At a Glance
Tega Industries posted Q1 FY26 revenue of ₹356 Cr (flat YoY, -4% QoQ) and PAT ₹35 Cr (↓3.8% YoY). OPM crashed to 16% (from 28% in Mar 2025). The market still gives it a rich P/E of 62.6, betting on its niche global mining consumables dominance. High valuations + margin volatility = spicy cocktail.
Introduction
Tega is the Robin Hood of mining consumables – stealing market share from giants by selling rubber and polymer liners that miners can’t live without. But Q1 FY26 showed signs of cost pressure, with margins taking a hit harder than a mining drill on a Monday morning. Investors: buckle up, this ride has both gold veins and landmines.
Business Model (WTF Do They Even Do?)
- Core Biz: Manufactures specialized consumables like mill liners, wear-resistant solutions, and industrial solids handling gear.
- Consumables = Recurring Revenue: 86% of FY24 sales came from consumables – think razor-and-blade model for miners.
- Roast: They make stuff that gets beaten up by rocks so miners have to keep buying more. Genius.
Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹356 Cr (↓4% YoY)
- Operating Profit: ₹56 Cr (OPM 16%)
- PAT: ₹35 Cr (↓3.8% YoY)
- EPS: ₹5.31
TTM
- Revenue: ₹1,655 Cr
- PAT: ₹199 Cr
- Book Value: ₹210
- P/E: 62.6
Commentary: Profits are stable but margins wobble like a poorly balanced conveyor belt.
Valuation
1. P/E Method
- EPS ₹29.9 × Fair P/E (30) → ₹900.
2. EV/EBITDA
- EBITDA FY25 ₹331 Cr × 12 → EV
