Synergy Green Q2 FY27 Results (NSE: SGIL)
Signal: Slipped to loss
The read
The key inflection is sequential rather than annual: revenue rose 54.1% QoQ and the EBITDA margin recovered to 9.8% from 6.3% in Q1FY27, but the 319bps YoY margin contraction, 172.2% depreciation increase and ₹508.34 lakh PAT loss show that the revenue rebound has not yet restored profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹115.78 Cr | +60.8% | +54.1% |
| Net profit | ₹-5.08 Cr | -315.3% | |
| EPS | ₹-3.27 | -315.1% | |
| EBIT margin | 9.8% |
P&L walk
Revenue recovered to ₹11,577.84 lakh, +60.8% YoY and +54.1% QoQ, but gross margin compressed to 64.5% from 69.3% YoY and depreciation rose 172.2% YoY, keeping PAT at a ₹508.34 lakh loss despite sequential improvement.
Key positives
- Revenue reached ₹11,577.84 lakh, up 60.8% YoY and 54.1% QoQ, reversing the ₹7,514.93 lakh Q1FY27 level.
- EBITDA margin recovered 347bps QoQ to 9.8%, and the PAT loss narrowed 49.7% QoQ to ₹508.34 lakh.
- Operating cash flow was positive at ₹2,744.75 lakh in H1FY27, while PPE increased to ₹28,219.20 lakh.
Key concerns
- Gross margin contracted 485bps YoY to 64.5% despite revenue growth of 60.8%, indicating cost absorption or mix pressure; the filing does not disclose the driver.
- PAT remained a ₹508.34 lakh loss and H1FY27 PAT was a ₹1,519.32 lakh loss despite H1 revenue growth of 22.7%.
- Depreciation increased 172.2% YoY to ₹997.20 lakh and finance costs rose 52.2% to ₹715.29 lakh, limiting conversion of revenue growth into profit.
- Inventory increased 56.1% from ₹6,271.65 lakh at 31-Mar-2026 to ₹9,789.51 lakh at 30-Sep-2026, while net debt increased to ₹24,785.34 lakh.
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