Synergy Green Industries Limited , a leading manufacturer of metal castings, has reported its financial results for the first half of FY2025-26, showing a mixed performance with revenue decline but margin improvement.

Financial Highlights

Half-Year Performance

• Total Income: ₹159.75 crore, down 4.9% from ₹167.93 crore in the corresponding previous period
• PBDIT: ₹24.86 crore, up 4.8%
• PBDIT Margin: Improved by 128 basis points from 14.13% to 15.56%

Revenue Breakdown

• Export revenues grew 52% from ₹31 crore to ₹47 crore
• Lower schedules from domestic wind and OEM exports contributed to the overall revenue decline
• Growth observed in Direct Exports, Gearbox, and Non Wind segments

Strategic Initiatives

Capacity Expansion

• Foundry capacity expansion from 30,000 TPA to 45,000 TPA, expected to be operational in Q3 FY2025-26
• Commissioned an 8MW solar project

Business Outlook

• Projects 20% order book growth for FY2025-26
• Product development activities for Envision, Nordex, and Adani on track
• Management expects PBDIT margins to expand by 100 basis points for the full year FY2025-26

Corporate Actions

Management Changes

• Internal Auditor Appointment: Mr. Jitendra Patil has been appointed as the company's Internal Auditor

Dividend Recommendations

• Equity Dividend: The Board has recommended a final equity dividend of ₹1 per equity share of ₹10 each
• Preference Dividend: A preference dividend of ₹10 per preference share has been recommended

Employee Stock Option Plan

Synergy Green Industries has approved an Employee Stock Option Plan (ESOP) with the following details:

• Number of options: 22,980
• Purchase price: ₹70 per share

The ESOP aims to align employee interests with the company's success.

Despite the reported revenue decline, Synergy Green Industries continues to focus on strategic initiatives, capacity expansion, and employee engagement. The company's decision to appoint a new Internal Auditor and implement an ESOP suggests a commitment to strengthening internal controls and motivating its workforce.

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.