Thank you very much. We will now begin with the question-and-answer session. The first question comes from the line of Ankur Periwal from Axis Capital.

First question on you know the strategy on the combined network bit. While you did mention - USD 20 million of you know, synergy benefits but to if I got it right, it was largely coming from, you know, the cost efficiency, overhead, etcetera. From a revenue ramp up perspective. You know, in terms of cross selling our products as well as Molycop, you know, capitalizing on Molycop's network, how do you see the revenue ramp up here in both the businesses?

So, this is Mehul, we expect the revenue ramp up to actually happen from Q3 to Q4 onwards of this fiscal year. It's still very early days. We're getting our teams together and strategizing across different markets. And as we mentioned earlier in the strategy rationale for the acquisition, there are markets where Tega is strong and Molycop can leverage off Tega's customer relationships and vice versa. So, both products have the same customer across geographies and that process is on in terms of being able to identify those cross-sell opportunities. So, request a couple of quarters of patience with us and we'll be able to give you a more definitive number around it.

Sure, no worries. Just on Molycop, while you appreciate you sharing the details separately and giving the details on the volume side as well, just for our understanding these volume numbers or the revenue realization etc that the margins part these are steady state number what one should believe it to continue or there is a seasonality angle here which plays out both in terms of quarterly or on an annual run rate basis and secondly any RM inflation or any global macro being very volatile. Is there any one-off cost or benefit that would have accrued here?

So, this is Patrick, from a Molycop seasonality basis, there's not much seasonality on a quarter- to-quarter basis. Historically, our historical fourth quarter which ended in June, which is now our first quarter, was our highest period quarter. But given the results that we provided are for one month it's you need to look at Molycop on a quarter basis because you could have some volatility from one month to another month. So, you really need to look at it on a quarter-by- quarter basis.

Appreciate that, Patrick. And from a margin trend line perspective, 30% margin here, that looks like steady state for you.

So, the margin should be relatively flat in the upcoming quarters. One thing that I would recommend is that Molycop typically looks at a per ton number rather than a percentage of sales. And the reason why is that a majority of our customer contracts are tied to a steel indices. So, as the price of steel goes up and down you may have some movement in our revenue number, but the way we have structured it, it protects our gross margin. So, we look at things both on a percent of sales, but we focus more on a per ton number when we're analyzing our internal results.

And lastly on the Chile plant commissioning, any updates over there? If you can share.

Yes, the Chile plant is on track. We're looking at a soft commissioning around January 2027 with commercial production starting March. Of course this is subject to receiving certain regulatory approvals locally. So, we will have to, once the construction is completed, approach the local authorities for certain clearances. We expect that to be received within a two-month window. But it's anyone's guess at this point. So, keeping that into account, we are saying March should be around the time when we go into commercial production.

Okay, great sir. And just one bookkeeping question if I may. The one-time expenses that we booked in this quarter and there were you know, some INR70 crores, INR80 crores or that we booked in the last quarter, this will be it or there could be some more recurring such sort of, you know, one-time expenses which one should be aware of.

This is it. We've factored in everything into the Q1 results.

Sure. So, INR110 crores this time and around let's say INR75 crores, INR80 crores last year. So, INR190 crores in all. Yes.

Yes, that's correct.

Thank you. The next question comes from the line of Vikas Gupta from Wealth Guardian.

Good evening, Sir. I just wanted to ask some question, some information on the total debt at Tega as well as at Molycop level. Can you help me out with that? Hello.

Just give us a second.

Sure, sure.

Yes. So total debt at the group level is INR112 billion which includes redeemable preference shares of around INR26 billion. INR26 billion.

And at Molycop level.

The Molycop level net. Go ahead.

Go ahead, Pat.

No, in US dollars, the net debt number at June 30 was USD672 million.

And how do you look this number coming to by the end of the year.

So, our debt primarily our ABL will fluctuate during the year primarily related to the timing of our bar payments, which bar payments are approximately 80% of our cost of goods. So, that is a significant payment that you'll see. But we anticipate that that net debt number will go down between now and the end of the year.

Okay, so my next question is on the capex. So, how much is the sustenance capex at Molycop level and what's the next two years plan?

So, this period is kind of a unique period because we have a 10-month period. So, typically on a 12-month run rate basis you'd see Molycop have capex somewhere in the low 30’s. And so, for this 10-month period I would anticipate our capex somewhere being in the high 20’s. So USD28 million would probably be a good estimate right now.

So, the plan for the next two years as I suggested earlier would be somewhere in the low to mid- 30’s depending upon some opportunities we have for some expansion. But I'd say the ongoing normalized capital for Molycop would be in the low USD30 million.

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

Yes, hi, good evening Sir and Congrats on completing the transaction. I have a couple of questions. So, firstly on the Molycop I tried to calculate the realization. So, it was coming to close to INR118 per kilogram. So, can you tell us like how this moves versus the steel price or steel prices? I think right now roughly 60, 65 in that range.

So, it's the question around the movement of revenue. So, as Patrick said earlier, around 85% of our contracts have a movement based on steel indexes. So, when steel goes up, revenue goes up and similar to if it moves downward, our revenue will move downward. As Pat said, internally we focus on a per ton basis of margin is the way we measure internally.

And what is the number per ton which we are aiming for like INR15,000 or something like that?

Yes, we don't forecast really an estimated per ton number. When we do our internal forecast, we keep the revenue number per ton on a constant basis because we can't tell what the price of steel will be in the various countries that we operate. So, as Lance mentioned earlier, we have the steel formulas and those formulas will vary depending upon the region of the world that you're in. So again, we're focused on making sure we maintain our profit per ton. You will see some volatility in our revenue per ton. It'll either go up or go down depending upon the various steel prices around the globe.

Got it. And sir, for the last full operating year, what was the volume of Molycop and what is the volume growth expectation in the next couple of years?

Sure. So, for the 12-month numbers that we had for Molycop, let me just grab that right here. It was the volume was slightly down year over year. The revenue followed that as being slightly down but the EBITDA on a 12-month period was up 11% year over year to ended up at USD191 million and that's up from USD172 million dollars from the prior year. And that growth is a combination of maintaining strong cost controls as well as better bar procurement and control of our SG&A. So, if you look to the future for the 10-month period you'll see that our volume will probably grow approximately 5% and our EBITDA will grow around 4% on a 10-month comparable basis. Just keep in mind we're still early on into this acquisition and we'll provide more formal long-term guidance as we move throughout the year.

Sure sir, but what was the absolute number of volume for the last financial year and what percentage of that was from Latin America? Because we've been hearing that in LatAm. In LatAm, the competition in Forge Media has increased because of China.

Sure. So, the volume for 12 months ending in June 2026 was 1.204 million tons and for June 2025, it was 1.223 million tons.

Yes, so if you look at the Chinese competition, the way we approach our business is that you know, it should be viewed in the context of Molycop's long term history and market position. We've been competing against all competitors including China for decades and we've consistently maintained our leading position across our across our core markets. We focus on Molycop strength, and we're strategically located with our manufacturing footprint it enable us to have shorter lead times, our technical support is strong and we really tailor our service to the customer requirements so that is what we focus on and customers place value on that reliability, product performance and local support.

Got it sir. And just a couple of questions for the Tega team. So, what will be the FY27 total finance cost that that will be there and how much debt will be reduced? Like why when FY27 end what will be the debt position?

So, I can tell you from a perspective for the 10-month period again this is just for 10 months interest and principal will be right around USD70 million.

And finance cost will be around 110 crores to 120 crores for the full year basis.

For the full year. Got it sir. And what will be the total capex of Tega and Molycop for FY27?

So again, from a Molycop perspective, I would use the number of USD28 million for our again 10-month period of capex.

Okay, sir, and on Tega, total capex for Tega and Molycop.

So, Tega will be, excluding Molycop, will be USD40 million approximately, including Chile.

The next question comes from the line of Chirag from Centrum Broking.

Yes, thank you and thanks for the opportunity, sir. So, majority questions are answered. Just a couple of more things. So, sir, firstly on the grinding media for Molycop, if you can highlight what kind of market share we have and among the regions, how is our sales mix? So, what regions contributes to what percentage of sales?

Yes, look at a high level in regions where we operate, given our local supply, our local service capability, we're above 50% market share in our core regions.

Okay, and is it possible to just give a brief, you know, I mean qualitative comment on the regions. So, which are the regions which are our strength and what percentage they contribute to our sales?

Yes, if you look at where copper and gold is produced, that will give you a pretty good guide as to our regional volume breakdown. So, if you think about South America being the largest copper producing region in the world, that's where our largest volumes would sit.

And similarly, with North America, you know, it's a very major gold and copper producer, as is Australasia. And then in Africa, that's our growing region where we're recently targeting. And on the back of, on back of the acquisition, we do see some growth in Africa due to Tega's strength in that region. So, that would be a summary at a broad level.

Okay. And on the consumable business of mill liners. So, on that for the current year, sir, what kind of growth and margin number should one build in and will there be an acceleration of growth considering the synergies with Molycop of the cross-sell opportunities that you spoke about.

So, we're maintaining our guidance of about 15% CAGR on the consumables. On the Molycop cross sell opportunities we, as I earlier mentioned, responded to a previous question. We are in the midst of getting that together in terms of putting those numbers together. So, we would take a couple of quarters to be able to get our head around it and be able to give you some guidance on the cross-sell opportunities. But it is going to be accretive and incremental to our current growth rates in the consumables segment.

Okay, and sir, even EBITDA margin profile of consumables of 20% to 23% annually. So even that looks sustainable sir, considering cost inflation because of commodity cost, etcetera.

Yes, in our business we are able to successfully pass through those quite well. There's about a one quarter lag before we can do that, but we have been able to pass through and that's why you will see our gross margins also at 62 odd percent levels are holding in spite of the current geopolitical conditions.

Okay. And lastly sir, considering various shipping related challenges, container availability or rising freight cost, etcetera. So has that, you know, played any role in terms of defferal of shipments, etcetera.

We haven't seen much of deferment, but yes, that does, you know, contribute in terms of logistic challenges in terms of container availability, frequency of mother vessels coming to port. But we are able to work this through with our customers and be able to get product to customers on time as of now.

Thank you. The next question comes from the line of Rushabh Doshi from Nirmiti Investment Advisors LLP.

Yes, so my question is related to the last participant question. So, are we seeing like any inflation in freight costs like for both the businesses in this year?

So, I'll answer for Tega and then Lance can probably take that for Molycop. So, from a Tega perspective, we have seen container prices go up in different geographies that we ship to, but we have that in our contracts with customers that we are able to pass through those freight increases. And like I mentioned earlier, it takes us about a quarter to be able to pass that through. But we have been able to do that. So yes, freight costs have gone up and, and we do pass that through.

Yes. And from a, from a Molycop side, you know, we ship both some on ocean and land. If you look at land costs, it's affected by gas prices, and we've been effectively able to pass that through. On the ocean freight side, you know, Molycop has a good solid risk policy and we've been able to, to hedge some of our freight rates looking forward. So yes, freight rates have gone up but we haven't seen a direct impact to the P&L on that.

Okay. Also like earlier we had mentioned that we have some, we have identified some non-core assets which we can divest or reduce our debt. So, could you just share some more details regarding that?

Yes, so we're in the process of, you know, identifying those non-core assets. There are couple of non-productive land parcels that we are currently evaluating opportunities, creating them and as and when that does happen, we will be using those proceeds to pay down debt.

My last question is -- yes.

No, I just wanted to add to that that those particular opportunities do not have a material impact whatsoever on Molycop's EBITDA.

And my last question is like from an Indian investor perspective, what all currency risks are we exposed to like on the balance sheet side and even on the P&L side.

So, this is from…

Go ahead, Pat.

No, I was going to say from a Molycop perspective, we are USD denominated entities, other than our operations in Spain and also in Australia. And we have a very formal and active risk program that we will hedge our FX exposure on a regular basis. In particular, for any contracts that are outside of that USD, we will hedge it immediately. We will also look at operating expenses on a local level and hedge that appropriately to maintain and reduce any kind of volatility you will have with FX. So historically, FX has not had a material impact on Molycop's performance from the EBITDA perspective.

Okay. And I just had a small suggestion. Maybe from next quarter can we have a more detailed investor presentation particularly focusing on Molycop? So yes, that's all from my side.

Thank you. The next question comes from the line of Nishita from Sapphire Capital.

Yes, Am I audible?

Yes, please go ahead.

Yes, so I just wanted to understand. You mentioned that on consumable side we are expecting 15% growth Y-o-Y. But in Q1 we've already done a growth of around 36%. So, are we being conservative when we say that we will have 15% growth or is there some seasonality which is going to affect our growth?

There's no seasonality. And the 15% revenue guidance for consumable business on a long-term basis. There are couple of items with respect to this quarter. Part of the Q4 orders got serviced in the Q1, so that's why it's not a comparable number, so to say. But the long-term guidance remains at 15% for the consumable business.

Okay.

And that is what we feel is a sustainable guidance.

Okay, understood. Yes. And on the margin front, so can we expect for the full year, can we expect on the consolidated basis our margins to stay at the 15% level that we did in this quarter?

Yes, we expect it to be in that range of 15% on a consolidated basis.

Thank you. We'll take that as the last question, and I would now like to hand the conference over to the management for closing comments. Thank you, and over to you.

Thanks, everyone, for taking out time and joining for the investor call. We'll keep you posted if there are any other developments which you are, you are supposed to know. And for any follow up questions, please feel free to reach out to our investor relations department. Thanks a lot.

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