Synergy Green Q2 FY27 Earnings Call — Analysis (NSE: SGIL)
Synergy Green reported strong top-line growth of 56% YoY in Q2FY27 to ₹116.31 Cr, but elevated input costs, depreciation, and interest expenses resulted in a net loss of ₹5.08 Cr.
Result quality: poor — Slipped to loss. Management sentiment: optimistic.
The take
Q2FY27 Total Income ₹116.31 Cr ( +56.39% YoY ) . New guidance — FY27 fy27 full year revenue ~33% . New story: Medium-Term Capacity Scaling .
Results
Total Income ₹116.31 Cr (+56.4% YoY), PBDIT margin contracted 550 bps YoY to 10.2%, and PAT swung to a loss of ₹5.08 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Total Income | ₹116.31 Cr | +56.39% | yoy · Q2FY27 · vs ₹74.37 Cr in Q2FY26 |
| Total Income | ₹116.31 Cr | +53.63% | qoq · Q2FY27 · vs ₹75.71 Cr in Q1FY27 |
| PBDIT | ₹11.84 Cr | +1.11% | yoy · Q2FY27 · vs ₹11.71 Cr in Q2FY26 |
| PBDIT Margin | 10.20% | -550bps | yoy · Q2FY27 · vs 15.70% in Q2FY26 |
| PBDIT Margin | 10.20% | +320bps | qoq · Q2FY27 · vs 7.00% in Q1FY27 |
| Depreciation & Amortization | ₹9.97 Cr | +172.40% | yoy · Q2FY27 · vs ₹3.66 Cr in Q2FY26 |
| Finance Costs | ₹7.15 Cr | +52.13% | yoy · Q2FY27 · vs ₹4.70 Cr in Q2FY26 |
| Profit / (Loss) After Tax | -₹5.08 Cr | -315.25% | yoy · Q2FY27 · vs ₹2.36 Cr in Q2FY26 |
| H1 Total Income | ₹192.02 Cr | +20.19% | yoy · H1FY27 · vs ₹159.76 Cr in H1FY26 |
| Long Term Borrowings | ₹176.21 Cr | point_in_time · Q2FY27 · 30-Sep-2026 | |
| Short Term Borrowings | ₹81.99 Cr | point_in_time · Q2FY27 · 30-Sep-2026 |
Guidance
Management guided for ~33% YoY revenue growth in FY27 to ~₹500 Cr, with export revenues projected to grow ~50% and PBDIT margins expanding by ~100 bps YoY.
What management committed to
- FY 27 is expected to have a ~33% revenue growth over FY 26, supported by additional capacity and revenues from new customers [reaching ₹500 Cr]. — ~33%, FY27
- Export revenues are projected to grow by ~50% over FY26, contributing around 30% of total revenue in FY27. — ~50%, FY27
- Considering the current input price scenario, FY27 margins are expected to increase by around 100 bps YoY [PBDIT margin expansion]. — 100 bps, FY27
- During the next 3-4 years, there is an opportunity for one more greenfield expansion to increase our capacity to over 100,000 MT [75,000 MT by FY29 and 100,000 MT by FY30]. — 100,000 MT, FY30
Key themes
Topline expansion amid margin compression
How the narrative shifted
- Wind Casting Demand Tailwinds: Global energy transition and India's wind capacity doubling to 107 GW by 2030 are creating strong order demand for large wind castings.
- Input Cost Inflation and Margin Pressures: Margins in H1FY27 were impacted by steep input cost escalations, partially mitigated by quarterly customer price pass-through mechanisms.
- Non-Wind Revenue Diversification: Synergy Green is scaling non-wind casting sales in mining, plastics, pumps, and automotive dies to reduce high revenue dependence on wind OEMs.
- Medium-Term Capacity Scaling: Management plans to scale operational capacity from 45,000 TPA to >100,000 TPA over the next 3-4 years via greenfield expansion.
Operational commentary
- Foundry capacity stands at 45,000 TPA, with machining and surface treatment capacity at 20,000 TPA.
- H1FY27 gross production increased by 25.8% YoY, with FY27 projected capacity utilization of 80% (actual H1 at 75%).
- Customer base includes 6 out of top 15 global wind OEMs alongside non-wind customers across mining, plastic injection machines, and pumps.
- Non-wind RFQs gaining traction in automobile dies, plastic injection, mining, and power sectors to diversify away from wind concentration (currently ~80-85%).
- Company is planning a greenfield expansion over the next 3-4 years to scale total capacity past 100,000 MT/annum.
Research and educational content only. Not investment advice.