Financial Performance Overview

Consolidated Group Performance (including Molycop for June 2026):

  • Revenue from operations: INR17.2 billion
  • Adjusted EBITDA: INR2.6 billion (15% margin)
  • One-time expenses: INR1.9 billion primarily related to Molycop acquisition and integration
  • Goodwill recognition: Approximately INR50 billion provisional goodwill from Molycop acquisition under IND-AS 103

Legacy Tega Business Performance:

  • Revenue: INR4.3 billion (21% YoY growth)
  • EBITDA: INR1.0 billion (42% YoY growth)
  • EBITDA margin: 22.1% (improved from 19.1% in prior year)
  • Order book: INR12.3 billion (INR9.6 million executable within one year)
  • Gross margin: 62% (vs 59% in prior year)

Segment Breakdown:

  • Consumables Business: Revenue INR4.0 billion (36% YoY growth), EBITDA INR1.0 billion (58% YoY growth), margin 24.1% (320 bps improvement)
  • Equipment Business: Revenue INR358 million (44% decline from INR643 million), EBITDA breakeven
  • Molycop Contribution: Revenue INR12.9 billion, EBITDA INR1.6 billion (13% margin)

Molycop Integration Update

  • Transaction closed on June 1, 2026
  • Expected synergies: USD20 million over next 2-2.5 years from expense optimization, SG&A reduction, procurement synergies
  • Debt reduction: Approximately INR22.25 billion (USD235 million) at closing
  • Net debt position: INR63.66 billion (USD672.5 million) as of June 30, 2026
  • Molycop volume for 12 months ending June 2026: 1.204 million tons

Capital Expenditure and Expansion

  • Molycop capex: USD28 million estimated for 10-month period (normalized annual capex low USD30 million)
  • Tega capex: USD40 million (excluding Molycop, including Chile plant)
  • Chile plant: Soft commissioning expected January 2027, commercial production March 2027 (subject to regulatory approvals)

Market Outlook and Guidance

  • Global gold market expected to grow at 2.2% CAGR through FY30
  • Copper demand projected to grow at 4.8% CAGR
  • Tega consumables business guidance: 15% CAGR revenue growth
  • Consolidated EBITDA margin guidance: ~15%
  • Cross-selling revenue benefits expected from Q3-Q4 FY27 onwards

Key Management Participants

  • Tega Industries: Mehul Mohanka (MD & Group CEO), Ravi Joshi (CFO), Pratik Basu Roy (President), Sourav Sen (CEO Tega McNally)
  • Molycop: Lance Dawber (COO), Patrick Koley (CFO)
  • Moderator: Sakshi Mehta (MUFG Intime)

Financial Structure

  • Total group debt: INR112 billion (includes redeemable preference shares of INR26 billion)
  • Molycop net debt: INR63.66 billion (USD672.5 million)
  • Finance cost guidance: INR110-120 crores for full year

Operational Highlights

  • Copper prices: Over USD14,000 per metric ton
  • Gold prices: Around USD4,400 per ounce
  • Freeport Indonesia Grasberg Block Cave operation recovery progressing
  • Panama mine potential restart discussions ongoing
  • No material seasonality in Molycop business
  • 85% of Molycop contracts have steel index-linked pricing

Risk Factors Mentioned

  • Raw material price volatility
  • Global macroeconomic uncertainties
  • Shipping and freight cost increases (being passed through to customers)
  • FX exposure managed through hedging programs