Tega Inds. Q4 FY26 Earnings Analysis

- Tega Industries expects strong growth in Q4 FY26, supported by a robust order backlog, especially in equipment sales which are expected to ramp up after some quarter-to-quarter variability. - The full-year consumables segment growth for FY26 is anticipated around 8%, below the long-term 15% CAGR target; equipment business growth is forecasted at 28%-30%. - Long-term growth guidance of 15% CAGR in consumables remains intact, with a focus on double-digit group-level growth. - FY27 revenue guidance will be provided after finalizing budgets; Q4 momentum and operational improvements are expected to accelerate growth into FY27. - Mining industry growth drivers include increased throughput due to rising copper and gold prices, supporting higher consumable demand. - Post-Molycop acquisition, expansion in Europe, Latin America, and Australia will contribute to growth from FY27 onwards. - Overall, Tega is confident of sustained growth driven by strong order book, product mix, and global expansion.

- Tega Industries expects strong full-year growth for FY26, with equipment business projected to grow 28%-30%, and consumables around 8%, leading to a decent double-digit group-level growth. - Long-term growth CAGR of 15% for the consumables segment remains intact. - EBITDA margins are expected to remain robust, with Q3 impacted by one-time expenses but underlying margins above 20%. - Q4 is anticipated to be strong, driven by execution of order backlog and equipment sales pushed from Q3. - The company is optimistic about sustaining growth through expansion in Europe, Latin America, and Australia from FY27 onward. - Financial closure of the Molycop acquisition expected by March 2026 will support growth, with funding secured via equity, debt, and internal accruals. - Guidance for FY27 will be provided post budget finalization, but growth momentum and profitability outlook remain positive.

- The Chile CAPEX project is on track and expected to be ready for commercial production by Q2 FY27. - Alternate plants in Chile have been set up to avoid any capacity limitations during the interim period. - The company is making strategic investments in expanding presence across Europe, Latin America, and Australia, with customer trials and negotiations at advanced stages, expected to contribute meaningfully from FY27 onwards. - Regarding the Molycop acquisition, the company has increased its stake to 84% and is working on completing the transaction by March 31, 2026, with some potential spillover. - Financing for Molycop acquisition is through a mix of internal accruals, debt, and equity, with flexibility for further equity raise if needed. - Use of OCRPS instrument to remit funds into Tega Singapore entity for the Molycop transaction, allowing future restructuring flexibility. - No explicit new capex guidance provided; FY27 capex guidance to be revealed after budget finalization.

- No immediate equity raise is planned beyond the Rs.1,700 crore raised in Round One for the Molycop acquisition. - The total investment in Molycop is around Rs.3,520 crores, financed through a mix of equity raised, internal accruals, and debt. - Currently, the company has sufficient funds and debt facilities to complete the transaction. - If needed, the company may consider additional equity fundraising in the future to reduce debt levels, but no concrete plans yet. - Debt financing has been increased as part of the capital structure for the Molycop acquisition, with borrowing facilities upsized accordingly. - A new instrument, OCRPS (Optionally Convertible Redeemable Preference Shares), is being used to remit funds into the Singapore subsidiary for the acquisition, providing financial structuring flexibility. - Any further capital raise or refinancing expenses related to the acquisition may occur post-transaction closure, expected by March 31, 2026, or in FY27.

- As of December 31, 2025, Tega Industries reported an order book of approximately Rs. 1,114.02 crores. - Out of this, Rs. 810.2 crores worth of orders are executable within the next 12 months. - The company has a comfortable order backlog, particularly strong in equipment orders to be pushed in Q4. - Quarter-to-quarter variability exists due to deferment or preponement of orders. - Overall, the management advises focusing on full-year performance to smooth out such fluctuations.