Ladies and gentlemen, good day and welcome to the Tega Industries Limited Q4 FY 2026 earnings conference call hosted by Dolat Capital Markets Private Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Varun Jain from Dolat Capital. Thank you, and over to you, sir.
Hi. Good evening, everyone. Welcome to the Q4 FY 2026 earnings conference call of Tega Industries. Today we are joined by the senior management of Tega Industries, as well as the senior management of Molycop. The participants are Mr. Mehul Mohanka, MD and Group CEO, Tega Industries, Mr. Shyama Prasad Ganguly, Interim CFO, Mr. Pratik Basu Roy, President, Product Management, Global Sales and Marketing, and from Molycop, we have Mr. Lance Dawber, Chief Commercial Officer of Molycop, and Mr. Patrick Koley, Chief Financial Officer of Molycop. We'll begin with some opening remarks by the management, followed by the Q&A. Thank you.
Good evening and a warm welcome to all the participants on the call. I'm joined this evening with Mr. Sourav Sen , CEO of Tega McNally, Pratik Basu Roy, President, Product Group and Sales, Mr. Shyama Prasad Ganguly, our interim CFO, and it's a pleasure to also introduce the team from Molycop. I'd like to introduce Lance Dawber, Chief Operating Officer, and Patrick Koley, CFO. Thank you for joining us today. It's a pleasure to connect with all our valued investors, analysts, and stakeholders. I hope you and your families are keeping well. Our consolidated revenue for the year ended FY 2026 stood at INR 17,736 million, representing a 5% year-on-year growth. We delivered an EBITDA before exceptional items of INR 3,967 million for the full year, with EBITDA margins of 22%.
Exceptional items comprise of Molycop-related acquisition costs of INR 775 million and INR 64 million towards the labor code impact. In FY 2026, our gross margins remained healthy at around 60% of revenue from operations, reflecting strong operating discipline and a resilient product mix. Our equipment business recorded strong momentum, closing the full year with revenue of INR 2,688 million, a 25% year-on-year increase compared to the same period last year. We continue to make focused efforts to accelerate our growth trajectory in Q1 FY 2027, supported by a healthy order pipeline and operational improvements. As of December 31st, our order book stands at approximately INR 12,060 million, with INR 9,060 million executable within the next 12 months. This provides strong visibility and confidence in our growth trajectory.
As per World Gold Council data for calendar year 2025, gold demand reached record levels exceeding 5,000 tons, driven by strong investment demand and a sustained central bank purchases. At the same time, supply growth remains constrained at around 1% annually, reinforcing gold's structural scarcity and its role as a strategic asset. As per ICSG data, global copper demand is growing at 3% annually, while supply growth remains relatively constrained at 2%, reflecting limited mine expansions. In the near term, production growth continues to be modest, highlighting persistent supply-side challenges. From a longer-term perspective, UNCTAD projects copper demand to increase by over 40% by 2040, driven by electrification and the energy transition. Meeting this demand would require significant investments of north of $250 billion and development of nearly 80 new mines, underscoring a structural supply gap in the industry.
This surge in outlook has prompted mining companies to ramp up exploration and production, especially in copper-rich regions such as Latin America, North America, and Africa. As on first June 2026, we have successfully completed the acquisition of Molycop in partnership with Apollo Funds, a significant minority shareholder, marking a transformational milestone in Tega's growth journey. This combination creates a stronger, more diversified global mining solutions platform with enhanced scale, deeper customer relationships, and expanded geographic reach. A key priority over the coming quarters will be the successful integration of Tega and Molycop across key functions, with a focus on establishing streamlined processes, unified operating standards, and robust governance mechanisms. The integration will span critical areas. Through this, we aim to build a more agile, scalable, and globally aligned organization capable of delivering sustainable long-term value while maintaining a strong focus on disciplined execution and accelerated growth.
I want to thank our employees for their unwavering commitment, to our customers for their trust, and you, our investors, for your continued support. We are committed to delivering sustainable value and transparent communication. I would now like to hand over to Lance and Patrick to share their thoughts before Shyama takes you through the financial performance of the company. Thank you. Over to you, Pat.
Thank you. This is Patrick Koley, Molycop CFO. We are very confident that this combination will create a stronger growth platform, unlocking exciting opportunities for sustainable growth and long-term value creation for all stakeholders. We would like to express our sincere gratitude to all the stakeholders and investors for their continued trust and support as we begin this new exciting chapter for Tega Industries. I'd now like to hand it over to Lance Dawber.
Thanks, Pat, and good evening to everyone. My name is Lance Dawber. I'm COO for Molycop. We are delighted with the successful completion of this transaction. It marks a transformational milestone for both Tega Industries and Molycop. This partnership brings together two complementary organizations with deep mining expertise, strong customer relationships, and a shared commitment to innovation and operational excellence. I'll hand it back to the Tega team to finish the call.
Shyama, if you could take over from here.
Thank you, Neil. Good evening, everyone. Thank you once again for joining the earnings call for Q4 FY 2026 and FY 2026 performance and results. Our group total income for the period ending March 2026 stood at INR 70,736 million, vis-à-vis INR 16,818 million in FY 2025. Year-on-year basis, the total revenue have grown by 5%. Our adjusted EBITDA for FY 2026 is INR 3,967 million, excluding one-time exceptional items towards Molycop acquisition and labor code. Our EBITDA margin is at 22% in FY 2026 against EBITDA margin of INR 3,829 million in FY 2025, which was 23% in FY 2025. For the period ending March 2026, consumable business segment and the equipment business segment contributed 84% and 16% of the group's revenue from operations respectively. Equipment business has shown a robust growth of 25% at revenue from operation level.
EBITDA margin has gone up from 12% - 13% and PBT margin from 4% - 8%. As mentioned at the start of the call, during the period under review, we have accounted for the one-time exceptional expenses related to proposed Molycop acquisition and with regard to professional fees, due diligence, legal consultancy as per the terms and agreed milestone. Additional charge in employee benefit expense as a one-time charge on account of new labor code, which accounts for, in totality, INR 839 million. Our order book for both the business segment, that is consumable business segment and equipment, remains strong. We have an order book of INR 12,060 million as at 31st March 2026, out of which executable orders within one year is INR 9,060 million. Pending order as at 31st March 2026 is higher by 18% over last year.
The total group income for Q4 FY 2026 stood at INR 5,633 million with an adjusted EBITDA of INR 1,632 million, which is 29%. Our group revenue for the similar period was INR 5,428 million with an adjusted EBITDA of INR 1,566 million, which was again 29%. During the current quarter under reporting, the consumable business segment and the equipment business segment contributed 84% and 16% at revenue from operation level. The revenue from operations of consumable business segment reported INR 4,406 million in Q4, vis-à-vis INR 4,568 million in similar period, which is down by INR 162 million. On a full year basis, consumable business segment revenue remained flat. Majorly because of the reasons customer orders of both spares and conversion have been shifted towards end of Q3 and Q4.
We have seen significant order booking during the February and March specifically, whereby our pending order has gone up by almost 18% year-on-year, which shall be materialized in the coming quarters in Q1 and Q2. The revenue for operations of equipment business segment witnessed an increase of INR 69 million, that is 9%, in Q4. We have maintained healthy gross margin of 60% at the group level, vis-à-vis 58% last year same period, in spite of the raw material volatility, global uncertainty and high share of equipment business segment. Thank you very much for your time. The forum is open for any question you may have.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Deepak Poddar with Sapphire Capital. Please go ahead.
Yeah, I'm audible, sir.
You are audible. You may proceed, sir.
Thank you very much, sir, for this opportunity. First off, just wanted to understand this consolidation. From when the consolidation will be happening and what sort of debt addition we are expecting because of this consolidation? I mean, the fund that would be required at the parent level.
If you're talking about Molycop, yes, the date of acquisition is 1st of June, so we'll be consolidating from 1st of June onwards. The first consolidation will happen at the end of June. That is the first quarter result we'll be consolidating.
Yeah.
Yep. This is Himanshu Raijada here. With respect to debt addition, we'll be adding close to $838 million of debt in our financial as of 1st of June, which is what we have taken over as debt. Also, just to let all the investors know that the initial debt levels was close to more than $1,050 million, which has been paid down by close to $220 million to bring down the debt at $838 million of number.
Yeah. What is the additional debt that we will have to take from at the parent level? I think INR 1,700 crores we already raised, but I think we require around INR 3,500 crores, right, to fund this acquisition. I mean, this is the debt that has come from Molycop. I was just asking from at the parent level, what sort of additional debt we would require.
At parent level, we'll be adding a debt of INR 1,500 crores in our book, which we have taken from Standard Chartered and other banks, including Axis and Exim.
Okay. That we would have already taken, right?
Yeah, that's already done, and that amount was used specifically for acquisition financing and transaction expenses, which we wanted to incur.
Correct. This first quarter, only one month of consolidation will be there from Molycop.
That's correct. Thank you.
Yeah. Okay. My second question is on your growth. At the parent level, Tega, what sort of growth we are looking at for this year and Molycop as well, and what the Molycop revenue and margins in FY 2026? Yeah.
From a Tega perspective, the consumable business, we are expecting the normal CAGR up about 15% to be maintained going forward.
I think for our business, we also expect a similar growth like we did in FY 2026, which is in the range of 25%.
Okay. Yeah, that's helpful. What about Molycop? Molycop revenue in FY 2026, and what sort of growth outlook we have in Molycop?
In particular, this is just off late, we have did the acquisition. We are reassessing the numbers currently, and most likely, basis high-level assumptions what we have, the growth outlook what we are looking for FY 2027 is 3% in FY 2027 in particular. Of course, this will be refined further once we have a detailed engagement with the management team of Molycop.
Understood. What's the absolute level in FY 2026 of Molycop in revenue and EBITDA? Yeah, that would be my last question. Yeah.
We are anticipating a growth of around 1% in FY 2026 and anticipated EBITDA margin should be close to 12%. Just to give a caveat here that Molycop has a financial year ending at 30th June. Of course, once we consolidate this financial year ending also will change to March ending in alignment with Tega Industries.
What was the absolute number? I just wanted to know the absolute number for Tega last year, maybe. Yeah. For Molycop for last year. Yeah. In terms of revenue.
Molycop last year was INR 1,539 million for previous year.
Okay. That's very helpful, sir. I mean, that would be it from my side. Would like to wish you all the very best. Thank you so much.
Thank you.
Thank you.
Thank you. Our next question comes from the line of Chirag Muchhala with Centrum Broking. Please go ahead.
Yeah, thank you, and congratulations to the Tega team for the successful conclusion of Molycop acquisition. Sir, firstly on Molycop, if you can provide a medium-term outlook over three, four years ahead, since we also have Molycop's management with us, if you can also express your thoughts as to earlier under the AIP management and now under Tega management, what are the changes that you see in terms of synergies that is possible to be derived? Sir, that is the first question.
Yeah. Chirag, Himanshu here. In particular, our very primary focus will be to bring down the debt in next three years to a level wherein 3x of leverage. Three to four years is what we are taking as a time to bring down the debt to 3x level. Of course, with this new acquisition, most of the revenue synergies will lie in Tega and the cost synergies will lie with Molycop. That's how we are looking this as. Third basket is what we are looking at of selling off non-core assets. In particular, these are the three major synergy line items, which we are working closely with the Molycop team, and we have a detailed plan of 100-day, 200-day, and line-wise. That's how we are working. Of course, it is very preliminary to give a number to each of the line items as of date.
Yeah, as soon as we have detailed out each of the synergy plans, we can come with a guidance on that.
Sure. Thanks for that. Secondly, if you can provide update on our Chile plant commissioning.
Chile plant commissioning and the construction is going as per our plan. Almost civil work has been completed. 50%, 60% of civil work has been completed, and we are expecting by early Q3 we'll be able to commission the plant. Of course, there will be certain regulatory approvals which will be required to start the commercial production. It is as per our plan.
Okay. For FY 2027, we will have around one quarter of revenue booking from that plant?
We are still hopeful, we need to get some regulatory approval, which we need to work out. There are almost quite a number of regulatory approvals are required post-completion of the plant. We are hopeful, but it may be we can start booking from end of Q4 or maybe next year.
Okay. The next question is on the Molycop-related acquisition cost. Around INR 775 million has been booked H2 FY 2026. Has entire acquisition cost been already booked this year or more can come in Q1 also since the acquisition has just concluded? Just clarity on that also.
Some more cost will come. There are quite a number of consultants, professionals that was engaged in this entire acquisition process. As and when the works are getting completed, we are settling everything. Some more cost will come, and we shall keep you updated in the subsequent quarters. We have been doing this, and we shall keep you posted.
Okay. Sir, the quantum will be as large as it was in Q4?
Chirag, just to answer your question, the quantum will be much higher because we have built in debt refinancing cost and all the preference cost, which we have gotten for this acquisition financing. All those costs have been paid in this year which crystallizes because of the acquisition purposes, which could not be provisioned in earlier year. Hence, we anticipate a higher number in Q1, which will be the final payoff. We don't get it extended to the rest of the year. Of course, in case if you're looking for a number, it will be close to INR 30 million of acquisition costs, which we'll have to pay in Q1.
Okay. Last on the consumable segment. Sir. [inaudible]
Sorry to interrupt you, Chirag, but your line is not very clear at the moment.
Am I audible now?
A little better. Please go ahead.
Yeah, sure. The last question is on consumable segment. We have actually had a very flat revenues in this year. Just wanted to understand, has the industry growth been weak this year, or have we lost some market share or some specific geographies which have not done well? If you can highlight, please.
Chirag, hi, this is Pratik here. The industry there's actually, as we said in our opening statement, robust growth is there. Actually, there is a demand and supply kind of a gap that's coming forecasted for the future. In terms of order booking revenues, we have grown significantly. Hence you can see the additional 17% growth in executable orders that's executable in the next one year. The revenue is a kind of a timing issue because most of the orders came in February and March, so they are in the process. You can also see that in the increase in the FG goods that has come up in our financials. Right now we do not see a challenge in the market or in our order booking and going forward.
Okay. Sir, thank you.
Thank you. Our next question comes from the line of Varun Jain from Dolat Capital Markets Private Limited. Please go ahead.
Yeah. Hi, good evening, sir. Sir, my first question was on the consumables business only. In February 26 call, I think management had guided consumables for the year will end at 8%, but it has ended a little flattish. Any reason, like in the past three months such a big divergence came?
As I just mentioned, a lot of that of the orders have come in the last two months. Hence our pending order book has grown significantly from last year to this year, FY 2025 to FY 2026. Hence you can also see that the orders are being executed from the increase in the FG that has gone into the financial year.
To add this, Varun, because of the start of this work, there was quite a significant amount of disruption in the logistical area, which has led to the increase in our FG because metal was produced could not be dispatched because of the availability of the vessel connection and the containers which we have seen in the month of March. That is one reason it has led to this flattish kind of revenue growth. We are very hopeful that things will be normalized and our quarter one and quarter two will be much better.
Sure, sir. My question was that if I look at the consumables growth year-over-year, in FY 2024 it was 10%, FY 2025, 11%, 26 flat. Even the past three years management keeps guiding 15%, consistently consumable segment has been weaker. Like a longer-term guidance, would you like to revise it down to maybe 10% or 12%?
No, I think it is the cyclicality of the business that is there. We remain firm on our guidance of 15% growth on a long-term basis.
Okay, sir. Sir, on the equipment business, I think this year was a tale of two halves. H1 grew 65.4% and then H2 was flattish. Why was that such big variance?
Yeah, I think for us in the equipment business, we have a kind of cycle time for delivery and execution. Although we had a project which we kind of executed this year. I think overall, if you see the whole year, we maintained our same guidance, the 25% growth compared to FY 2025. How we distribute the order execution, it also depends various factors like the readiness of site of customers and the timeliness of the project where they pick up the equipment. All are kind of over. You have to see this over a period of one year at least, the revenue and delivery development. I would say that that's what exactly happened. We stayed what we said in beginning of FY 2026, and we continued that kind of, fulfilled that kind of a guidance of growth.
Okay, sir. Sir, the next question was, I think in the previous response, management said that in Q1 they'll be taking a $30 million loss. In Q1, will FY 2027 consolidated, there will be a loss because this will be like a big loss, right?
No. Sorry, Varun. This is not a loss which I mentioned. It was the transaction expense which Chirag was asking, what we'll be getting billed in Q1. That's what we answered, not a loss.
No, yeah. That expense, it will flow through the P&L only. For FY 2027, the entire P&L will become negative, right? Because of this particular expense, right? On a reported basis, at least.
Not exactly. I don't know why you are saying as a loss. We have to see it, since we are acquiring Molycop, these are one time of an exceptional expenditure. Of course, once the revenue starts consolidating and EBITDA margins and PAT PBT starts getting consolidated, all these will be sort of negated in terms of the margins, and we'll see a surplus there.
Okay, sir. Okay. Just last one from me. FY 2027, what will be the total CapEx and what will be the breakup of it? How much will be in Chile?
In FY 2027, the Chile CapEx will be completed, which was around $25 million-$30 million, which we initially estimated. Other than this, we keep on investing on our CapEx on modernization of our plant and sustaining CapEx, which ranges around INR 50-60 crores, which happens across the geographies. This is what the plan as of now. As things are coming up, we'll keep you updated.
Sir, for Molycop, how much will you spend in FY 2027?
Currently what we have budgeted is for a kind of maintenance CapEx of $20 million. Of course, the growth CapEx will be aligned with the expectation of management team, and we'll derive a number there. Currently management, the growth CapEx is yet to be factored, but maintenance CapEx is $20 million.
Okay, sir. You're saying INR 30 million for that Chile, INR 6 million is maintenance for Tega, and INR 20 million is maintenance for Molycop. That would be close to INR 55 million CapEx. How will this be funded? Because this is other than the money which will be needed for the deal and expenses, right? How will this be funded?
On the sustaining CapEx, which is INR 50 crores-INR 60 crores, which is funded through our internal accruals, and the Chile CapEx has been funded through internal accruals and borrowing, which has already been in place. We have started using that as well. On Molycop, it is generally, if we see the number of CapEx in terms of revenue, it's 2% or 3% of the total revenue. It's not a heavy debt or CapEx-intensive business. This can be easily managed from the cash flows of Molycop, and we don't need to borrow any money for the CapEx.
Okay, sir. Okay, I'll come back in with you. Thank you.
Yeah.
Thank you. Our next question comes from the line of Deepak with Sundaram Mutual Fund. Please go ahead.
Yeah, thank you for the opportunity. Am I audible?
Yeah.
Yeah, hi. I had couple of questions. First, if I look at our closing order book of one year and less, it has gone up meaningfully, which you have called out in the opening remarks as well on a YOY basis. Our execution has kind of lagged behind, which is reflected in our consumable revenue number. You pointed out that Q1 and Q2, you are going to see a higher execution. Just wanted to know what will change in the operating environment for this execution to pick up in the first half of this fiscal year. Did we add any new set of customer in FY 2026 for our consumable business?
With respect to operations, other than the logistical challenge, there is no other issues. All the production and other operations are going absolutely fine. The only challenge that we faced is with respect to this Middle East disturbances, because of which the vessel connectivity was not there and the container availability, which has led to the increase in finished goods by almost INR 50 crores, which can result into INR 100 crores of additional revenue. This is what it is. We have started finding out alternate routes to deliver goods to the customers.
Deepak, just to add on what SP has mentioned. Generally, how we have our business is we get the order book. After that, it takes time, three to six months, to execute those orders because we are a bespoke kind of a design-led, driven organization. Each order has to be designed separately, manufactured separately, and then dispatched. There's a time lag between the order receipt and the revenue. There is no operational challenge so as to say. Since we have received the order late, so the execution will also take its normal time.
Yes, sir. The commentary was similar in the last two quarters also, right? That the order will come in the next quarter. That's why I wanted to understand, what is changing in the operating environment for us to be a little more confident that H1 of this fiscal year would be better than what we saw in H2 of last fiscal year.
Yeah, because the order book has come in and you see that in the executable pending order that has gone up by about 17%. You will also see that we have already started manufacturing those, so finished goods has also gone up. That means it gives you probably a surrogate for our confidence that your business operations are following the order book pattern that we have been mentioning earlier.
Okay.
If I can also add further to what Pratik was saying, we also have finished goods flowing from Q4 to Q1. As Mr. Ganguly had mentioned that there were some orders that could not get shipped due to lack of availability of containers, we would have finished goods sitting in Q1, which will also get shipped out. That'll add to the incremental revenue.
Yeah. That's okay. Our inventory position hasn't changed much between two years. I meant to say fiscal 2025 and 2026 at the parent level.
Deepak, if you see overall inventory, you may or may not be seeing that growth. Actually, raw material inventory has come down. Finished goods inventory has gone up. When you will be having the detail annual financial, you can get the detail. Detail breakup is not there in the result.
Okay. I had one question on Molycop. They follow a July to June fiscal. Earlier I heard that commentary that in this June 2026 fiscal year for them, we did a 3% top-line growth and 12% margin. Did I hear that properly?
For 2026 you are mentioning, Deepak?
No. For them it is July to June fiscal, right?
Yeah. July to June fiscal for the period ended June 2026. Is that your question or for 2027?
For their fiscal year, July to June 2026.
Is it year ending 2026 is what you're asking or year ending 2027?
Yeah. Year ending 2026, yeah.
Deepak, year ending 2026 will be sort of 1% growth in terms of revenue and close to 12% of EBITDA margin is what we are looking at. The point is that this will be consolidated for a month in FY 2027 because this acquisition got closed in 1st of June. Hence our reporting cycle will be accordingly giving the numbers.
Okay. Got it. One last question I had on equipment business. Just wanted to know, did we add any new product lines during, let's say, FY 2026 in our equipment business? Do we expect any ramp-up in FY 2027 also? You have called out that we are anticipating a 25% growth in FY 2027. Last year we had a big order win from NMDC, which helped us to rake in that growth. Just wanted to understand that is it a new product on your new design or a new customer win which will drive that 25% growth on a base of FY 2026 for equipment in FY 2027 also?
Hi, this is Sourav. There are two parts to these questions. First of all, we are continually participating in different projects business like what we did last year in NMDC, and that's number one. We believe that we will get some of them booked in this current financial. Having said that, we are also going to have a new product launch in aggregate business. This is already we have a collaboration with Japanese company so that is what this launch will happen in this financial year.
Also we are going to see that there are a lot of headwinds available in our existing business and segments as well, and all being led by CapEx as well as the growth in power and mining and mineral beneficiation and I think there are enough opportunity available which will help us to get this growth which we have already budgeted. Also to add to that, we are also looking at businesses across Indian border. We have got some success as well in Canada, and also we are participating in project in Russia, and as well as we have trying to increase our footprints in Middle East where we have already doing some kind of export business for beneficiation. I think all put together we think that we'll be able to reach what we have already targeted in FY 2027.
Okay. That Japanese collaboration.
To clarify, by here you mean CIS countries? Just to clarify.
Okay. Noted. When you said that Japanese collaboration means do we expect that new product to be launched in, let's say, later part of this calendar year or is it like a very near-term thing which we'll be launching?
Look, this product will be launched in Q3. That is what we expect. Then it will be a forward-looking revenue for us.
Okay. Got it. Very helpful, sir, and all the best.
Thank you. Our next question comes from the line of Ankur Periwal with Axis Capital. Please go ahead.
Hi, sir. Thanks for the opportunity and congratulations for completing the acquisition there. My first question is on the growth strategy. Considering the combined network of Tega as well as Molycop, what could be the low-hanging fruits here, the benefits of which we can be derived, let's say, in the near term, maybe over the next 12 months? Your guidance of 15% odd growth on the non-Molycop business, does it include these benefits?
Just to answer your question one by one. The 15% growth, what we have projected, it's non-Molycop synergies what we are building in. This will, as I mentioned in my call during the earlier question answer session, that we'll be reevaluating our entire synergy framework along with the management by detailing each and every step there. Accordingly, we can give our guidance on the synergies which we'll be placing either on Molycop, also in Tega.
Sure. That's clear. Second bit on the margin profile, I'm again talking of the Tega consolidated numbers ex of Molycop. For the full year, we are seeing a gross margin expansion, but at EBITDA level because of the higher other overheads, I'm excluding the one times here as well. There was higher rise in other overheads, which led to slight dip in EBITDA margin. Any specific reason for this sharper hike and how should one look at this number going ahead on the margin front?
If you talk about the EBITDA margin, we have always given a guidance that our blended EBITDA margin will be around 21%-22%. This year it is slightly lower because of the revenue has not been picked up in the consumable segment. We are still holding this guidance of EBITDA margin at 21%-22% at a blended level.
Sure. Which will be for 2027 ex of Molycop led any synergy benefit.
Right.
Great. That's helpful. Last bit on the working capital. Historically, we have been pretty consistent in terms of our net working capital. This year there was a good reduction in FY 2026. Is it one-time largely because of the payables increasing or how should we look at that number?
Basically, you have rightly pointed out this is because of payable improvement and you have seen the overall data number of days has also been reduced to some extent. It is because of good collection which we have made in last year. That's why the total working capital cycle has been reduced.
Sorry. From a receivable point of view, there was a reduction as you rightly mentioned. Should we consider these as a steady state number going ahead or probably it can bounce back to a higher number earlier?
On the receivable front if you see, receivable normally we maintain and 100 to 105 days of DSOs and we shall be continuing to maintain that. Of course, the data's volume can go up or down depending on the volume of sales because our Q4 revenue was slightly lower, hence the data cycle was slightly. It has gone down. The absolute value has gone down. On the DSO level it has improved. Our own data collection has been very good, we expect to maintain it at 100 to 105 days.
Okay. Sure.
Just to answer your question, it will be maintained. We are maintaining a very good data cycle in last two, three years. We are hopeful that it is going to be maintained going forward as well.
Okay. Great, sir. That's it from my side. Thank you and congratulations once again. Thanks.
Thank you.
Thank you. Our next question is a follow-up from Varun Jain from Dolat Capital Markets Private Limited. Please go ahead.
Yeah. Hi, sir, just a couple of follow-ups. Sir, if we take the adjustment of INR 776 million, this one-off expense and if we add it back to the consumables EBITDA, the consumables EBITDA margin would be close to 27.7%. Is that the right way to look at it?
If you're doing it with Q4, yes it is right because consistently in year-over-year our Q4 is higher than all the quarters. Obviously, the EBITDA margin at Q4 level ranges around 27%-28%.
Okay. Sir, earlier I think in Q3, Molycop's growth guidance for the next year was given at close to 7% or 8%, now it's been revised to 3%. Is this a function of volume changing or we are changing our assumptions for the steel pricing because it's a function of that?
Sorry, Varun, I think I need to check from where that guidance is coming from, because in our earlier calls, we have never given such guidance of 70% of growth in Molycop. Maybe, I think, we need to cross-check on where this reference is coming from.
Sir, it is from a ET Now interview of the CEO in December.
Okay. Basically, I think I can just give you a reference where it was, I believe six months back, which you are referring to. We were anticipating that some mines which had gone into care and maintenance, particularly Cobre Panama and Grasberg. This we were expecting at then point of time to come back in FY 2027, that will give us some additional volume jump. This we are seeing as per the market indicators. This will be deferred to FY 2028. We don't see a particular jump in FY 2027.
Okay, sir. Sir, for Molycop, can we expect the management to reveal the volume numbers? Because other grinding media players in the industry do that, so we can get a sense of the market share and growth.
Generally, we don't give any market share guidance in our investor calls. We maintain that stand. I think that's how we like to answer this question.
No, not the market share, sir. The volumes for Molycop. How much was High-Chrome and how much was Forged for the year?
This number is basically just since the month has ended, and we are yet to get that number refreshed. We can answer it at a later point of time, but not really as of now.
Okay, sir. Just the last one, sir. For the equipment segment, for FY 2027, will a 14% be the right margin to look at?
No, I think in our guidance, we have talking about 12%-13% of EBITDA, which is basically we will maintain the similar kind of profitability, what we did in FY 2026. The growth also, what we mentioned, that will continue to remain in that range.
Okay, sir. That's all from me. Thank you and all the best.
Thank you.
Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to the management for closing comments. Over to you, gentlemen.
Thank you very much, everybody, for joining this call. We thank you once again for taking out your time and coming to our investor call. We'll keep you posted on any subsequent development. Happy to interact and take any subsequent questions you have. You can reach out to our investor department. We'll be happy to address the same. Thank you so much.
Thank you. On behalf of Dolat Capital Markets Private Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.