Tega Industries FY26 revenue up 5%, EBITDA margin 22%

Why Tega Industries’ FY26 numbers matter

Tega Industries Limited reported its earnings for the fourth quarter and the full financial year ended March 31, 2026, showing steady top-line growth but pressure on profitability. Consolidated revenue for FY26 increased 5% year-on-year to ₹1,773.6 crore. The company also reported EBITDA before exceptional items of ₹396.7 crore, translating into a 22% EBITDA margin for the full year.

The earnings also highlighted the cost impact of the ongoing Molycop-related acquisition process and charges linked to new labour code regulations. Management commentary pointed to healthy gross margins and continued momentum in the equipment business, alongside a sizeable order book that offers near-term revenue visibility.

FY26 revenue growth and full-year operating profitability

For FY26, Tega Industries reported consolidated revenue of ₹1,773.6 crore, up 5% from FY25. The company said its gross margins remained healthy at around 60% of revenue from operations during FY26, attributing the performance to operating discipline and product mix.

On operating profitability, EBITDA before exceptional items was reported at ₹396.7 crore, with an EBITDA margin of 22% for the full year. Management also referred to adjusted EBITDA for FY26 at the same level, excluding one-time items related to the Molycop acquisition and the labour code impact.

The company also shared a comparison point for the prior year, stating FY25 EBITDA was ₹382.9 crore with a 23% margin. This indicates that while absolute EBITDA improved, the margin was slightly lower in FY26.

Q4 FY26 snapshot: revenue higher, profit lower

For the fourth quarter ended March 31, 2026, the company reported sales of ₹526.8 crore compared with ₹536.1 crore a year ago. Quarterly revenue was reported at ₹563.3 crore compared with ₹542.8 crore in the same quarter last year.

Net income for the quarter fell to ₹42.7 crore from ₹101.9 crore a year earlier. Basic earnings per share from continuing operations was ₹5.68 compared with ₹15.32 in the prior-year quarter. The same figures were reported for diluted EPS.

Full-year profit and EPS: sharp decline year-on-year

For the full year, net income was reported at ₹142.7 crore compared with ₹200.1 crore in FY25. Basic earnings per share from continuing operations declined to ₹20.54 from ₹30.08, with diluted EPS also reported at ₹20.54 versus ₹30.08.

Separately, the company’s consolidated revenue for the year was also reported as ₹1,691.9 crore compared with ₹1,638.7 crore in FY25, described as a 3.25% increase. Consolidated profit for the year was reported as ₹142.7 crore compared with ₹200.7 crore in FY25, described as a 28.93% decline.

The company attributed the profit decline to substantial expenses incurred for the ongoing acquisition of the Molycop Group and higher employee benefit obligations linked to new labour codes.

Exceptional items: acquisition costs and labour code impact

Management disclosed exceptional items comprising Molycop-related acquisition costs of ₹77.5 crore and ₹6.4 crore towards labour code impact. These one-time charges were cited as a reason behind margin pressure.

In the nine-month commentary shared during the period, management said EBITDA margins were impacted by one-time acquisition-related expenses and new labour code regulations, and that excluding these items, margins would be above the 20% threshold at the consolidated level.

Segment mix: consumables still dominant, equipment gaining share

For the period ending March 2026, management said the consumable business segment and the equipment business segment contributed 84% and 16% of the group’s revenue from operations, respectively.

The equipment business remained a key growth driver in the reported period. For FY26, the equipment business closed the year with revenue of ₹268.8 crore, a 25% year-on-year increase. For the nine months ended FY26, equipment revenue was also cited at ₹182.6 crore, up 34% year-on-year.

The company also indicated expectations for consumables business growth of around 8% for FY26 and equipment business growth of 28-30% for the year, as stated in management commentary.

Order book visibility: executable pipeline within 12 months

Tega Industries said that as of December 31, its order book stood at approximately ₹1,206.0 crore, with ₹906.0 crore executable within the next 12 months. Management described this as providing visibility and confidence in the near-term growth trajectory.

Alongside the order book, the company said it is making focused efforts to accelerate growth in Q1 FY27 supported by a healthy order pipeline and operational improvements.

Molycop acquisition process and Chile capex update

Management commentary noted that the Molycop transaction is progressing. Anti-trust filings were completed in 12 jurisdictions and an FDI filing was made in Spain, with approvals expected in the coming months.

The company also stated that the Chile capex project is on track for commercial production in Q2 FY27. These updates are relevant because they relate to both near-term costs and medium-term operational capacity.

Market reaction and what investors tracked during FY26 updates

One report on the Q3 FY26 earnings noted that the stock declined 1.77% post-earnings, closing at ₹1,794.65, as markets reacted to the update and future guidance mentioned in the commentary.

Operationally, management reiterated that gross margins were around 60% and pointed to equipment momentum and the order book as positives, while acknowledging broader macroeconomic uncertainties. The company also referenced a diversified portfolio and strong balance sheet in its commentary.

Key financial and operating datapoints (₹ crore)

Conclusion

Tega Industries ended FY26 with 5% consolidated revenue growth to ₹1,773.6 crore and a 22% EBITDA margin before exceptional items, while net profit and EPS declined year-on-year. The company linked the profitability pressure to Molycop acquisition costs and labour code-related charges, even as gross margins stayed around 60% and equipment revenue grew 25%.

Management has indicated that Q1 FY27 growth efforts will be supported by operational improvements and an order book of about ₹1,206.0 crore, with ₹906.0 crore executable within 12 months. Upcoming milestones include regulatory approvals related to the Molycop transaction and the Chile project’s targeted commercial production in Q2 FY27.