32 cr | ₹25 cr | +27.94% |
| Expenses | ₹1,244 cr | ₹1,113 cr | +11.71% |
| Operating profit | ₹144 cr | ₹135 cr | +6.73% |
| Operating margin (%) | 10.40% | 10.83% | — |
| Interest | ₹7 cr | ₹7 cr | +4.29% |
| Depreciation | ₹39 cr | ₹36 cr | +7.20% |
| Profit before tax | ₹130 cr | ₹117 cr | +11.22% |
| Tax | ₹13 cr | ₹10 cr | +27.45% |
| Net profit | ₹117 cr | ₹107 cr | +9.66% |
| EPS (₹) | ₹15.08 | ₹13.77 | +9.51% |
Operating margin of 10.40% compares with a Services sector median of 45.54% across 9 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.16% | +0.17% |
Volume on the results session was 0.32× its 20-day average.
What to watch
- Whether operating margin recovers from 10.40% after the 0.43-percentage-point sequential decline.
- Whether expense growth remains above revenue growth, compared with 11.71% versus 11.17% this quarter.
- Whether other income's 24.33% contribution to pre-tax profit and the 10.01% tax rate change the quality of reported profit.