Shares of Tega Industries Ltd. surged 7.4% to ₹1,718 on the BSE on Friday, May 29, despite the company reporting a weak set of March quarter earnings. According to reports from Business Standard, the stock witnessed strong buying interest in Friday's trade, creating an unusual disconnect between the company's financial performance and market sentiment.
The company reported a 58.13% year-on-year decline in consolidated net profit to ₹42.67 crore for Q4FY26, compared to ₹101.90 crore in the corresponding quarter last year. As reported by Business Standard, revenue from operations also slipped 1.74% to ₹526.78 crore from ₹536.11 crore a year ago, indicating challenges in both top-line growth and profitability. On a full-year basis, the company's consolidated net profit declined 28.72% to ₹142.65 crore on a 3.25% increase in revenue from operations to ₹1,691.94 crore in FY26 over FY25.
At the operating level, EBITDA fell sharply by 60% to ₹60 crore in the March quarter, compared to ₹150 crore in the year-ago period. According to Business Standard, EBITDA margin contracted significantly to 11.4% from 28% last year, representing a substantial deterioration in operational efficiency and profitability metrics. Profit before tax stood at ₹67.31 crore in Q4 FY26, down 45.77% from ₹124.12 crore posted in the same period a year ago.
Total expenses increased 18.48% to ₹496.95 crore in Q4 FY26 from ₹419.45 crore reported in Q4 FY25. As reported by Business Standard, the cost of materials consumed stood at ₹221.44 crore (up 29.26% YoY), while employee benefit expenses rose 11.67% YoY to ₹71.47 crore. However, finance costs declined 27.9% YoY to ₹5.09 crore during the quarter, providing some relief on the cost front.
The board of directors has recommended a final dividend of ₹2 per equity share of face value ₹10 each for FY26, subject to shareholders approval at the company's 50th Annual General Meeting scheduled for September 24, 2026. The record date for determining shareholders eligible to receive the final dividend has been fixed as September 14, 2026. Despite the weak earnings performance, the stock witnessed strong buying interest, suggesting that investors may be focusing on factors beyond the immediate financial results, or perhaps viewing the current performance as a temporary setback rather than a fundamental deterioration in the company's business prospects.
