Tega Industries (TEGA) Q3 25/26 earnings summary

Executive summary

• Consolidated revenue for the nine months ended FY 2026 reached INR 12,103 million, up 6% year-over-year, with EBITDA at INR 2,161 million and margins at 18%, impacted by one-time acquisition and labor code expenses.

• Q3 FY26 total revenue declined 0.7% year-over-year to INR 4,175 million, with EBITDA down 42% and PAT down 64% compared to Q3 FY25.

• Excluding one-off items, EBITDA margins would have exceeded 20%, maintaining levels similar to last year for both Q3 and YTD periods.

• The order book as of December 31, 2025, stands at INR 11,402 million, with INR 8,102 million executable within one year, providing strong growth visibility.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board and Audit Committee, with an unmodified review report from the statutory auditors.

Financial highlights

• Q3 FY26 group revenues were INR 4,175 million, with EBITDA of INR 600 million (14% margin), down from INR 4,206 million and 24% margin in Q3 FY25.

• Gross margins improved by 200 basis points year-over-year, from 57% to 59%, due to favorable regional and product mix and high-margin orders.

• PAT margin for Q3 FY26 was 5%, down from 13% in Q3 FY25; EPS for Q3 FY26 was 2.83, compared to 8.15 in Q3 FY25.

• Standalone revenue from operations for the quarter was INR 1,867.72 million, with nine-month revenue at INR 5,873.42 million.

• Consolidated profit after tax for the quarter was INR 197.08 million, and for nine months, INR 999.82 million.

Outlook and guidance

• Growth trajectory for Q4 and Q1 FY 2027 is expected to accelerate, supported by a healthy order pipeline and operational improvements.

• Long-term revenue growth target of 15% CAGR remains intact, with FY 2026 consumables growth expected at 8-12% and equipment at 20-30%.

• Gross margins for consumables are expected to remain at 57-60%, with EBITDA margins of 22-23%.

• The company continues to monitor regulatory changes, especially regarding new labour codes, and will adjust accounting as needed.