Synergy Green Industries Limited , a leading manufacturer of wind turbine castings, has reported a strong performance for the quarter, with plans for significant capacity expansion on the horizon.

Financial Highlights

The company reported quarterly revenue of ₹85.38 crores, marking an 8% increase compared to the corresponding quarter of the previous year. Notably, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial rise of 25%, reaching ₹13.16 crores. This growth was accompanied by an improvement in EBITDA margins, which expanded to 15.41%.

Expansion Plans

Synergy Green Industries is currently in the midst of a major capacity expansion project. The company is increasing its manufacturing capacity from 30,000 to 45,000 metric tons per annum. This expansion is part of a larger ₹187 crore investment plan that encompasses three key areas:

1. Foundry Expansion: Allocated ₹60 crores for increasing capacity to 45,000 metric tons.
2. In-house Machining: Establishing capabilities for approximately 20,000 tonnes per annum of machining activities.
3. Renewable Energy Infrastructure: Increasing captive solar capacity from 2 MW to 10 MW.

The company expects the foundry expansion to be operational by the third quarter, while the first phase of in-house machining is anticipated to be ready in the same quarter.

Order Book and Product Development

Synergy Green Industries has secured schedules worth ₹167 crores from Vestas for execution in the calendar year 2026. The company has also received a development order for Vestas's 4 MW platform.

In a significant achievement, the company has successfully produced India's largest wind turbine casting, weighing 29.5 metric tons, for Nordex. This milestone underscores the company's technological capabilities and positions it well in the market for larger, more efficient wind turbines.

Market Outlook and Management Expectations

The management of Synergy Green Industries remains optimistic about the company's growth trajectory. They expect a 20% revenue growth for the full year, coupled with an EBITDA margin expansion of over 100 basis points.

The company serves major wind OEMs including Vestas, Siemens Gamesa, and GE Vernova. Its product mix comprises:

Industry Dynamics

During the earnings call, the company's management highlighted the potential impact of recent policy changes, including the ALMM (Approved List of Models and Manufacturers) notification by the Ministry of New and Renewable Energy. This policy aims to increase indigenous wind turbine manufacturing, which could potentially boost domestic demand for companies like Synergy Green Industries.

The management also noted the evolving global supply chain dynamics in the wind energy sector, with India positioned as a strong competitor to China in casting manufacturing.

As Synergy Green Industries continues to expand its capacity and diversify its product offerings, it appears well-positioned to capitalize on the growing demand in both domestic and international markets for wind energy components.

Synergy Green Industries Limited (SGIL) has announced its unaudited financial results for the first quarter, showcasing strong growth across key financial metrics.

Financial Highlights

• Revenue Growth: SGIL reported a total income of ₹85.38 crore for Q1, marking an 8% increase from ₹79.06 crore in the corresponding quarter of the previous year.
• EBITDA Performance: The company's PBDIT (Profit Before Depreciation, Interest, and Tax) rose to ₹13.15 crore, up from ₹10.52 crore in the same period last year, representing a significant 25% year-over-year growth.
• Margin Improvement: PBDIT margin expanded by 210 basis points, reaching 15.4% compared to 13.3% in Q1 of the previous year.

Operational Highlights

• Export Performance: SGIL witnessed a remarkable 140% growth in export revenues, which surged from ₹12.60 crore to ₹30.30 crore.
• Capacity Expansion: The company is expanding its foundry capacity from 30,000 TPA to 45,000 TPA, with operations expected to commence in Q3.
• Solar Project: An 8 MW solar project is under commissioning.

Order Book and Business Outlook

• SGIL has secured a significant agreement with Vestas for orders worth ₹167.00 crore, to be executed in CY 2026.
• Siemens Gamesa has resumed lifting schedules from Q3.
• The company has successfully developed India's largest wind casting weighing 29.5 MT for Nordex's 5 MW platform.
• Based on the current order book and new capacity additions, SGIL projects around 20% revenue growth for the full year.
• The company expects PBDIT margins to expand by 100 basis points for the full year.

With a strong order book and ongoing expansion activities, Synergy Green Industries Limited is well-positioned to maintain its growth trajectory and enhance shareholder value.

Note: All financial figures are based on the unaudited results for Q1 as reported by the company.