Tega Industries Limited (TEGA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Tega Industries Limited Q4 FY26 Earnings Conference Call hosted by Zollot Capital Markets Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Varun Jain from Daulat Capital. Thank you, and over to you, sir.

Hi. Good evening, everyone. So, welcome to the Q4 FY26 earnings conference call of Tega Industries. So, today we are joined by the Senior Management of Tega Industries, as well as the Senior Management of Morley Corp. So, the participants are Mr. Mehul Mohonka, MD and Group CEO, Sega Industries, Mr. Shama Kasaj Ganguly, Interim CFO, Mr. Pratik Basurwai, President, Product Management, Global Sales and Marketing, and from MolliCorp, we have Mr. Lance Topper, Chief Operating Officer of MolliCorp, and Mr. Patrick Kohli, Chief Financial Officer of MolliCorp. We'll begin with some opening remarks by the management, followed by the Q&A.

Thank you. Good evening and a warm welcome to all the participants on the call.

I'm joined this evening with Mr. Saurav Sen, CEO of Tegra McNally, Prateek Basu-Roy, President, Product Group and Sales, Mr. Sharma Prasad Ganguly, our Interim CFO, and it's a pleasure to also introduce the team from Mollecock. I'd like to introduce Lance Dober, Chief Operating Officer, and Patrick Coley, CFO. Thank you for joining us today. It's a pleasure to connect with all our valued investors, analysts, and stakeholders. I hope you and your families are keeping well. Our consolidated revenue for the year-ended FY26 stood at $17,736 million, representing a 5% year-on-year growth. We delivered an EBITDA before exceptional items of $3,967 million for the full year, with EBITDA margins of 22%. Exceptional items comprise of Molycorp-related acquisition costs of $775 million and $64 million towards the labor code impact. In FY26, our gross margins remain healthy at around 60% of revenue from operations, reflecting strong operating discipline and a resilient product mix. Our equipment business recorded strong momentum, closing the full year with revenue of $2,688 million, a 25% year-on-year increase compared to the same period last year. We continue to make focused efforts to accelerate our growth trajectory in Q1 FY27, supported by a healthy order pipeline and operational improvements. As of December 31st, Our order book stands at approximately $12,060 million, with $9,060 million executable within the next 12 months. This provides strong visibility and confidence in our growth trajectory. As per World Gold Council data for calendar year 2025, gold demand reached record levels exceeding 5,000 tons, driven by strong investment demand and sustained central bank purchases. At the same time, supply growth remains constrained at around 1% annually, reinforcing gold's structural scarcity and its role as a strategic asset. As per ICSG data, global copper demand is growing at 3% annually, while supply growth remains relatively constrained at 2%, reflecting limited mine expansions. In the near term, production growth continues to be modest, highlighting persistent supply-side challenges. From a longer-term perspective, UNCT80 projects upper demand to increase by over 40% by 2040, driven by electrification and the energy transition. Meeting this demand would require significant investments north of USD $250 billion and development of nearly 80 new mines, underscoring a structural supply gap in the industry. This surge in outlook has prompted mining companies to ramp up exploration and production. Especially in copper-rich regions such as Latin America, North America, and Africa. As on 1st June, 2026, we have successfully completed the acquisition of MollyCorp in partnership with Apollo Funds, a significant minority shareholder, marking a transformational milestone in Tega's growth journey. This combination creates a stronger, more diversified global mining solutions platform with enhanced scale, deeper customer relationships, and expanded geographic reach. A key priority over the coming quarters will be the successful integration of Tega and Molycorp across key functions with a focus on establishing streamlined processes, unified operating standards, and robust governance mechanisms. The integration will span critical areas. Through this, we aim to build a more agile, scalable, and globally aligned organization capable of delivering sustainable long-term value while maintaining a strong focus on discipline, execution, and accelerated growth. I want to thank our employees for their unwavering commitment, to our customers for their trust, and you, our investors, for your continued support. We are committed to delivering sustainable value and transparent communication. I would now like to hand over to Lance and Patrick to share their thoughts before Shama takes you through the financial performance of the company. Thank you.

Over to you, Pat. Thank you. This is Patrick Coley, Malikoff CFO. We are very confident that this combination will create a stronger growth platform, unlocking exciting opportunities for sustainable growth and long-term value creation for all stakeholders. We would like to express our sincere gratitude to all the stakeholders and investors for their continued trust and support as we begin this new exciting chapter for Tega Industries. I'd now like to hand it over to Lance Dauber.

Thanks, Pat, and good evening to everyone. My name is Lance Dauber. I'm COO for Mockipop. We are delighted with the successful completion of this transaction. It marks a transformational milestone for both Tega Industries and Molycop. This partnership brings together two complementary organisations with deep mining expertise, strong customer relationships, and a shared commitment to innovation and operational excellence. I'll hand it back to the Tega team to finish the call.

Shama, if you could take over from here.

Yeah. Thank you, Mel. Good evening, everyone. Thank you once again for joining the earnings call for Q4, FI26, and FI26 performance and results. A good income, total income for the period ending March 26 to that $70,736 million, vis-a-vis $16,818 million in FI25. Year-on-year basis, the total revenue have grown by 5%. Our adjusted EBITDA for FI26 is $3,967 million, excluding one-time exceptional items to a small cup acquisition and labor court. Our EBITDA margin is at 22% in FI26 against EBITDA margin of $3,829 million in FI25. For the period ending March 26, consumable business segment and the equipment business segment contributed 84% and 16% of the group's revenue from operations respectively. Equipment business has shown a robust growth of 25% at revenue from operation level. EBITDA margin has gone up from 12% to 13% and PBT margin from 4% to 8%. As mentioned at the start of the call, during the period under review, we have accounted for the one-time exceptional expenses related to proposed mollicub acquisition and with regard to provisional fees, due diligence, legal consultancy, as per the terms and agreed milestones. Additional charge in employee benefit expense as a one-time charge on account of new labor costs, which accounts for, in totality, $839 million. Our order book for both the business segment, that is consumable business segment and equipment, remains strong. We have an order book of $12,060 million as a 31st March 26, out of which executable orders within one year is $9,060 million. Pending order as a 31st March 26 is higher by 18% over last year. The total group income for Q4, FY262 debt, $5,633 million, with an adjusted EBITDA of $1,632 million, which is 29%. Our group revenue for the similar period was $5,428 million, with an adjusted EBITDA of $1,566 million, which was, again, 29%. During the current quarter, under reporting, the consumer business segment and the equipment business segment contributed 84 and 16% at revenue for operation level. The revenue for operations of consumer business segment reported $4,406 million in Q4, vis-à-vis $4,568 million in similar period, which is down by $162 million. On a full year basis, consumer business segment revenue remains flat. Majorly because of the reasons, customer orders of both spares and conversions have been shifted towards end of Q3 and Q4. We have seen significant order booking during the February and March specifically, thereby our pending order has gone up by almost 18% year-on-year, which shall be materialized in the coming quarters in Q1 and Q2. The revenue for operations of equipment business segment witnessed an increase of 69 million, that is 9% in Q4. We have maintained healthy gross margin of 60% at the group level, vis-a-vis 58% last year's CM period, in spite of the raw metal volatility, global uncertainty, and higher share of equipment business segment. Thank you very much for your time. Now the forum is open for any question you may have.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Deepak Podhar with Sapphire Capital. Please go ahead.

Yeah, I'm audible, sir.

You are audible. You may proceed, sir.

Yeah, yeah. Thank you very much, sir, for this opportunity. So just first off, just wanted to understand this consolidation and from when the consolidation will be happening and what sort of debt addition we are expecting because of this consolidation. I mean, the fund that would be required at the parent level, yeah.

So, if you're talking about Molycorp, yes, the date of acquisition is 1st of June, so we'll be considering from 1st of June onwards. The first consolidation will happen at the end of June, that is the first quarter result. We'll be considering, and with respect to date.

Yeah, this is Emansha Rajadaya. With respect to debt addition, we'll be adding close to $838 million of debt in our financial as of 1st of June, which is what we have taken over as debt. And also, just to let all the investors know that the initial debt levels was close to more than $1,050 million, which has been paid down by close to $220 million to bring down the debt at $838 million of number.

Yeah, and what is the additional debt that we will have to take from at the parent level? I think 1,700 crores we already raised, but I think we require around 3,500 crores, right, to fund this acquisition. I mean, this is the debt that has come from Molly Corp. I was just asking from at the parent level what sort of additional debt we require.

At parent level, we'll be adding a debt of 1,500 crores in our book, which we have taken from Stan Chartered and other banks, including Access and Exib. Okay, and that we would have already taken, right? Yeah, that's already done, and that amount was used specifically for acquisition financing and transaction expenses, which we wanted to incur.

Correct. And this first quarter, only one month of consolidation will be there from MolliCorp.

That's correct. Thank you.

Yeah, yeah. Okay. And my second question is on your growth. I mean, at the parent level, Tega, so what sort of growth we are looking at for this year and MolliCorp as well, and what's the MolliCorp revenue and margins in FY26?

From a TIGAM perspective, the consumable business, we are expecting the normal CAGR of about 15% to be maintained going forward. And I

think for our business, we also expect a similar growth like we did in FY26, which is in the range of 25%.

Okay. Yeah, that's helpful. And what about Molycorp? Molycorp, revenue in FI26 and what sort of growth outlook we have in Molycorp?

So, in particular, this is just off late we have did the acquisition. We are reassessing the numbers currently, and most likely, this is high-level assumptions what we have. The growth outlook, what we are looking for, FY27, is 3% in FY27 in particular. And, of course, this will be refined further once we have a detailed engagement with the management team of Molecon.

Understood. And what's the absolute level in FA26 of MollyCorp in revenue and EBITDA? Yeah, that would be my last question.

So, we are anticipating a growth of around 1% in FY26, and anticipated EBITDA margin should be close to 12%, because, and just to give a caveat here, that Mollicov has a financial year ending at 38 June, and, of course, once we consolidate, this financial year ending also will change to March ending in alignment with Tega Industries.

And what was the absolute number? I just wanted to know the absolute number for Tega last year, maybe. Yeah. For Molokov for last year, yeah.

Molokov last year was $1539 million for previous year.

Okay, okay. That's very helpful, sir. I mean, that would be it from my side. I would like to wish you all the way. Thank you so much. Thank you.

Thank you. Our next question comes from the line of Chirag Munchala with Centrum Broking. Please go ahead.

Yeah, thank you, and congratulations to the Tega team for the successful conclusion of Monikop acquisition. Sir, firstly on Monique, so if you can provide a medium-term outlook, and since we also have Monique Ops management with us, if you can, you know, also express your thoughts as to earlier, under the AIP management, and now under Dega management, what are the changes that you see in terms of synergies that is possible to be derived?

Sir, that is the first question. Yeah, so in particular,

our very primary focus will be to bring down the debt in the next three years to a level wherein 3x of leverage. Three to four years is what we are taking at the time to bring down the debt to 3x level. And, of course, with this new acquisition, most of the revenue synergies will lie in Pega, and the cost synergies will lie with Molucop. And that's how we are looking this as. And third basket is what we are looking at of selling of non-core assets in particular. These are the three major Synergy line items which we are working closely with the Molokov team. And we have a detailed plan of 100-day, 200-day, and line-wise. That's how we are working. Of course, it is very preliminary to give a number to each of the line items as of date. But yeah, as soon as we have detailed each of the synergy plans, we can come with a guidance on that.

Thanks for that. Secondly, if you can provide an update on our chile plant commissioning.

Chile plant commissioning and the construction is going as per our plan, so almost civil work has been completed, 50-60% of civil work has been completed, and we are expecting by early Finally, Q3, we'll be able to commission the plant. Of course, there will be certain regulatory approvals which will be required to start the commercial production, but it is as per our plan.

Okay, so for FY27, we will have around one quarter of any booking from that plant?

We are still hopeful, but we need to get some regulatory approval, which we need to work out. So, there almost quite a number of regulatory approvals are required post-completion of the plant. So, we are hopeful, but it may be we can start booking from end of Q4 or maybe next year.

Okay, next question is on the Moni Corp related acquisition costs around 775 million rupees has been booked for H2FI 26. So, has entire acquisition cost been already booked this year or more can come in Q1 also since the acquisition has just concluded. So, just talk about clarity on that also.

So, some more costs will come. So, there are quite a number of consultants, professionals who are engaged in this entire acquisition process. So, as and when the works are getting completed, we are settling everything. So, some more costs will come, and we shall keep you updated in the subsequent quarters. We have been doing this, and we shall keep you posted.

Okay. But, sir, the quantum will be as large as it was in Q4?

So, Ashirad, just to answer your question, the quantum will be much higher because we have built-in debt refinancing costs and all the preference costs which we have bought in for this acquisition financing. So, all costs have been paid in this year, which crystallizes because of the acquisition purposes, which could not be provisioned in earlier year. Hence, we anticipate a higher number in Q1, which will be the final payoff. We don't get it extended to the rest of the year. So, of course, in case if you're looking for a number, it will be close to $30 million of acquisition costs, which we lack to pay in Q1. Okay.

And last, you have a considerable expense.

Sorry to interrupt you, Charaag, but your line is not very clear at the moment.

Any audio now?

A little better please go ahead.

Yeah, sure. So the last question is on consumable segment. So we have actually had a very flat revenues in this year. So just wanted to understand has the industry growth been weak this year or have we lost some market share or some specific geographies which have not done well if you can highlight this.

Hi, this is Pratik here. So the industry here, there's actually, as we said in our opening statement, there's robust growth is there. Actually, there is a demand and supply kind of a gap that's coming forecasted for the future. In terms of order booking revenues, we have grown significantly, and hence you can see the additional 17% growth in executable orders that are executable in the next one year. So the revenue is kind of a timing issue because most of the orders came in February and March, so they're in the process. And you can also see that in the increase in the FG goods that has come up in our financials. So, right now, there will not be a challenge in the market or in our order booking and going forward.

Thank you. Our next question comes from the line of Varun Jain from Dollar Capital Markets Private Limited. Please go ahead.

Oh, yeah. Hi. Good evening, sir. So, my first question was on the consumables business only. So, in Feb 26 call, I think management has guided consumables for the year will end at 8%, but it has ended a little flattish. So, any reason, like, in the past three months, like, such a bit divergence came?

So, as I just mentioned, a lot of the orders have come in the last two months, and hence our pending order book has grown significantly from last year to this year, so FI25 to FI26, and hence you can also see that the orders are being executed from the increase in the FG that has gone into the financial year.

And to add this, Varun, Because of the start of this work, there was quite a significant amount of disruption in the logistical area, and which has led to the increase in our FG, because metal was produced, could not be dispatched because of the availability of the vessel connection and the containers, which we have seen in the month of March. So, that is one reason it has led to this flat-ish kind of revenue growth. But we are very hopeful that things will be normalized, and our quarter one, quarter two will be much better.

Sure, sir. So, sir, my question was that, like, if I look at the consumables growth year on year, so in F524, it was 10%, and F525, 11, and 26 flat. Even the past three years, management keeps guiding 15%, but consistently, consumable segment has been weaker. So, would you like to, like a longer-term guidance, would you like to devise it down to maybe 10% or 12%?

No, I think it's the cyclicality of the business that is there. So, we remain firm on our guidance of 15% on a long-term basis.

Okay, sir. And, sir, on the equipment business, I think this year was a tail off to half. So, H1 grew 65.4% and then H2 was plattish. So, why was that like such big variance?

Yeah, I think, you know, for us in the equipment business, we have a kind of, you know, second time for delivery and execution. And although we kind of, you know, some of the, we had a project which we kind of, you know, executed this year. So I think overall, if you see of the whole year, we maintained our same guidance. Compare the 25% growth compared to FY25. And how we distribute the order execution, it also depends on various factors like the readiness of site of customers and the timeliness of the project where they pick up the equipment. So all are kind of, you know, you have to see this over a period of one year at least, the revenue and delivery development. And I would say that that's what exactly happened. And we stayed what we said in FY26. And we continued that kind of, you know, fulfilled that kind of guidance of growth.

Okay, sir. And so the next question was, so I think in the previous response, management said that in Q1, they'll be taking a 30 million USD loss. In Q1, so then will FY27 console, there will be a loss because this will be like a big loss, right?

No, it's not, sorry, Varun, this is not a loss which I mentioned. It was the transaction expense which Chirag was asking, what will be getting billed in Q1? That's what we answered, not a loss.

Yeah, so that expense will, like, it will flow through the P&L only. So, for FY27, the entire P&L will become negative, right, because of this particular expense, right, on a reported basis at least.

Not exactly, I don't know why you're saying it's a loss, but it is more, we have to see it, since we are acquiring Molecob, these are one time of an exceptional expenditure, and of course, once the revenue starts consolidating and EBITDA margins and PACT, PBT starts getting consolidated, all these will be sort of negated in terms of the margins, and we'll see a surplus there.

Oh, okay, sir. Okay. And just last one from me. So, FY27, what will be the total capex and what will be the breakup of it? And how much will be in Chile?

So, in FI27, the CHIRI CAPEX will be completed, which was around 25 to 30 million dollars, which we initially estimated. Other than this, we keep on investing on our CAPEX on modernization of our plant and sustaining CAPEX, which ranges around 50

to 60 crores, which

happens across the geographies. So, this is what the plan as of now. So, as things are coming up, we'll keep you updated.

And, sir, for MollyCop, how much will you spend in FY27?

So, currently, what we have budgeted is for a kind of maintenance capex of $20 million, and, of course, the growth capex will be aligned with the expectation of management team, and we'll derive a number there. So, currently, management, the growth capex is yet to be factored, but maintenance capex is $20 million.

Okay, sir. So, just so you are saying 30 million for that, Chile's 6 million is maintenance for Tega and 20 is maintenance for Molly Corp. So, that would be close to 55 million capex. So, how will this be funded? Because this is other than the money which will be needed for the deal and expenses, right? So, how will this be funded?

So on the Sustaining Capes, which is 50 to 60 crores, which is funded through our internal Like rules. And the CHILIC effects have been funded through internal actuals and borrowing, which has already been in place, and we have started using that as well.

On the Molycop, it is generally, if we see the number of CAPEX in terms of revenue, it's 2% or 3% of the total revenue. It's not a heavy debt or CAPEX intensive business. This can be easily managed from the cash flows of Molycop, and we don't need to borrow any money for the CAPEX.

Okay, sir. Okay, I'll come back in with you. Thank you.

Thank you. Our next question comes from the line of Deepak with Sundaram Mnichir Phan. Please go ahead.

Yeah, thank you for the opportunity. I'm audible. Yeah, hi. So I had a couple of questions. So first, you know, if I look at our closing order book of one year and less, you know, it has gone up meaningfully, which you have called out in the opening remarks as well, right on a YOY basis, but our execution has kind of lagged behind, which is reflected in our consumable revenue number. And you pointed out that Q1 and Q2, you are going to see a higher execution. So just wanted to know what will change in the operating environment for this execution to pick up in the first half of this fiscal year. And did we add any new set of customer in FY26 for our consumable business?

So, with respect to the operation, there was other than the logistical challenge, there is no other issues, so all the production and other operations are going absolutely fine. The only challenge that we faced is with respect to these metalist disturbances, because of which the vessel connectivity was not there and the container availability, which has led to the increase in finished goods by almost 50 crores, which can result into 100 crores of additional revenue. So this is what it is, but we are expecting, we have started finding out alternate routes to deliver goods to the customers.

So Deepak, just to add on what yesterday you mentioned, generally how we have our business is on, we get the order book. After that, it takes time around three to six months to execute those orders because we are a bespoke kind of a design-led driven organization. So each order has to be designed separately, manufactured separately, and then dispatched. So there's a time lag between the order receipt and the revenue. So there is no operational challenge, so as to say. So, since we have received the order late, so the execution will also take its normal time.

Yes, but that was the commentary was similar in the last two quarters also, right? That the order will come in in the next quarter. But so that's why I wanted to understand what is changing in the operating environment for us to be a little more confident that, you know, H1 of this fiscal year would be better than what we saw in H2 of last fiscal year.

Yeah, because the order book has come in and you see that in the executable pending order that has gone up by about 17%. And you will also see that we have already started manufacturing those finished goods has also gone up. So that means gives you probably a surrogate for confidence that your business operations are following the order book pattern that we have mentioned earlier.

I can also add further to what Fatih was saying. We also have finished goods flowing from quarter four to quarter one. So as Mr. Ganguly had mentioned that there were some orders that could not get shipped due to lack of availability of containers, we would have finished goods sitting in quarter one, which will also get shipped out. So that will add to the incremental revenue.

Yeah, that's okay, but our inventory position hasn't changed much between two years. I mean to say fiscal 25 and 26 at the parent level.

But anyway, overall inventory, you may not be seeing that growth. Actually raw material inventory has come down, finished goods inventory has gone up, so when you will be having the little animal financial, you can get the little. Little breakup is not there in the result.

Okay. I have one question on Molikov. Since, you know, they follow in July to June fiscal, so earlier I heard the commentary that in this June 26 fiscal year for them, we did a 3% top-line growth and 12% margin. Was that – did I hear that properly?

For 26, you are mentioning Deepak?

No, for them it is July to June fiscal, right?

Yeah, yeah, July to June, fiscal, for the period ended June 26, is that your question, or for 27?

For their fiscal year, July to June 26.

So, is it year-ending 26 is what you're asking, or year-ending 27?

Yeah, yeah, year-ending 26, yeah. So, year-ending 26.

Yeah, so Deepak, year ending 26 will be sort of 1% growth in terms of revenue, and close to 12% of EBITDA margin is what we are looking at. But the point is that this will be consolidated for a month in FY27, because this acquisition got closed in June, 1st of June. So, hence, our reporting cycle will be accordingly giving the numbers.

Okay, got it. And one last question I had on equipment business. So, just wanted to know, did we add any new product lines during, let's say, FY26 in our equipment business? And do we expect any ramp-up in FY27 also? Because you have called out that we are anticipating a 25% growth in FY27. So, last year we had a… Big order win from NMDC, which helped us to rake in that growth. So just wanted to understand that, is it a new product or a new design or a new customer win, which will drive that 25% growth on a base of F526 for a Cupid in F527 also?

So, hi, this is Saurav. So, I have, you know, there are two parts to this, you know, to this question. So, first of all, we are continually, you know, participating in different projects, business, like what we did, you know, last year in MDC, and that's number one. So we believe that, you know, or we will get some of them. In this current financial, but having said that, we are also going to have a new product launch in aggregate business. This is already, we have a collaboration with Japanese companies, so that is what this launch will happen in this financial year. But also, we are going to see that there are a lot of headwinds available in our existing business and segments as well, and being led by CapEx, as well as the growth in power and mining and mineral beneficiation. And I think there are enough opportunity available, which will help us to get this growth, which we have already budgeted. And also, you know, and also to add to that, we are also looking at businesses across Indian border, and we have got some success as well in Canada, and also we are participating in project in Russia, and as well as we have trying to increase our footprints in Middle East, where we have already doing some kind of, you know, export business for beneficiation. So I think all put together that we'll be able to, you know, kind of, you know, reach what we have already targeted in FY27.

Okay, and so that Japanese collaboration…

Just to clarify, Rakhir, you mean CIS countries? Just to clarify.

Okay, okay, noted. And so when you said that Japanese collaboration means do we expect that new product to be launched in, let's say, later part of this calendar year, or is it like a very near-term thing which will be launching?

Look, this product will be launched in Q3. That is what we expect. And then it will be a forward-looking revenue for us. Okay.

Got it. Very helpful, sir, and all the best.

Thank you. Our next question comes from the line of Ankur Perival with Access Cap 2. Please go ahead.

Yeah, hi, sir. Thanks for the opportunity and congratulations for completing the acquisition there. My first question is on the growth strategy, you know, considering the combined network of Tega as well as Molycorp. What could be the low-hanging fruits here, the benefits of which we can be derived, let's say, in the near term, maybe over the next 12 months? And your guidance of, you know, 15-odd percent growth, you know, on the non-Molycorp business, does it include these benefits?

So, just to answer your question one by one, the 15% growth, what we have projected, it's non-Molycop synergies, what we are building in. This will, as I mentioned in my call during the earlier question-answer session, that we'll be re-evaluating our entire synergy framework along with the management by detailing each and every step there, and accordingly, we can give our guidance on the synergies which we need to be placing, either on Molucop, either on also in Tega.

Sure, that's clear. Second bit on, you know, the margin profile, and I'm, again, talking of, you know, the Tega consolidated numbers, X of Molucop. For the full year, we are seeing a gross margin expansion, but at EBITDA level, you know, because of the higher other overheads, I'm excluding the one-time year as well, there was higher rise in other overheads, which led to, you know, slight dip in EBITDA margin. Any specific reason for this sharper hike and how should one look at this number going ahead on the margin front?

So if you talk about EBITDA margin, we have always given a guidance that our blended EBITDA margin will be around 21, 22 percent. Yes, of course, this year it is slightly lower because of the revenue has not been picked up in the consumable segment. So we are still holding this guidance of EBITDA margin at 21, 22 percent at a blended level.

Sure, which will be for 27, X of Molycorp led any mercenary benefit. Right, right. Great, that's helpful. And last bit on the working capital. Historically, we have been pretty consistent in terms of our net working capital. But this year, there was a good reduction in FY26. Is it one time largely because of the payables increasing, or how should we look at that number?

This is basically, you have rightly

pointed out, this is because of payable improvement and you have seen the overall data number of days also will be reduced to some extent. So, it is because of good commission which we have made in last year. That's why the product wasn't able to sacrifice the release.

Sorry, so, you know, from a receivable point of view, there was a reduction as you rightly mentioned. So, should we consider, you know, these as a steady state number going ahead or probably it can bounce back, you know, to a higher number earlier?

So, on the receivable front, if you see, so receivable normally we maintain 100 to 100 Five days of DSOs, and we shall be continuing to maintain that. Of course, the data's volume can go up or down depending on the volume of sales because our Q4 revenue was slightly lower, so hence the data cycle was slightly, it has gone down, the absolute value has gone down, but on the DSL level, it has improved. Our own data collection has been very good, so we expect to maintain it at 100 to 105 days.

We are maintaining a very good data cycle in the last two, three years. So, it will, we are hopeful that it is going to be maintained going forward as well.

Okay. Great, sir. That's it from my side. Thank you and congratulations one to three. Thanks. Thank you.

Thank you. Our next question is a follow-up from Varun Jain from Atollas Capital Markets Private Limited. Please go ahead.

Yeah, I saw just a couple of follow-ups. So, if we take the adjustment of 776 million, this one-off expense, and if we add it back to the consumables EBITDA, then the consumables EBITDA margin would be close to 27.7%. So, is that the right way to look at it?

If you're doing it with Q4, yes, it is right, because consistently in year-on-year, our Q4 is higher than all the quarters. So, obviously, the EBITDA margin at Q4 level ranges around 27-28%. Okay.

And, sir, earlier, I think in Q3, Molly Corp's growth guidance for the next year was given at close to 7% or 8% and now it's been revised to 3%. So, is this a function of, you know, volume changing or we are changing our assumptions for the steel pricing because it's a function of that?

Sorry, Vatun, I think I need to check from where that guidance is coming from because in our earlier calls, we have never given such guidance of 70% of growth in ModelCop. So maybe I think we need to cross-check on where this reference is coming from.

It is from an ETE Now interview of the CEO in December. Okay.

So basically, I think I can just give you a reference where it was, I believe, six months back, which you are referring to. And we were anticipating that some mines which had gone into care and maintenance, particularly Cobra, Panama, and Grassburg, and this we were expecting at 10 point of time to come back in FY27. Hence, that will give us some additional volume jump. But this we are seeing, as per the market indicators, this will be deferred to FY28, and so we don't see a particular jump in FY27.

Okay, sir. And sir, for Molikov, can we expect the management to reveal the volume numbers because other grinding media players in the industry do that so we can get a sense of the market share and growth?

So generally, we don't give any market share guidance in our investor calls.

We maintain that stand. I think that's how we like to answer this question.

No, no, no, no, not the market share, sir. The volumes for Mollik of how much was Hygrom and how much was forged for the year.

So, this number is basically just since the month has ended, and we are yet to get that number refreshed. We can answer it at a later point of time, but not really as of now.

Okay, sir, and just the last one, sir, for the equipment segment, for FY27, will a 14% be the right margin to look at?

No, I think in our guidance, we have talking about 12% to 13% of EBITDA, which is basically we will maintain the similar kind of profitability what we did in FY26, and the growth also, what we mentioned, that will continue to remain in that range.

Okay, sir. That's all from me. Thank you and all the best.

Thank you.

Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen.

Thank you very much, everybody, for joining this call. So, we thank you once again for taking out your time and coming to our investor call. We'll keep you posted on any subsequent development, happy to interact and take any subsequent questions you have. You can reach out to our investor department. We'll be happy to address the same. Thank you so much.

Thank you. On behalf of Dollar Capital Markets Private Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.