• Mining demand tailwinds: Falling ore grades and increasing ore abrasiveness in gold and copper mining require processing higher volumes of ore, structurally driving demand for Tega's mill liners and Molycop's grinding media.
• Segment margin outlook: Legacy consumables are projected to sustain a >15% CAGR with 22%–24% EBITDA margins, Tega McNally equipment is growing at ~25% CAGR with 14%–15% margins, and Molycop is guided for 5% revenue growth with margins rising to 14%, yielding a ~15% consolidated EBITDA margin.
• Deleveraging roadmap: Consolidated net debt is expected to decrease from 4.5 turns of EBITDA to approximately 3 turns by FY29, supported by an estimated annual unlevered free cash flow generation of nearly ₹900 crore.
• Capex requirements: Future capital expenditure remains limited, with Molycop requiring roughly $30 million in annual maintenance capex and Tega needing $12–$14 million to finalize its Chile expansion, ensuring sufficient operating capacity for the next 3 to 4 years.