Tega Industries has completed the acquisition of Molycop, adding grinding media to its portfolio and expanding its presence in major mining markets.
Management called the deal a transformational milestone. The acquisition brings together Tega’s mining consumables and mineral processing business with Molycop’s grinding media operations.
The combined business is expected to offer a wider product range and deepen customer relationships. It also gives the company a larger global footprint and opens up cross-selling opportunities.
Order book offers near-term visibility
Tega ended FY26 with an order backlog of about Rs.1,206 crore.
Management said around Rs.906 crore of orders are expected to be executed over the next 12 months. The backlog grew about 18% year-on-year, reflecting demand across both consumables and equipment businesses.
Consumables business remains the mainstay
Mining consumables continue to account for the largest share of revenue.
Operations faced temporary logistics and shipment disruptions during FY26. Despite that, management maintained its long-term growth target of around 15% for the segment.
Demand is being supported by mining activity in commodities such as:
- Copper
- Gold
A growing order pipeline is expected to support sales of:
- Wear-resistant products
- Mill liners
- Other mining consumables
Equipment division keeps up momentum
The equipment business recorded 25% growth in FY26.
Management expects a similar pace in FY27. Growth is being driven by investments in:
- Mining projects
- Mineral beneficiation facilities
- Power sector opportunities
The company also sees room for expansion in overseas markets.
Chile plant on track
Construction of Tega’s manufacturing facility in Chile is progressing.
Management said about 50% to 60% of the civil work has been completed. The plant is expected to be commissioned in early Q3, subject to regulatory approvals.
Commercial production could begin toward the end of Q4 or in the following year. Revenue contribution from the facility will depend on the approval process.
New products and overseas markets
During FY27, Tega plans to launch an aggregate processing product through its technology partnership in Japan.
The company is also expanding its presence in:
- Canada
- CIS countries
- The Middle East
- Other international markets
These efforts are aimed at diversifying revenue and broadening the customer base.
Technical levels
According to the technical view cited in the source copy:
- Immediate support is seen near Rs.1,532
- Closest resistance stands at Rs.1,877.70
- The stock is trading around the breakout zone near resistance
- It had remained between Rs.1,532 and Rs.1,877 for four to five months
- The stock recently broke a long downward trendline
Multiple growth drivers are in place for FY27. They include the Molycop acquisition, the existing order backlog, the Chile facility and expansion into new markets.
TL;DR:
Tega Industries has completed the Molycop acquisition and entered FY27 with a Rs.1,206 crore order book. Management expects continued growth in consumables and equipment, while a new Chile plant and expansion into overseas markets are expected to add capacity and diversify revenue.
AI summary:
- Tega Industries has completed the acquisition of Molycop.
- The company ended FY26 with a Rs.1,206 crore order backlog.
- Consumables growth is projected at around 15% over the long term.
- The equipment business grew 25% in FY26.
- A manufacturing facility in Chile is expected to be commissioned in early Q3, subject to approvals.
