Tega Industries Completes Molycop Acquisition

Consolidated Revenue: Rs 1,773.6 crore | EBITDA: Rs 396.7 crore

Reader Takeaway: The $1.5 billion Molycop acquisition drives growth but introduces significant debt to the balance sheet.

What just happened

Tega Industries has officially completed its acquisition of Molycop at an enterprise value of approximately USD 1.5 billion as of June 1, 2026. This transaction was supported by a Rs 1,713 crore preferential equity issuance and a new debt facility of Rs 1,500 crore. Alongside the acquisition news, the company reported its FY 2025-26 performance, highlighting a 5% year-on-year revenue increase to Rs 1,773.6 crore.

Why this matters

The Molycop deal is a transformational move, combining Tega’s expertise in mill lining with Molycop’s established grinding media business. The company's equipment division grew by 25% year-on-year, significantly outpacing its core consumables business. This acquisition aims to solidify Tega's footprint in global mining markets, further supported by the construction of a new manufacturing plant in Chile.

Management Commentary

Chairman Madan Mohan Mohanka and MD Mehul Mohanka stated that the acquisition is a milestone in the company’s 50th year. Management remains optimistic about long-term demand for copper and gold mining, despite acknowledging that geopolitical tensions in the Middle East and the Ukraine-Russia conflict have created logistical hurdles and impacted raw material availability.

Risks to watch

Shareholders should prioritize monitoring the company's debt levels. The heavy use of leverage for the Molycop deal necessitates a disciplined deleveraging process in the coming quarters. Additionally, the integration of Molycop’s large-scale operations remains a critical execution risk for management.

What to track next

The 50th Annual General Meeting is scheduled for September 24, 2026, where shareholders will vote on the proposed Rs 2 per share dividend and the latest corporate updates.