Tega Industries swings to ₹58.8 Cr consolidated loss as Molycop financing costs bite

Tega Industries' consolidated results (the primary basis) swung to a net loss of ₹58.8 Cr for Q2 FY27, against a profit of ₹44.9 Cr in the year-ago quarter and a narrower loss of ₹108.3 Cr in Q1 FY27. Revenue surged to ₹4,254 Cr, up ~950% YoY and ~147% QoQ, but the jump is almost entirely the arithmetic effect of consolidating Molycop Group (acquired 1 June 2026) for a full quarter versus one month in Q1 and not at all a year ago — not organic growth. Standalone (holding company only) revenue was ₹202.7 Cr with a ₹2.3 Cr loss, underscoring that both the scale-up and the loss sit almost entirely at the consolidated, Molycop-driven level. The consolidated loss was driven by finance costs of ₹291.9 Cr for the quarter (₹408.6 Cr for H1 FY27) on acquisition debt — against management's own FY27 guidance of just ₹110-120 Cr for the FULL YEAR, already overshot nearly 4x within six months — plus depreciation and amortisation of ₹168.6 Cr (from ₹5.7 Cr a year ago) on purchase-accounting intangibles (₹347.2 Cr of acquired intangibles and ₹505.7 Cr of goodwill recognised on the deal). A further ₹66.6 Cr of one-time acquisition/integration expense sits inside 'other expenses' this quarter (₹257.6 Cr for H1). Stripping that one-off out, adjusted PAT would be roughly +₹7.8 Cr — still down about 83% YoY from ₹44.9 Cr, showing the underlying drag is the acquisition financing and amortisation load, not just transaction costs. Segment EBITDA margin was ~13.1% of revenue, below management's ~15% consolidated EBITDA guidance and down from ~17.1% a year ago — margins are compressing broadly as guided (Molycop structurally dilutes the legacy consumables margin) but running a touch below even that diluted target. We have no specific Street PAT estimate for this quarter, but full-year FY27 consensus (per stockanalysis.com) pegs EPS near ₹33 and PAT growth of 15-20% — a bar that looks difficult after a consolidated net loss of ₹167.0 Cr for H1 FY27 alone, so we mark this a miss against the implied full-year path. Management's prior guidance also flagged Consumables growing at a 15% long-term CAGR and USD 20M of Molycop synergies over 2-2.5 years; one quarter post-acquisition-close is too early to test either, and we flag both as unresolved rather than met or missed. During the quarter the company completed a ₹95.4 Cr preferential allotment of 4.78 lakh shares (October 15) and a subsidiary won a Calcutta High Court case against the Income Tax department (October 16) — neither materially moves this quarter's P&L. The sequential trend is the one encouraging data point: the consolidated loss narrowed from ₹108.3 Cr in Q1 FY27 to ₹58.8 Cr in Q2, consistent with one-time integration costs fading. Whether Q3 FY27 continues that narrowing, and whether finance-cost guidance gets reset to reflect the acquisition's actual debt load, will determine if this becomes a clean turnaround or a structurally higher-cost, lower-margin consolidated entity.