TCI sees 10-12% FY27 growth despite West Asia headwinds

Despite West Asia geopolitical disruptions and rising fuel costs, Transport Corporation of India (TCI) posted 9.1% revenue growth in Q1 FY27 and projects 10-12% growth for the full year, driven by multimodal network strength, manufacturing demand, and fleet expansion.

Written by Akbar Merchant

Updated: September 4, 2026 01:48 IST

Vineet Agarwal, managing director, TCI

The West Asia crisis continues to pressure logistics costs and demand, but according to Transport Corporation of India (TCI), the disruption has also underscored the importance many other positive factors. “Geopolitical developments have created short-term volatility, but they have also underscored the value of resilient and diversified supply chains,” Vineet Agarwal, managing director, TCI, said.

TCI reported 9.1% revenue growth in Q1 FY27 despite elevated fuel costs, geopolitical disruptions and delays. Its diversified business model, multimodal network and fuel escalation mechanisms helped cushion higher operating expenses, while asset productivity, network optimisation and cost discipline supported margins.

The company expects 10-12% revenue growth in FY27, led by manufacturing, rising warehousing demand, infrastructure investments and wider adoption of multimodal logistics.

Fuel Pressures

The West Asia disruption had also affected TCI’s business in Q4 FY26, particularly in March, traditionally a strong month for logistics demand. Bunker fuel prices almost doubled during the period, while domestic diesel prices rose by around ₹7-7.5 a litre. Softer production in some MSME-led sectors added to the pressure.

TCI expects margins to improve in FY27, supported by a richer business mix, operating leverage and two new coastal vessels that will increase capacity and asset productivity.

Growth Drivers

The company sees global supply-chain diversification and the China+1 shift as structural opportunities for India. Contract logistics, multimodal transportation, cold chain, chemical and automotive logistics, and digital supply-chain services are expected to drive growth.

With geopolitical uncertainty likely to persist in the near term, TCI said it will focus on timely cost pass-through, operational efficiency and supply-chain flexibility. It expects domestic consumption, infrastructure spending and manufacturing activity to continue supporting logistics deman

This article was first uploaded on September three, twenty twenty-six, at twenty minutes past five in the evening.