Tega assets reach Rs 22,706.6 crore after acquisition

Tega Industries Limited reported total assets of Rs 22,706.6 crore in Sep-26, compared with Rs 4,314.5 crore in Mar-26, while non-current borrowings rose to Rs 11,034.6 crore from Rs 127.6 crore. Tega’s expanded balance sheet included Rs 5,132.9 crore of goodwill and Rs 3,479.6 crore of intangible assets.

How much did Tega’s balance sheet expand by Sep-26?

Tega’s total assets increased by Rs 18,392.1 crore to Rs 22,706.6 crore in Sep-26 from Rs 4,314.5 crore in Mar-26. The Sep-26 asset base was more than five times the Mar-26 balance, with increases in both non-current and current assets.

Non-current assets rose to Rs 12,914.1 crore from Rs 913.6 crore, while current assets increased to Rs 9,792.5 crore from Rs 3,400.9 crore. The larger increase was in non-current assets, which grew by Rs 12,000.5 crore, compared with a Rs 6,391.6 crore increase in current assets.

Total equity did not rise alongside the asset base, declining to Rs 3,387.8 crore from Rs 3,407.2 crore. Equity attributable to shareholders of the parent was Rs 3,202.4 crore in Sep-26, down from Rs 3,407.2 crore, while non-controlling interest of Rs 185.3 crore was reported in Sep-26 and was absent in Mar-26.

Which assets drove Tega’s non-current asset increase?

Goodwill and intangible assets were the largest additions to Tega’s non-current assets, reaching Rs 5,132.9 crore and Rs 3,479.6 crore, respectively, in Sep-26. In Mar-26, goodwill was Rs 73.8 crore and intangible assets were Rs 5.2 crore, meaning the two categories increased by a combined Rs 8,533.5 crore.

Property, plant and equipment increased to Rs 3,345.4 crore from Rs 381.8 crore, and capital work-in-progress increased to Rs 362.5 crore from Rs 107.2 crore. Right-of-use assets, representing recognised rights to use leased assets, rose to Rs 318.5 crore from Rs 196.3 crore.

The presentation identifies amortisation of the fair value of inventory under purchase-price allocation on an acquisition as an exceptional item. Management states that this inventory fair-value amortisation has no cash-flow impact, although the balance-sheet pages do not allocate goodwill, intangible assets or inventory to individual acquired businesses.

How did Tega’s working capital and cash position change?

Tega’s inventory increased to Rs 5,543.2 crore in Sep-26 from Rs 436.9 crore in Mar-26, while trade receivables rose to Rs 2,558.9 crore from Rs 451.9 crore. These two operating working-capital categories therefore increased by Rs 7,213.3 crore.

Other current assets rose to Rs 430.8 crore from Rs 95 crore, while income-tax assets increased to Rs 172.8 crore from Rs 2.7 crore. Investments declined to Rs 113.1 crore from Rs 198.7 crore over the same comparison.

Cash and cash equivalents declined to Rs 716 crore in Sep-26 from Rs 1,163.9 crore in Mar-26, and other bank balances fell to Rs 202 crore from Rs 958.6 crore. The cash-flow statement recorded a Rs 488.4 crore net decrease in cash and cash equivalents during the period to 30 September, after an exchange gain effect of Rs 40.5 crore.

Net cash from operating activities was Rs 712.6 crore, compared with Rs 350.3 crore in the Mar-26 column of the cash-flow statement. Investing activities used Rs 4,970.8 crore, while financing activities provided Rs 3,769.8 crore, resulting in the lower closing cash balance.

How did Tega fund the larger asset base?

Tega primarily funded the larger asset base through non-current borrowings, which rose by Rs 10,907 crore to Rs 11,034.6 crore in Sep-26 from Rs 127.6 crore in Mar-26. Current borrowings also increased to Rs 457.7 crore from Rs 190.1 crore.

Total non-current liabilities reached Rs 12,928.5 crore, compared with Rs 186.1 crore in Mar-26. Besides borrowings, the Sep-26 balance included Rs 761.6 crore of other financial liabilities, Rs 776.8 crore of deferred-tax liabilities, Rs 220.6 crore of provisions and Rs 134.9 crore of lease liabilities.

Current liabilities rose to Rs 6,390.3 crore from Rs 721.3 crore, led by trade payables of Rs 4,778.4 crore versus Rs 333.5 crore. Other current financial liabilities increased to Rs 471.7 crore from Rs 30.7 crore, alongside the reported increases in inventory and receivables.

What do Tega’s results show about finance costs?

Tega reported finance cost of Rs 408.6 crore in H1 FY27, compared with Rs 12 crore in H1 FY26. In Q2 FY27, finance cost was Rs 291.9 crore, compared with Rs 5.8 crore in Q2 FY26, alongside the higher borrowing balances shown in Sep-26.

At group level, adjusted profit after tax was Rs 45.2 crore in H1 FY27, compared with Rs 80.3 crore in H1 FY26, while adjusted earnings per share were Rs 6.11 versus Rs 12.06. Reported H1 FY27 profit after tax was a loss of Rs 167 crore, compared with a profit of Rs 80.3 crore in H1 FY26.

The grinding-media business recorded H1 FY27 revenue from operations of Rs 5,063.2 crore, compared with Rs 914.3 crore for Tega. Its H1 FY27 adjusted profit after tax was a loss of Rs 15 crore, while Tega reported adjusted profit after tax of Rs 60.2 crore.

Management states that adjusted earnings before interest, tax, depreciation and amortisation, or EBITDA, and adjusted profit after tax exclude one-time acquisition costs, the exceptional inventory fair-value amortisation and the related tax impact. The presentation also states that Tega’s Q2 FY27 adjusted profit after tax of Rs 15.8 crore, excluding Molycorp, included Rs 29.8 crore of finance cost on a term loan.

Conclusion

Tega’s Sep-26 balance sheet shows a substantial increase in scale, with total assets of Rs 22,706.6 crore, non-current borrowings of Rs 11,034.6 crore and combined goodwill and intangible assets of Rs 8,612.5 crore. Inventory, receivables, trade payables and finance costs also increased, while total equity was slightly below its Mar-26 level.

The next reported periods will show how Tega’s enlarged asset base translates into operating cash flow, working-capital movements and earnings after finance costs. Management’s adjusted-profit disclosures exclude acquisition-related costs, inventory fair-value amortisation and related tax effects, leaving the continuing difference between reported and adjusted results as a disclosed matter to watch.