Tega Industries (TEGA) Q3 25/26 earnings summary

Executive summary

• Consolidated revenue for the nine months ended December 2025 was INR 12,103 million, up 6% year-over-year, with EBITDA at INR 2,161 million and EBITDA margin at 18%, impacted by one-time acquisition and labor code expenses.

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

• Gross margins improved to 59% for nine months and 60% for Q3, driven by favorable mix and high-margin orders.

• Equipment business revenue grew 34% year-over-year to INR 1,826 million for nine months, with a turnaround to positive PBT.

• 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 revenue was INR 4,175 million, with EBITDA of INR 600 million and EBITDA margin of 14%, impacted by one-time expenses.

• Q3 gross margin held at 60%, up from 59% year-over-year, despite raw material volatility and higher equipment share.

• Consumables contributed 88% and equipment 12% to Q3 revenues; consumables revenue was INR 3,585 million, up INR 29 million year-over-year.

• 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 and consolidated profit after tax for the quarter were INR 281.46 million and INR 197.08 million, respectively.

Outlook and guidance

• Order book as of December 31, 2025, stands at INR 11,402 million, with INR 8,102 million executable within 12 months, providing strong growth visibility.

• Growth trajectory remains positive, with a healthy order pipeline and operational improvements expected to drive Q4 and FY27.

• FY26 consumables segment growth expected at 8-12%, below long-term 15% CAGR, due to order timing shifts.

• Equipment segment projected to grow 20-30% for the year.

• Guidance for FY27 will be provided after budget finalization.