Company Overview

Synergy Green Industries Limited (BSE: 541929), a manufacturer of wind turbine castings and precision components, reported FY26 results with mixed performance amid significant capacity expansion.

Financial Performance FY 2025-26

Income Statement:

  • Total Income: ₹376.37 Cr (vs ₹363.68 Cr in FY25, +3.5% YoY)
  • Export Revenue: ₹105.65 Cr (27% of total revenue, +8.05% YoY)
  • PBDIT: ₹49.32 Cr (vs ₹53.70 Cr in FY25, -8.15% YoY)
  • PBDIT Margin: 13.1% (vs 14.8% in FY25)
  • PAT: ₹4.66 Cr (vs ₹16.89 Cr in FY25, -72.4% YoY)
  • EPS: ₹3.00 (vs ₹11.14 in FY25)

Performance Drivers:

Revenue growth remained muted due to operational disruptions from brownfield expansion, while profitability was impacted by higher outsourcing costs, facility relocation expenses, increased manpower costs, and commodity/energy inflation. Export realizations were affected by discounted pricing during machining facility development phase.

Strategic Initiatives & Capex Utilization

Completed ₹217 Cr Expansion Program:

  • Foundry capacity expanded from 30,000 TPA to 45,000 TPA
  • Maximum single piece weight increased from 23 MT to 30 MT (enabling 5MW components)
  • Commissioned 20,000 TPA machining and surface treatment facility
  • Solar captive capacity expanded from 2 MW to 10 MW

Rights Issue Utilization:

The company raised ₹459.2 Cr through rights issue completed October 2024. As of March 31, 2026, ₹418.6 Cr has been utilized for:

  • Foundry capacity enhancement: ₹50.8 Cr utilized
  • New machining capacity: ₹144.4 Cr utilized
  • Solar plant for captive consumption: ₹69.1 Cr utilized
  • General corporate purposes: ₹84.2 Cr utilized

Financial Position (as of March 31, 2026)

Assets:

  • Total Assets: ₹472.76 Cr
  • Non-current Assets: ₹298.33 Cr (incl. PPE ₹240.09 Cr, CWIP ₹47.46 Cr)
  • Current Assets: ₹174.43 Cr (incl. Inventories ₹62.72 Cr, Trade Receivables ₹64.97 Cr)

Liabilities:

  • Equity: ₹111.09 Cr
  • Non-current Liabilities: ₹156.48 Cr (incl. Long-term Borrowings ₹148.00 Cr)
  • Current Liabilities: ₹205.19 Cr (incl. Short-term Borrowings ₹102.39 Cr)

Debt Structure:

  • Long-term Borrowings: ₹148.00 Cr (Secured: ₹133.93 Cr)
  • Short-term Borrowings: ₹102.39 Cr
  • Debt-Equity Ratio: 2.25 (vs 1.45 in FY25)
  • Interest Coverage Ratio: 2.37 (vs 3.42 in FY25)

Key Ratios & Metrics

  • Current Ratio: 0.85 (Previous Year: 1.03)
  • Return on Equity: 4.26% (Previous Year: 21.88%)
  • Inventory Turnover: 6.27 times (Previous Year: 6.58 times)
  • Trade Receivables Turnover: 5.97 times (Previous Year: 7.88 times)
  • Net Profit Ratio: 1.28% (Previous Year: 4.69%)

Contingent Liabilities & Commitments

Contingent Liabilities: ₹570.81 lakhs

  • Excise & Service Tax: ₹12.34 lakhs
  • Goods & Service Tax: ₹558.47 lakhs

Commitments: ₹6,284.75 lakhs

  • Contracts remaining on capital account: ₹623.05 lakhs
  • EPCG License duty obligations: ₹2,434.78 lakhs
  • PSI Scheme exemptions: ₹3,226.92 lakhs

Related Party Transactions

Transactions during FY26 totaled ₹1,684.73 lakhs, primarily with:

  • S.B. Reshellers Pvt. Ltd. (₹790.10 lakhs outstanding)
  • The Ugar Sugar Works Ltd. (₹475.00 lakhs outstanding)
  • Various directors and relatives (₹357.63 lakhs outstanding)

Corporate Governance & AGM Matters

Board Composition: Mr. Sachin R. Shirgaokar (Chairman & MD), Mr. Sohan S. Shirgaokar (Non-Executive Director), Mr. V. S. Reddy (Executive Director), and independent directors including Mr. Subhash G. Kutte.

AGM Business Items: Adoption of financial statements, re-appointment of directors, declaration of preference dividend, appointment of new statutory auditors P.G. Bhagwat LLP for 5-year term, and increase in borrowing limits to ₹250 Cr.

Outlook for FY 2026-27

Executable order book projected to grow over 33% to exceed ₹500 Cr with expected double-digit revenue growth and EBITDA margin expansion of 300+ bps. Export revenue expected to remain stable at 25-30% of total, though raw material price pressure persists due to West Asia conflict.