Synopsis:
Shares slipped despite a major $1.5 billion acquisition alongside Apollo Funds, reflecting cautious sentiment. Strong global presence, steady revenues, and a healthy order book support long-term growth, though recent profit decline and funding needs highlight near-term margin pressures and financial commitments.
The shares of the prominent manufacturer of consumable products plummeted up to 2.3 percent in today’s trading session despite the company announcing an acquisition in a consortium with Apollo Funds worth Rs 13,000 crore.
With a market capitalization of Rs 13,677.70 crore, the shares of Tega Industries Ltd were trading at Rs 2,055.70 per share, decreasing around 1.15 percent as compared to the previous closing price of Rs 2,079.65 apiece.
Mega Acquisition
The shares of Tega Industries Ltd have seen bearish movement despite announcing the acquisition of the Molycop group in a consortium with Apollo Funds. The company will acquire a 100% stake in Molycop for an enterprise value of $1.5 billion, which is close to Rs 13,000 crore.
The acquisition will be done through a special purpose vehicle, in which Tega will hold 77 percent, while Apollo Funds will have a 23 percent stake. Tega will contribute $361 million or Rs 3,180 crore of the deal, of which Rs 995 crore will be through corporate debt, along with an equity raise of Rs 2,184 crore.
Molycop is a global leader in grinding media, serving over 400 mines annually with strong customer relationships averaging 25 years. With $172 million FY25 EBITDA, it operates 13 production sites worldwide. Backed by a long-tenured leadership team, Molycop ensures 100% on-time delivery, 80 percent equipment effectiveness, and primarily caters to copper and gold mines.
The company posted mixed Q1FY26 results with revenue rising 5 percent to Rs 356 crore from Rs. 340 crore in Q1FY25, reflecting steady growth. However, net profit dipped 5 percent to Rs 35 crore, down from Rs 37 crore, indicating rising costs or margin pressures despite improved topline performance.
Also read: ₹2,720 Cr Order: Infra stock in focus after receiving huge orders from domestic & international clients
The company demonstrates a strong global footprint with manufacturing and sales presence across key mining regions, including North America, Europe, Africa, Australia, and Asia. In India, multiple plants strengthen domestic operations. This diversified network ensures proximity to customers, operational resilience, and supports its leadership in providing mining and mineral processing solutions worldwide.
Tega Industries Ltd reported an order book of Rs.10,053 million as of June 30, 2025, with Rs. 6,103 million executable in the next year, dominated by consumables. It remains confident of FY26 earnings guidance with stronger H2 performance. Key capex includes $30 million in Chile, Rs. 30 crore at Dahej, and Rs. 20–25 crore at McNally.
Tega Industries is a global leader in designing and manufacturing ‘critical-to-operate’ consumables for the mining, mineral processing, and material handling industries. The company is committed to engineering flawless solutions that enrich the future of mining and empower the industry’s progress through innovation.
Written by Abhishek Singh
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