TEGA INDUSTRIES FUNDAMENTAL RESEARCH REPORT

Tega Industries (NSE: TEGA, BSE: 543413), Kolkata, founded 1976, makes critical, recurring mining consumables : polymer andrubber mill liners (globally #2 per the company), screening media and wear products sold to mineral-benefi ciation plantsworldwide, plus a smaller equipment business (Tega McNally). Its legacy model is excellent: ~60% gross margins, ~22% EBITDAmargins and an order book of Rs 1,231 Cr. Event 1 - a company 9x its old size. On 1-Jun-2026 Tega closed the acquisition of Molycop , the world’s leading forged/castgrinding-media maker (1.204 Mt shipped in the 12 months to Jun-26, TTM EBITDA USD 191 mn, >50% share in its core regionsper management), in a consortium with Apollo Funds at an enterprise value of ~USD 1.46-1.5 bn . Tega owns 84.18% andApollo 15.82%. Molycop already makes up ~75% of group revenue, at ~13% EBITDA margin against legacy Tega’s 22%. Event 2 - bought with leverage. Funding came from a Rs 1,713 Cr preferential issue at Rs 1,994 (85.9 lakh shares; promoterstake 74.8% → 67.5% by dilution, not sale), a Rs 1,500 Cr bank loan, and Apollo’s USD 270 mn redeemable preferenceinstrument . Group debt at 30-Jun was Rs 11,200 Cr , including ~Rs 2,600 Cr of preference shares (CFO, Q1 call). CRISILdowngraded Tega from AA- to A+/Stable (May-2026). It expects peak debt/EBITDA of 4.0-4.5x in FY27 , and its downgradetrigger is >4.25x. The stated deleveraging plan includes “fresh equity raises”