# 1. Financial Performance ## A. Key Figures * **Consolidated Revenue:** **₹3,716 Mn** Q1 FY'26 (+6%) · **₹3,516 Mn** Q1 FY'25 * **Stand-alone Revenue:** **₹1,676 Cr** (-29%) · **EBITDA:** **₹353 Cr** (-47%) ## B. Revenue Growth * **Divergent Performance:** Consolidated revenue showed modest growth, while stand-alone results declined sharply due to **timing differences in revenue recognition** across geographies. * **Recovery Trajectory:** Management expects **revenue recovery in subsequent quarters**, driven by improved order execution and operating leverage. ## C. EBITDA Margins * **Margin Resilience:** 20% EBITDA margin sustained despite headwinds, underpinned by **operational efficiency** and **fixed cost discipline**. * **Forward Guidance:** Targeted **21–22% blended EBITDA margin** as higher volumes improve capacity utilization and drive **operational leverage**. * **Segmental Divergence:** Consumables to maintain **22–23% EBITDA margins**, significantly above equipment’s **12–13%**, reflecting structural profitability differences. ## D. Gross Margins * **Stable Blended Performance:** Group maintained **59% gross margin** despite raw material volatility and a **higher equipment mix**, which typically carries lower margins. * **Segmental Dynamics:** Consumables gross margin at **17% this quarter** was below typical range of **57–60%**, likely due to volume or input cost pressures. * **Margin Drivers:** Gross margins driven by **sales volume and raw material costs**, while EBITDA expansion hinges on absorption of **largely fixed operating expenses**. --- # 2. Order Book & Revenue Visibility ## A. Key Figures * **Order Book:** **₹10,053 Mn** total as of Jun-30-2025 · **₹6,103 Mn** executable in next 12 months * **Backlog:** **~₹1,000 Cr** attributable to consumables segment ## B. Order Book & Visibility * **Strong Near-Term Revenue Visibility:** Robust executable order book supports high confidence in revenue delivery over the next year, led by consumables strength. * **Strategic Sector Focus:** Active bidding momentum concentrated in **mining, steel, and power sectors**, reinforcing core market positioning. ## C. Executable Orders * **NMDC McNally Project On Track:** Vast majority of the ₹120 Cr order to be fulfilled in current fiscal, minimizing spillover risk. ## D. Segment Breakdown * **Consumables Drive Backlog:** The bulk of the multi-crore order backlog stems from the consumables business, underscoring its growing scale and recurring demand profile. --- # 3. Segment & Product Performance ## A. Key Figures * **Consumables Revenue:** **₹2,940 million** (82% of total) * **Equipment Revenue:** **₹643 Mn** (+78% YoY) * Equipment FY '25 Revenue: ₹200+ Cr ## B. Consumables Segment * **Dominant Revenue Source:** Consumables remain the core revenue driver, representing a strong majority of sales despite a YoY decline attributed to **timing-related shipment deferrals**. * **Global Order Book Strength:** Approximately **90% of consumables orders are international**, reflecting deep global penetration and demand resilience. * **Strategic Product Momentum:** **DynaPrime** is the fastest-growing product line, now expected to grow **over 20%** this year, surpassing initial targets and boosting segment performance. ## C. Equipment Segment * **Robust Revenue Growth:** Equipment revenue surged with strong double-digit expansion, supported by high order visibility and major projects like the **INR120 Cr NMDC order**, largely to be executed in FY '26. * **Margin Pressure from Mix Shift:** Gross margins softened due to a temporary shift in sales mix, with spares contributing only **30–35%** versus the typical **45–55%**, weighing on profitability. * **Domestic-First Expansion Strategy:** The company is prioritizing consolidation in the domestic market before leveraging its global network for international scaling. --- # 4. Geography & Market Mix ## A. Key Figures * **Latin American Market Size:** **$350 million** (vs. prior $200 million estimate) * **Incremental Revenue Target:** **INR 1,000 Cr** from Latin America expansion at full capacity ## B. Latin America Demand * **Primary Growth Engine:** Latin America emerges as the top geographic growth driver, underpinned by strong mining activity in copper-rich regions and leadership of the **DynaPrime** product in consumables. * **Expansion Ambition:** Full-capacity utilization of the Latin America expansion is expected to generate **significant incremental revenue**, reflecting confidence in sustained regional demand. ## C. International Exposure * **Revenue Recognition Shift:** Decline in standalone revenues does not signal lost export share; consolidated results better reflect global performance due to third-party invoicing by marketing entities. ## D. Domestic Order Trends * **Core Domestic Focus:** Iron ore and coal-based power plants remain strategic priorities, with active tender participation and ongoing evaluation of **addressable market opportunities**. --- # 5. Manufacturing & Capacity ## A. Key Figures * **Capex (FY '26–'27):** **$30 Mn** Chile · **₹30 Cr** Dahej · **₹20–25 Cr** McNally (as needed) * **Maintenance Capex:** **₹50 Cr** annualized (group level) * **McNally Delivery Progress:** **20–25%** delivered as of now ## B. Chile Expansion * **Strategic Scaling:** Chile expansion underway via greenfield project to address capacity constraints, reinforcing Tega’s established presence in the region. * **Timely Commercial Launch:** New Chile facility on track for commercial production around the same time next year, with alternate plants ensuring uninterrupted sales. * **Order Book Utilization:** Initial production will draw from existing order backlog; new order intake remains decoupled from manufacturing capacity. * **Phased Investment:** Chile, Dahej, and McNally capex to be spent over two years, with slightly over half allocated to FY '26. ## C. Dispatch Readiness * **Operational Efficiency:** Improved dispatch readiness and reduced throughput time mitigate longer transit periods, supported by real-time shipment tracking. --- # 6. Supply Chain & Costs ## A. Supply Chain & Logistics * **Freight Cost Management:** Freight costs have stabilized, with a one-quarter pass-through to customers effectively insulating margins from volatility. * **Resilient Operations:** Despite ongoing supply chain disruptions, proactive coordination with customers and shipping lines ensures continuity in raw material intake and product deliveries. ## B. Raw Material Volatility * **Stable Cost Environment:** No significant cost headwinds observed in the current quarter, with no anticipated adverse trends in raw material or logistics expenses. --- # 7. Risks & Competitive Landscape ## A. Key Figures * **B. S. Revenue Exposure:** **4–5%** of total revenue * **U.S. Export Exposure from India:** **<2%** of total revenue ## B. Competitive Dynamics * **Resilient Positioning:** Chinese competitors and FLSmidth’s foray into composites are not viewed as material threats, underscoring Tega’s entrenched market position over its 50-year history. * **Barriers to Entry:** The consumables market favors incumbents with proven track records, limiting disruption risk from established players like Metso and FLSmidth expanding offerings. ## C. Global & Macroeconomic Risks * **Cautious Optimism Amid Uncertainty:** Company remains resilient in the face of macro volatility, supported by a diversified portfolio, strong balance sheet, and customer-centric model. * **Strategic Flexibility:** Global manufacturing footprint—including Chile—enables mitigation of regional trade risks, with operational agility to shift production if impacted by U.S. tariff developments. * **Energy Transition as Catalyst:** Rising demand for critical minerals is reshaping the mining sector, creating tailwinds aligned with Tega’s product and market focus. --- # 8. Guidance & Outlook ## A. Key Figures * Global Copper Demand: 24.6 Mn Tonne (2026) → 28.3 Mn Tonne (2030) (~3.5% CAGR) * **Global Gold Production:** **3,582 MT** (2026) → **4,245 MT** (2030) (~4% CAGR) * **Tega Revenue Guidance:** **15% CAGR** group-level · **25% CAGR** Equipment business * **Consolidated EBITDA (ex-other income):** **₹556 Cr** (Q1 decline of 13%) ## B. Market & Strategic Positioning * **Structural Tailwinds:** Global copper and gold markets projected to grow at ~4% CAGR through 2030, driven by electrification, EVs, central bank demand, and energy transition infrastructure. * **Strategic Alignment:** Tega is positioning to capture growth in mining and mineral infrastructure, particularly in copper and lithium, leveraging demand from clean energy and transportation megatrends. ## C. Margin Guidance * **Margin Resilience:** Recent margin decline viewed as short-term and seasonal; full-year margin guidance remains intact despite Q1 pressure. ## D. H2 Revenue Buildup * **H2 Revenue Acceleration:** Revenue and EBITDA recovery is back-end loaded, with sequential improvement expected each quarter, culminating in stronger H2 performance. * **Guidance Confirmed:** Company reaffirmed confidence in achieving FY26 earnings targets, underpinned by seasonal rebound and execution visibility.