Tega Industries Ltd Management Discussions

Economic Environment

Global GDP Growth Outlook

After rebounding by 6.6% in 2021 following the pandemic slump, global growth slowed to 3.3% by 2024 due to inflation, conflict, and strained supply chains. Growth is forecast to dip to 2.8% in 2025 amid rising tariffs, then gradually recover to 3.2% between 2026 and 2030, driven by supply chain diversification and emerging industrial hubs.

Emerging markets will lead, thanks to favourable demographics and industrial investment. In contrast, advanced economies face headwinds from ageing populations, high debt, and the green transition.

Asia-Pacific faces pressure from trade frictions, while the MENA region is more stable due to gas investment and infrastructure expansion.

Key Macroeconomic Takeaways

1. Geopolitical Tensions Persist

Conflicts in Ukraine, the Middle East, and South Asia may fuel inflation and disrupt global supply chains. Ukraine, the Middle East, and South Asia may fuel inflation and disrupt global supply chains.

2. Emerging Market Momentum

India (6.2%), Vietnam (5.2%), and UAE (4.0%) are expected to lead the 2.8% global economic growth in 2025.

3. Supply Chain Diversification

Companies are relocating sourcing and production to resilient regions like India and the Gulf.

4. Indias Sustained Growth

Growth of 6.2-6.3% is forecast through FY2026-27, with India likely to become the worlds third-largest economy before 2030.

5. Manufacturing Upswing

Indias share of GVA from manufacturing is set to exceed 15.1% by FY2028-29, up from 13.8% in FY2024-25.

Industry Overview

Global Mining And Mineral Industry

The global mining industry remains a cornerstone of industrial development and energy security, supplying critical raw materials for infrastructure, energy, manufacturing, and technology. Despite global decarbonization efforts, coal remains vital in many developing economies (India, China, Indonesia) for power generation. Thermal coal demand is under pressure, but metallurgical coal remains crucial for steel- making. Iron ore is a mature but essential commodity, primarily used in steel production. Australia and Brazil dominate supply, while China remains the largest consumer. Demand is stabilizing as steel markets shift focus to recycling and green steel. Bauxite is the primary ore of aluminium, with strong demand from the packaging, construction, and EV sectors. Guinea, Australia, and China lead production.

Commodity Overview

Global Copper Mining Industry

From Commodity to Strategic Resource

With 975 million tonnes in reserves, led by Chile (19%), Australia and Peru (10% each), and Congo and Russia (8% each), global supply growth is constrained by permitting and environmental issues. Electrification has elevated coppers role as a strategic material. China leads in refining, importing much of worlds concentrates.

Copper: Declining Grades, Rising

Strategic Value

Declining Grades, Increasing Value

Ore quality is deteriorating (Chile below 0.5%), raising operational costs. Peru offers slightly better prospects in new mines like Quellaveco, but the global concentrate market remains tight. Nonetheless, demand is rising due to:

• Renewable energy systems (5x more copper use)

• Electric vehicles (60-83 kg of copper vs.~20 kg in ICE vehicles)

• Infrastructure, smart grids, and global electrification

Global Gold Mining Industry

Gold output was ~3,660 metric tonnes in 2024. Despite ageing reserves, gold retains its safe-haven status. China leads production with 380 tonnes per annum followed by Russia, Australia, and Canada. Australia, Russia, South Africa and USA have the largest deposits.

Gold: Enduring Strategic Relevance Enduring Appeal Across Sectors

• Supply Limits - Lower ore grades are raising costs

• Demand Drivers:

o Safe-Haven Asset: Gold remains a hedge during inflation, economic instability, and geopolitical risk. o Jewellery: Accounts for 80% of global demand, driven by cultural and consumer preferences. o Investment: Rising interest in gold ETFs, bars, and coins reflects strong institutional and retail appetite. o Central Banks: Increasing gold holdings to diversify away from fiat currencies amid de-dollarization trends. o Technology: Growing industrial use, especially in electronics, adds a stable demand base.

Overview Of Global Mill Liner Industry

Mill liners are key in grinding operations for copper, gold, and iron ore. The market was worth approximately $2.29 billion billion in 2024.

Key Growth Factors

Ore Grade Decline and Mining Expansion:

Declining ore grades and more intensive ore processing and expanded grinding capacity, especially in copper and gold operations. This trend is driving higher demand for mill liners and aftermarket spares across new and existing mining projects.

Innovation in Input Material & Design:

Advances in materials and designs are significantly extending wear life, reducing operational costs and enhancing overall mill performance, positioning our solutions at the forefront of industry innovation.

Strategic Regional Growth:

With Latin America, particularly Chile supplying nearly 25% of global copper, the region remains pivotal for growth. Ongoing investments and major copper projects in the region are projected to boost mill liner demand well into the next decade.

New Investments and Project Pipeline:

More than US$5 billion in announced investments from industry leaders such as BHP in Chile, Lundin in Argentina, etc. will significantly increase mill liner requirements through 2030, reflecting strong market confidence and expansion.

Sustainability and Digitalisation:

The industrys shift towards sustainability and ESG standards is accelerating adoption of eco-friendly liners and digital technologies, enabling improved energy efficiency, wear monitoring and circular economy practices. These developments are reinforcing our leadership in responsible mining solutions.

Industry Trends

ESG and Decarbonisation

Mining and mineral processing industry is driving ESG through Environmental, Social, and Governance initiatives. From restoring lands, protecting biodiversity, and recycling water to adopting renewable energy and waste-to-value solutions, environmental efforts are reshaping operations. Social programmes focus on safer workplaces, inclusive employment, community development, and indigenous partnerships, while governance emphasises compliance, transparency, and stakeholder engagement.

Decarbonisation, water stewardship, and circular economy practices are reducing emissions, cutting costs, and addressing resource scarcity. Investments in people and communities create shared value, strengthen local economies, and reduce social conflict. Strong governance ensures accountability and trust.

By moving beyond compliance toward innovation-led sustainability, mining companies are becoming resilient, competitive, and socially inclusive, shaping a future where growth, environmental care, and community impact go hand in hand.

Company Overview

From Vision to Global Footprint: The Story of Tega Industries Limited

Committed to engineering flawless solutions that enrich the future of mining

In 1976, a vision took root in the industrial heart of Kolkata, India. It was a vision to be committed to engineering flawless solutions that enrich the future of mining. Today, Tega Industries Limited is a global force committed to addressing critical challenges faced by mining and mineral processing industries by delivering highly specialised, durable, and recurring consumable products.Through its engineered solutions, the company aims to improve operational performance, minimise downtime, and provide lasting value to its clients worldwide.

Mission at the Heart

Our mission is to distinguish ourselves in providing lasting solutions to the complex problems of material handling, wear and separation of ores found in mining and mineral processing industries.

Core Values

• Innovation: Continually steering advancements in technology and product design

• Quality: Upholding the highest standards to ensure reliable and effective solutions

• Customer Centricity: Tailoring solutions to meet the unique needs of each operation and ensuring complete customer satisfaction

• Reliability and Responsiveness: Building a reputation as a trusted partner by consistently delivering timely and dependable service

• Sustainability and Efficiency: Committed to contributing to efficient and sustainable mineral processing practices globally

Our Focus for Tomorrow

Looking ahead, Tega Industries Limited continues to evolve beyond manufacturing into a comprehensive global solutions provider. With a presence in over 92 countries and advanced manufacturing facilities in India, South Africa, Australia, and Chile, the company is focused on expanding its footprint, leveraging cutting-edge technologies, and enhancing its ability to deliver customised, localised solutions. This forward-thinking approach reinforces Tegas role in shaping the future of sustainable mineral processing worldwide.

Financial Overview

Analysis Of The Profit And Loss Statement

The Companys revenue from operations registered a 10% increase, rising from Rs. 14,927.14 Mn in FY 2023-24 to Rs. 16,386.51 Mn in FY 2024-25. Additionally, other income contributed 2.63% to its total revenues, highlighting Tegas strong focus and dependability in core business operations.

Expenses

The Companys total expenses increased from Rs. 12,723.78 Mn in FY 2023-24 to Rs. 14,270.78 Mn in FY 2024-25. Raw material costs, accounting for 42.62 % of the Companys total revenues, decreased from 43.24% in FY 2023-24. Employee expenses, comprising 15.21% of the Companys revenues, increased from RS. 2,198.63 Mn in FY 2023-24 to RS. 2,492.07 Mn in FY 2024-25.

Analysis of the balance sheet

The Companys capital employed grew by 15.59%, rising from Rs. 14,349.63 Mn as of March 31,2024, to Rs. 16,586.21 Mn as of March 31,2025. The net worth increased by 17.19% from Rs. 11,918.19 Mn as of March 31,2024, to Rs. 13,966.92 Mn as of March 31,2025, driven by growth in reserves and surplus. The equity share capital of the Company comprised 66,535,492 equity shares of RS. 10 each as of March 31, 2025. Long-term debt decreased by 16% to Rs. 1,190.62 as of March 31, 2025. The net debt-equity ratio stood at 0.19 in FY 2024-25 compared to 0.20 in FY 2023-24. Finance costs fell by 16%, from J3I9.54 Mn in FY 2023-24 to J269.04 Mn in FY 2024-25.

Statement of segment revenue, results, assets and liabilities

(All amount in I Million)

Particulars	Year Ended March 31,2025	Year Ended March 31,2024
Segment revenue
Consumables	14,301.24	12,905.15
Equipment	2,156.61	2,060.53
Total	16,457.85	14,965.68
Less: Inter-segment revenue	(71.34)	(38.54)
Total segment revenue from operations	16,386.51	14,927.14
Segment results before interest, tax and depreciation:
Consumables	3,148.69	2,981.00
Equipment	251.29	180.00
Total	3,399.98	3,161.00
Less: Inter-segment eliminations	(1.89)	(1.28)
Total segment results before interest, tax and depreciation	3,398.09	3,159.72
Add: Other income	431.54	222.05
Less: Finance costs	269.04	319.54
Less: Depreciation and amortisation expenses	1013.32	636.82
Add: Share of profit of joint venture	44.71	44.32
Profit before tax	2,591.98	2,469.73
Less:Tax Expense	590.78	531.16
Profit for the period/ year	2,001.20	1,938.57
Segment assets:
Consumables	14527.53	12,248.54
Equipment	3410.71	3,582.15
Unallocable Assets	3045.46	3080.22
Less: Inter-segment eliminations	(31.68)	(9.52)
Total assets	20,952.02	18,901.39
Segment liabilities:
Consumables	5,245.47	5,324.63
Equipment	1,668.83	1,599.37
Unallocable Liabilities	102.48	68.72
Less: Inter-segment eliminations	(31.68)	(9.52)
Total liabilities	6985.10	6,983.20

Key ratios

Particulars	Formula	FY25	FY24
Debt-equity ratio	Total Borrowings/Total Equity	0.19	0.20
Debtors Turnover (days)	Trade Receivable/ (Sales of Products & Services/365)	113.46	111.53
Inventory Turnover (days)	Inventories/ ((Cost of Materials Consumed + Change in inventories of finished goods and work-in-progress)/365)	216.62	209.30
Debtors Turnover (x)	Sales of Products & Services/Trade Receivables	3.22	3.27
Inventory Turnover(x)	(Cost of Materials Consumed+Change in inventories of finished goods and work-in-progress)/Inventories	1.68	1.74
Interest Coverage Ratio (x)	EBITDA/Interest Expenses	14.23	10.58
Current Ratio (x)	Current Assets/Current Liabilities	2.49	2.31
Operating EBITDA margin (%)	(EBITDA minus Non-Operating Income)/ Revenue from Operations	20.74	21.17
Net Profit margin (%)	Profit after Tax/Revenue from operations	12.21	12.99

Financial snapshot

	Consolidated		Standalone
Particulars	Year Ended March 31,2025	Year Ended March 31,2024	Year Ended March 31,2025	Year Ended March 31,2024
Total Income	16,818.05	15,149.19	9,507.40	7,658.20
Total Expenses	14,270.78	12,723.78	7,202.83	6,020.42
Profit before share of net profit of Joint Venture accounted for using equity method and tax	2,547.27	2,425.41	2,304.57	1,637.78
Share of net profit of Joint Venture accounted for using equity method	44.71	44.32	-	-
Profit before tax	2,591.98	2,469.73	2,304.57	1,637.78
Total Tax	590.78	531.16	545.33	372.77
Profit After Tax	2,001.20	1,938.57	1759.24	1,265.01
Other Comprehensive Income (net of tax)	180.60	(382.99)	(1.23)	7.35
Total Comprehensive Income	2181.80	1,555.58	1758.01	1,272.36
Basic Earnings Per Share (in I)	30.08	29.17	26.44	19.04

Company Performance

In FY2024-25, the Company introduced a number of new products, such as smart liners and sensor-based systems that facilitate realtime monitoring and improve mill performance. The Company also introduced modular screens with recyclable polyurethane, combining performance with sustainability.

At the Dahej plant, the Company implemented a digitally integrated ecosystem, automating workflows and enhancing efficiency. The machines are now networked through a central server, which is integrated with its SAP enterprise resource planning system. This allows the Company to track processes in real-time.

At the Samali plant, the Company is focused on developing energy self-sufficiency. The Companys commissioning of a 587 kWp solar power facility demonstrates its commitment towards larger sustainability goals, with plans to scale this to 1 MW in the near future.

At the Kalyani plant, the Company has driven modernisation through legacy system upgradation in keeping with Industry 4.0 requirements. The Companys implementation of digital technologies coupled with smart manufacturing processes, further upgraded productivity, optimised operations, and ensured world- class manufacturing capability.

By establishing a new plant in Chile, the Company is also expanding its global presence.The new facility will enable it to more effectively service heightened demand in the South American market.

Research and Development

At Tega, Research & Development is central to our mission of delivering high-performance, safe, and sustainable solutions for the mining and industrial sectors. Our R&D efforts span five key areas?advanced materials, digitalization, sustainability, continuous improvement, and collaborations?each reinforcing our commitment to long-term value creation.

Advanced Materials & Metallurgical Research

We focus on creating products with materials that enable superior wear resistance, impact absorption, and recyclability. By advancing metallurgical and polymer technologies, our materials extend service life, reduce downtime, and provide predictable performance in challenging operating conditions.

Digitalisation & Automation

Our teams integrate sensors, loT platforms, and Al-driven analytics into products and plants, converting data into actionable insights. With these digital solutions, we create wear sensors for our products that enable predictive maintenance, real-time wear monitoring, and process optimization?improving stability and reducing unplanned shutdowns.

Sustainability & Safety

Sustainability is embedded across our innovation roadmap. From circular economy models and emissions reduction to energy efficiency, our R&D delivers environmentally responsible solutions like DynaGreen™ and Rapido. Safety remains paramount, reduce manual handling, enhance ergonomics, and protect operators.

Continuous & Incremental Improvement

Innovation at Tega is both transformative and incremental. Guided by customer needs, we refine designs through rapid testing and field validation, consistently improving throughput, wear life, and maintainability.

Collaborations & Partnerships

We actively collaborate with universities, research institutions, and partner globally with both suppliers and end-users. Joint ventures and partnerships expand our capabilities, infuse diverse expertise, and accelerate the development of future-ready solutions.

Manufacturing

International Manufacturing Operations

Country	Commissioning/ Acquisition	Production Capabilities
Chile	2011	Mill liners, Trommels, Chute liners, Screens, Pipe and pipe repair and spools
South Africa	2006	Mill liners (except DynaPrime?), Spillex?, Screen Panel, Chute liners
Australia	2010	Chute liners and Trommels

Domestic Manufacturing Operations

Country	Commissioning/ Acquisition	Production Capabilities
Dahej, Gujarat	2013	Mill liner, wear products, screens and trommels
Kolkata (Samali), West Bengal	1985	Mill liners, Wear products, Hydrocyclones, Screens, Trommels & Conveyor products
Kalyani,West Bengal	1978	Mill liners (except DynaPrime?), Conveyor products, Chute liners & pump liners, Hydrocyclones

Domestic Manufacturing Operations (TMML)

Location	Production Capabilities
Vadodara, Gujarat	Crushers, vibrating screens, feeders and other material handling equipment
Bangalore, Karnataka	Thickener, pumps, filter press, floatation cells, sand washing plant
Asansol,West Bengal	Vibrating screens, feeders, ball mills, crushers and job shops
Kumardubi, Jharkhand	Mills, crushers, screen, feeders and job shops

Quality Assurance And Quality Control

Tega Industries Limited is committed to maintaining the highest standards of quality across every stage of its production process. The Company has progressively reduced its reliance on outsourced components, minimising vendor dependency and reinforcing its commitment to in-house excellence. Every Tega product undergoes rigorous, multi-stage testing to meet stringent quality benchmarks and is meticulously reviewed to ensure performance, durability, and consistency before deployment.

Statutory Disclosures: Human Resources Building a Compliant and Transparent Workforce Ecosystem

People First, Future Ready: Advancing Our HR Story in FY 2024-25

At Tega, our story of people empowerment entered its next chapter this year. With every passing year, we have moved a step closer to becoming a workplace where individuals grow with purpose, leaders emerge from within, and every employee feels a part of something larger. FY 2024-25 was no different, marking the year by capability building, deeper engagement, inclusive hiring, and a renewed focus on future readiness.

Focused Growth with Diversity

In FY 2024-25, Tega Industries Limited continued to uphold its statutory obligations in human resource practices, with a sharp focus on transparency, compliance, and responsible workforce management.

The total number of new hires during the financial year stood at 151, of which 25 were female employees. Among the total hires, 122 were for white-collar roles, highlighting our continued investment in building a strong professional and managerial talent pipeline. These figures reflect our sustained commitment to improving workforce diversity in line with our corporate governance and ESG goals.

Commitment to Legal and Ethical Standards

In line with regulatory reporting expectations, the company ensured continued compliance in areas such as employee welfare, benefits administration, and disclosures related to employee remuneration and statutory liabilities. Relevant data was audited and disclosed in alignment with applicable labour laws, ensuring that our HR practices remain transparent, accountable, and compliant.

Strong Governance through Statutory Diligence

Collectively, these statutory HR measures reinforce Tegas commitment to ethical employment practices and strong governance, forming a stable foundation for broader workforce development efforts.

Strategic Advantages

Capacity Expansion

A new plant in Chile, operational by FY 2026-27, will significantly boost capacity, serving the Latin American market?including Brazil, Chile, Peru, and Argentina?strengthening Tegas presence in a key mining region.

Innovation-led Approach

Leveraging industry expertise, Tega integrates Industry 4.0 across manufacturing units worldwide. Combining advanced technologies with sustainable practices, its innovation-driven portfolio meets diverse customer needs in the mining and mineral beneficiation sector.

Global Leader in Mill & Wear Liners

As one of the worlds largest suppliers, Tega optimises grinding efficiency and reduces downtime through advanced mill and wear liner solutions. Continual innovation in design and materials ensures superior performance and cost savings for customers. It also leads in customised transfer point solutions and wear consumables for mineral beneficiation.

Strong Research & Development

R&D efforts are focussed on India and Chile to develop smart IT-enabled products and ESG-focused solutions, and recycling systems for a circular economy. New industrial implementations are pursued through collaborations with technical institutes and eminent researchers to create durable, repairable, and recyclable components?reducing waste and advancing sustainability.

Global Manufacturing Footprint

Manufacturing units near major copper and gold mining hubs in Chile, South Africa, and Australia unlock significant cost and logistical efficiencies for customers.

Equipment Management Services

Tega provides end-to-end product lifecycle management with smart solutions offering predictive maintenance by continuously monitoring equipment health and performance, allowing issues to be identified before they cause downtime. This capability supports timely part replacements, reduces unplanned shutdowns, and extends asset life.

Acquisitions and Alliances

Decades of partnerships have expanded technology access, markets, and efficiency reinforcing Tegas reputation as a trusted industry leader. These alliances enable Tega to offer comprehensive solutions in an increasingly competitive environment. Our geographically diverse alliances emerged as a formidable force in the industry.

Market Potential and Opportunities

With rising demand for high-performance mineral processing consumables driven by sector growth and new ore deposits, Tega is investing in digital and AI-powered solutions to maximise operational efficiency.

Market Potential

Declining ore grades, uneven sector growth, and rising demand for larger equipment and high-performance consumables are creating strong opportunities for Tega to capture value.

Innovation & Sustainability

Innovation remains core, with DynaPrime?, Rapido, sensor-based technologies, and sustainable initiatives such as product recycling in active development.

Rising Copper Demand

The clean energy transition is boosting copper demand. Tega is expanding manufacturing in key copper-producing regions to localise production, improve supply chain efficiency, and cut lead times. Advanced composite liner technologies provide superior corrosion resistance in sulphide-rich environments, enhancing equipment life and performance?reinforcing Tegas position as a solution-driven partner in sustainable mineral processing.

Risk Management

Type of risk	Definition of risk	Mitigation procedure
Health & safety risk	Non-adherence to safety norms might result in increased near-miss incidents, deaths and poor safety score in the National Safety Register, which in turn might result in loss of business and reputation due to unfavourable safety score.	The Company ensures full compliance with applicable local and international laws, regulations, and standards, with a strong focus on employee protection. A well-defined safety governance structure is in place at the Group level and at the Plant level. Periodic internal and external safety audits are being carried out to ensure effective implementation, compliance and continuous improvement driven through actionable audit findings. The Company has also initiated safety drives under Total Quality Management (TQM) for cultural transformation
Operational risk	Capacity constraints, underutilization of plant capacity and absence of on-site emergency plan against natural calamities/ man-made disasters pose a risk to timely operations, potentially causing delays in production and may lead to shutdowns, customer dissatisfaction and financial losses. Further, product failure can result in safety hazards, loss of market share and reputational damage.	The Company keeps adding additional capacity upon reaching agreed percentage of plant utilisation and considering the future business growth opportunities. The manufacturing footprint is also geographically diversified with strategic excess capacity maintained to ensure continuity during localised disruptions and site-specific disaster recovery, as well as business continuity plans are in place, supported by robust inventory management, power backup systems (solar power) and standard operating procedures. Additionally, extra capacity is maintained to avoid lost opportunities and ensure Service Level Agreement (SLA) compliance. Furthermore, product quality issues are addressed by enhancing manufacturing processes, integrating digital and automated controls and implementing a robust measurement and analysis system. Comprehensive global insurance programs are in place to minimise exposure.
Financial risk	Rising inflation may increase interest rates, affecting the costs of funds and overall profitability. Further, inadequate insurance may impact risk recovery and market fluctuations and economic downturns may impact the competitiveness of raised capital.	This risk is being managed through continuous monitoring of net working capital to reduce reliance on external funding. By optimising working capital utilisation, the Company minimises exposure to rising interest costs. Further, adequate insurance coverage has been secured at the group level to further mitigate potential risks. The Company also has a credit rating by Crisil (short-term rating is A1 + and long-term rating is AA-/Stable). In addition, the Company has implemented a diversified investment strategy, actively monitors market trends, and has established contingency funds to mitigate the impact of market fluctuations and economic downturns.
Commodity risk	Volatility in input prices poses challenges, especially if hedging strategies are not in place. Geopolitical developments and market changes may impact raw material availability, leading to higher costs and cash outflows, affecting working capital.	As a supplier of critical spares, the Company has generally been able to pass on input cost increases to end customers, with a lag of 1-2 quarters. Monthly input to the offer department has also been initiated for dynamic pricing, helping reduce lag and margin erosion. Furthermore, the Company has also diversified suppliers and sourcing regions to reduce dependency on any single country or market.
Competitor risk	With increased competition, it can get difficult for the Company to maintain its position, profitability and growth.	Since its establishment in 1976, the Company has built a strong brand recall. With a customer base spanning 92+ countries, the Company holds the position of second-largest producer of polymer-based mill liners in the global market. Additionally, the Company makes significant investments to cater to varied market needs, gaining a significant competitive advantage over peers
Technology risk	The Companys manufacturing potential and performance could be restricted due to technology obsolescence. Technology disruptions, hardware failures and software glitches can hinder operations, affect decisionmaking and affect customer trust. Further, gaps in cybersecurity strategy increase exposure to data breaches, system vulnerabilities, and unauthorised access risks, followed by financial loss due to cyber attacks.	The Company has always embraced advanced technology to maintain its leadership position in the market. Furthermore, the Company has a robust cybersecurity strategy in place to minimise downtime and reduce technological failures. Cybersecurity Policy has also been updated, and training is being scheduled through the LMS (Learning Management System) Platform. Additionally, the Company is maintaining cyber risk insurance to cover loss arising out of security breach and/or privacy breach, including E-theft, E-communications, E-threat and E-vandalism.
Human resource risk	Employees are one of the most crucial pillars upon which a company is built. The inability to hire and retain talent can therefore prevent the Companys growth and success. Further, a lack of effective execution of the Succession plan may lead to leadership gaps, impacting business continuity, talent retention and long-term organisational growth. Failure to manage diversity and inclusion also poses reputational risks, impacting stakeholders perceptions.	As of March 31, 2025, the Companys global workforce consisted of over 2200 result-driven employees. The Company takes proactive steps to retain valuable talent, foster a holistic work environment and ensure overall employee wellbeing. Furthermore, the execution of a succession plan for identifying and developing employees with potential to fill key leadership positions in the Company is in place. The Company is also actively hiring diverse candidates at all levels.
Geographic risk	The Company is prone to varied macroeconomic challenges, including excess reliance on certain geographies, fluctuations in local demand, regulatory changes, terrorism, war, political instability or natural disasters in these areas.These could disrupt operations or negatively impact revenue streams.	The Companys operations spread across India, South America, North America, Europe, Asia Pacific, the Middle East and Africa constituting a global client base. It has also established global and domestic sales offices close to the major clientele bases and mining sites. This reduces reliance on any single geography. Additionally, the Company is working closely with the logistics partners and insurers to understand the implications and minimise the impact on the operations.
Compliance risk	Non-compliance with regulatory norms can cause the Company to incur penalties and legal complications. This could also tarnish the Companys image.	The Company ensures timely compliance with the statutory and regulatory permits. Additionally, the Company remains abreast of the latest regulatory norms, and a robust compliance risk management ensures due diligence. Audits are also being conducted at regular intervals to identify the gap and fix the same.
Supply chain risk	The Company uses third-party logistics and external support systems for delivering its raw materials and finished products. Frequent supply chain disruptions owing to inadequate vendor management, inefficient manufacturing infrastructure leading to high lead time in the delivery of products and rising ocean freight costs can jeopardise the reliability of the products and impact brand value.	Tega has undertaken proper measures to recalibrate these risks by empanelling more vendors and implementing product- based strategic manufacturing to categorise and allocate products to specific plants, thereby improving efficiency and reducing delivery time. Currently, there is sufficient availability at the ports, and the freight rates have also come down significantly.
Changing consumer preference risk	In the ever-changing dynamic market, consumer aspirations are rapidly evolving. Therefore, it is essential to cater to varied consumer needs to continue to hold a firm foothold on the market.	The Company is committed to identifying and responding to consumer preference shifts. As a result, Tega has diversified its product line and conducts ongoing customer trend analysis to surpass customer expectations. Developments in the market and the ongoing operating parameters are captured and discussed continually.
Community risk	Non-cordial/inharmonious relations with trade unions and local bodies affect operational continuity and stakeholders trust.	The Company maintains transparent relations with local bodies and trade unions, fostering a positive environment through the timely payment of wages and subcontracting jobs. In addition, the Company is taking up development activities related to education and health care through its CSR initiatives.
Intellectual property infringement risk	The risk of patent infringement poses challenges in tracking global competition, incurring legal costs for defence, and the potential loss of sales due to misuse by others.	The Company actively reinforces its intellectual property rights by regularly updating the market on its patent ownership and maintaining close vigilance at customer sites to identify potential risks. IPR ownership is formally communicated through letters issued alongside commercial offers. In instances of suspected infringement, the Company takes prompt action by issuing cease and desist notices to the relevant parties. Furthermore, customers are informed of the legal implications of purchasing patented technology from unauthorised sources.
Project execution risk	Inadequate project management experience poses a risk of delayed execution and increased costs.	The Company has onboarded project managers and expanded hiring across key project functions, including Finance, Procurement, Civil Construction, and Project Electricals. To ensure project efficiency and cost control, several quality assurance models have been implemented, including duallevel cross-checks, regular design reviews, vendor validation, structured change management, and ongoing engineer training. These measures are aimed at minimising errors and controlling cost overruns during the construction phase.

Internal Control Systems and Acronym Glossary

Adequacy

Tegas internal control and risk management system is firmly anchored in the principles laid out in its corporate governance code. It serves as a cornerstone of the Companys organizational structure, enabling coordinated efforts across various teams and functions. The Board of Directors plays a central role by offering strategic oversight, guiding executive leadership, and supporting committee operations. The Control and Risk Committee, along with the audit head, executes their duties under the supervision of Board-appointed Statutory Auditors.

GDP:	Gross Domestic Product
GVA:	Gross Value Added
ECB:	European Central Bank
ESG:	Environmental, Social, and Governance
ETF:	Exchange-traded Fund
ICSG:	International Copper Study Group
MENA:	Middle East and North Africa
USGS:	United States Geological Survey

Cautionary Statement

The Management Discussion and Analysis (MDA) section might include statements about the future, as outlined under applicable securities laws. These statements reflect the Companys plans, predictions and expectations about what could happen. However, there is no guarantee that these will turn out as expected, as actual results may vary significantly due to factors outside the Companys control. The Company is not obliged to update or revise any forward-looking statements based on subsequent developments.