Tega posts Rs 108.25 cr loss as Molycop deal costs hit Q1
The consolidated quarter included Molycop for only June, while interest and depreciation more than absorbed operating profit.
Filed 13 Aug 2026, 14:38 IST · Tega Industries Ltd (TEGA)
Key takeaways
- Tega reported a consolidated net loss of Rs 108.25 cr in Q1FY27, as interest of Rs 116.71 cr and depreciation of Rs 73.62 cr outweighed operating profit of Rs 55.57 cr.
- Management said the group incurred a one-time Molycop transaction expense of Rs 1,910 Mn, with an approximately Rs 280 Mn related tax impact.
- Operating margin of 3.22% was 11.20 percentage points below the 14.42% median for 138 Industrials peers that had reported.
Price around the results
Interest and depreciation pushed operating profit into a net loss
Tega remained operating-profit positive at Rs 55.57 cr, but interest of Rs 116.71 cr and depreciation of Rs 73.62 cr together exceeded that contribution. Profit before tax was therefore negative at Rs 116.48 cr, and the reported tax rate was 7.06%.
Operating margin trails the Industrials peer median
The 3.22% operating margin was 11.20 percentage points below the 14.42% median among 138 Industrials companies that had reported. With no quarter-on-quarter or year-on-year driver comparison provided, the main read-through is that Tega's operating profitability was near the bottom of its reporting peer set, ranking fourth from the bottom.
Molycop contributed for only one month but brought a large one-time charge
Management said the Molycop grinding media business was acquired effective June 1, 2026, so its results were included only for June in this quarter. The company also said the group incurred Rs 1,910 Mn of one-time transaction expenses, with an approximately Rs 280 Mn tax impact, making this a significant quality issue in the reported loss.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,723 cr |
| Other income | ₹18 cr |
| Expenses | ₹1,668 cr |
| Operating profit | ₹56 cr |
| Operating margin (%) | 3.22% |
| Interest | ₹117 cr |
| Depreciation | ₹74 cr |
| Profit before tax | ₹-116 cr |
| Tax | ₹-8 cr |
| Net profit | ₹-108 cr |
| EPS (₹) | ₹-11.47 |
Operating margin of 3.22% compares with a Industrials sector median of 14.42% across 138 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Molycop's results were included for only one month of the quarter because the acquisition began on June 1, 2026.
Expansion
- Tega acquired the Molycop grinding media business, with the acquisition effective from June 1, 2026.
Problems & risks
- The group incurred Rs 1,910 Mn of one-time Molycop transaction expenses, with a related tax impact of approximately Rs 280 Mn.
What to watch
- Whether operating margin moves above the reported 3.22% after the one-time Molycop transaction expense.
- Whether interest remains above operating profit, compared with Rs 116.71 cr versus Rs 55.57 cr in Q1FY27.
- How Molycop's contribution changes after its first full quarter of inclusion, following only one month of consolidation in Q1FY27.