Tega Industries: How Union Budget 2026 Fuels Growth in Mining and Infrastructure Equipment

Union Budget 2026 has laid out a comprehensive roadmap for India's transition into a global manufacturing hub, with a specific focus on the capital goods and mining sectors. For Tega Industries Ltd, a global leader in specialized critical-to-operate consumables for mineral beneficiation and mining, the budget announcements provide several strategic tailwinds. The government’s commitment to infrastructure, critical minerals, and domestic manufacturing of high-value equipment aligns closely with Tega's recent expansions and its acquisition-led growth strategy.

Strategic Alignment with National Infrastructure Goals

The Finance Minister’s proposal to increase public capital expenditure to ₹12.2 lakh crore for FY 2026-27 marks a significant milestone for the capital goods sector. This 8.9% increase from the previous year’s allocation of ₹11.2 lakh crore is intended to sustain the momentum of structural reforms. For Tega Industries, which operates in the industrial equipment space, this massive outlay translates into increased demand for mineral processing and material handling solutions as large-scale infrastructure projects move into the execution phase.

The ₹12.2 Lakh Crore Capex Catalyst

The sustained focus on infrastructure development in Tier 2 and Tier 3 cities, which are now being recognized as growth centers, will require extensive earthmoving and construction activity. Tega’s equipment business, bolstered by the acquisition of McNally Sayaji Engineering, is well-positioned to cater to this demand. The budget's emphasis on developing city economic regions (CERs) with an allocation of ₹5,000 crore per region further underscores the need for robust industrial machinery and recurring consumables that Tega manufactures.

Incentivizing Domestic Manufacturing of Construction Equipment

A pivotal announcement in Budget 2026 is the introduction of a scheme for the enhancement of construction and infrastructure equipment (CIE). This scheme aims to strengthen the domestic manufacturing of high-value and technologically advanced CIE, ranging from tunnel boring equipment to high-precision components. As Tega Industries continues to integrate its manufacturing hubs across India, Chile, and Australia, these incentives could provide the necessary fiscal support to scale up its high-tech tool rooms and automated service bureaus.

Critical Minerals: A New Frontier for Mineral Beneficiation

The budget has proposed a basic customs duty (BCD) exemption on the import of capital goods required for the processing of critical minerals in India. This is a direct benefit for Tega’s core business. The company specializes in wear-resistant lining components used in the grinding and screening of minerals. By reducing the cost of processing equipment, the government is encouraging the domestic mineral beneficiation industry, which in turn increases the addressable market for Tega’s recurring consumable products.

Logistics Revolution: Freight Corridors and Waterways

The operationalization of 20 new national waterways and the establishment of new dedicated freight corridors (connecting Surat to Dankuni) will significantly reduce logistics costs for heavy engineering firms. Specifically, National Waterway 5 in Odisha will connect mineral-rich areas like Talcher to industrial centers like Kalinga Nagar. For a company like Tega, which moves large volumes of industrial equipment and consumables globally, improved domestic logistics will enhance operational efficiency and margin profiles.

Impact on the Equipment Business Segment

Tega’s equipment business has already shown a robust growth trend, with Q1 FY26 revenues jumping 78% year-on-year. The Budget 2026 proposals for high-tech tool rooms and the CIE scheme are expected to further accelerate this segment. Management has previously guided for a 25% CAGR in the equipment business, and the new policy framework provides a conducive environment to meet or exceed these targets.

Financial Resilience and Strategic Acquisitions

Tega Industries recently reported a dramatic surge in profitability, with Q2 FY26 net profit reaching ₹449.39 crore. The company’s strategic acquisition of Molycop, valued at $1.48 billion, and its successful ₹2,000 crore fundraising round indicate a strong balance sheet ready to capitalize on budget-led opportunities. The budget's focus on attracting stable long-term investment and simplifying foreign exchange rules will likely support Tega’s global expansion and the integration of its international subsidiaries.

MSME and Supply Chain Synergies

While Tega is a large-cap player in its niche, the budget’s focus on MSMEs through the SME Growth Fund and TREADS platform will strengthen Tega’s domestic supply chain. By ensuring liquidity for smaller vendors and providing equity support to future champions, the budget helps stabilize the ecosystem of component manufacturers that Tega relies on for its specialized products.

Market Sentiment and Investor Outlook

Following the budget, market sentiment for capital goods stocks like Tega Industries remains positive. The company’s high-growth trend, combined with a promoter holding of 67.27%, provides a sense of stability. Analysts have noted that the company’s focus on sustainable growth and its target EBITDA margin of 21-22% are well-supported by the fiscal measures aimed at reducing raw material volatility and improving industrial productivity.

Conclusion: A Multi-Year Growth Runway

Union Budget 2026 acts as a force multiplier for Tega Industries by addressing both the demand side (through infrastructure capex) and the supply side (through manufacturing incentives and duty exemptions). As India moves toward the Viksit Bharat 2047 vision, Tega’s role in the global mining and mineral processing value chain is set to expand. Investors should monitor the implementation timelines of the CIE scheme and the progress of the new freight corridors, as these will be the primary drivers of Tega’s operational performance in the coming fiscal years.