Tejas Cargo India Limited (**TCIL**) is a technology-enabled, asset-heavy logistics provider specializing in **Full Truck Load (FTL)** services. Headquartered in Faridabad and listed on the **NSE Emerge** platform, the company provides long-haul supply chain solutions across India. TCIL is currently transitioning from a pure-play e-commerce logistics provider into a diversified industrial logistics powerhouse, leveraging a hybrid fleet model and advanced digital integration. --- ### **Core Operational Model: The Asset-Heavy Advantage** TCIL distinguishes itself through an **asset-heavy focus**, providing direct control over service reliability, maintenance, and cargo security. * **Hybrid Fleet Strategy:** The company balances operational control with scalability. Currently, **81%** of revenue is generated from the owned fleet, while **19%** comes from market-aggregated vehicles. * **Scalability Target:** Management aims to shift toward a more capital-light model, targeting a **40% revenue share** from aggregated vehicles by **FY27**. * **Client Ecosystem:** The company serves over **85 active clients**, with **90%** of revenue sourced from large corporate entities. While the top 10 customers (including **Safexpress, Flipkart, and Blue Dart**) contributed **58%** of revenue in **FY25**, TCIL is aggressively diversifying to reduce concentration risk. * **Workforce Dynamics:** Drivers are primarily engaged on a **per-delivery basis**, allowing for cost optimization and flexibility in line with trip volumes. --- ### **Fleet Infrastructure and Network Reach** As of **November 2025**, TCIL has scaled its operations to support nationwide long-haul logistics. | Metric | Details / Value | | :--- | :--- | | **Total Owned Fleet** | **1,231 vehicles** (Increased from 1,131 in FY24) | | **Fleet Composition** | **~70% Containers** (9-18T); **~30% Trailers** (40T) | | **Fleet Utilization** | **~82%** | | **On-Time Performance** | **86%** | | **Network Reach** | **27 branches** nationwide | | **Maintenance Hubs** | **9+ locations**; primary facility at **Sidhrawali, Haryana** (12 repair bays) | --- ### **Proprietary Technology and Cost Efficiency Measures** TCIL integrates advanced digital tools and captive infrastructure to drive a superior **~19.7% OPBDIT margin (FY25)**. * **Captive Fuel Strategy:** The company operates a **PESO-licensed** diesel dispensing station in Rewari. This facility achieves **~14.6% cost savings** compared to retail prices and services over **30%** of total trip volumes. * **Digital Transformation:** TCIL is transitioning to a **Python + React** based ERP system. **Phase-II**, covering automated inventory, repair workflows, and route optimization, is scheduled to go live by **December 2025**. * **IoT and Safety Suite:** The fleet is equipped with **GPS, Geo-fencing, and Centralized Digital Locking**. High-capacity trailers utilize **ADAS (Advanced Driver Assistance)** and **DSM (Driver State Monitoring)**, supported by a **24/7 centralized Control Tower**. * **In-House Maintenance:** By managing **9+ maintenance yards** and a **12-bay repair shop**, the company ensures high vehicle uptime and reduces reliance on third-party vendors. --- ### **Strategic Expansion and "Vision 2027" Verticals** The company is executing a multi-year strategy to expand beyond its e-commerce roots into high-margin industrial segments. * **Energy and Mining:** TCIL has entered the **Coal and Fly Ash** transportation sectors (e.g., Central Coalfields Ltd). The company recently amended its **Memorandum of Association (MOA)** to include direct mining exploration and processing. * **Automotive Logistics:** A new vertical for **Car Carriers** has commenced with **20 specialized vehicles**, with active negotiations underway with OEMs like **Hyundai, Kia, and Mahindra**. * **Sustainable Logistics:** TCIL has signed a **5-year agreement with Amazon** for **Electric Vehicle (EV)** deployment in last-mile delivery. It is also exploring **LNG vehicles** for long-term steel and cement contracts. * **Multimodal and 3PL:** Through a partnership with **CONCOR**, TCIL is scaling rail logistics. It currently handles **200–300 import containers per month** from China and is developing **3PL/4PL** capabilities, including warehousing. --- ### **Financial Performance and Capital Structure** Following its **IPO in February 2025**, TCIL has significantly strengthened its balance sheet and reduced its debt burden. **Key Financial Indicators (Consolidated)** | Metric | FY24 (Actual) | FY25 (Actual) | H1FY26 (Un-Audited) | | :--- | :--- | :--- | :--- | | **Total Operating Income** | ₹421.03 Cr | **₹508.24 Cr** | **₹301.61 Cr** | | **EBITDA Margin** | 16.34% | **20.40%** | **14.39%** | | **Profit After Tax (PAT)** | ₹13.22 Cr | **₹19.14 Cr** | **₹12.60 Cr** | | **Overall Gearing (x)** | 2.91x | **0.92x** | **0.97x** | | **Interest Coverage (x)** | 6.29x | **5.82x** | **6.10x** | * **IPO Impact:** The company raised **₹105.84 crore** (net) at **₹168 per share**, which was utilized to deleverage the balance sheet, reducing gearing from **2.91x to 0.92x**. * **Credit Ratings:** TCIL holds a **[ICRA]BBB+ (Stable)** rating. (Note: A **CARE BB+** rating was issued in March 2026 under the "Issuer Not Cooperating" category due to administrative delays in document submission for rating withdrawal). * **Borrowing Capacity:** The company has increased its borrowing limits to **₹500 Crores** to fund future fleet expansion and infrastructure. --- ### **Risk Factors and Mitigation** Investors should monitor the following challenges inherent to the logistics sector and TCIL’s specific operations: * **Working Capital Intensity:** The business is capital-intensive with an operating cycle of **55 days**. Receivable days stood at **70** in **FY25**, requiring disciplined cash flow management. * **Liquidity Buffer:** As of July 2025, the company maintained a limited fund-based limit cushion of **₹7 crore**. * **Market Fragmentation:** The Indian road logistics sector is highly fragmented. TCIL faces intense competition from both unorganized players and large organized multi-modal firms, which can lead to pricing pressure. * **Cost Volatility:** While **fuel price escalation clauses** are standard in corporate contracts, sudden spikes in diesel prices or toll charges can impact short-term margins. * **Regulatory and ESG Risks:** Tightening emission standards require continuous Capex for fleet modernization. Additionally, the company’s expansion into mining introduces new regulatory and environmental compliance complexities.