Tega Industries has seen a significant increase in Tata Mutual Fund's stake through a primary market purchase preferential allotment, according to recent market developments. The fund's holding in the company has risen from 2.09% to 5.36%, marking a substantial increase in its investment position.

Key Details of the Transaction

Impact on Tega Industries' Capital Structure

The preferential allotment has led to an expansion in Tega Industries' equity share capital. The company's equity base has increased from Rs. 66.53 crores to Rs. 76.57 crores, reflecting the new shares issued as part of this transaction.

Implications for Tega Industries

This increased investment by Tata Mutual Fund may be seen as a vote of confidence in Tega Industries' business prospects and growth potential. The expanded equity base could potentially provide the company with additional capital for its operations and strategic initiatives.

Recent Company Performance

While not directly related to this transaction, it's worth noting that Tega Industries has recently reported strong financial performance. In their Q2 earnings call, the company highlighted:

• Consolidated revenue of INR 4,211.00 million for Q2, representing a 15% year-on-year growth.
• EBITDA of INR 849.00 million for Q2, maintaining healthy margins of around 20%.
• Robust performance in the equipment business, which delivered revenue of INR 707.00 million, a 55% growth year-on-year.

Outlook

Tega Industries maintains a positive outlook, with an order book of approximately INR 11,556.00 million as of September 30. Of this, INR 7,306.00 million is scheduled for execution over the next 12 months, providing strong visibility into near-term revenues.

The increased stake by Tata Mutual Fund, coupled with Tega Industries' strong financial performance and healthy order book, suggests a positive sentiment towards the company's future prospects in the market.

Tega Industries has reported a robust performance for the second quarter of fiscal year 2026, with consolidated revenue reaching INR 4,211.00 million, marking a 15% year-on-year growth. The company's strong performance was primarily driven by its equipment business, which saw a remarkable 55% surge in revenue.

Financial Highlights

The company maintained a healthy EBITDA margin of 20.00%, demonstrating its operational efficiency amidst growth.

Business Segment Performance

• Consumables Business: Contributed 83% to the group's revenue from operations.
• Equipment Business: Accounted for 17% of the group's revenue, showing significant growth potential.

Order Book and Future Outlook

Tega Industries reported a robust order book of INR 11,556.00 million as of September 30, 2025, with INR 7,306.00 million scheduled for execution over the next 12 months. This strong order book provides visibility into near-term revenues and reinforces confidence in the company's growth pipeline.

Strategic Developments

The company has made progress on several strategic fronts:

1. Molycop Acquisition: The transaction is on track, with closure expected between December 2025 and January 2026. This acquisition is anticipated to bring revenue and cost synergies.

2. Chile Expansion: The capex project in Chile is progressing as planned, with commercial production expected to commence by September 2026 (Q2 FY27).

3. New Subsidiary: Tega Industries has incorporated a wholly-owned subsidiary, Tega MC Investment Pte. Ltd., in Singapore, effective November 18, 2025. This new entity is established to make investments in businesses, including subsidiaries and joint ventures.

Management Commentary

Mehul Mohanka, Managing Director and Group CEO, stated, "We remain confident and on track to achieve our FY '26 earnings guidance, supported by strong fundamentals and strategic initiatives."

The management reaffirmed its guidance for FY26, expecting the consumables business to grow by about 15% and the equipment business to grow by over 25%.

Tega Industries continues to focus on sustainable growth and creating long-term value for stakeholders, while navigating global macroeconomic headwinds with its diversified portfolio and resilient balance sheet.