Tega Industries FY26 Performance and Molycop Acquisition Update

Consolidated Revenue (FY26): ₹1,773.6 crore
EBITDA (FY26): ₹396.7 crore

Reader Takeaway: Strong FY26 results and Molycop acquisition complete, but watch Q1 FY27 costs and Molycop growth revision.

What just happened

Tega Industries reported its consolidated financial results for FY26, with revenue reaching ₹1,773.6 crore and EBITDA at ₹396.7 crore, achieving a 22% EBITDA margin. In the fourth quarter of FY26 (Q4 FY26), the company posted a total group income of ₹563.3 crore and an adjusted EBITDA of ₹163.2 crore. A significant development is the successful completion of the Molycop acquisition on June 1, 2026. The acquisition involved assuming USD 838 million in debt, with Tega Industries raising INR 1,500 crore for financing.

Why this matters

The Molycop acquisition is a transformative event for Tega Industries, significantly expanding its scale. The company's stated focus on deleveraging, aiming for a 3x leverage ratio within 3-4 years, is crucial for integrating the new entity and managing its debt burden. While the consumables business faced temporary logistical delays, the equipment business showed robust growth, indicating strong underlying demand in certain segments.

The backstory

The Molycop acquisition marks a strategic expansion for Tega Industries, aiming to enhance its global footprint and product offerings in the mining consumables sector. The company has historically focused on mining and infrastructure sectors, providing wear-and-tear components. The current year's results reflect both operational performance and the strategic financial maneuvers related to the acquisition.

What changes now

Post-acquisition, Tega Industries will need to integrate Molycop's operations and financials. Management's priority will be deleveraging the balance sheet. Investors can expect short-term pressure on earnings due to one-off transaction costs of approximately $30 million in Q1 FY27 related to the acquisition and debt refinancing. Furthermore, the growth outlook for Molycop in FY27 has been revised downwards to 3% due to deferred mine restarts.

Risks to watch

Key risks include the successful integration of Molycop and realization of expected synergies. Investors need to monitor the company's progress in reducing its leverage ratio. The timing of goods dispatch, which impacted consumables revenue in FY26, remains a logistical concern. Additionally, the revised lower growth guidance for Molycop in FY27 warrants attention.

Peer comparison

(No specific peer comparison data was provided in the filing.)

Context metrics (time-bound)

• Consolidated Revenue (FY26): ₹1,773.6 crore
• EBITDA (FY26): ₹396.7 crore
• EBITDA Margin (FY26): 22%
• Total Order Book: ₹1,206 crore
• Executable Order Book (<1 Year): ₹906 crore
• Q4 FY26 Income: ₹563.3 crore
• Q4 FY26 Adjusted EBITDA: ₹163.2 crore
• Molycop Acquisition Debt: USD 838 million
• Acquisition Financing Raised: INR 1,500 crore
• Expected Q1 FY27 Transaction Costs: Approx. $30 million
• Molycop FY27 Growth Guidance: 3%

What to track next

Investors will be closely watching Tega Industries' Q1 FY27 results for the impact of acquisition-related costs and the progress on deleveraging. Monitoring the integration of Molycop and its contribution to earnings, alongside the performance of the equipment business, will be key.