Tega swings to ₹86 Cr consolidated loss in Q1FY27 on one-off Molycop deal costs

Tega Industries' consolidated Q1 FY27 print — the first quarter to include Molycop Group, acquired for $1.5 billion and consolidated from 1 June 2026 — swung to a loss of ₹86.19 Cr attributable to owners (₹108.25 Cr including minority interest of ₹22.06 Cr), against profits of ₹35.34 Cr a year ago and ₹42.67 Cr last quarter. Consolidated EPS was -₹11.47 versus +₹5.31 YoY and +₹5.68 QoQ. Revenue jumped to ₹1,723.44 Cr (+384% YoY, +227% QoQ), but this is almost entirely inorganic: Molycop's newly created Grinding Media segment contributed ₹1,291.64 Cr in its first, partial month of consolidation, while the pre-existing Consumables-Others business grew a more modest ₹294 Cr to ₹397.18 Cr YoY and Equipments fell to ₹35.78 Cr from ₹64.32 Cr.

The loss traces to a known, flagged transition cost rather than operating weakness. Other expenses carried a one-time ₹190.96 Cr Molycop acquisition/advisory charge, finance costs jumped to ₹116.71 Cr from ₹5.09 Cr QoQ on roughly $838 million of new acquisition debt, and depreciation/amortisation rose to ₹73.62 Cr from ₹25.22 Cr QoQ as newly recognised intangibles (₹3,429.53 Cr, provisional) began amortising. Reported EBITDA margin collapsed to ~4.2% of total income from 15.6% YoY / 11.4% QoQ, but stripping out just the ₹190.96 Cr one-off, PBT would have been a profit of ~₹74.48 Cr and adjusted EBITDA margin ~15.2% — in line with the recent range. On that basis, adjusted PAT works out to roughly +134% YoY versus -406% reported, though even the adjusted number reflects one stub month of a newly added, much larger business rather than organic growth, so it isn't a like-for-like comparison. The standalone (pre-Molycop) business itself stayed healthy and largely insulated from deal costs, with PAT of ₹45.42 Cr, +18.3% YoY and +11.2% QoQ, and EPS of ₹6.05.

The stock went into the print at ₹1,545.7, down 5% over the past month of trading.

For context: revenue is at a 6-quarter high.

A Univest preview ahead of results had pegged Q1 revenue (ex-Molycop) at ₹359-413 Cr and PAT at ₹16-20 Cr, and had itself flagged roughly $30 million of one-off transaction/refinancing costs — directionally consistent with the ₹190.96 Cr charge actually booked, though the resulting swing to a loss is still a clear miss against that PAT estimate. Core (ex-Molycop) revenue of about ₹431.78 Cr came in at or just above the top of the street's ex-Molycop range. Management's FY27 guidance from the last concall (15% growth ex-Molycop, 3% for Molycop, 22% adjusted EBITDA margin, ~$55 million capex) cannot be fairly judged off one deal-cost-distorted, partial-consolidation quarter — this print is too early and too noisy to call a beat, miss, or in-line against that full-year target. The quarter's other developments — Tega Chile's tax loss appeal being dismissed (₹8.73 Cr exposure) and the appointment of Ravi Narayan Joshi as CFO on 6 August, just ahead of results — are minor relative to the Molycop integration and were not separately called out in the results themselves.