Tega Industries Limited reported its Q3 FY26 earnings, showcasing a consistent performance despite sector challenges. The company’s consolidated revenue for the nine-month period reached INR 1,210.3 crores, marking a 6% year-over-year growth. However, the stock saw a decline of 1.77%, closing at INR 1,794.65 ($19.41), as the market reacted to the earnings report and future guidance. According to InvestingPro analysis, Tega appears to be trading above its Fair Value, with a P/E ratio of 54.63, suggesting premium pricing despite its impressive gross profit margins of 57.25%.
Key Takeaways
* Nine-month consolidated revenue grew by 6% YoY.
* Equipment business revenue surged 34% YoY.
* Stock price decreased by 1.77% post-earnings.
* Ongoing expansion in Europe, Latin America, and Australia.
* Molycop acquisition nearing completion.
Company Performance
Tega Industries demonstrated solid performance in Q3 FY26, with revenues reaching INR 4,175 million. The company maintained strong growth in its equipment business, which saw a 34% increase year-over-year. This growth aligns with Tega’s strategic focus on expanding its presence in key markets, including Europe, Latin America, and Australia. The company continues to capitalize on increased mining activity, particularly in copper-rich regions, which contribute significantly to its revenue.
Financial Highlights
* Revenue: INR 4,175 million for Q3 FY26.
* Nine-month consolidated revenue: INR 1,210.3 crores, 6% YoY growth.
* EBITDA: INR 600 million for Q3, with a 14% margin.
* Gross margins stood between 59-60%.
Outlook & Guidance
Tega Industries remains optimistic about its growth prospects, maintaining a long-term target of 15% CAGR. The company expects consumables to grow around 8% and the equipment business to expand by 20-30% in FY26. The Chile CapEx project is on track for commercial production by Q2 FY27, indicating future revenue growth potential.
Executive Commentary
“We remain cautiously optimistic about the road ahead,” stated Mehul Mohanka, MD and Group CEO. Sharad Khaitan, CFO, emphasized the company’s resilience, saying, “We have always maintained that the long-term growth story of 15% CAGR remains intact with us.”
Risks and Challenges
* Supply Chain Issues: Potential disruptions could impact production timelines.
* Market Saturation: Increased competition in key markets may affect margins.
* Macroeconomic Pressures: Global economic conditions could influence demand.
* Raw Material Costs: Fluctuations could affect profitability.
* Regulatory Changes: New regulations in key markets may require strategic adjustments.
Tega Industries continues to focus on strategic growth initiatives while navigating ongoing market challenges. The company’s expansion efforts and strong market position in mill liners are expected to support its long-term growth objectives.
Full transcript – Tega Industries Ltd (TEGA) Q3 2026:
Speaker 3: Ladies and gentlemen, good day, and welcome to the Q3 FY26 earnings conference call of Tega Industries Limited, hosted by Dolat Capital. As a reminder, all participants in line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator with the star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Varun Jain from Dolat Capital for his opening remarks. Thank you, and over to you, sir.
Speaker 7: Hi, good evening, everyone. Welcome to the Tega Industries Q3 FY 26 earnings conference call. We are joined today by the management led by Mr. Mehul Mohanka, MD and Group CEO, and Mr. Sharad Khaitan, the Chief Financial Officer, and as well as Mr. Pratik Basu Roy, President for Product Management, Global Sales and Marketing. We’ll have some initial remarks by the management, followed by the Q&A.
Mehul Mohanka, MD and Group CEO, Tega Industries: Good evening, and a warm welcome to all the participants on the call. I’m joined this evening by Mr. Sourav Sen, CEO of Tega McNally, Mr. Pratik Basu Roy, President, Product Group and Sales, and Sharad Kumar Khaitan, our CFO. Thank you for joining us today. It’s a pleasure to connect with our valued investors, analysts, and stakeholders. I hope you and your families continue to keep well. The consolidated revenue for the nine months ended FY 2026 stood at INR 1,210.3 crores, representing a 6% year-on-year growth. We delivered an EBITDA of INR 216.1 crores for the nine-month period, with EBITDA margins of 18%. The margins was marginally lower due to a one-time acquisition-related expense and charges arising from the implementation of the new labor code regulations.
Excluding these one-off items, our EBITDA margins would be above the 20% threshold at the consolidated level, broadly in line with last year for both Q3 and YTD December period. In Q3 FY 2026, our gross margins remained healthy at around 60% of revenue, reflecting strong operating discipline and a resilient product mix. Our equipment business recorded strong momentum, closing the nine-month period with revenue of INR 182.6 crores, a 34% year-on-year increase compared to the same period last year. We continue to make focused efforts to accelerate our growth trajectory in Q4 and Q1 FY 2027, supported by a healthy order pipeline and operational improvements. As of December thirty-first, our order book stands at approximately INR 1,114.02 crores, with INR 810.2 crores executable within the next twelve months.
This provides strong visibility and confidence in our growth trajectory. We remain cautiously optimistic about the road ahead. While macroeconomic uncertainties persist, our diversified portfolio, strong balance sheet, and customer-centric approach position us well to navigate challenges and seize emerging opportunities across global markets. Independent expert assessments show copper demand rising at 4% CAGR through 2030, driven by electrification, EVs, and infrastructure, with copper increasingly seen as a strategic metal for the energy transition. Gold production is also expected to grow at a similar rate, supported by investment demand and central bank buying. These trends are driving increased mining activity, especially in copper-rich regions like LATAM, North America, and Africa. This surge has prompted mining companies to ramp up exploration and production, especially in copper-rich regions such as Latin America, North America, and Africa.
Despite broader macro uncertainties, from geopolitics to supply chain volatility, we remain confident in our business model. Our localized manufacturing footprint, supportive commodity environment, strong talent base, and continued investments in R&D and innovation position us well for sustained growth. We’re also making good progress in expanding across Europe, Latin America, and Australia, with customer trials and negotiations at advanced stages. These initiatives should begin contributing meaningfully from FY 2027 onwards. As per equity interest purchase agreement executed between the buyers and the sellers, antitrust filings have been done in 12 jurisdictions, including U.S., Canada, Latin American countries, Australia, Saudi Arabia, and certain European jurisdictions for the Molycop transaction. In addition, an FDI-related filing was made in Spain. The filings were made by the last week of January 2026.
The authorities are presently reviewing our applications, and we are hopeful of receiving the approvals over the next few months. We have been cooperating with the authorities to provide the information that they require. I’d like to thank our employees for their unwavering commitment, our customers for their trust, and you, our investors, for your continued support. We’re committed to delivering sustainable value and transparent communication. Now I would like to hand over to Sharad, who will take you through the financial performance of the company. Thank you.
Speaker 3: Thank you, Mehul. A very warm welcome to everyone, and thank you once again for joining the earnings call for Q3 of FY 2026 and nine months ending December 2025, performance and results. The total group revenues for the nine months ending December 2025 of FY 2026-
Sharad Khaitan, Chief Financial Officer, Tega Industries: … stood at INR 12,103 million, with an EBITDA of INR 2,161 million. That is an EBITDA margin of 18%. For the similar period last year, that is nine months ending FY December 2025, twenty-four, the total group revenues were at INR 11,390 million, with an EBITDA of INR 2,264 million, with that results in an EBITDA margin of 20%. On a year-on-year basis, the total revenues at a group level has grown by 6%. During the nine-month period ending December 2025, the consumables business segment and the equipment business segment contributed 84% and 16% to the group’s revenue from operations respectively. On a nine-month basis, the gross margins have shown an improvement of 200 basis points.
That is up from 57% last year to 59% in the current year, mainly on account of regional and product mix, specific execution of high-margin orders. The equipment business has also shown a turnaround and is also PBT positive, vis-a-vis last year, same period, where it was marginally negative at a PBT level, with significant increase in revenue. As mentioned at the start of the call, during the period under review, we have accounted for the expenses related to the Molycop acquisition, with, that is, professional fees, due diligence, legal consultancy, et cetera, as per the terms and the agreed milestone. There has been an additional charge for an increase in employee benefit expenses due to the new labor code regulations, and if we exclude such one-time expenses, then the EBITDA margins would be above the 20% threshold for the nine months ending December 2025.
The order book for both the business segments, that is consumables segment as well as the equipment segment, remains strong, and we have an order book of INR 11,402 million as of 31 December 2025, out of which executable orders within one year is INR 8,102 million. The total group revenues for Q3 of FY 2026 stood at INR 4,175 million, with an EBITDA of INR 600 million, that is EBITDA margins of 14%. The group revenues for same period last year, that is Q3 of FY 2025, was at INR 4,206 million, with an EBITDA of 1,027 million, with that is an EBITDA margin of 24%.
During the quarter under reporting, the consumables business segment and equipment business segment contributed 88% and 12% to the group revenues, respectively. The revenue from operations of the consumables business reported revenues of INR 3,585 million in Q3 of FY 2026, vis-à-vis INR 3,556 million in same period last year, up by about INR 29 million. The revenue from operations of the equipment business witnessed a modest decrease of INR 72 million on a quarter-on-quarter basis, with revenues at INR 475 million, as against INR 547 million reported in same period last year. We have maintained healthy gross margins of 60% at the group level, vis-à-vis 59% same period last year, in spite of raw material volatility, global uncertainties, and a higher share of the equipment business segment.
As mentioned earlier, EBITDA margins for Q3 has also been impacted by the one-time expenses account related to the proposed Molycop acquisition, and the one-time charge account the new labor code regulations. And if you exclude such one-time expenses, the EBITDA margins for the quarter would be above the 20% threshold with which we operate. Please note that there are variability on a quarter-on-quarter basis, and hence we should always see the performance of the group on an annualized basis. The Chile CapEx project is on track, with the project in full action, and we are trying to have the same ready for commercial production in Q2 of FY 2027. It may be noted that sales shall not be impacted in the interim period, as we have put up alternate plants at Chile, which will address any capacity limitations to meet the revenue growth.
Thank you very much for your time, and the forum is now open to questions you may have any.
Speaker 3: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Chirag from Centrum Broking. Please proceed.
Speaker 8: Yeah, thank you, and good evening to all. So sir, first question is on Molycop acquisition. So during the quarter, we have released a press release saying that we would like to increase our stake in that entity, and also announcement today regarding increasing the borrowing facility, basically. So just wanted to have an update on what is the, you know, financing structure that we are likely to propose, and are we on track for a March closing the deal by March month, basically next month?
Sharad Khaitan, Chief Financial Officer, Tega Industries: So as far as the increasing of our stake is concerned, we have upsized our stake, and we are now having a stake of 84% in the Molycop entity. We are estimating the transaction to close ASAP. Currently, as advised, we are expecting to complete it by March thirty-first March. However, there may be some spillover, which we will keep you updated as we have firm timelines in regards. As far as the capital raise is concerned, we are going ahead with a mix of internal accruals, debt, and the equity. The upsize was anyways a part of the SHI option, which was negotiated at the time of signing, and the time we exercised that, we gave the disclosure to the investor community.
Speaker 8: …Correct, sir. So but for the, financing part, has it been finally decided what would be the amount of debt they would, which we would be taking, and beyond the, 2,000 crore capital raise that we have already mentioned, apart from that, whether there will be any further capital raise requirement?
Sharad Khaitan, Chief Financial Officer, Tega Industries: Currently we are equipped with the funds what we have with the last equity raise we have done. Definitely, in case if any requirement is there, we will definitely go with for another round of equity raise, if required. But we are with the current structure and the current funds available with us, we are in a position to conclude the transaction itself. So the financial closure for the transaction is achieved in the current scheme of things.
Speaker 8: Okay. And sir, second, on the consumable business, so, while you mentioned that, in Q3, considering the, you know, various acquisition related expenses and labor code, the margin would have been up, up for the 20%. But, also considering, some of the commodity cost inflation, et cetera, what, what is the margin outlook over, near to medium term of, let’s say, you know, 12-18 months? Do we see, you know, any cost inflation impacting our gross or operating margin profile for consumable business over a near term?
Sharad Khaitan, Chief Financial Officer, Tega Industries: The consumable business, Chirag, we generally operate in a gross margins of 57%-60%, and EBITDA margins anything between 22%-23%. That’s the reason why we told that in spite of the volatility and the uncertainties, we have been able to maintain the gross margins, and it’s a mix of the raw material cost, the efficiencies, all put together.
Speaker 8: Sure. So basically, commodity cost inflation is unlikely to impact the margin profile going ahead, beyond Q3. I’m asking specifically.
Sharad Khaitan, Chief Financial Officer, Tega Industries: We generally pass on the price differential, if any, to the customers with a quarter time lag, so that takes care of any commodity price rise.
Speaker 8: Sure, sure. So then the last thing on equipment segment. So on equipment, again, the Q3 margin was lower for the exact same reason. I mean, the acquisition and labor cost impact is split across both segments when it accounted for EBITDA.
Sharad Khaitan, Chief Financial Officer, Tega Industries: For the equipment, we have a labor code impact, yes. That, if eliminated, would definitely pull the margins up. But there are quarter-on-quarter variability, in both the businesses, hence, we request you to see it on a full year basis. So on an equipment basis, we always operate on a gross margin, anything between 40%-45%, with EBITDA margins in the range of 13%-14%. So there is a quarter revenue spillover which happens generally, actually, in case of any lumpy project coming, big project coming in, or something getting little deferred, so on and so forth.
Speaker 8: Okay. Okay, sir. Thank you. Thank you. Thanks, Chirag.
Speaker 3: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Varun Jain from Dolat Capital. Please proceed.
Speaker 7: Yeah. Hi, sir. So, my question was that, sir, in this business, usually, we always have that H2 is stronger than H1, and, you had guided that, overall the revenue growth for FY 2026 will be close to 15%, 25%+ for equipment, which is there in nine months also, and, maybe 10%-13% for consumables, which is, on a nine-month, which is like 2%-3%. So, sir, like, can you explain, like, what has happened?
Mehul Mohanka, MD and Group CEO, Tega Industries: Yeah. Hi, this is Pratik here. See, we have had the industry has grown by about 4.9%. On top of that, we are maintaining our CAGR momentum, that we have a 15% on a long-term basis. We want to continue to grow on that momentum, although on a very higher base. So there’s no change in that long-term forecast for us.
Speaker 7: Okay, thank you. Sir, specifically for consumables, what happened, like, in this quarter? There was no growth, almost like 1%.
Mehul Mohanka, MD and Group CEO, Tega Industries: Yeah. So what happened is that while, you know, our sustainable spares business, which is repeat business, has come back very strong, some of the initiatives on conversions of new customers, they’ve had a time lag where some of the purchase orders or the orders that were to come through have been delayed by a quarter or two. So not that there has been any slippages per se, or erosion of market share, it’s just been a time lag where some of the volumes have moved from one quarter to the other. So while consumables has been a bit weak in terms of the 2% YTD, year-to-date growth, and we don’t expect it to come in at double-digit numbers by the end of the year, but we still see it at high single-digit numbers.
Speaker 7: So, sir, you are saying that Q4 will be so strong that for the entire year, it will come up to like 7-8%, something like that? That’s the guessing.
Mehul Mohanka, MD and Group CEO, Tega Industries: So closer to that number, yeah.
Speaker 7: Okay. Sir, what would be your guidance for FY 27 across for both the segments in terms of revenue?
Sharad Khaitan, Chief Financial Officer, Tega Industries: We will give the guidance for FY27 once we form our part budgets. We are in the midst of our budget process. I think when we connect next time, we will give you the full year estimates for the next financial year.
Speaker 7: Okay. Okay. And sir, just last bit on the fee side. So you said that there was a one-time fee impact which hit the consumables business margin. So is there any impact which is pending, like, which is there for both, for this labor code on equipment and this other one on consumables, which will be there in Q4 also?
Sharad Khaitan, Chief Financial Officer, Tega Industries: … See, for labor code, we have done the actuarial valuation. Now, since the rules have not yet been notified, once the rules comes in, we will figure it out how to structure and make changes, if any. But I doubt, we will have any further, charges on account of labor code. The charges what we have taken are actually determined and are sufficient, I think, even on a full year basis. As far as the. Yeah. Yeah, please go ahead.
Speaker 9: No, no, I was saying consumables, yeah.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Yeah. As far as the, Molycop acquisition is concerned, certain expenses have been incurred, for example, due diligence, et cetera. Certain expenses are based on milestone and on completion of the entire transaction. For example, the refinancing fees, the, other fees, et cetera, certain milestone based. And as and when they come, we shall provide for them in the subsequent quarters.
Speaker 9: Okay, in the subsequent. So even like some quarters of FY 2027 may also be impacted then?
Sharad Khaitan, Chief Financial Officer, Tega Industries: Yes, because it’s a huge transaction, so the refinancing fees, all of that will come in once we do the refinancing. I cannot take a charge today if I have not done the refinancing, for example.
Speaker 9: Yes, yes. Okay, sir. Okay, yeah.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Anyways, all these expenses will come at the Singapore entity what we have formed, and will not be a part of the Tega consumable segment what we are seeing today. So as far as the Tega consumable segment what we are seeing, I think the expenses have been taken care of in this nine months ended December 25.
Speaker 9: Okay. Okay, sir. I will come back and with you.
Speaker 3: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is on the line of Sayan Desai. Please proceed.
Speaker 4: Thank you. Saurabh, hi. Can you quantify this one-time expense in this quarter on these fees and due diligence and all? Because if I adjust it to get to a 20%+ EBITDA margin, like you’re saying, then I get some INR 35-40 crore odd number. So if you can give me the number, or maybe this confirms that this is true.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Yeah. So, basically, the labor code impact is about INR 6 crores at a group level.
Speaker 4: Mm-hmm.
Sharad Khaitan, Chief Financial Officer, Tega Industries: And then a significant portion of the numbers you have given represents the transaction expenses.
Speaker 4: All right. Okay. But the total should be in the range of INR 35 crore? Is that understanding-
Sharad Khaitan, Chief Financial Officer, Tega Industries: Yeah, the total difference, if you see on a 9 months period, is about INR 45-INR 50 crore in the other expenses, which comprise of certain increments are the normal course of increment.
Speaker 4: Okay.
Sharad Khaitan, Chief Financial Officer, Tega Industries: But predominantly, these two, the transaction expenses are there because the labor code impact is anyway part of the employee benefit expense.
Speaker 4: Understood. Right. Right. Secondly, you know, while I appreciate that this is not a business to be thought of on a quarter-by-quarter basis, but I thought the consumables was a more steady one, right? Where there is kind of a order, and then the mill, the mine needs to be fed continuously with liners. So, how should one think of the variability on the consumable business specifically, and if there are any specific reasons why you had some, you know, weaker number in this quarter?
Sharad Khaitan, Chief Financial Officer, Tega Industries: No, like we mentioned in the earlier part of the call, a major part of the spares business that’s there with us, so there’s no market loss per se as such. It’s only about a volume shift from this quarter to the subsequent quarters.
Speaker 4: But this, you saying this is a consumable business also, there is a shift?
Sharad Khaitan, Chief Financial Officer, Tega Industries: In the consumable business, yes.
Speaker 4: Okay. Right. And this would be any particular reasons why this has happened? Because we’ve had some logistics issues in the past. So are these recurring or something else is, you know, leading to this volatility?
Sharad Khaitan, Chief Financial Officer, Tega Industries: The logistics issue remains a challenge, but it has also cooled off to a large extent. It’s about the customers, and because of the global uncertainties, things like that, the consumption pattern maybe at a particular site getting little elongated, things like this. And that’s how the customer inventory at site, his consumption pattern. So it’s just about a deferment of this thing. And certain conversions, what we were thinking of coming in Q3 gets now shifted to Q4.
Speaker 4: I see. I see. Right. And lastly, the full year guidance, I think you were at 15% for consumables. Is that, does that still hold? Or do you not see some sort of a shortfall there?
Sharad Khaitan, Chief Financial Officer, Tega Industries: We have been growing historically at about. So we have always maintained that the long-term growth story of 15% CAGR remains intact with us.
Speaker 4: Okay.
Sharad Khaitan, Chief Financial Officer, Tega Industries: This current year, we may be something around 8 odd% growth in the consumable segment.
Speaker 4: Understood. Great. Thank you so much.
Sharad Khaitan, Chief Financial Officer, Tega Industries: The equipment business will have a growth of anything close to about 20%-30%. At a group level, still, we should be able to have a decent double-digit growth.
Speaker 4: Okay, great. Thank you so much.
Speaker 3: Thank you. The next question is from the line of Kamlesh from Lotus Asset Management. Please proceed.
Speaker 9: Yeah, thanks for the opportunity. First, to like say, it has been asked a number of times. So can you quantify the figure for, like, say, the fees paid for the acquisition in this quarter, as well as the nine months?
Sharad Khaitan, Chief Financial Officer, Tega Industries: Sir, we have not been able to get your question. Can you please repeat or be a little loud?
Speaker 9: Yeah, I’m asking that, would you please, quantify the fees, say, paid for the acquisition for this quarter as well as the nine months of FY 2026?
Sharad Khaitan, Chief Financial Officer, Tega Industries: … so the fees what we have paid, if you see the other expenses on a nine-month basis, we will see about INR 45 crore-INR 50 crore of expense increase, which includes a significant part of the transaction expenses.
Speaker 1: For the quarter, sir?
Sharad Khaitan, Chief Financial Officer, Tega Industries: The quarter also, the difference what you see, a significant part of it because of the transaction expenses in Q3.
Speaker 1: Okay. And so going forward, like, in the consumable business is a bulky one for us. So can you throw some light on the, in terms of the breakup, like how much comes from the gold mining, other, or copper? So can you provide some breakup on the segments on the revenue which is originating from the gold, copper, and other segments?
Sharad Khaitan, Chief Financial Officer, Tega Industries: Gold and copper are the two metals which we cater to predominantly. About 75%-77% of our revenues comes from these two sectors.
Speaker 1: Okay. Going forward, like, say, in India, cement is coming up in a big way, and even the metal, ferrous, non-ferrous. Once the Molycop comes into play, so are we looking to diversify to other metals?
Sharad Khaitan, Chief Financial Officer, Tega Industries: We would explore all possible opportunities and would like to comment on this once we consolidate Molycop.
Speaker 1: Great. Thanks so much, sir.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Yeah.
Speaker 3: Thank you. The next question is on the line of Varun Jain from Dolat Capital. Please proceed.
Speaker 7: Yeah. So, just last few questions I had. So, in your consumables, what is the Dynaprime share?
Sharad Khaitan, Chief Financial Officer, Tega Industries: We don’t give the Dynaprime share, Varun, because of confidentiality reasons.
Speaker 7: But you used to tell the year-on-year growth, like how it has been.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Because of the sensitivity involved, we never give the breakup.
Speaker 7: Okay. And, sir, has this particular mill liner segment composite, has it seen more competition, like heightened competition in the past few quarters, or is it stable?
Sharad Khaitan, Chief Financial Officer, Tega Industries: Hi, Pratik here. So, no, I think, we still are very comfortable in that position. People have been trying, but, they haven’t performed, as of now. So right now, we do not see any challenge.
Speaker 7: Sir, any… You were saying, you were saying that a lot of you know, mines and all were in process of conversion. So any big mine which we are in, we are expecting to convert in the next couple of quarters, which will move the needle for us?
Sharad Khaitan, Chief Financial Officer, Tega Industries: There are discussions going on. Varun, there are discussions going on. Couple of trials are also there in place, which are, ongoing as we talk now. But due to the sensitivity and the confidentiality of the customers, I think, we’ll not be able to share the names with you.
Speaker 7: Okay, okay. And then just last one, one fundamental question on the business side. Sir, gold and copper prices are, you know, kind of increasing and, like there’s no tomorrow. So, your business is not like a direct beneficiary of that, right? So because mining output and all this take a long time to increase. So like, we shouldn’t plot like the gold and copper increasing directly to your business, right?
Sharad Khaitan, Chief Financial Officer, Tega Industries: It has got an impact. For example, if the mines are churning a higher amount of throughput actually, so to have that higher throughput, they need to have a higher input. And if they need to have a higher input, it means more consumables will be required to process that much amount of ores actually. So in case if the demand — and if the prices are up, you have more, the mines churning out more throughput actually. And even the mines which were not making money, they also come back into the business now. So if the prices are raised, people find an opportunity and more ores are processed, business definitely grows for us.
Speaker 7: Okay. Okay, sir. Thanks and all the best.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Thank you.
Speaker 3: Thank you. The next question is on the line of Deepak from Sundaram. Please proceed.
Speaker 1: Thank you for the opportunity. Am I audible, sir?
Sharad Khaitan, Chief Financial Officer, Tega Industries: Yeah, Deepak.
Speaker 1: Sir, just I have one question, in fact, it’s some clarification regarding financing of this Molycop deal. So if I recall correctly, in round one, we have raised around 1,700 odd crore in form of potential equity share. And now with this upsizing of the investment, our total investment is likely to be around, like, 3,520 crore mark. So just wanted to know, like, are we looking to finance more of debt in the incremental portion, which is yet to be financed, means over and above 1,700 crore, which we have raised in equity in round one? Just wanted to know what is the equity-debt split of this 3,520 crore, which we’ll be investing in, in Molycop.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Currently, Deepak, we have secured this entire transactions with the equity raise, the internal accruals, what we have, the surpluses at my treasury, plus the debt, what we have done. In case if we feel the requirement of, equity raise, we, to reduce my debt, we’ll definitely come back and then seek your help in the matter.
Speaker 1: Okay. Sir, could you also explain what is this OCRPS that we are now trying to invest in the Tega holdco level? Since how is that related to whatever financing option we are currently exploring?
Sharad Khaitan, Chief Financial Officer, Tega Industries: So it’s one of the instruments through which we will park, we’ll remit the money into our Tega Singapore entity, which will be onward used for the Molycop acquisition. This instrument particularly gives us the flexibility of structuring, restructuring in the future, and that’s the way, as advised by our consultant, etc. We have evaluated this, and we found it to be the right way to remit the funds abroad.
Speaker 1: Okay. So if the understanding is that whatever equity we have raised at Tega level, but once we’ll be investing that money into, Molycop level, it will be in this, OCRPS form over and above, let’s say, whatever debt we’ll be financing?
Sharad Khaitan, Chief Financial Officer, Tega Industries: Yeah. So the money is what we’ll be sending it to the Singapore entity, which will be my 100% wholly owned subsidiary. We’ll be using a mix of pure equity as well as the OCRPS. And once the money flows into this Singapore entity, the onward movement for Molycop acquisition to the downward JV company, along with Apollo funds, will be in the nature of equity.
Speaker 1: Okay. As far as Apollo’s investment is concerned, there is no change in that, the preference amount?
Sharad Khaitan, Chief Financial Officer, Tega Industries: That remains the same, what we had disclosed earlier.
Speaker 1: Okay. Okay, sir. Very helpful. Thank you.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Thank you.
Speaker 3: Thank you. The next question is from the line of Abhi Shah from City Technology. Please proceed.
Speaker 0: So I have one question, it’s a little repetitive, regarding equipment side. So, like quarter two, it was around INR 777.7. Now it has dropped significantly, like on a YOY basis also it has dropped, and on a QoQ basis also dropped. And you have also said that H2 would be heavy. So why the number has dropped? And secondly, what will drive Q4 growth? So what are the drivers that will be driving so high growth in Q4?
Sourav Sen, CEO of Tega McNally, Tega Industries: I, this is Sourav. So what you would say that, you know, we have the enough order backlog, which we are going to push out in the Q4. So as regards to the order backlog is concerned, is absolutely we are very comfortable situation. And it is basically, as we mentioned, there is a quarter variability is there in some of the, some of the equipment which we couldn’t push into Q3, which naturally will be done in Q4. So overall, the financial year concerned, we will remain, as we focused, and we’ve given the guidance in past.
Speaker 0: Okay, so you are confident upon-
Sharad Khaitan, Chief Financial Officer, Tega Industries: Just to add on here, just to add on here, September quarter, we did about INR 70 crore of equipment sale revenue from operation. If I basically see September 2024, the same number was about INR 45 crore. So there are certain orders which get deferred, and certain orders get preponed. So those variability on a quarter-on-quarter basis remains in our business. And hence, we have always advised to see our business on a fully at 12-month basis. So that takes care of and eliminates all these variability and fluctuations.
Speaker 0: Okay. Okay. That was my question.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Thank you.
Speaker 3: Thank you. We take that as the last question. I now hand the conference over to the management for the closing comments. Over to you, sir.
Sharad Khaitan, Chief Financial Officer, Tega Industries: Thank you once again for taking out time and coming out, coming to our investor call. We’ll keep you posted of any subsequent developments. Happy to interact and take any subsequent questions you have. You can reach out to us, to our investor department, and we’ll be happy to address the same. Thank you so much.
Speaker 3: Thank you. On behalf of Dolat Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
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