Tega Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Tega Industries Ltd filed with BSE on 20 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Tega Industries reported consolidated Q1 FY27 revenue of INR17.2 billion including its first month of Molycop consolidation, with adjusted EBITDA margin of about 15% before one-time acquisition and integration expenses of INR1.9 billion. The legacy Tega business grew revenue 21% year-on-year to INR4.3 billion with EBITDA up 42% and margins expanding to 22.1%, while the equipment segment saw a revenue decline due to delayed customer clearances. Molycop contributed INR12.9 billion in revenue and INR1.6 billion of adjusted EBITDA for its one month of consolidation, and management described net debt reduction at the Molycop level following the transaction's refinancing.
Numbers mentioned
Consolidated revenue from operations: INR17.2 billion (Q1 FY27)
p. 3
“the group reported revenue from operations of INR17.2 billion, significantly higher than the prior year, reflecting the scale and diversification benefits of the combined platform”
Mehul Mohanka, page 3 of the filed PDF · View the filing
Consolidated adjusted EBITDA margin: 15% (Q1 FY27)
p. 3
“Consolidated EBITDA before one-time expenses stood at INR2.6 billion, delivering an adjusted EBITDA margin of 15%.”
Mehul Mohanka, page 3 of the filed PDF · View the filing
One-time acquisition and integration expenses: INR1.9 billion (Q1 FY27)
p. 3
“During the quarter, we incurred one-time expenses of INR1.9 billion primarily related to acquisition and integration expenses.”
Mehul Mohanka, page 3 of the filed PDF · View the filing
Tega (legacy) revenue growth: 21% year-on-year to INR4.3 billion (Q1 FY27)
p. 3
“Revenue increased by 21% year-on-year to INR4.3 billion while EBITDA grew by 42% to INR1 billion.”
Mehul Mohanka, page 3 of the filed PDF · View the filing
Tega EBITDA margin: 22.1% (Q1 FY27)
p. 3
“EBITDA margins improved to 22.1% from 19.1% in the prior year, highlighting our focus on profitable growth, operating leverage and disciplined execution.”
Mehul Mohanka, page 3 of the filed PDF · View the filing
Order book: INR12.3 billion
p. 3
“the business continues to be supported by a healthy order book of INR12.3 billion, providing strong visibility for future revenue and reinforcing confidence in the underlying demand environment”
Mehul Mohanka, page 3 of the filed PDF · View the filing
Tega consumables revenue growth: 36% year-on-year to INR4 billion (Q1 FY27)
p. 3
“revenue grew by 36% year-on-year to INR4 billion, while EBITDA before one-time expenses increased by 58% to INR1 billion.”
Mehul Mohanka, page 3 of the filed PDF · View the filing
Tega consumables EBITDA margin: 24.1% (Q1 FY27)
p. 4
“EBITDA margins expanded to 24.1% compared with 20.9% in the prior year, representing a significant improvement of 320 basis points.”
Mehul Mohanka, page 4 of the filed PDF · View the filing
Equipment business revenue: INR358 million (Q1 FY27)
p. 4
“The equipment business experienced a softer quarter with revenue of INR358 million compared to INR643 million in the prior year.”
Mehul Mohanka, page 4 of the filed PDF · View the filing
Molycop revenue: INR12.9 billion (Q1 FY27 (one month))
p. 4
“Molycop contributed INR12.9 billion in revenue during the quarter and generated EBITDA before one-time expenses of INR1.6 billion representing an EBITDA margin of approximately 13%.”
Mehul Mohanka, page 4 of the filed PDF · View the filing
Molycop one-time acquisition and integration costs: INR1.95 billion (Q1 FY27)
p. 4
“We incurred INR1.95 billion of one time acquisition and integration related costs during the period.”
Mehul Mohanka, page 4 of the filed PDF · View the filing
Goodwill from Molycop acquisition: approximately INR50 billion
p. 6
“the Group has recorded the assets and liabilities acquired through this business acquisition currently determined on a provisional basis resulting into recognition of goodwill amounting to approximately INR50 billion”
Ravi Joshi, page 6 of the filed PDF · View the filing
Molycop net debt: INR63.66 billion / USD672.5 million (as of June 30, 2026)
p. 7
“Total net debt declined by roughly INR32.18 billion or USD340 million during the quarter ending at INR63.66 billion or USD672.5 million as of June 30”
Patrick Koley, page 7 of the filed PDF · View the filing
Group total debt: INR112 billion
p. 9
“So total debt at the group level is INR112 billion which includes redeemable preference shares of around INR26 billion.”
Ravi Joshi, page 9 of the filed PDF · View the filing
Molycop 12-month EBITDA: USD191 million (12 months ended June 2026)
p. 10
“the EBITDA on a 12-month period was up 11% year over year to ended up at USD191 million and that's up from USD172 million dollars from the prior year”
Patrick Koley, page 10 of the filed PDF · View the filing
Molycop 12-month volume: 1.204 million tons (12 months ended June 2026)
p. 10
“the volume for 12 months ending in June 2026 was 1.204 million tons and for June 2025, it was 1.223 million tons”
Patrick Koley, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Molycop integration synergies — approximately USD20 million · next two to two and a half years
stated as an aspiration by Mehul Mohanka
p. 5
“We expect to realize approximately USD20 million of synergies in the next two to two and a half years.”
Mehul Mohanka, page 5 of the filed PDF · View the filing
Cross-sell revenue ramp up — Q3 to Q4 of FY27
stated conditionally by Mehul Mohanka
p. 8
“we expect the revenue ramp up to actually happen from Q3 to Q4 onwards of this fiscal year”
Mehul Mohanka, page 8 of the filed PDF · View the filing
Chile plant commissioning — soft commissioning January 2027, commercial production March · January-March 2027
stated conditionally by Mehul Mohanka
p. 8
“We're looking at a soft commissioning around January 2027 with commercial production starting March.”
Mehul Mohanka, page 8 of the filed PDF · View the filing
Molycop capex — USD28 million · 10-month period FY27
stated firmly by Patrick Koley
p. 9
“So USD28 million would probably be a good estimate right now.”
Patrick Koley, page 9 of the filed PDF · View the filing
Molycop normalized capex — low to mid-30's USD million · next two years
stated as an aspiration by Patrick Koley
p. 10
“the plan for the next two years as I suggested earlier would be somewhere in the low to mid-30’s depending upon some opportunities we have for some expansion”
Patrick Koley, page 10 of the filed PDF · View the filing
Molycop volume and EBITDA growth — volume approximately 5%, EBITDA approximately 4% · 10-month comparable basis
stated conditionally by Patrick Koley
p. 10
“our volume will probably grow approximately 5% and our EBITDA will grow around 4% on a 10-month comparable basis”
Patrick Koley, page 10 of the filed PDF · View the filing
Tega finance cost — 110 crores to 120 crores · full year FY27
stated firmly by Ravi Joshi
p. 11
“finance cost will be around 110 crores to 120 crores for the full year basis”
Ravi Joshi, page 11 of the filed PDF · View the filing
Tega capex — USD40 million approximately · FY27
stated firmly by Ravi Joshi
p. 11
“Tega will be, excluding Molycop, will be USD40 million approximately, including Chile.”
Ravi Joshi, page 11 of the filed PDF · View the filing
Consumables revenue growth — 15% CAGR · long-term
stated firmly by Mehul Mohanka
p. 12
“we're maintaining our guidance of about 15% CAGR on the consumables”
Mehul Mohanka, page 12 of the filed PDF · View the filing
Consolidated EBITDA margin — 15% · full year FY27
stated conditionally by Mehul Mohanka
p. 14
“we expect it to be in that range of 15% on a consolidated basis”
Mehul Mohanka, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it is early days and expects ramp-up from Q3-Q4 FY27, asking for patience.
Answered by Mehul Mohanka
Asked by Ankur Periwal: What is the timeline for revenue ramp-up from cross-selling between Tega and Molycop?
p. 8
“we expect the revenue ramp up to actually happen from Q3 to Q4 onwards of this fiscal year. It's still very early days.”
Mehul Mohanka, page 8 of the filed PDF · View the filing
Patrick Koley explained Molycop margins should remain relatively flat and the company focuses on per-ton profitability rather than percentage margins due to steel-indexed contracts.
Answered by Patrick Koley
Asked by Ankur Periwal: Is Molycop's margin a steady state number given RM inflation and volatility?
p. 8
“So, the margin should be relatively flat in the upcoming quarters.”
Patrick Koley, page 8 of the filed PDF · View the filing
Management confirmed the Chile plant is on track for soft commissioning in January 2027 and commercial production in March, subject to regulatory approvals.
Answered by Mehul Mohanka
Asked by Ankur Periwal: Update on the Chile plant commissioning timeline.
p. 8
“Yes, the Chile plant is on track. We're looking at a soft commissioning around January 2027 with commercial production starting March.”
Mehul Mohanka, page 8 of the filed PDF · View the filing
Management gave the group total debt figure and the Molycop net debt figure separately.
Answered by Ravi Joshi
Asked by Vikas Gupta: What is the total debt at Tega and Molycop levels?
p. 9
“So total debt at the group level is INR112 billion which includes redeemable preference shares of around INR26 billion.”
Ravi Joshi, page 9 of the filed PDF · View the filing
Lance Dawber said Molycop has competed with China for decades and maintained a leading position due to local manufacturing footprint and service.
Answered by Lance Dawber
Asked by Varun Jain: What is Molycop's Latin America volume share and how is Chinese competition affecting the business?
p. 11
“We've been competing against all competitors including China for decades and we've consistently maintained our leading position across our across our core markets.”
Lance Dawber, page 11 of the filed PDF · View the filing
Lance Dawber said Molycop holds above 50% market share in core regions and outlined that South America has the largest volumes given copper production.
Answered by Lance Dawber
Asked by Chirag: What is Molycop's market share and regional sales mix for grinding media?
p. 11
“we're above 50% market share in our core regions”
Lance Dawber, page 11 of the filed PDF · View the filing
Mehul Mohanka said the company successfully passes through commodity cost increases with about a one quarter lag, keeping gross margins around 62%.
Answered by Mehul Mohanka
Asked by Chirag: Is the 20-23% EBITDA margin for consumables sustainable given cost inflation?
p. 12
“in our business we are able to successfully pass through those quite well. There's about a one quarter lag before we can do that, but we have been able to pass through”
Mehul Mohanka, page 12 of the filed PDF · View the filing
Mehul Mohanka said Tega has seen container prices rise but passes these through contractually with about a quarter lag; Lance Dawber said Molycop has hedged ocean freight and passed through land freight costs.
Answered by Mehul Mohanka
Asked by Rushabh Doshi: Are freight cost inflations affecting Tega and Molycop this year?
p. 12
“we have seen container prices go up in different geographies that we ship to, but we have that in our contracts with customers that we are able to pass through those freight increases”
Mehul Mohanka, page 12 of the filed PDF · View the filing
Mehul Mohanka confirmed the company is evaluating non-productive land parcels for divestment with proceeds to be used for debt paydown.
Answered by Mehul Mohanka
Asked by Rushabh Doshi: Are there plans to divest non-core assets to reduce debt?
p. 13
“we're in the process of, you know, identifying those non-core assets. There are couple of non-productive land parcels that we are currently evaluating opportunities”
Mehul Mohanka, page 13 of the filed PDF · View the filing
Patrick Koley explained Molycop is largely USD denominated except Spain and Australia operations, and the company hedges FX exposures actively.
Answered by Patrick Koley
Asked by Rushabh Doshi: What currency risks does the combined entity face?
p. 13
“we are USD denominated entities, other than our operations in Spain and also in Australia. And we have a very formal and active risk program that we will hedge our FX exposure on a regular basis.”
Patrick Koley, page 13 of the filed PDF · View the filing
Ravi Joshi clarified there was no seasonality but a pull-forward of Q4 orders into Q1, and reaffirmed the long-term 15% guidance as sustainable.
Answered by Ravi Joshi
Asked by Nishita: Is the 15% consumables growth guidance conservative given 36% growth in Q1?
p. 14
“Part of the Q4 orders got serviced in the Q1, so that's why it's not a comparable number, so to say. But the long-term guidance remains at 15% for the consumable business.”
Ravi Joshi, page 14 of the filed PDF · View the filing
Risks flagged
Delays in customer clearances impacted the equipment business
p. 4
“The revenue shortfall was primarily attributable to delays in customer clearances while profitability was impacted by operating leverage arising from lower volumes.”
Mehul Mohanka, page 4 of the filed PDF · View the filing
Raw material price volatility and global macroeconomic uncertainties
p. 5
“the group maintained healthy gross margins of approximately 62% compared with 59% in the corresponding period last year, despite raw material price volatility, global macroeconomic uncertainties”
Ravi Joshi, page 5 of the filed PDF · View the filing
Shipping and logistics challenges including container availability and freight costs
p. 12
“that does, you know, contribute in terms of logistic challenges in terms of container availability, frequency of mother vessels coming to port”
Mehul Mohanka, page 12 of the filed PDF · View the filing
Rising freight rates affecting both Tega and Molycop
p. 12
“freight costs have gone up and, and we do pass that through”
Mehul Mohanka, page 12 of the filed PDF · View the filing
Uncertainty around timing of Chile plant regulatory approvals
p. 8
“Of course this is subject to receiving certain regulatory approvals locally.”
Mehul Mohanka, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.