Tega Industries: Strong Outlook Ahead

Ashwin Thakker

— 2 min read
  • Sales Growth: Anticipates maintaining a 15% CAGR group-level growth.
  • McNally Segment: Projects over 25% growth for McNally in the foreseeable future.
  • Equipment Segment: Forecasts 35-40%+ growth.
  • Blended EBITDA Margins: Expects to maintain 21-22% blended EBITDA margins for the full year.
  • Consumable EBITDA Margins: Guides for 22-23% margins in consumables.
  • Equipment EBITDA Margins: Guides for 12-13% margins in equipment.
  • Order Book: Current order book of INR10,053 million, with INR6,103 million executable within the next 12 months.
  • Chile Expansion: New capacity in Chile expected to add INR1,000 crores to top-line revenue upon full utilization.
  • Revenue Weightage: Pickup in revenues is more weighted towards H2 of FY26.

Tega Industries Limited, a leader in mining consumables, is poised for robust growth, reinforcing its strong market position and positive forward-looking guidance. The company remains confident in achieving a 15% Compound Annual Growth Rate (CAGR) at the group level, underpinned by strategic investments and a healthy order book. This outlook emphasizes Tega's commitment to sustainable expansion and operational efficiency.

Driving Future Growth Through Strategic Investments

Tega Industries is strategically expanding its global footprint, particularly in copper-rich regions like Latin America and Africa, where demand for its products is robust. The company's significant investment in capacity and talent in Chile is a cornerstone of its long-term growth strategy. Management highlighted,

“this additional capacity that we will have through the new project will help us add incrementally another INR1,000 crores of top line revenue to our business when it goes fully online, at 100% capacity utilization.”

This expansion, coupled with a current order book of INR10,053 million, positions Tega to capitalize on the increasing global demand for critical minerals driven by electrification and energy transition.

Sustaining Healthy Margins

Despite some quarterly variations, Tega Industries anticipates maintaining strong profitability. The company projects blended EBITDA margins of approximately 21-22% for the full year. Specifically, the consumables segment is expected to achieve 22-23% EBITDA margins, while the equipment segment targets 12-13%. Sharad Khaitan, CFO, affirmed,

“we shall maintain our growth EBITDA margins of about 22%, 23% in the consumer segment. and in the range of 12% to 13% for the equipment.”

This confidence stems from increased sales volumes in the latter half of the fiscal year, which are expected to improve overall EBITDA margins as fixed overheads are better absorbed.

Tega Industries Limited's Q1 FY26 earnings call underscores a positive outlook for the future. The company's guidance points to sustained revenue growth, driven by strategic capacity expansions and strong demand in key mining sectors. Coupled with a commitment to maintaining healthy margins, Tega is well-positioned for continued financial performance and value creation for its stakeholders.

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