Thank you very much. The first question comes from the line of Chirag from Centrum Broking. Please go ahead.

So sir, firstly, on the consumable segment. So in H1, we have grown by around 3% with a margin of around 16.5%. So normally, we aim to grow annually by 15% and have an annualized margin of 22% to 23%. So based on the delivery schedules, etcetera, is our H2 looking strong enough to meet these goals? Or we feel that FY '26 could be slightly lower?

Chirag, generally, if you see traditionally, our H2 is always heavier than H1. And if you see the Q2 results over Q1 and Q2 of this year versus Q2 of last year, you will find significant improvement in the revenues and the EBITDA margins. We are committed to the full year estimates, and we hold on to our guidance as we have given over. These are only reasons for spillover to the subsequent period.

Okay. Okay, sir. And sir, on the Chile capex in your opening remarks, the voice was not very clear. So I mean you mentioned the updated time lines for Chile project commissioning and what?

In last investor call also, we had said that it will be by September '26. And that is what I have mentioned in my opening remarks, that is Q2 of FY '27.

Yes, it remains on track.

Okay. Okay, sir. And any qualitative remarks you mentioned regarding easing of freight, transportation, etcetera, in terms of overall global demand, competitive intensity, etcetera. Any concern, there, sir?

No concerns as of now, Chirag.

Okay. And sir, one last thing on our Molycop acquisition. So we have done INR2,000 crores worth of capital raise. So I mean, henceforth for Molycop financing, do we expect further INR1,000 crores of debt on the Tega books, which were originally planned. So any time line on that? And any further capital raise likely beyond this INR2,000 crores?

Yes. This is Mehul. We will be doing another small equity raise of about anywhere between INR400 crores to INR500 crores to complete the entire equity raise because if you remember in our presentation also, we mentioned that the total equity requirement is INR2,300 crores. So we are about INR300 crores to INR400 crores short. So we will be soon raising the balance. I'm not yet sure whether we'll do it in the form of QIP or pref allotment, but that's what we're going to be doing. And the debt part of it is INR1,000 crores as of now, the debt commitment is closed, but we may revisit some of that to see if we really require INR1,000 crores or a number smaller than that.

Okay. So and the time line of 31st December 1st January remain positive as far as your expectation of approvals, etcetera, is concerned?

We're expecting end December, but it may spill over to January because the time lines when it comes to regulatory approvals is not really in our control. But I'm just sharing with you what has been given to us as guidance by our counsels.

The next question comes from the line of Varun Jain from Dolat Capital.

So at the start of the year, I think you had guided equipment business revenue growth of 25%. And now it seems we'll be massively overshooting more than doubling that in FY '26. So sir, what happened? Like any reason why such a bumper growth has come?

So it has been backed by a strong order book in the equipment business as well as the execution has been strong. So we've been able to convert a substantial portion of the order book into revenue in the 2 quarters. So we are expecting a robust growth in the equipment business. We have guided 25%, but we think that we would be achieving beyond that by the end of the year.

No, that is visible. So this high run rate of 65%, will this continue in H2 also for equipment business?

Okay. And sir, for the same equipment business, company had earlier guided a margin band of 12% to 13% for FY '23. But in this quarter, Q2, the margins are very high, close to 80%, 90%. So sir, would you like to revise your guidance on this front? Or how -- what is the sustainable margin in this business? And why were the margins so high in this quarter?

For the equipment business, generally, we work with a gross margin of anything between 40% to 50% and an EBITDA margin of roughly 12% to 13%. We have improved our EBITDA margins to about 14% this quarter on a half year basis. And this is going to sustain 14% EBITDA margins. And it's been a reason of the mix and the certain high-value orders, high contribution margin orders, which we have been able to get in the current period.

Okay. And this is supposed to continue this range of 14%?

Yes. So when we had acquired the business, it was around 5% EBITDA margin through process improvement, setting up the processes, having alignment at both McNally and Tega, we are now seeing the fruits of what we had borne at that point of time, and we have been able to maintain a healthy margin of 14% now.

Okay. And sir, my last question was on DynaPrime. So what was your DynaPrime share for Q2 and for H1 FY '26? And what was the growth also for both these periods?

Sir, we don't give the breakup of DynaPrime due to it being a sensitive information. But what I can commit to you is that the growth of DynaPrime has been anything above -- 20% north and above.

20% above in both H1 and in Q2?

You should see our business in H1 sir, because quarter-on-quarter, it's difficult to evaluate our business because of the spillover complexities, etcetera. So if you see on a full year basis, you will find the numbers we are telling you.

The next question comes from the line of Mayank Bhandari from A M Securities.

Sir, just checking one thing on the equipment side, NMDC order execution has started. Last time, I think you mentioned that it is still the order -- the execution order is not received yet.

No. We have received the NMDC order, and we have started the execution of the NMDC order. So the income will be booked both in FY '26 and FY '27 for the particular order.

25% growth guidance you are giving, does this includes the execution of NMDC order in the equipment business?

Yes, it will include the NMDC revenue as well.

It will be spillover between the two financial years. So difficult to commit exact numbers at this point of time, depending on the deliveries, what the customer expects at the site and the timing of that. But what we remain committed is that McNally business will definitely grow 25% plus and above over last year.

And sir, we had also been talking about spillover like last -- in Q4, we said some of the deferment of revenues will be in Q1. Q1 -- again, it was in Q2. So the 9%, 10% growth in this quarter in consumables, it includes some of the deferred revenue, is it?

It's a spillover something from last quarter coming to this quarter, this quarter going on to the next quarter. It will always happen like that.

This is Pratik here. We should look at the revenues -- not just the revenue, but in the broader picture of revenues plus pending order because that's the business in hand. It will depend on the time lines of the shutdown of the -- your customers when you're delivering, as I mentioned, because that's when the revenue recognition takes place, either on the dispatch date or on execution date, right? So it has to be in tandem with both the revenues as well as the pending orders. So it's a continuous process. So we have got orders in Q2, which will again get executed in Q3, Q4 and also in FY '27.

So I'm just checking Chile capex, I can see on the balance sheet capex for the first half is very low. So we still have maintained -- and I think last call, you mentioned $200 million for Chile alone and maintenance capex, INR50 crores and some expansion in Dahej. So this year, capex expectation would be how much then?

It is not $200 million for this thing. The overall capex, what we have committed is about in the range of $30 million to $35 million. If you see for Chile, a significant part has been spent on land is lying in CWIP and is in certain capital advances, which has been given. So overall, if you see, we have spent a significant amount of cash flow, which is anything between 25% to 30% of my total project cost as of now. And as I told earlier during my starting of the call, the Chile capex project is on track, and we expect the commercial production to happen by September '26. That is Q2 of FY '27.

I was asking, sir, this year FY '26, what would be your total capex?

So it will be -- the total capex will be a function of my Chile capex, what has been capitalized. So it will be -- I doubt till the entire factory gets commercial production, I'll be able to capitalize that in the books. But you will see the amount in land and CWIP to that account. The routine capex, what we have is about INR50 crores, which includes my maintenance capex as well. That is what you can see on a capitalized basis.

Yes. So sir, most of my questions has been answered. I just had one bookkeeping question. So if I look at our depreciation expense, let's say, in Q3 and Q4 of FY '25, it was roughly around INR26 crores. Now it has come down to around INR22 crores, INR23 crores. So I want to understand why there is a deceleration in depreciation expense? And what would be the quarterly run rate, let's say, going forward into this year?

Total depreciation what we have is in the range of about INR45 crores to INR50 crores what we have told. The depreciation expenses are account assets deployed at various manufacturing facilities and installation sites as well, which yield benefits to us beyond one accounting period. And the reduction of the same is mainly due to retirement of assets, which have completed their useful life. So our capex, which includes growth capex, sustenance capex and specially design self-constructed assets deployed at certain sites. And on a conservative basis, the same are depreciated over a shorter lifespan, if required.

Okay. Then this INR22 crores to INR24 crores run rate should continue going forward also, at least for this year?

Yes. For this year, it should continue. Once my capitalization happens for the Chile project and the Dahej debottlenecking project gets capitalized, then you will see a higher depreciation on these counts. But by that time, certain assets must have been retired, so that will also partially offset the increase in depreciation.

The next question comes from the line of Devarsh from SPL Family Office.

[inaudible 0:24:10] After absorbing Molycop, how does the capital allocation between dividends in other [inaudible 0:24:58] or main capex? Do you have any guidance on that?

Sir, we will be looking at -- I can't give you a clear guidance at this juncture. We will be seeing the businesses and run them as separate verticals for both the Tega Consumables and Tega Equipment and Molycop as such.

And the second question, can you give us any rough guidance on our FY' 27 performance? Post acquisition?

I would not like to comment anything on the acquisition at this juncture. What I can assure you is that, for FY '26 we stand by our guidance given that the consumer business will grow at about 15% and the equipment business shall grow at anything up 25% and north and above.

The next question comes from the line of Varun Jain from Dolat Capital.

Just a small follow-up. So sir, this equipment business, you had, I think, earlier guided that by FY '30, you expect it to reach INR1,000 crores run rate, right? So do you see that happening sooner than that with this kind of growth?

Okay. And on this Molycop, so sir, by which quarter do you expect the transaction to close and then we get the consol numbers in the reporting?

Like we told earlier in the call, we expect the transaction to close anything between December or January. So quarter 4 of this financial year, you will have the first consolidation for Molycop into Tega Industries.

Okay. Okay. And from there onwards, the cross-sell benefits will start also appearing with the mill liner and grinding media and all? From FY '27?

So these are all complementary products, and we expect certain revenue synergies, cost synergies coming in through this acquisition. And we'll keep you -- we have given a detailed presentation on those things, which is available on our website, and we'll keep the investors posted of subsequent developments, what happens in this regard.

As there are no further questions from the participants, I now hand the conference over to the management of Tega Industries for closing comments. Please go ahead.

Thank you once again for taking out your time and coming to our investor call. We'll keep you posted of any subsequent developments. Happy to interact and take any subsequent questions you may have. You can reach out to our investor department, and we will be happy to address in case you have any further questions. Thank you so much.

Thank you. On behalf of Tega Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.