Tega Industries Ltd (NSE: TEGA) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Mehul Mohanka — Managing Director and Group Chief Executive Officer
Sharad Kumar Khaitan — Chief Financial Officer
Pratik Basu Roy — President
Sourav Sen — Chief Executive Officer
Analysts:
Unidentified Participant
Bhavya Shah — Analyst
Hitesh Agarwal — Analyst
Kirtan Mehta — Analyst
Chirag Muchhala — Analyst
Jonas Bhutta — Analyst
Deepak — Analyst
Sandeep Jain — Analyst
Renjith Sivaram — Analyst
Abhishek Agarwal — Analyst
Prabodh DP — Analyst
Varun Jain — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the Tega Industries Limited Q1FY26 earnings conference call organized by MUFG in time. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Bhakpia Shah. Thank you. And over to you sir.
Bhavya Shah — Analyst
Thank you. Nidhi. Good evening and welcome to Q1FY26 earnings conference call of Tiger Industries Limited. Today on the call we have with us Mr. Mehul Mohanka, Managing Director and Group CEO Mr. Sharat Kumar Kaikan, Chief Financial Officer and Mr. Pratik Roy, Product Management, Global Sales and Marketing. Before we proceed with this call, I would like to give a small disclaimer that this call may contain forward looking statements which are based on beliefs, opinion and expectation of the company as of date. I hope everyone had a chance to go through these results. Now I would like to hand over the call to Mr.
Mihul Mohanka for his opening remarks. Over to you sir.
Mehul Mohanka — Managing Director and Group Chief Executive Officer
Thank you, Bhavya. Good evening and a warm welcome to all the participants on the call. I am joined this evening by Mr. Sourav Sen, the CEO of Tega McNelly, Mr. Pratik Basu Roy, President, Product Group and Global Sales and Mr. Sharat Kumar Ketan, our Chief Financial Officer. Thank you for joining us today. It’s a pleasure to connect with our valued investors, analysts and stakeholders. We are pleased to share our performance for the quarter ended June 30, 2025. Despite a volatile global environment, Tega Industries has continued to demonstrate resilience, innovation and strategic agility. Our consolidated operating revenue for Q1 stood at 3716 million marking a 6% year on year growth.
We reported an operating EBITDA of 725 million with EBITDA margins of 20% reflecting our focus on operational efficiency. Our equipment business delivered strong performance with revenue of 643 million, up 78% year on year compared to 361 million in the same period last year. We remain on track to achieve our FY26 earnings guidance as on June 30th our order book stands at approximately 10,053 million, with 6,103 million executable within the next 12 months. This provides strong visibility and confidence in our growth trajectory. We remain cautiously optimistic about the road ahead while macroeconomic uncertainties assist our diversified portfolio.
Strong balance sheet and customer centric approach position us well to navigate challenges and seize emerging opportunities across global markets. When it comes to the overall projection around global copper demand, we see it grow steadily reaching 28.3 million tonnes by 2030, up from 24.6 million tons in 2026, reflecting a CAGR of 4%. This growth is driven by electrification, EVs and infrastructure expansion. Copper is increasingly viewed as a strategic resource essential to the energy transition. Gold demand is expected to remain resilient with global production forecast to rise from 3,582 metric tons in 2026 to 4,245 metric tonnes by 2030, reflecting a CAGR of 4% as well.
This is supported by investment demand, central bank accumulation and industrial use. This surge is prompting mining companies to ramp up exploration and production especially in copper rich regions such as Latin America, North America and Africa. We continue to strengthen our global footprint, particularly in Latin America and Africa where demand for our products remain robust. Our Chile operations are scaling well and we are actively investing in capacity and talent to support long term growth. The global mining sector is being reshaped by rising demand for critical and rare minerals driven by the energy transition and electrification. ESG compliance, digitalization and supply chain realignments are becoming central to investment decisions.
Additionally, recent U.S. tariff adjustments shall have a similar impact on competition. Hence, TEGA shall remain and maintain its competitive edge in us. Innovation remains at the heart of our strategy. We’ve enhanced our product offerings that shall increase mine productivity while reducing environmental impact. Sustainability is embedded across our operations from energy efficient manufacturing to product design, ensuring long term value creation for our stakeholders and the planet. I want to thank our employees for their unwavering commitment, our customers for their trust and you, our investors for your continued support. We are committed to delivering sustainable value and transparent communication.
Now I would like to hand over to Sharad who will take you through the financial performance of the company. Thank you.
Sharad Kumar Khaitan — Chief Financial Officer
Thank you Meuz. A very warm welcome to everyone and thank you for joining the Earnings Call for Q1 of FY26 Performance and Results the total Group revenues for Q1 FY26 stood at 3716 million with an EBITDA of 725 million, I.e. eBITDA margins of approximately 20%. The Group revenues for same period last year, I.e. q1 of FY25 was at 3516 million with an EBITDA OF 771 million. During the current quarter under reporting, the Consumable business segment and the equipment business segment contributed 82% and 18% of the group’s revenue from operations respectively. The revenue from operations of the Consumable business reported revenues of 2,940 million in Q1 of FY26 versus rupees 3,046 million in same period last year.
While we have witnessed some disruptions due to global economic and political development, account war, logistics, supply chain disruptions, sanctions, tariffs, etc. Overall business is unaffected and the sales funnel remains robust. For us, the revenue from operations of the equipment business witnessed a significant increase of rupees 283 million or 78% with Q1FY26 revenues at 643 million. As against rupees 360 million reported in same period last year, we have maintained healthy gross margins of 59% at the group level in line with the same period last year. In spite of raw material volatility, global uncertainties and a higher share of the equipment segment, the order book for both the business segments I.e.
consumables business segment and the equipment business segment remains strong. We have an order book of Rupees 10,053 million as at 30 June 2025, out of which executable orders within one year is approximately 6103 million. Please note that for us, each sequential quarter in a financial year is better than its preceding quarter. Hence we shouldn’t compare Q4 of last year that is FY25 with the current quarter under reporting, that is Q1 of FY26. The supply chain is affected by the volatile geopolitical situation in the recent past and we have proactively taken actions to ensure RM security by advance placement of orders to counter the increase in the supply chain timeline.
We have also ensured dispatch readiness in time to reduce manufacturing throughput time to offset the increased transit time and are tracking all the shipments on a real time basis. The Chile CAPEX project is on track with the project in full action and we are Trying to have the same ready for commercial production around same time next year. It may be noted that no sales shall be impacted in such interim period as we have put up alternate plans at Chile which will address any capacity limitations to meet the revenue growth. Thank you very much for your time and you.
Thank. And the forum is now open to any questions you may have.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Dibanshi Shah from SDA Finance. Please go ahead.
Unidentified Participant
Hi. Thank you for taking my question. So my first question was which geographies led growth this quarter across key segments? Was it demand led or price led? Which new geographical market is the Dynaprime segment expected to expand into in the future?
Pratik Basu Roy
This is Pratik. Hi, I’ll take your question. So our demand has been overall robust across the regions. However, Latin America is driving that growth amongst all the regions going forward. Diana prime has also seen a significant increase and is also leading product in our product portfolio. So amongst all the products that we have in the consumables business, Tynaprime has seen the maximum growth.
Unidentified Participant
Got it, sir. And my second question was regarding the order book. Can you break down the mix of order book Domestic vs International, Mining vs Industrial sectors and update visibility for FY26 if possible. Are Chinese competitors impacting pricing or market share in this segment?
Pratik Basu Roy
See, Chinese players are always there. They are part of the competition, so. And they’re not really impacting. It’s a part of the competition. So it’s nothing new to us. And in terms of what was the. Other question, ma’, am,
Unidentified Participant
can you break. Down the mix of order book domestic versus international and mining versus sectors.
Pratik Basu Roy
In the consumer boost? Approximately 90% is outside India and domestic we have around 10%. Yeah, more or less.
Unidentified Participant
Yeah, got it sir. Thank you.
operator
Thank you. The next question is from the line of Hitesh Agarwal from PL Capital. Please go ahead.
Hitesh Agarwal
So thank you for the opportunity. I have a couple of questions. So with the global energy transition driving the higher demand for minerals like copper, lithium and railroads, how is TEGA positioning itself to benefit from the increased mining activity and investment in mineral processing infrastructure?
Mehul Mohanka
So as we said that, you know, part of the copper improvement in production is Led by consumption in the energy sector and the EV and other allied sectors. For us, as you know, copper and gold together constitute more than 76% of our total revenue. And in terms of mineral processing, we will always see higher volume consumption in both copper and gold. So the question is in relation to copper, we are seeing very strong demand from customers in the copper segment as well to cater to the higher production.
Hitesh Agarwal
Okay, sir, got it. And so my last question is, are you exploring any inorganic growth opportunities such as acquisition, allied technology or services allied with the mineral processing?
Sharad Kumar Khaitan
We regularly provide all the information regarding any events, information that have a bearing on the operation or performance of the company. The company does evaluate various strategic opportunities in the ordinary course for growth and expansion of the business. At this stage, there is no material information or event that requires disclosure under the SEBI laws. And the company will make appropriate disclosures in compliance with applicable laws as and when required.
Hitesh Agarwal
That’s all. Thank you.
Sharad Kumar Khaitan
Thanks.
operator
Thank you. Before we take the next question, I would like to remind the participant, if you wish to ask a question, you may press star and one on your touchstone telephone. The next question is from the line of Kirtan Mehta from Baroda BNP Paribas Mutual Fund. Please go ahead.
Kirtan Mehta
Thank you sir, for this opportunity. I had a question regarding our standalone numbers. Where our revenue at 1676 crores is down around 29% YoY and our EBITDA excluding the other income at 353 crore is down around 47% YoY. What is the reason for sort of YOY decline during this quarter?
Sharad Kumar Khaitan
Sir, when you see the results, you should always see our results on a consolidated basis because there are transactions between the Indian entity and the other overseas entities, e.g. uS entity and other marketing branches where we have. So it’s always prudent to see it on a consolidated basis because there are shipments which happened in the last financial year and. But the revenues, the third party revenues got crystallized in the current quarter actually.
Kirtan Mehta
Right. So. And in terms of sort of the decline in the consolidated result, where again the EBITDA excluding the other income will work out at 556 crore and was down 13%. Would you be able to sort of give more color around that as well?
Sharad Kumar Khaitan
So generally if you see Q1 is the lowest quarter for us and as we progress during the year, the revenues start coming in, pouring in and that has got a direct bearing on our ebitda. We are confident of our growth story. We have been growing at 15% CAGR and we maintain those estimates Even for. The current period
Kirtan Mehta
and amongst us, would. There be sort of a generally do we see pickup in QT or it’s more weighted towards the H2. The pickup could come through
Sharad Kumar Khaitan
the pickup is more weighted towards H2.
Kirtan Mehta
Right sir. And one more question about the in the McNally we are executing around a 120 core order from NMDC. What have we completed during the year and what would be our target for the FY26? How much we would be able to sort of complete within this year?
Sharad Kumar Khaitan
The significant portion of the order will be completing in the current financial year and there may be a very small spillover, about 10, 15% which will go beyond the current financial year.
Kirtan Mehta
And how much we have completed till date. Would you be able to share that as well?
Sharad Kumar Khaitan
About 20 to 25% is the project deliveries, what we have been able to complete till date.
Kirtan Mehta
Right sir. Thank you. I’ll get back in the queue.
operator
Thank you. The next question is from the line of Chirag Muchala from Centrum Broking. Please go ahead.
Chirag Muchhala
Yeah, thank you sir. So first question is on the consumable segments margin. So this quarter we had relatively lesser margin at 17%. I know there are quite a quarterly variations but any specific reason in this quarter and would you. I mean the 22 to 23% margin outlook that we have, does this still stand?
Sharad Kumar Khaitan
Yeah, Chirag if you see the consummate business generally has got gross margins of about 57 to 60% with equipment giving about 40 to 50, 45%. And on blended we have about 50 to 55% gross margins with the sales picking up in the subsequent quarters. That exactly flows into the EBITDA margins. And we shall maintain our growth EBITDA margins of about 20 to 23% in the consumable segment and in the range of 12 to 13% for the equipment. So that at a blended level we have around 21, 22% of EBITDA margins.
Chirag Muchhala
Okay, that’s heartening to you sir. Another question is actually on our Europe order. So there are two parts. So firstly, how is that execution moving and secondly that Europe orders execution had started in January 2024. So it has been around one and a half years since then. So any large value order that we are scouting for that, you know, they can come up for ordering and that we can win in near term for FY 26 or 27. Are there any such tender possibilities?
Pratik Basu Roy
So again Pratik here. So we have got inquiries on various tenders but we do not obviously speculate on those. We’ll keep you posted as and when they materialize.
Chirag Muchhala
Okay, sure. And lastly on the equipment segment. So just to clarify. So as we would eventually take this equipment inquiries global to our global customer base. So is there any approval process etc involved in this? And if yes, then at what stage we are for getting those approvals?
Sourav Sen
Hi, this is Sourav. So you know, our main focus would be to consolidate ourselves in the domestic market first. And so once we build the foundation, we always like to look forward and leverage tega’s global footprint. And I think we have to cross the bridge when it comes. So rather we probably would be able to take, you know, give you more clarity on this whether approvals are required or not, you know, in future date. But that is always will be remain our ambition once we have done our bitcoin on in the domestic sector.
Chirag Muchhala
Okay. So from domestic market, the last order that we had received Kalpataru projects was the consortium leader. So just trying to understand how the process works. So each and every EPC company and the customer that is there, do we have to get ourselves certified and is there any approval process or purely from product to product based on commercial terms we can tie up and bid for tenders in any from FY26 point of view, any domestic addressable market you can share where our McNally products are already at a stage where we are actively bidding for it.
Sourav Sen
So I can talk generally. And generally speaking, you know, our focus have been in the mining, steel and power. And as you see the projects are kind of ongoing in all these three sectors and we are participating. So there is no, you know, kind of, you know, general fixed kind of, you know, status for all the tenders. But we take it on case to case basis and kind of, you know, depending on the merit of the situation, we will, we are repositioning ourselves.
Chirag Muchhala
Okay. In any addressable market you can share, sir, that we are, which is, I mean, where we can. We are already started bidding for only for domestic markets.
Sourav Sen
Yeah. So, you know, iron ore has been, you know, strong focus for us in this segment. So that will continue to be our focus and we are, we will participate. And besides iron ore, as you know that the focus for the country is also in power and we are participating in the, you know, coal based power plants, as you know. So these are the two segments which are constantly monitoring and we are trying to find out what is our addressable opportunities. And we are participating very aggressively. And there is one addition that which is, you know, in the aggregate crushing business for construction.
And that is one area which we have started looking into and we are also evaluating the. Our opportunities in that segment. Because some of the equipment are already there in our segment.
Chirag Muchhala
Okay, sir, what I was looking for was in value term any ballpark addressable opportunities size that, that you can share.
Sharad Kumar Khaitan
We maintain our revenue guidance of 15% CAGR in a long term basis. So we hold 15% on an overall basis and 25% for the equipment business. And we will not be able to give any specific equipment wise or machine wise details for the same.
Chirag Muchhala
Okay, no problem, sir. Thank you.
operator
Thank you. The next question is from the line of Jonas Butta from Birla Mutual Fund. Please go ahead.
Jonas Bhutta
Good evening gentlemen and thank you for the opportunity. A couple of questions. Firstly, you know, while quarterly aberrations are pretty understandable, but if you just give a qualitative feel on the consumable side, which has seen a revenue decline on a year on year basis, you know, how. How has the non mill part of the business sort of performed versus the mill side within that also, you know, is. Is Dynaprime on track of growing 20% for the year? That’s the first question. And I have follow ups.
Mehul Mohanka
Yeah. So I’ll take the question in parts. So in terms of revenues, obviously kind of a timing matter, but we see overall robust order books in all the segments mill as well as in the bulk material handling. Dynaprime as I mentioned earlier, has been a growth driver and it still maintains that it will. Will still continue or maybe in some cases probably also do a little tad better. Because as you remember, some of the orders we are getting now that were due last year. So the growth momentum in Diana prime should continue. BMH also, especially in outside India, we are seeing a good traction on the orders front. Does that answer your question, sir?
Jonas Bhutta
Yeah. You know, so effectively the consumable side, the Dynaprime business should continue to grow at 15 to 20%. Whereas the male equipment, the non male.
Mehul Mohanka
Equipment, I would say 15 to 20 is a conservative. I am looking for or pushing for more than 24 dynaprenes.
Jonas Bhutta
Got it. And also, you know, we have the Chile plant. So that’s the. You know, my second question was more around the new upcoming plant. Actually part of it should be commissioned in, in the current financial year. When can we start seeing a reflection of that in the order book? As you know, you. As you prepare for the plant going live, I’m presuming that you will start taking on orders at least a quarter or two beforehand. So when should we start seeing the reflection of that on the order backlog which has been sort of constant for the last two quarters.
Mehul Mohanka
Before I hand it over to Sharath to answer on the. On the plant and the timelines. See these are two independent lines. The order intake has nothing to do with the manufacturing facility that we have. So irrespective of when the jumps in and there’s no special order that we’ll. Take for the new plant, the new. Plant will manufacture the orders that we have existing. So it has. This line of business or order intake has nothing to do with the manufacturing part. So it will be manufactured irrespective of when the order intake is coming up.
Sharad Kumar Khaitan
So I just want to add one. More thing here Jonas is that we will have the. We expect the commercial production in the new plant around same time next year and we have addressed all capacity related issues for the interim period. And the capacity will not be any restriction or any constraint for my revenue growth in Latin America as well.
Jonas Bhutta
Sharad, if you can share, you know the breakup of the backlog between consumables and equipment, what would be the broad breakup? Even a percentage would help.
Sharad Kumar Khaitan
No? Can you help me define what do you mean by the so between the.
Jonas Bhutta
Two business line items equipment and consumable, what’s the breakdown of your order backlog of roughly thousand odd crores. How much it is, is it attributable to McNally and how much is the consumable side?
Sharad Kumar Khaitan
Again see a signif we don’t give that breakup journals part of the orders. What we have is is on account of the consumable business segment and the remaining is on account of the equipment business. What we can assure you at this juncture is that we shall be able to maintain our 15% CAGR growth rate. And that is how we intend to go at a group level. And we will be able to grow Macnally by more than about 25% coming in the going future.
Jonas Bhutta
Understood. Perfect. Great. Thank you gentlemen. All the best.
operator
Thank you. The next question is from the line of Deepak from Sundaram Mutual fund. Please go ahead.
Deepak
Thanks for the opportunity. Am I audible?
Sharad Kumar Khaitan
Yes Deepak.
Deepak
Yeah. So sir, this again double clicking on this equipment side. So this quarter we have shown a very strong comeback with you know 78% yy growth rate in the revenues. And you also highlighted earlier that of that 120 crore NMDC order book we have almost 75% will get executed in FY26 and the balance in FY27. Right. And we did around 215 crores in FY25 correct. So if I just add the anonymity order book, even if I keep the revenue flat of what we did in the equipment in 25, we are looking at a, let’s say 35, 40% plus kind of growth. So I’m just not able to understand when you say 25% kind of growth in equipment how we are coming at that number.
Sharad Kumar Khaitan
See the last year if you see we had done about 200 plus revenue growth, revenue in the equipment business segment and we have the orders and we have that visibility of the orders which are going to come in the near future. That is in Q2 predominantly and basically those orders for which we have clear visibility. But still since we don’t have the purchase orders in hands, we have not considered them in our order book numbers basis. The visibility we have of the negotiations and discussions we are going on with our customers, we are confident of delivering these numbers.
Deepak
Okay. Okay. Thank you sir.
operator
Thank you. The next question is from the line of Sandeep Jain from Baroda BNP Parivas Mutual Fund. Please go ahead.
Sandeep Jain
Yeah, thanks for taking my question. Most of the question has been answered just one thing. As we see the consumable revenue is around 294 crores for this quarter. Is there any kind of shipment which is, you know, kind of delayed or you know there is some kind of thing which we can see in the coming quarter which we have not booked like it happened in the previous quarters and all. Any number you want to give there,
Sharad Kumar Khaitan
Sandeep. There have been certain shipments which have been pushed in Q2 will not be able to give you the exact numbers. But there are difference even in the current quarter.
Sandeep Jain
So there was some kind of deferment in I believe if I remember it correctly somewhere around in the fourth quarter also. So that is what is getting booked here and something which will be kind of booked in Q2. It would be great sarad if you can give some kind of, you know, so that we can, you know kind of normalize our earnings and all.
Mehul Mohanka
See some of the ones that had was deferred in Q4 has come in the ones there some which has been deferred into also in Q2 and some also goes as long as into Q3 because of the customer request. Some of it has already been executed in July. So what you see there. So it’s only a timing issue at best.
Sandeep Jain
You don’t want to quantify it.
Mehul Mohanka
I don’t want to give a number Sandeep, because there are so much uncertainties. Then in the next quarter again you Will ask me with that is the problem.
Sandeep Jain
I have understood. And in terms of the freight cost and all any kind of you know light there that how it is, it is increasing, it is impacting our margin how we should look at it. Because if I look at year on year our consumer limit margin has also been declined kind of thing. It is related to the freight or.
Mehul Mohanka
Freight costs have been smoothing out over a period of time and we do pass on the freight cost with a quarter time lag to our customers. Supply chain disruptions are there. Certain challenges are there. But then we are trying to work as closely with our customers and the shipping lines to ensure that we meet on the timelines both on raw material procurement as well as on our shipments.
Sandeep Jain
So no impact of the freight cost in this quarter’s EBIT margin?
Mehul Mohanka
No, a very small number but not significant.
Sandeep Jain
So if I look at it as declined somewhere around year on year 430 basis point. I know it’s a seasonal business. Nothing to compare. You should compare on a rolling 23 quarter basis kind of thing. But any kind of material negative which we can see in this EBIT margin which you think it will reverse in the coming quarters and all
Mehul Mohanka
it’s all about operating leverage. The moment I have my revenues picking up in the quarter we will see those EBITDA margins and the EBIT margin.
Sandeep Jain
Thank you. Thank you sir. Thank you team.
operator
Thank you. The next question is from the line of Ranjit Sivaram from Mahindra Manulife Mutual Fund. Please go ahead.
Renjith Sivaram
Yeah, hi sir. I just wanted to understand that globally when we see these are having hard competition from Met. So now that F.L. smith has done some acquisition and they are also getting aggressive and they are also started to give contract manufacturing for composites in for some other Indian companies are by by which they are also trying to reduce their cost. So in that scenario do you see a challenge to our market share or our market share growth?
Mehul Mohanka
Hi, this is Mehul. No, we don’t see any impact in terms of competition. I mean Flsmitz is a competitor for sure but they are fairly new in this business. Our business is critical to operate consumables. So people have to have substantial reference and history and legacy to be able to establish themselves in this market. So it’s not very easy for someone, whether it be effort Schmidt or anyone else tomorrow to be able to just enter the market and start disruptions in terms of market share. So we are aware we do watch competition very carefully. There are larger players than Neffel Schmidt in this business as well, we in Tega have been very accustomed to dealing with competition on a year to year basis.
In our entire 50 year history, we’ve seen many competitors and our business still remains very sustainable in spite of competition in the market.
Renjith Sivaram
Okay, and sir, thanks for that explanation. And Chile, when we come in with our own facility, roughly around $200 million. If I put a number to that market of that currently, what will be our market share and with our localized facility, is it right to assume that our market share can easily double in that geography?
Mehul Mohanka
So currently we already have a facility. It’s just that we’re running out of capacity and that’s why we’re doing another greenfield expansion. And as we’ve explained in the previous earnings calls. So yes, the market is larger, slightly larger than where you put it at. It’s close to about $350 million in Latin America. And this additional capacity that we will have through the new project will help us add incrementally another thousand crores of top line revenue to our business when it goes fully online at 100% capacity utilization.
Renjith Sivaram
Okay. Okay, sir, thanks. And all the best.
Mehul Mohanka
Thank you.
operator
Thank you. The next question is from the line of Abhishek Agarwal from Prithvi Finmat Private Limited. Please go ahead.
Abhishek Agarwal
Hello.
Mehul Mohanka
Yeah, please go ahead.
Abhishek Agarwal
Thanks for giving me opportunity. My question related to there is a news article which is quoting that one of the largest mining companies looking to buy out the company. So just I want to understand as a promoter how much we are focused on the company or we are looking something in this line to sell off the business.
Mehul Mohanka
Yeah. So we don’t comment on market rumors. These are, I would say, things that people speculate on, but we don’t. We remain very focused on our business. And all I can say is there is no interest from the promoter family to divest to anybody in the market.
Abhishek Agarwal
Okay, sir, that’s from my end. Thank you.
Mehul Mohanka
Thank you.
operator
Thank you. The next question is from the line of Prabhod DP from Patrick Investments. Please go ahead.
Prabodh DP
Thank you for taking my question. My first question is on the EBITDA margins seen in context with the gross margins. As we see the gross margins have held up and this is despite a larger contribution from the McNally side which is at a lower level. So when we look at the EBITDA margin and we’ve seen it in previous years where there’s a build up quarter over quarter, I just wanted to get an operational sense on what are these expenses that get built up over the year as we Execute our orders.
Sharad Kumar Khaitan
See, the gross margins is a direct function of the sales and the raw material cost for that particular period. But when we compute the EBITDA margins, you have got fixed overheads, salary expenses, and all of that comes in the below the line, below the gross margin to derive the EBITDA. Now the fixed overheads remain constant even in a Q1 versus a Q2, for example. But these since gross margin absolute numbers, they get better off with increased sales. The EBITDA margins in subsequent periods get improved actually.
Prabodh DP
So it’s a function more of the utilization of capacity that builds up over the years.
Sharad Kumar Khaitan
Yeah, because say for example, we have those salary costs, for example. Now the salary cost remains Constant Even in Q1 versus Q2, subject to new people joining in and increments all of that. But the revenue minus gross raw material cost, which is gross margin, then a higher base helps me absorb more of those costs actually. So which on a full year basis.
Prabodh DP
Yeah, yeah. There aren’t any kind of cost like logistics. For example, there’s a little front loaded and as, as the year goes on, it. It wears off.
Sharad Kumar Khaitan
No, no, nothing negative like that of front loading or anything like that.
Prabodh DP
Yeah, thanks. Thanks a lot. Yeah.
operator
Thank. Thank you. The next question is from the line of ease go ahead.
Unidentified Participant
Good evening, sir. Sir, my first question is on the equipment margin. So over the past three quarters, our equipment margins have been constantly increasing from 10% to 16% till Q4F25. So I just wanted to know what is the reason for the decline in. Margins in current quarter? Is it a function of some product mix or consumer mix that you would like to highlight?
Mehul Mohanka
I think one thing, what we have kind of, you know, put our fingers on is the gross margin is slightly down because of change in sales mix. You know, we have roughly the combination of spares and equipment is about, you know, 45, 55. And in the last quarter the space part has been about, you know, 30 to 35 grain. And however, this is just a quarter effect. But going forward in the full year basis, we continue to be very, you know, optimistic about the guidance what we have already given.
Unidentified Participant
Got it, sir. And sir, lastly. So while I understand that it would. Be better to look at the console. Number instead of standalone, but would it be fair to say that the decline in the standalone revenues could be a reason of we are increasing our sales to international geographies directly through the manufacturing facilities that we have in those geographies rather than exporting it from India. So directionally would this Be a fair assumption to me.
Sharad Kumar Khaitan
No, it will not be prudent to consider it like this. It’s only a matter of time. If on a full year basis you will see recovery in the standalone numbers as well. Why I recommended to see the results on a consolidated basis because that gives a complete picture of the group. Because there are a lot of things which are manufactured in India and we have marketing branches, entities across the globe where they are shipped and then third party invoicing is done from those locations. The revenue which is recognized on a console basis is basis the third party revenue which is being billed and invoiced to them.
So it is about revenue being declared getting declined in the Indian standalone accounts and manufacturing getting altered anywhere in other locations actually.
Unidentified Participant
Got it sir. That’s it from my side. Thank you.
operator
Thank you. The next question is from the line of Varun Jain from Dholat Capital. Please go ahead.
Varun Jain
Yeah. Hi, good evening sir. My first question was your FY26 CapEx guidance and its breakup.
Sharad Kumar Khaitan
See, we have got the Chili Capex plan which is there. We have got certain capex proposals for Dage plant which we had updated last time as well. We have incremental capex for McNeely as well. So on an overall basis, if you see the Chile Capex will be close to about $30 million. The age CAPEX is about 30cr in INR terms and another 2025cr is what we have committed for Macnally as and when those Capex requirements are there and these Capex spend shall be over a period of 2 years that is in FY26 and FY27. Apart from these, we have maintenance capex of about 50 cr on an annualized basis at a group level.
Varun Jain
Of the three CAPEX you mentioned of Chile Dahedian McNally we can say roughly half will be this year because it’s over two years.
Sharad Kumar Khaitan
A little more than half shall be in the current year itself.
Varun Jain
Okay, and my second question was what percentage of your revenue is from the US because earlier the company has always taken this line that you know, if, if US imposes tariffs, all, all the suppliers will be hit equally. But that is not the case. Right, because our competitors don’t have their manufacturing in India. Now Trump is threatening that the tariffs on India could be substantially higher than some of the other places. So what is our exposure to that?
Pratik Basu Roy
So we are also keeping a close watch on what’s happening there because now it’s August 8th. We will find out more about it. However, having said that, we have manufacturing locations across the globe. Also in Chile, where it’s not so much impacted. Nonetheless, our exports to mainland USA from. India is around less than 2%. So the impact will not be substantial at a group level. Even if that happens, we have also the option of manufacturing it from other locations as well. So the impact is really negligible.
Varun Jain
As of now, less than 2% of total revenue is to the US
Pratik Basu Roy
from India. Yes.
Varun Jain
Okay. From India. And. And overall of the overall revenue of the company, how much is to the US?
Pratik Basu Roy
4 to 5%.
Varun Jain
Okay. Got it, sir. Okay. Thank you. And all the best.
operator
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Sharad Kumar Khaitan
Thank you once again for taking out your time and coming to our investor call. We will keep you posted of any subsequent developments. Happy to interact and take any subsequent questions you have. You can reach out to our investor department and we will be happy to address the same. Thank you so much.
operator
Thank you. On behalf of Tega Industries Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.