Company Overview
Synergy Green Industries Limited (Scrip Code: 541929) submitted a revised Annual Report for FY25-26 to correct typographical errors that do not impact financial statements, alongside detailed financial results showing significant transformation amid major expansion.
Financial Performance
FY25-26 revenue grew 3.5% to ₹376.37 Cr (₹363.68 Cr previous year) with exports contributing ₹105.65 Cr (27% of revenue). Profitability declined sharply with PBDIT at ₹49.32 Cr (13.1% margin vs 14.8%) and PAT plummeting 72% to ₹3.00 Cr (₹11.14 Cr). Basic EPS dropped to ₹3.00 from ₹11.14. Key ratios deteriorated: current ratio to 0.85 (from 1.03), debt-equity to 2.25 (from 1.45), and return on equity to 4.26% (from 21.88%).
Expansion & Capex Utilization
The company completed a ₹217 Cr capital expenditure program enhancing foundry capacity from 30,000 TPA to 45,000 TPA, commissioning a new 20,000 TPA machining and coating facility, and expanding captive solar capacity from 2 MW to 10 MW. Maximum casting capability increased to 30 MT single pieces, with 12 new products developed for major OEM customers.
Rights issue proceeds of ₹45.92 Cr were utilized: ₹5.08 Cr for foundry enhancement, ₹5.01 Cr for fettling shop, ₹14.44 Cr for machining capacity, ₹6.91 Cr for solar plant, and ₹8.42 Cr for general corporate purposes.
Borrowings & Financial Position
Borrowings increased 106% to ₹250.39 Cr (₹121.48 Cr previous year) comprising long-term borrowings of ₹148.00 Cr and short-term borrowings of ₹102.39 Cr. Preference share capital stood at ₹10.71 Cr. Contingent liabilities totaled ₹5.71 Cr for taxes under dispute, while capital commitments and scheme obligations amounted to ₹62.85 Cr.
AGM & Corporate Governance
The 16th Annual General Meeting is scheduled for July 23, 2026, with agenda including adoption of financial statements, re-appointment of directors, declaration of preference dividend, appointment of auditors, and increasing borrowing limits to ₹250 Cr. The board comprises 10 directors with 6 meetings held during the year.
Outlook & Order Book
The company maintains an executable order book of over ₹500 Cr for FY26-27, expecting 33% growth with stable export contribution of 25-30% and EBITDA margin expansion of over 300 basis points. ESOP 2025 approved grant of 22,980 options to 30 employees at ₹70 exercise price.
Risk Factors & Rating
Heavy dependence on wind sector (>80% revenues), commodity price volatility, and skilled manpower availability are key risks. CRISIL maintains "BBB-/Stable" rating for deposits. The company employs diversification, customer contracts for hedging, and automation as mitigation strategies.