Synergy Green Industries saw its net profit fall 72.43% to ₹4.66 crore in FY26, despite a 3.49% rise in total income to ₹376.37 crore. Heavy expansion costs impacted profitability.
Synergy Green Industries' FY26 Profit Dips 72% Amidst Expansion
Profit After Tax: ₹4.66 crore
Total Income: ₹376.37 crore
Reader Takeaway: Heavy expansion costs hit profits, but new capacity offers future growth potential.
What just happened
Synergy Green Industries Ltd. reported its financial results for the fiscal year ending March 31, 2026 (FY 2025-26). The company recorded a total income of ₹376.37 crore, a modest increase of 3.49% from ₹363.68 crore in the previous fiscal year.
However, profitability faced a significant decline. Profit After Tax (PAT) for FY 2025-26 stood at ₹4.66 crore, a sharp drop of 72.43% compared to ₹16.89 crore in FY 2024-25. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also fell by 8.15% to ₹49.32 crore from ₹53.70 crore. Consequently, Earnings Per Share (EPS) dropped by 73.07% to ₹3.00 from ₹11.14.
Why this matters
While revenue growth indicates continued demand, the substantial fall in profit signals pressure on margins. This is attributed to significant investments in expansion activities, including higher outsourcing, increased finance costs, and depreciation from new facilities. Investors will be keen to see if the company can leverage its expanded capacity to improve profitability in the coming year.
The backstory
FY 2025-26 was a year of significant capital expenditure for Synergy Green Industries. The company undertook a major CAPEX program to scale up its operations. This included increasing foundry capacity, commissioning a new in-house machining and surface treatment facility, and boosting captive solar power generation.
What changes now
With the expansion completed, Synergy Green Industries is now equipped with enhanced foundry capacity (from 30,000 TPA to 45,000 TPA) and a new 20,000 TPA machining and surface treatment facility. The increased captive solar power capacity (from 2 MW to 10 MW) aims to reduce operational costs. The company also developed 12 new products.
Risks to watch
Synergy Green Industries faces two key risks. Firstly, a high dependency on the wind energy sector, which accounts for over 80% of its revenue, poses a concentration risk. Secondly, volatility in commodity prices could impact input costs, with a potential lag of one quarter in passing these costs to customers.
Peer comparison
Synergy Green Industries operates in the industrial manufacturing sector, supplying components primarily to the wind energy industry. Specific peer comparison details were not provided in the filing.
Context metrics (time-bound)
- Total Income (FY 2025-26): ₹376.37 crore (+3.49% YoY)
- Profit After Tax (FY 2025-26): ₹4.66 crore (-72.43% YoY)
- EBITDA (FY 2025-26): ₹49.32 crore (-8.15% YoY)
- Export Revenue (FY 2025-26): ₹105.65 crore
What to track next
Investors should monitor the ramp-up in utilization of the newly commissioned capacities. Additionally, the company's ability to manage input costs and pass them on to customers, along with the projected 300+ basis points EBITDA margin expansion in FY 2026-27, will be crucial.