Mumbai, May 28 : Equirus Securities has reiterated its LONG stance on Transport Corporation of India with a target price of Rs 1,185, citing healthy momentum across key business segments and strengthening multimodal capabilities that continue to support long-term growth.
According to Equirus Securities’ latest analysis of the company’s 4QFY26 performance, TCI’s Supply Chain Solutions segment delivered resilient growth despite temporary disruptions during March and a relatively high base effect. SCS revenues grew approximately 16% year-on-year, driven by strong traction across automotive, e-commerce and integrated warehousing businesses.
The report highlighted that TCI’s expanding multimodal network spanning rail, road, shipping and warehousing is strengthening its competitive positioning and enabling continued market share gains. While margins witnessed moderation due to upfront investments in manpower and infrastructure for newly acquired contracts, Equirus expects SCS revenue and EBIT to grow at nearly 16% and 20% CAGR respectively over FY26-FY29E, supported by operating leverage and warehouse ramp-up.
The Freight segment also showed signs of gradual recovery, reporting around 13% year-on-year revenue growth during 4QFY26 after an extended weak phase. Management attributed the improvement to rising less-than-truckload contribution, leadership restructuring and network optimisation initiatives.
Despite near-term challenges such as pricing pressure, delayed fuel pass-through and subdued MSME demand, Equirus remains optimistic about the segment’s recovery trajectory. The brokerage expects Freight segment revenue and EBIT to grow at approximately 6% and 9% CAGR respectively over FY26-FY29E, with LTL contribution projected to rise to nearly 50% by FY30E.
Meanwhile, the Seaways business delivered another strong quarter aided by higher voyage frequency, absence of dry-docking shutdowns and effective bunker fuel pass-through mechanisms. Management maintained a FY27 growth outlook of 5–10% despite elevated fuel costs and near-term margin moderation linked to new vessel additions.
TCI is expected to add two new vessels by Q3/Q4FY27, increasing capacity by approximately 15,000–16,000 tonnes. Lower dry-docking impact compared to FY26 is also expected to support utilisation levels going forward. Equirus projects Seaways revenue and EBIT to grow at nearly 12% and 5% CAGR respectively over FY26-FY29E, driven by capacity additions and the structural shift toward coastal logistics.
Equirus Securities reiterated its positive outlook on TRPC, valuing the company at 17x FY28E P/E and maintaining its target price of Rs 1,185.
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