Company Overview

Synergy Green Industries Limited is a leading foundry producing SG iron, grey iron, and steel casting for wind turbines, wind gearbox, and general engineering industries. The company has an installed capacity of 45,000 metric tons per annum and an in-house machining facility of 20,000 metric tons per annum. It supplies to six out of the 15 leading global wind OEMs, including global leaders, one Chinese OEM, and Indian OEMs. Non-wind customers include Terex, Paramatic, L&T, and Mahindra.

Q1 FY27 Financial Performance

  • Total Income: ₹75.71 crores for quarter ended June 30, 2026
  • PBDIT Margin: 7% (absolute PBDIT: ₹5.3 crores)
  • Production: Increased by almost 10% compared to Q1 previous financial year
  • Capacity Utilization: 66% of new 45,000-ton capacity (up from previous 30,000-ton capacity)
  • Other Income: ₹4.4 crores (attributed to foreign exchange-related items or export incentives)

Factors Impacting Q1 Performance

  • Lower dispatches due to delays in customer material lifting and prototype approvals
  • Global logistics disruptions from West Asia conflict affecting export rollouts
  • Raw material inflation impacting PBDIT by ~200 basis points (recoverable with one-quarter lag)
  • Consumable cost inflation impacting margins by ~300 basis points (partially recoverable)
  • Electricity policy and tariff revisions impacting margins by ~100 basis points

Operational Updates

  • Annual capacity utilization at end of FY26: 93% (based on previous 30,000-ton capacity)
  • Current production: July utilization reached 85% (3,200 tons production)
  • Machining facility: 50% capacity utilization achieved in July
  • Inventory: 8-10 weeks inventory carried, target below 8 weeks

Guidance and Outlook

  • FY27 Revenue Target: ₹500 crores (33% growth)
  • Full-year PBDIT Margin: Expected to improve by ~300 basis points over previous year
  • Capacity Utilization: Expect to reach 80-90% utilization within 2-3 months; 80% utilization of complete new capacity for full FY27
  • Export Concentration: Expected to increase in second half

Customer and Order Book Updates

  • Executable order book positioned at ₹500 crores for current year
  • Could execute ₹600 crores with higher capacity in next financial year
  • Received Nordex NX N series 5-megawatt platform prototype clearance in Q1 with purchase orders for US market exports
  • Vestas 4-megawatt platform: Contract signed mid-May, tooling development started, samples expected in Q4 FY27, full production in Q1 FY28
  • Received orders from L&T and BHEL for coal-based power plants (BHEL PO received this quarter)

Capacity Expansion Plans

  • Targeting acquisition of land for 100,000-ton capacity expansion by end of FY27 (December or March)
  • Next project initiation targeted for Q3 FY28
  • Fundraising ideally in Q1 or Q2 of 2028
  • Greenfield capex typically takes 15-18 months from groundwork to operational

Energy Management

  • 10 megawatt captive solar power plant capacity installed
  • Additional 5-megawatt wind PPA signed via open access
  • MSEDCL policy change: Stopped banking of solar units generated between 9:00 AM to 5:00 PM to other zones (effective April)
  • Resulted in loss of 3-4 lakh units per month initially, but wastage reduced in July as production increased
  • Retrospective recovery by MSEDCL being spread across six months
  • Expected annual energy saving: ₹10 crore remains intact
  • Current power sourcing: 50-60% from own sources (solar + wind PPA)

Market and Industry Context

  • Global wind installation growth: 40% in 2025 (165 gigawatts installed globally)
  • Projected global cumulative capacity: Exceed 2 terawatts by 2030 (5.2% CAGR)
  • India's wind installation: Record high 6.34 gigawatts in FY26
  • Expected installed wind capacity: 77 gigawatts by 2030 (from current 51 gigawatts)
  • Currency advantage: 20% Yen appreciation against Rupee making Indian suppliers 5-10% cheaper than China on landed cost basis
  • Wind tariff advantage: 25% higher at night while solar daytime tariffs at 25% discount

Management Participants

  • Mr. V.S. Reddy – Executive Director
  • Ms. Shreya Shirgaokar – Associate Vice President
  • Mr. Nilesh Mankar – Company Secretary & Compliance Officer