Tega's operating profit jumps 780.21% QoQ, but net loss remains
Revenue rose +146.83% QoQ as expenses grew +125.73%, but higher interest and a 180.62% tax rate kept net profit negative.
Filed 05 Nov 2026, 14:52 IST · Tega Industries Ltd (TEGA)
Key takeaways
- Consolidated operating margin expanded 8.28 percentage points QoQ to 11.50% as revenue growth of +146.83% outpaced expense growth of +125.73%.
- Net loss narrowed 45.71% QoQ to Rs 58.77 cr, but a 180.62% tax rate more than offset positive pre-tax profit.
- Other income contributed 60.70% of pre-tax profit, while interest expense rose +150.11% QoQ.
Price around the results
Operating rebound lifts margin
Tega's consolidated operating profit rose +780.21% QoQ as revenue growth outpaced expense growth. That widened operating margin by 8.28 percentage points to 11.50%, although the margin remained 0.66 percentage points below the 12.16% median for 152 Industrials peers that have reported. The sequential improvement follows a 3.22% operating margin in Q1FY27.
Interest and tax absorbed operating gains
Interest expense increased +150.11% QoQ and depreciation rose +128.97%, limiting the conversion of operating profit into pre-tax profit. Other income accounted for 60.70% of pre-tax profit, making reported profit quality weaker than the operating improvement suggests. The 180.62% tax rate then turned positive pre-tax profit of Rs 72.90 cr into a net loss of Rs 58.77 cr.
Consumables growth offsets equipment weakness
Management said consumables revenue increased 30% year on year and absolute EBITDA rose 42%. It also said equipment-business revenue fell by INR 378 Mn and EBITDA declined by INR 182 Mn year on year. The presentation records Molycop grinding-media volume of 415.6 KT for the four months from June to September 2026.
Order book provides the next execution marker
Management said the company has an executable order book of Rs 11,576 Mn scheduled within one year. It also said a secured Rs 1,260 Mn order is expected to be executed within 14 months. These are company statements about planned execution, rather than reported revenue for this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4,254 cr | ₹1,723 cr | +146.83% |
| Other income | ₹44 cr | ₹18 cr | +142.07% |
| Expenses | ₹3,765 cr | ₹1,668 cr | +125.73% |
| Operating profit | ₹489 cr | ₹56 cr | +780.21% |
| Operating margin (%) | 11.50% | 3.22% | — |
| Interest | ₹292 cr | ₹117 cr | +150.11% |
| Depreciation | ₹169 cr | ₹74 cr | +128.97% |
| Profit before tax | ₹73 cr | ₹-116 cr | — |
| Tax | ₹132 cr | ₹-8 cr | — |
| Net profit | ₹-59 cr | ₹-108 cr | +45.71% |
| EPS (₹) | ₹-6.32 | ₹-11.47 | +44.90% |
Operating margin of 11.50% compares with a Industrials sector median of 12.16% across 152 peers that have reported Q2FY27.
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 recorded grinding media volume of 415.6 KT during the four months from June to September 2026.
- Consumables revenue increased 30% year on year and absolute EBITDA increased 42%.
Guidance & outlook
- The company expects execution of a secured Rs 1,260 Mn order within 14 months.
- The company has Rs 11,576 Mn of executable order book scheduled within one year.
New orders
- The company secured an order worth Rs 1,260 Mn, with expected execution in 14 months.
Problems & risks
- Equipment business revenue declined by INR 378 Mn and EBITDA declined by INR 182 Mn year on year.
What to watch
- Whether operating margin holds above 11.50% after the 8.28-percentage-point QoQ improvement.
- Whether interest expense moves from Rs 291.90 cr and the tax rate from 180.62%.
- Progress against the Rs 11,576 Mn executable order book and the Rs 1,260 Mn secured order.