Tega's Molycop lifts H1 income, but adjusted PAT is Rs 45.2 crore

Tega Industries Limited reported H1 FY27 total income of Rs 603.56 crore after its Molycop grinding-media business contributed Rs 507.97 crore for four months, while group adjusted profit after tax was Rs 45.2 crore, versus Rs 80.3 crore in H1 FY26.

How did Molycop affect Tega's H1 FY27 revenue?

Molycop transformed Tega's reported H1 FY27 scale by contributing Rs 507.97 crore of total income during the four months from 1 June to 30 September 2026. Tega excluding Molycop generated total income of Rs 95.59 crore, up 21% from Rs 79.27 crore in H1 FY26, taking consolidated total income to Rs 603.56 crore.

The revenue mix changed because grinding media contributed Rs 506.32 crore of the group's Rs 597.75 crore revenue from operations. Tega excluding Molycop contributed Rs 91.43 crore of operating revenue and Rs 4.17 crore of other income, while grinding media recorded Rs 1.64 crore of other income in H1 FY27.

Molycop recorded grinding-media volume of 415.6 kilotonnes in the four-month period. Its gross profit margin was 37%, compared with 60% for Tega excluding Molycop, resulting in a consolidated gross profit margin of 40%, against 59% for Tega in H1 FY26.

Is Tega excluding Molycop still growing?

Tega excluding Molycop continued to grow in H1 FY27, with total income up 21% year on year to Rs 95.59 crore and adjusted earnings before interest, tax, depreciation and amortisation, or EBITDA, up 25% to Rs 19.49 crore. The presentation says consumables revenue rose 30% and consumables EBITDA increased 42% in absolute terms.

Consumables EBITDA margin increased to 22.4% from 20.5% a year earlier. Tega described H1 FY27 and Q2 FY27 as the business's highest revenue periods for consumables, although it did not disclose the segment's absolute revenue in the presentation.

Equipment moved in the opposite direction in H1 FY27, with revenue down Rs 3.78 crore year on year and EBITDA down Rs 1.82 crore. The presentation says Tega secured an equipment order worth Rs 12.6 crore, with execution expected over 14 months.

Tega's order book excluding grinding media stood at Rs 139.76 crore at 30 September 2026, up 21% from the same period a year earlier. Of that amount, Rs 115.76 crore was executable within one year, identifying the disclosed near-term order base outside the grinding-media business.

Why did Tega's profit not match its income growth?

Tega's consolidated adjusted PAT was Rs 4.52 crore in H1 FY27, compared with Rs 80.3 crore in H1 FY26, because the grinding-media business recorded an adjusted loss of Rs 1.5 crore despite contributing Rs 67.72 crore of adjusted EBITDA. Tega excluding Molycop reported adjusted PAT of Rs 6.02 crore, down 25% from Rs 8.03 crore a year earlier.

Finance cost rose to Rs 40.86 crore for the consolidated group in H1 FY27 from Rs 1.2 crore in H1 FY26. Tega excluding Molycop incurred Rs 5.82 crore of finance cost, including Rs 4.2 crore on a term loan, while the grinding-media business accounted for Rs 35.04 crore.

The consolidated adjusted EBITDA margin was 14% in H1 FY27, below the 20% reported for Tega in H1 FY26, while adjusted PAT margin was 1%, versus 10%. Depreciation rose to Rs 24.22 crore from Rs 4.59 crore, and tax rose to Rs 12.35 crore from Rs 2.17 crore over the same comparison.

Reported PAT was a loss of Rs 16.7 crore in H1 FY27, compared with a Rs 80.3 crore profit in H1 FY26. The adjusted measures exclude Rs 257.6 crore of one-time acquisition cost, a Rs 11.7 crore exceptional item and related tax effects; the exceptional item was non-cash amortisation of inventory fair value under purchase-price allocation.

What did Tega's Q2 FY27 results show?

Tega reported Q2 FY27 consolidated total income of Rs 429.47 crore, including Rs 379.63 crore from grinding media and Rs 49.85 crore from Tega excluding Molycop. The latter increased 18% from Rs 42.11 crore in Q2 FY26, while its adjusted EBITDA rose 10% to Rs 9.37 crore from Rs 8.49 crore.

Consolidated Q2 adjusted EBITDA was Rs 60.81 crore, including Rs 51.44 crore from grinding media. However, the group reported an adjusted PAT loss of Rs 0.95 crore, compared with adjusted PAT of Rs 4.49 crore in Q2 FY26, as grinding media recorded an adjusted loss of Rs 2.53 crore.

Q2 finance cost was Rs 29.19 crore for the group, comprising Rs 25.3 crore for grinding media and Rs 3.89 crore for Tega excluding Molycop. The group adjusted EBITDA margin was 14%, compared with 20% for Tega in Q2 FY26, while adjusted PAT margin was negative 0%, compared with 11% a year earlier.

The adjusted Q2 presentation excluded Rs 66.6 crore of acquisition cost, including Rs 65 crore relating to grinding media, and the Rs 11.7 crore exceptional item. On a reported basis, Q2 PAT was a loss of Rs 5.88 crore, while reported earnings per share were negative Rs 6.32, compared with PAT of Rs 4.49 crore and earnings per share of Rs 6.75 in Q2 FY26.

Conclusion

Tega's H1 FY27 results show that Molycop substantially increased reported scale, contributing Rs 507.97 crore of income in four months and helping lift consolidated adjusted EBITDA to Rs 87.2 crore. The same consolidation produced a lower 14% group adjusted EBITDA margin, an adjusted grinding-media loss of Rs 1.5 crore and consolidated adjusted PAT of Rs 4.52 crore.

The next disclosed operating items to watch are execution of the Rs 12.6 crore equipment order over 14 months and conversion of the Rs 115.76 crore order book executable within one year. Subsequent results will also show whether the 415.6-kilotonne grinding-media volume recorded from June through September 2026 is followed by changes in segment margins, finance cost and adjusted profitability.