The First Tax and Customs Tribunal in Chile has dismissed the appeal filed by Tega Chile, a step-down subsidiary of Tega Industries , regarding the disallowance of a tax loss carry forward. The tribunal upheld the position taken by the Chilean tax authorities, Servicio de Impuestos Internos (SII), which had rejected a portion of the accumulated tax losses claimed for the Tax Year 2020 due to insufficient documentation. The disputed carry forward loss corresponds to approximately CLP 3.17 billion, valued at approximately ₹32.32 crores, with an estimated tax exposure of approximately CLP 856 million (approximately ₹8.73 crores).

Details of the Ruling

The SII reviewed the tax loss carry forward claimed by Tega Chile and, via Exempt Resolution No. 897 dated August 21, 2023, disallowed a portion of the claim. While Tega Chile's Voluntary Administrative Reposition (RAV) was partially accepted, the balance claim remained disallowed. Consequently, Tega Chile filed a judicial appeal before the First Tax and Customs Tribunal, Santiago Metropolitan Region. The tribunal received the communication on July 06, 2026, and Tega Industries was informed of the dismissal on July 14, 2026.

Impact and Future Action

Tega Industries stated that it does not foresee any material impact on its financial, operational, or other activities as a result of this ruling. Tega Chile is currently evaluating the order in consultation with its legal and tax advisors and is considering all options, including filing a further appeal against the order. The company disclosed that no violation or contravention has been alleged against Tega Chile, as the matter pertains strictly to the allowability of the tax loss based on documentation.

Tega Industries Limited reported a 7% year-on-year increase in adjusted profit after tax (PAT) to Rs 1,092 Mn for the quarter ended March 31, 2026 (Q4FY26), driven by steady operational performance. Total Income for the quarter grew by 4% to Rs 5,633 Mn, while adjusted EBITDA increased by 4% to Rs 1,632 Mn, maintaining a margin of 29%. For the full financial year FY26, the company recorded a 13% rise in adjusted PAT to Rs 2,266 Mn, with Total Income growing 5% to Rs 17,736 Mn. The company has uploaded the audio recording of the earnings conference call conducted on June 02, 2026, to its website.

The financial results exclude one-time expenses amounting to approximately Rs 839 Mn in FY26 and Rs 665 Mn in Q4FY26, related to the Labour Code impact and professional charges for the Molycop acquisition. The company's order book stood at Rs 12,060 Mn as of March 31, 2026, with Rs 9,060 Mn executable within one year.

Consolidated Financial Performance

The company's consolidated profit and loss statement reflects the impact of these one-time costs on reported figures. Reported PAT for Q4FY26 was Rs 426.71 Mn, a decline of 58% from the previous year, while reported PAT for FY26 was Rs 1,426.53 Mn, down 29%. Adjusted for the exceptional items, the profitability metrics show growth.

Molycop Acquisition and Integration

As of June 1, 2026, Tega Industries successfully completed the acquisition of Molycop in partnership with Apollo Funds. This transaction marks a transformational milestone, creating a stronger, more diversified global mining solutions platform. The company will begin consolidating Molycop's financials from June 1, 2026, with the first consolidation appearing in the Q1 FY27 results.

To fund the acquisition, Tega Industries added debt of Rs 1,500 crores at the parent level from Standard Chartered, Axis, and EXIM banks. Additionally, the company assumed approximately $838 million of debt from Molycop, which has been reduced from an initial level of over $1,050 million. Management outlined a primary focus to reduce this debt to a leverage level of 3x over the next 3 to 4 years through revenue synergies in Tega, cost synergies in Molycop, and the sale of non-core assets.

Operational Outlook and Guidance

Management provided guidance for the upcoming fiscal year, stating that the consumable business is expected to maintain a CAGR of around 15%. The equipment business, which grew 25% in FY26, is projected to continue at a similar growth rate in FY27. For Molycop, the growth outlook for FY27 is anticipated at 3%, with an EBITDA margin close to 12%. The company also noted that acquisition costs, including debt refinancing and preference costs, are expected to result in a one-time charge of approximately $30 million in Q1 FY27.

Balance Sheet and Cash Flows

Tega Industries strengthened its balance sheet during the year, with Total Assets increasing to Rs 43,145 Mn as of March 26, 2026, up from Rs 20,952 Mn in the previous year. Cash and cash equivalents surged to Rs 11,638.86 Mn from Rs 1,142.95 Mn, bolstered by a net increase in cash of Rs 10,358.27 Mn from operating and financing activities. Equity attributable to equity holders of the parent rose significantly to Rs 34,071.76 Mn.

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The investor presentation has been hosted on the company's website.