Tega Industries FY26: Steady growth and the Molycop milestone

Tega Industries ended FY26 with modest top-line growth and a notable jump in adjusted profitability, while also closing a transformative acquisition that reshapes the scale of its mining consumables platform.

For Q4 FY26, total income was INR 563.3 crore, up 4 percent year on year. Adjusted EBITDA was INR 163.2 crore, also up 4 percent, and adjusted PAT rose 7 percent to INR 109.2 crore. For the full year, total income reached INR 1,773.6 crore, up 5 percent. Adjusted EBITDA was INR 396.7 crore, up 4 percent, and adjusted PAT increased 13 percent to INR 226.6 crore.

The company also clarified that the adjusted numbers exclude one-time expenses of about INR 83.9 crore in FY26 and INR 66.5 crore in Q4, linked to labour code impact and professional and consultancy charges for the Molycop acquisition. This matters because the statutory P and L shows a much weaker picture. EBITDA including other income fell 18 percent in FY26, and PAT fell 29 percent. The gap between reported and adjusted performance is therefore significant in the year of the acquisition.

A year of stable revenue, but margins were under pressure

On the revenue line, operations were steady. Revenue from operations in Q4 FY26 was INR 526.8 crore versus INR 536.1 crore in Q4 FY25, while other income increased sharply to INR 36.5 crore from INR 6.7 crore. That lifted total income to INR 563.3 crore.

Gross profit stayed resilient. In Q4 FY26, gross profit was INR 317.0 crore, up 2 percent year on year, with a gross margin of 60 percent. For FY26, gross profit was INR 1,006.9 crore, up 7 percent, again with a gross margin of 60 percent.

However, operating cost lines moved meaningfully. Employee expenses for FY26 increased to INR 279.9 crore from INR 249.2 crore. Other expenses rose to INR 495.8 crore from INR 351.2 crore. In Q4, other expenses jumped to INR 185.4 crore from INR 97.3 crore. This is consistent with the company’s disclosure that the year included acquisition-related and labour code related one-time costs, which are excluded from adjusted profitability.

The adjusted EBITDA margin for FY26 was 22 percent, down from 23 percent in FY25. In Q4 it held at 29 percent. The quarterly margin stability, alongside a softer full-year margin, points to cost pressures through the year and the impact of exceptional items.

Financial summary

Note: Adjusted EBITDA and adjusted PAT exclude one-time expenses of INR 83.9 crore in FY26 and INR 66.5 crore in Q4 related to labour code impact and Molycop acquisition related professional and consultancy charges.

Order book visibility and cash flow stood out

The company disclosed an order book of INR 1,206.0 crore as of March 31, 2026, with INR 906.0 crore executable within one year. This gives investors a clearer sense of near-term revenue coverage, especially in an environment where quarterly growth is steady rather than rapid.

Cash generation improved sharply. Net cash from operating activities in FY26 was INR 350.3 crore versus INR 195.0 crore in FY25. The cash flow statement shows operating profit before working capital changes at INR 260.5 crore, followed by a positive working capital movement of INR 192.4 crore, leading to cash generated from operations of INR 452.9 crore. Direct taxes paid were higher at INR 102.5 crore.

The investing cash flow was a large outflow of INR 1,004.4 crore in FY26, far higher than the prior year. Financing cash flow was a large inflow of INR 1,689.9 crore, which aligns with the financing and acquisition activity during the year.

At year-end, cash and cash equivalents stood at INR 1,163.9 crore versus INR 114.3 crore a year ago. The scale of this change is also visible on the balance sheet, where cash and cash equivalents are INR 1,163.9 crore and other bank balances are INR 958.6 crore as of March 2026.

Balance sheet expansion in FY26

The consolidated balance sheet expanded substantially. Total assets increased to INR 4,314.5 crore from INR 2,095.2 crore. Current assets rose sharply to INR 3,400.9 crore from INR 1,352.7 crore, driven by higher cash and bank balances.

Non-current assets increased to INR 913.6 crore from INR 742.5 crore. Within this, goodwill rose to INR 73.8 crore from INR 61.1 crore, and capital work-in-progress rose to INR 107.2 crore from INR 45.7 crore.

Equity attributable to equity holders increased to INR 3,407.2 crore from INR 1,396.7 crore. Borrowings rose moderately, with non-current borrowings at INR 127.6 crore and current borrowings at INR 190.1 crore.

The balance sheet movements, together with the cash flow profile, suggest FY26 was a transition year where financing and investing flows were unusually large due to the acquisition and associated structures.

The Molycop acquisition: a strategic shift in scale and product breadth

On June 1, 2026, Tega announced that it completed the acquisition of Molycop in consortium with funds managed by affiliates of Apollo at an enterprise value of approximately USD 1.5 billion.

The press release positioned the combined company as one of the world’s leading designers and manufacturers of critical-to-operate consumables for certain production steps in mining, mineral processing, and material handling. The strategic logic presented is simple: combine complementary product baskets across the milling value chain.

Molycop is described as a leading global supplier of grinding media and chemicals for use in SAG and ball mills, serving 400 plus mines across 40 countries, with a history going back to 1918. Tega’s established presence in regions such as Europe, the Middle East, the Commonwealth of Independent States, Latin America and Africa is expected to be bolstered by Molycop’s operations across the US, Canada, Latin America and Australia.

Tega also disclosed that it will focus on operational and business integration over the first eight quarters after closing. The integration focus is important because the acquisition adds manufacturing scale. Molycop brings 13 manufacturing facilities, 3 active joint ventures and 1 potential joint venture. Tega stated that the combined presence will be 26 global manufacturing sites.

In the regulatory filing detailing the transaction mechanics, Tega disclosed that it holds about 84.2 percent of the ordinary shares of the acquisition holding structure, while Apollo holds about 15.8 percent. Apollo also invested USD 270 million in redeemable preference shares in one of the acquisition entities.

The filing also provides acquisition consideration details. The acquisition was undertaken based on an enterprise valuation of about USD 1.5 billion, using a locked box approach based on Molycop’s audited balance sheet as of June 30, 2025. The purchase price payable at closing was determined as USD 393 million, with USD 18 million placed in escrow. The sellers are also entitled to a contingent payment of up to USD 120 million, payable within up to 45 months if Molycop meets specified performance metrics, with internal accruals of Molycop potentially used for such payment.

What investors should track from here

FY26 shows a company that held steady on revenue growth and improved adjusted earnings, while absorbing large one-time costs tied to labour code impacts and acquisition execution.

Two operating indicators stand out. First is the order book, which provides a near-term line of sight into execution. Second is cash, where operating cash flows improved materially and year-end cash and bank balances increased sharply.

The bigger question now shifts to execution quality on integration. Management stated that the first eight quarters will focus on operational and business integration, and the core strategic promise is cross-selling and a more comprehensive mill optimisation solution across complementary product baskets.

The acquisition is clearly designed to change the company’s global scale and product breadth. The next phase is about delivery: integrating supply chains, manufacturing footprint, customer relationships, and product portfolios while keeping margins stable and managing contingent obligations embedded in the transaction structure.