Tega reports Rs 9.5 crore Q2 adjusted loss despite EBITDA

Tega Industries Limited reported an adjusted loss of Rs 9.5 crore in Q2 FY27 despite Rs 608.1 crore of adjusted EBITDA, as the grinding-media business posted a Rs 25.3 crore adjusted loss and the group recorded Rs 291.9 crore of finance cost.

Why did Tega report a Q2 loss despite adjusted EBITDA?

Tega reported an adjusted loss because depreciation, finance cost and tax charges followed its operating profit, while grinding media was loss-making on the adjusted profit-after-tax measure. The group generated Rs 608.1 crore of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) on Rs 4,294.7 crore of total income in Q2 FY27, but adjusted profit after tax (PAT) was a Rs 9.5 crore loss. In Q2 FY26, Tega Group reported adjusted PAT of Rs 44.9 crore.

The Q2 FY27 profit-and-loss statement records Rs 168.6 crore of depreciation, Rs 291.9 crore of finance cost and Rs 131.7 crore of tax. Reported profit before tax was Rs 72.9 crore, while adjusted profit before tax was Rs 151.2 crore. Tega defines adjusted EBITDA and PAT as excluding one-time acquisition cost, the exceptional item and the tax impact of those items.

How did Tega's Q2 revenue and margins change?

Tega excluding Molycop increased total income by 18% to Rs 498.5 crore in Q2 FY27 from Rs 421.1 crore in Q2 FY26, while adjusted EBITDA rose 10% to Rs 93.7 crore from Rs 84.9 crore. Its adjusted PAT declined 65% to Rs 15.8 crore from Rs 44.9 crore. The presentation says the adjusted PAT of Tega excluding Molycop includes Rs 29.8 crore of finance cost on a term loan.

At the consolidated level, adjusted EBITDA margin was 14% in Q2 FY27, compared with 20% for Tega Group in Q2 FY26. Gross profit margin was 39.3% in Q2 FY27, versus 59% a year earlier. Tega excluding Molycop had a 59.5% gross profit margin, whereas grinding media had a 36.7% margin, reflecting the changed segment mix in the consolidated result.

Which segment drove Tega's Q2 operating income?

Grinding media drove most of Tega's Q2 income and adjusted EBITDA, contributing Rs 3,796.3 crore of total income and Rs 514.4 crore of adjusted EBITDA. Tega excluding Molycop contributed Rs 498.5 crore of income and Rs 93.7 crore of adjusted EBITDA. Grinding media therefore represented the larger portion of the group's Rs 4,294.7 crore total income for the quarter.

The same grinding-media segment recorded a Rs 25.3 crore adjusted PAT loss in Q2 FY27, while Tega excluding Molycop reported Rs 15.8 crore of adjusted PAT. Grinding media recorded Rs 253 crore of finance cost and Rs 144 crore of depreciation, compared with Rs 38.9 crore and Rs 24.6 crore, respectively, for Tega excluding Molycop. Its reported EBITDA, including other income, was Rs 437.7 crore, versus adjusted EBITDA of Rs 514.4 crore.

What acquisition items affected Tega's reported Q2 numbers?

Tega disclosed Rs 66.6 crore of Molycop acquisition cost and an Rs 11.7 crore exceptional item for the group in Q2 FY27. Of the acquisition cost, Rs 65 crore was recorded in grinding media and Rs 1.6 crore in Tega excluding Molycop. The exceptional item was recorded entirely in grinding media.

The exceptional item is amortisation of the fair value of inventory arising from purchase-price allocation on the acquisition, which Tega says has no cash-flow impact. Adjusted results exclude the one-time acquisition cost, the exceptional item and the tax impact of those items. At 30 September 2026, goodwill was Rs 5,132.9 crore, intangible assets were Rs 3,479.6 crore and property, plant and equipment were Rs 3,345.4 crore.

How did Tega's first-half results and cash flow compare?

Tega reported Rs 872 crore of adjusted EBITDA on Rs 6,035.6 crore of total income in H1 FY27, while adjusted PAT was Rs 45.2 crore. In H1 FY26, Tega Group reported Rs 156.1 crore of adjusted EBITDA, Rs 80.3 crore of adjusted PAT and Rs 792.7 crore of total income. The adjusted EBITDA margin declined to 14% from 20%, while adjusted PAT margin declined to 1% from 10%.

For the period ended 30 September 2026, Tega reported Rs 712.6 crore of net cash from operating activities, Rs 4,970.8 crore of investing cash outflow and Rs 3,769.8 crore of financing cash inflow. Cash and cash equivalents were Rs 716 crore at 30 September, compared with Rs 1,163.9 crore at 1 April 2026. The balance sheet showed non-current borrowings of Rs 11,034.6 crore at September 2026, compared with Rs 127.6 crore at March 2026.

Conclusion

Tega's Q2 FY27 result shows that adjusted operating profitability did not convert into adjusted net profit. Grinding media supplied Rs 514.4 crore of the group's Rs 608.1 crore adjusted EBITDA, but the segment reported a Rs 25.3 crore adjusted PAT loss, while group depreciation and finance cost totalled Rs 460.5 crore.

The next disclosed operating measures are order-book conversion and equipment execution. Tega had an order book excluding grinding media of Rs 1,397.6 crore at 30 September 2026, up 21% year on year, with Rs 1,157.6 crore executable within one year. It also secured a Rs 126 crore equipment order that is expected to be executed over 14 months.