Tega Industries Limited ($TEGA)

Ladies and gentlemen, good day, and welcome to the Tega Industries Limited Q4 FY '26 Earnings Conference Call hosted by Dolat Capital Markets Private Limited. [Operator Instructions] 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. So welcome to the Q4 FY '26 earnings conference call of Tega Industries. So today, we are joined by the senior management of Tega Industries as well as the senior management of Molycorp. So 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 Molycorp, we have Mr. Lance Topper, Chief Operating Officer of Molycop and Mr. Patrick Cole, Chief Financial Officer of Molycorp, we'll begin with some opening remarks by the management, followed by the Q&A. Thank you, and.

Good evening, and a warm welcome to all the participants on the call. I'm joined this evening by with Mr. Saurav 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 Stober, Chief Operating Officer; and Patrick Cole, 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 '26 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%. And Exceptional items comprised of Molycop related acquisition costs of INR 775 million and INR 64 million towards the labor code impact. In FY '26, 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 '27, supported by a healthy ore pipeline and operational improvements. As of December 31, -- 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. At the World Gold Council data for calendar year 2025, gold demand reached record levels, exceeding 5,000 tonnes, 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 for [indiscernible] SG data. Global copper demand is growing at 3% annually, while supply growth remains relatively constrained at 2%, reflecting limited mine expansion. In the near term, production growth continues to be modest highlighting persistent supply side challenges. From a longer-term perspective, UNC PAD 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 USD 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 which 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 Fund, 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 standard and robust governance mechanisms. The integration will expand 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 Shama takes you through the financial performance of the company. Thank you. Over to you, Pat.

Thank you. This is Patrick Cole, 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 Dauber.

Thanks, Pat, and good evening to everyone. My name is Lance Dauber, 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 2 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?

Yes. Thank you, Jain. Good evening, everyone. Thank you, once again for joining the earnings call for Q4 FY '26 and FY '26 performance and results. Our group income, total income for the period ending March '26 stood at INR 7,736 million visas INR 16,818 million in FY '25. Year-on-year basis, the total revenue have grown by 5%. Our adjusted EBITDA for FY '26 is INR 3,967 million, excluding onetime exceptional items, to Valeco acquisition and labor code. Our EBITDA margin is at 22% in FY '26 against margin of INR 3,829 billion in FY '25 which was 23% in FY '25. For the period ending March '26, Consumable business segment and the Equipment business segment contributed 84% and 16% of the group's revenue from operations perspective. Equipment business has shown a robust growth of 25% at revenue from operation level. EBITDA margin has gone up from 12% to 13% in and EBT margin from 4% to 8%. As mentioned at the start of the call, during the period under review, we have accounted for the onetime exceptional expenses related to proposed Molycop acquisitions. And with regard to provision fees, due diligence, legal consultancy after the terms to an agreed milestone. Addition 2,060 million at 31st March 26, out of which executable orders within 1 year is INR 9,060 million. Pending order as of 31st March 26 is high by 18% over last year. The total group income for Q4 FY '26 stood at INR 5,633 million with an adjusted EBITDA of INR 1,632 million, which is 29% of group revenue for the similar period was INR 5,428 million with an adjusted EBITDA of INR 1,566 million, which is which was again 29%. During the current quarter under reporting, the consumer witness event and the Equipment business segment contributed 84% and 16% at revenue for operational level. The revenue from operations of Consumer business segment reported INR 4,406 million in Q4, which are INR 4,568 million in similar period, which is down by INR 162 million. On a full year basis, consumer business segment revenue remained flat Majorly because of the reasons, customer orders of both payers 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 standing order has gone up by almost 18% year-on-year, which will be materialized in the coming quarters in Q1 and Q2, the revenue from 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-a-vis 58% last year's same period in spite of the raw material volatility, global uncertainty and higher share of equipment business segment. Thank you very much for your time. Now the forum is open for any questions you may have.

[Operator Instructions] Ladies and gentlemen, we will now wait for a moment while the question queue is able our first question comes from the line of Deepak Poddar with Sapphire Capital.

I 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, yes.

So if you're talking about Molycop, yes, the data acquisition is first of June. So we'll be considering from first of June onwards. The first consideration will happen at the end of June. That is the first quarter result will be consolidating. And with respect to that.

Yes. This is Himanshu java here. With respect to debt additions, we'll be adding close to $838 million of debt in our financial as of first of June which is what we had taken over as debt. And 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.

Yes. And what is the additional 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 the parent level, what sort of additional debt like we.

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 [indiscernible].

Okay. And that we would have already taken, right?

Yes, that's already done. And that amount was used specifically for acquisition financing and transaction expenses, which we wanted to incur.

And this first quarter, only 1 month of consolidation will be there from molecule.

That's correct.

Yes, yes. Okay. And my second question is on your growth. I mean, at the parent level, Tega, so what type of growth we are looking at for this year and Molycorp as well and what the Molycop revenue and margins in FY '26?

Yes. So From a [indiscernible] perspective, in the consumable business, we are expecting the normal CAGR of about 3% to be maintained going forward.

And I think for our business, we also expect a similar growth like we did in FY '26, which is in the range of 25%.

Okay. Yes. That's helpful. And then what about Molycop revenues, revenue in FY '26 and what sort of growth outlook we have in Molycop.

So in particular, we are this is just update we have with the acquisition. We are reassessing the numbers currently and most likely basis high-level assumptions what we have the growth outlook that we are looking for FY '27 is 3% in FY '27 in particular. And of course, this will be refined further once we have our detailed engagement with the management team of Molycop.

Understood. And what's the absolute level in FY '26 of Molycorp in revenue and EBITDA, Yes, that would be my last question, yes.

So we are anticipating a growth of around 1% in FY '26 and anticipated EBITDA margin should be close to 12% because and just to give a clear here that the Molycop had financial year ending at June. And of course, once we consolidate this financial year and ending also will change to March ending in alignment with Tega industries.

And what was the absolute number? I just wanted to know the absolute number for Tega last year, maybe for Molycop for last year, yes.

In terms of Yes, Molycop last year was $1,539 million for previous year. That's very helpful, sir. I mean that would be from my side. I would like to wish you all the way thank you so much.

Our next question comes from the line of Chirag Machala with Centrum Broking.

And congratulations to the Tega team for the successful conclusion of Molycop acquisition. Sir, firstly, on Molycop. So if you can provide a medium-term outlook we there and until we Molycop management with us if you can also express your thoughts as to earlier AP management. And now under data management, what are the changes that you see in terms of synergies that is possible to be derived? That is the first question.

Chirag, Himanshu here. So in particular, we are very primary focus will be to bring down the debt in the next 3 years to a level where [indiscernible] of leverage. 3 to 4 years is what we are taking up the time to bring down the debt to PX level. And of course, with this new acquisition, most of the revenue synergies will lie in Tega and the cost synergies will lag with Molycop and that's how we are looking at this as a third market is what we are looking at of selling off noncore assets in particular. These are the 3 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. But as soon as we have detailed out each of the synergy plans, we can come with the guidance on that.

Sure, sure. Secondly, on if you can provide an update on our CV plant commissioning.

CV plant commissioning and the construction is going as per our plan. So almost civil work has been completed. 50%, 60% of similar has been completed, and we are expecting by early Q3 will be able to commission the plant. Of course, there will be certain regulatory approvals, which will be required to start the commercial production, but it is as per our plan.

Okay. So for FY '27, we will have around 1/4 of revenue booking from that?

We are still hopeful, but we need to get some or approval, which you need to work out. So they're almost quite a number of regulatory approvals that required post completion of the plant. So we are hopeful, but it may be we can start booking from end of Q4 or maybe next year.

Okay. Next question is on the Molycorp related acquisition costs around INR 775 million has been booked H2 FY '26 so as entire acquisition cost been already booked is or more can come in Q1 also since the acquisition has concluded. So I'll just hit on that also.

So some more costs will come. So there is quite a number of consultants, professional was engaged in this entire acquisition process. So as when the works are getting completed, we are settling everything. So some more costs will come. And we shall keep you updated in the subsequent quarters. We have been doing this, and we shall keep you posted.

Okay. But sir, the quantum will be as large as it was in Q4?

So Chirag, just to answer your question, the quantum will be much higher because we have been debt refinancing costs and our all the preference costs, which we have quoted for this acquisition financing all 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. So of course, in case if you're looking for a number, it will be close to $30 million of acquisition costs which we have to pay in Q1.

Okay. And last on the end [indiscernible] Yes, sure. Sir, the last question is on consumable segment. So we have actually had a very flat revenues in this year. So just wanted to understand, has the industry growth being weak this year? Or have we lost some market share or some specific geographies which have not done and if you can highlight, please?

This is [indiscernible]. So the industry here, there's actually, as we said, in our opening statement, there is robust growth is the 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. So and hence, you can see the additional 17% growth in major gable orders that receivable in the next 1 year. So the revenue is kind of a timing issue because most of the orders came in February and March. So they're in the process. And you can also see that in the increase in the goods that has come up in our financials. So there's been no the right not see a challenge in the market or in our order bookings and going forward.

Our next question comes from the line of Varun Jain from Dolat Capital Markets Private Limited.

So sir, my first question was on the consumer business only. So in Feb '26 call, I think the management had guided consumables for the year will end at 8%, but it has ended a little flattish so any reason like in the past 3 months, like such a big divergence came.

So as I just mentioned, a lot of that of the orders have come in the last 2 months, and hence, our pending order book has grown significantly from last year to this year for FY'25, '26. And hence, you can also see that the orders are being executed from the increase in the FG that has gone into the financial year.

And to add this won because of the start of this work, there was quite a significant amount of disruption in the logistical area and which has led to the increase in our base 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 1 reason it has led to this flattish kind of revenue growth. But we are very hopeful that things will be normalized and quarter on quarter 2 will be much better.

Sure, sir. So sir, my question was that like if I look at the consumers growth year-on-year. So in FY '24, it was 10% and FY '25, 11% and '26 flat. So even the past 3 years, management keeps guiding 15%, but consistently, tensile segment has been weaker. So would you like to like a longer-term guidance, would you like to revise it down to maybe 10% or 12%.

No, I think it is a cyclical lithium business that is there. So we remain firm on our guidance of 15% potion a long-term basis.

Okay, sir. And sir, on the equipment business, I think this year was a tale of 2 halves. So H1 grew 65.4% and then H2 was flattish. So why was that like such big variance?

Yes. I think for us, in the Equipment business, we have a kind of second time for delivery and execution. And although we kind of some of the we had a project which we kind of executed this year. So I think overall, if you see on the whole year, we maintained our same guidance compared the 25% growth compared to FY '25 and how we distribute the order execution, it also depends on various factors like the readiness of site of customers and the timeliness of the project where they pick up the equipment. So all are kind of over you have to see this over a period of 1 year at least. The revenue and delivery development. And I would say that, that's what exactly happened. And we stated what we said in beginning of FY'26 and we continued that kind of fulfill that kind of guidance of growth.

Okay, sir. And sir, the next question was I think the previous response management impact in Q1, they'll be taking a USD 30 million loss in Q1. So then will FY '27 control, there will be a loss because this will be like a big loss, right?

No, it's not sorry, Varun, this is not a loss, which I mentioned it was the transaction expense, which Sharad was asking, what we'll be getting built in Q1, that's what we answered not a loss Yes.

So that expense will like it will flow through the P&L only. So for FY '27, 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 it is lost, but it is more we have to see it since we are acquiring Mono, these are onetime of an exceptional expenditure, and of course, once the revenue starts consolidating and EBITDA margins and PAT, PBT starts getting consolidated, all these will be sort of negative in terms of the margins, and we see a surplus there.

Okay, sir. And just last 1 from me. So FY '27, what will be the total CapEx? And what will be the breakup of it? And how much will be in Chile.

So in FY '27, the Chile CapEx will be completed, which was around $25 million to $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 crore to INR 60 crores, which happens across the geographies. So this is what a plan as of now. So as things are coming up, we'll keep you updated.

And sir, for Molycop, how much will you spend in FY '27.

So currently, what we have budget is for kind of maintenance CapEx of $20 million. And of course, the growth CapEx will be aligned with the expectation of management team, and we'll drive a number there. So title management, the growth CapEx is yet to be factored, but maintenance CapEx was $20 million.

Okay, sir. So just so you're saying INR 30 million for that Chile 6 million is maintenance for Tega and 20s maintenance for Molycorp that will be close to 55 million CapEx. So how will this be funded, because this is other than the money which will be needed for the deal and expenses, right? So how will this be funded.

So on the sustaining CapEx, which is INR 50 crores to INR 60 crores, which is funded to [indiscernible] and the Chile CapEx has been funded through internal accruals and borrowing, which has already been in place, and we have started using that as well. On the Molycop no, it is generally, we see the number of CapEx in terms of revenue, it's toward 3% of the total revenue. It's not a heavy debt or CapEx-intensive business. we can be this can be easily managed from the cash flows of Molycop and we don't need to borrow any money for the CapEx.

Our next question comes from the line of Deepak with Sundaram Mutual Fund.

I had a couple of questions. So first, if I look at our closing order book of 1 year and less, it has gone up meaningfully, which you have called out in the opening remarks as well. on a Y-o-Y basis, but our execution has kind of lagged behind, which is reflected in our consumable revenue number. And you pointed out that Q1 and Q2, you are going to see a higher execution. So just wanted to know what will change in the operating environment for this execution to pick up in the first of this fiscal year? And did we add any new set of customer in FY '26 for our consumable business?

So with respect to operations, there was other than the logistical challenge, there is no other issues. So other production and other operations are going [indiscernible] 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. So this is what it is, but we are expecting we have started finding out alternate routes to deliver goods to the customers. So [indiscernible] just to add on what [indiscernible] mentioned. Generally, how we have our business is on -- we get the order book after that, it takes time on 3 to 6 months. exit those orders because we are bespoke kind of design-led driven organization. Each order has to be designed separately, manufactures separate in the dispatch. So there's a time lag between the order rec the revenue. So there is no operational challenge, so as to say. So we are since we have received the order late, so the execution will also take it on normal time.

But that was the commentary was similar in the last 2 quarters also, right, that the order will come in, in the next quarter. But 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?

Yes, because the order book has come in and you see that in the executable pending order that has gone up by about and you will also see that we have already started manufacturing this financial good side is also so that means probably a surrogate for our confidence that your business operations are following the order book pattern that we have been mentioned earlier.

So I can also add further to what Pratik was saying, we also have finished goods flowing from quarter 4 to quarter 1. So as Mr. [indiscernible] 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 quarter 1, which will also get shipped out. So that will add to the incremental revenue.

Yes, that's okay. But our inventory position didn't change much between 2 years I mean to say, fiscal '25 and '26 at the parent level anyway overall inventory, we may not be seeing that growth. Actually raw material inventory has come down. So this good inventory has gone up. So we will be having a retail annual financial, you can get the people at is not there in the rest.

Okay. I had 1 question on Molycop since they follow and July to June fiscal so earlier, I heard the commentary that in this June '26 a year for them, we did a 3% top line growth and 12% margin. Was that did I hear that properly?

For '26, you are mentioning Deepak?

No. For them, it is July to June fiscal, right?

Yes, July in fiscal For the period ended June '26, is that your question? Or for '27.

For their fiscal year July to June '26. So is it year ending '26 is what you're asking or year-end.

Yes. So Deepak, year ending '26 will be sort of 1% growth in terms of revenue and close to 12% of EBITDA margin is what we are looking at. But point is that this will be consolidated for a month in FY '27 because this acquisition got closed in June 1st of June. So hence, our reporting cycle will be accordingly giving the numbers.

Okay. Got it. And 1 last question I had on equipment business. So just wanted to know, did we add any new product lines during, let's say, FY '26 in our equipment business? And do we expect any ramp-up in FY '27 also because you have called out that we are anticipating a 25% growth in FY '27. So last year, we had a order win from NMDC, which helped us to rating that growth. I just wanted to understand that is it a new product or your new design or a new customer win, which will drive that 35% growth on a base of FY '26 for in FY [indiscernible] also?

So this is Saurav. So I have there are 2 parts to this question. So first of all, we are continuingly participating in different projects business like what we did last year in and that's number one. So we believe that our we will get some of them booked in this current financial. But having said that, our we are also going to have new product launch in Mitigate business. This is already we have a collaboration with Japanese companies. So that is what this launch will happen in this financial year. But also, we are going to see that there are a lot of headwinds available in our existing business and segments as well and not being laid by 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. And also and also to add to that, we are also looking at businesses across Indian border. And we have got some success as well in Canada. And also we are participating in a project in Russia and as well as we have trying to increase our footprint in Middle East, where we are already doing some kind of export business. for the initiation. So I think all put together, we see that we'll be able to kind of reach what we have already targeted in FY '27.

Okay. And sir, that Japan is a collaboration

Just trying that you need CIS countries just to clarify.

And so 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.

This will be this product will be launched in Q3. That is what we kind of we effect. And then it will be a forward-looking revenue for us.

Our next question comes from the line of Ankur Periwal with Axis Capital.

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 fruit here the benefits of which we can be derived, let's say, in the near term over the next 12 months. And your guidance of 15-odd percent growth on the non molecule business, does it include the benefits?

So just to answer your question 1 by one. The 15% growth, what we have projected, it's non-molecop 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 the entire synergy framework along with the management by detailing each and every step there. And accordingly, we can give our guidance on the synergies, which we replacing either on Molycop, either on also in Tega.

Sure. That's clear. Second bit on the margin profile. And I'm again talking about the Pega consolidated numbers 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 onetime 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 1 look at this number going ahead on the margin front?

So if you talk about bitumen, we have always given a guidance that our blended EBITDA margin will be around 21%, 22%. Yes, of course, this year, it is slightly lower because of the revenue has not been picked up in the Consumables segment. So we are still holding this guidance of EBITDA margin at 21%, 22% at a blended level. Sure, which will be 427 ex of Molycorp led any synergy.

Great. That's helpful. And lastly, on the working capital. Historically, we have been pretty consistent in terms of our net working capital. But this year, there was a good reduction in FY '26. Is it onetime largely because of the papers increasing? Or how should we look at that number?

Initially, you are rightly pointed, obviously, because of favorable improvement. I mean you have seen the overall number of days also be reduced to some extent. So is it because of good commissions you have made in last year for the what the size Sorry.

So from a receivable point of view, there was a reduction, as you rightly mentioned. So should we consider these as a steady-state number going ahead? Or probably it can bounce back below to a higher number earlier?

So on the receivable front, if you see, so receivable normally we maintain a 100 to 105 days of DSOs, and we shall continue to maintain that. Of course, the data volume can go up or down depending on the volume of sales because our Q4 revenue was slightly lower. So and the debtor cycle was slightly it had gone down, the absolute value has gone down. But on the DSL level, it has improved. Our own data collection has been very good. So we expect to maintain it at 100 to 105 days. Okay answer to your question will be maintained, we are maintaining a very good docile in last 2, 3 years. So we are hopeful that we going to maintain going forward as well.

Our next question is a follow-up from Varun from Dolat Capital Markets Private Limited.

Sir, just a couple of you see take the adjustment of INR 776 million, this one-off expense. And if we added back to the consumables EBITDA, then the consumable EBITDA margin would be close to 27.7%. So is that the right way to look at it?

If you're doing it with Q4, yes, it is right. because consistently, in year-on-year, our Q4 is higher than all the quarters. So obviously, the EBITDA margin at Q4 level ranges around 27%, 28%.

Okay. And sir, earlier, I think in Q3, Molycorp's growth guidance for the next year was given at close to 7% or 8%, and now it's been revised 3% so is this a function of volume changing or we are changing our assumptions for those key 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 7%, 8% of growth in Molycop. So maybe I think we need to cross check on where this difference is coming from.

It is from [indiscernible] now interview of the CEO in December.

Okay. So basically, I think I can just give you a reference where it was, I believe, 6 months back, which you are referring to. And we were anticipating that some mines which had gone into care in maintenance particularly Kobi Panama and Grasberg. And this, we were expecting at then point of time to come back in FY '27. Hence, that will give us some additional volume jump. But this, we are seeing as per the market indicators. This will be deferred to FY '28. Hence, we don't see a particular jump in FY '27.

Okay, sir. And sir, for Molycop, can we expect the management to reveal the volume numbers because other binding media players in the industry do that, so we can get a sense of the market share and growth.

So generally, we don't give any market share guidance in our investor calls. We maintain that span. I think that's how do you like to answer this question?

No the market share. So the volumes for Molycop, how much was some and how much was forced for the year.

So 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. And just the last one, sir, for the Equipment segment. For FY '27, will a 14% be the right margin to look at.

No, I think in our guidance, we are talking about 12% to 13% of EBITDA than and which is basically, we will maintain we will maintain the similar kind of profitability, what we did and the growth also we what we mentioned, that will continue to remain in that range.

Thank you. Ladies and gentlemen, we will take that as a 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 for everybody for joining this call. So 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 interest 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.