Tega Inds. Q2 FY27 Results (NSE: TEGA)
Signal: Slipped to loss
The read
The Molycop-led scale-up is visible in ₹42,540.35 million revenue, +949.3% YoY, but the immediate trajectory is margin and financing stress: gross margin compressed 1,938bps to 39.3%, EBITDA margin fell 401bps to 13.1%, and ₹2,918.99 million finance cost plus ₹1,316.76 million tax expense produced a ₹587.74 million loss. This is the second post-acquisition results cycle, with revenue up from ₹17,234.42 million sequentially but profitability still below the prior ₹449.39 million PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,254.04 Cr | +949.3% | +146.8% |
| Net profit | ₹-58.77 Cr | -230.8% | |
| EPS | ₹-6.32 | -193.6% | |
| EBIT margin | 13.06% |
P&L walk
Revenue reached ₹42,540.35 million, +949.3% YoY, but gross margin fell to 39.3% from 58.7%; EBITDA was ₹5,557.27 million with a 13.1% margin, while ₹2,918.99 million finance cost, ₹1,685.75 million depreciation and ₹1,316.76 million tax expense drove a ₹587.74 million PAT loss.
Segments
Consumables - Grinding Media is the clear driver at ₹37,715.82 million revenue and ₹4,780.14 million segment result, while Equipment contributed only ₹615.01 million revenue and ₹11.17 million result; the segment table confirms the acquisition-led scale is concentrated in Grinding Media.
Key positives
- Consolidated revenue reached ₹42,540.35 million, +949.3% YoY and +146.8% QoQ, with Consumables - Grinding Media contributing ₹37,715.82 million revenue and ₹4,780.14 million segment result.
- Operating cash flow was ₹7,126.33 million in H1FY27 versus ₹1,539.45 million in H1FY26, despite the reported ₹1,670.26 million H1 consolidated loss.
- Employee cost fell to 9.1% of consolidated revenue from 17.3% YoY as the acquired revenue base scaled faster than employee expense.
- PPE increased to ₹33,454.33 million from ₹3,817.73 million and CWIP to ₹3,625.43 million from ₹1,072.15 million, while depreciation rose correspondingly to ₹1,685.75 million in the quarter.
Key concerns
- Gross margin compressed to 39.3% from 58.7% YoY as materials consumed rose to 56.7% of revenue from 38.0%; the filing does not identify a clear pricing, input-cost or mix offset.
- Finance costs rose to ₹2,918.99 million from ₹57.78 million YoY and ₹1,167.08 million QoQ, consuming more than half of segment EBITDA of ₹5,557.27 million.
- The consolidated group reported a ₹587.74 million PAT loss despite ₹729.02 million PBT, because tax expense was ₹1,316.76 million; the tax charge materially amplified the operating result.
- Inventory rose to ₹55,431.53 million and trade receivables to ₹25,589.23 million after acquisition, increasing working-capital execution risk.
Research and educational content only. Not investment advice.