Synergy Green Industries Ltd (SGIL)
🎯 Key Takeaways
- Synergy Green Industries Ltd is in a strategic growth phase, transitioning from early-stage capacity ramp-up to scalable operations with a clear focus on expanding manufacturing footprint in capital goods. Despite near-term margin pressure from inflation, the company is targeting 33% revenue growth to ₹500 crores in FY27 driven by new capacity utilization and export recovery, supported by governance upgrades and strengthened capital flexibility.
- Revenue declined 36.9% QoQ to ₹75 in Q1FY27.
- ⚠️ 1) Persistent raw material inflation (200 bps impact) and consumable cost increases (300 bps) continue to pressure near-term margins. 2) Export recove
- Market Cap
- ₹1,021
- P/B Ratio
- 9.19
- ROE
- -7.0%
- ROCE
- 4.6%
- Debt/Equity
- 2.25
- Promoter
- 69.5%
📖 The Story
Synergy Green Industries Ltd is in a strategic growth phase, transitioning from early-stage capacity ramp-up to scalable operations with a clear focus on expanding manufacturing footprint in capital goods. Despite near-term margin pressure from inflation, the company is targeting 33% revenue growth to ₹500 crores in FY27 driven by new capacity utilization and export recovery, supported by governance upgrades and strengthened capital flexibility.
📰 What's Happening
In Q1 FY27, SGIL achieved 66% utilization of its newly commissioned 45,000-ton capacity, generating ₹75.71 crores in revenue and ₹5.3 crores in PBDIT despite export-linked disruptions. Management highlighted progress on new machining expansion and secured a 5-megawatt wind PPA as enablers of future margins. Shareholders recently approved increased borrowing limits to ₹250 crores and reappointed key directors, enhancing operational agility. Crisil reaffirmed BBB/Stable ratings, underscoring stable credit profile amid sectoral volatility.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Mar 2025 | Jun 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 97 | 84 | 92 | 119 | 75 |
| Operating Profit | 12 | 8 | 3 | 3 | -4 |
| OPM % | 12.0% | 9.5% | 3.1% | 2.2% | -5.4% |
| Net Profit | 4 | 3 | -1 | 0 | -10 |
| EPS | ₹2.53 | ₹2.17 | ₹-0.96 | ₹0.26 | ₹-6.51 |
Revenue has shown volatility but is trending upward with sequential improvement from ₹84 crores in Jun 2025 to ₹75.71 crores in Jun 2026 (on a YoY basis), though still below peak quarter levels. The company posted a consolidated loss of ₹10 crores in Q1 FY27, but this was offset by ₹3 crores profit in the same quarter last year, indicating progress toward sustainable profitability as scale improves. Management expects ₹500 crores revenue in FY27, implying sustained growth momentum from current run rates.
🔮 Management Outlook & What's Next
Management projects 33% revenue growth to ₹500 crores in FY27, with full-year capacity utilization targeting 80% and PBDIT margin improvement of 300 bps to 10%. This outlook is anchored in new capacity deployment, machining expansion, and anticipated export recovery. The company is systematically scaling infrastructure while managing cost inflation through operational efficiencies and renewable energy integration, as evidenced by the wind PPA.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Equity Capital | 16 | 16 |
| Reserves | 92 | 96 |
| Borrowings | 156 | 250 |
| Total Liabilities | 342 | 473 |
| Fixed Assets | 97 | 250 |
| Investments | 0 | 0 |
| Total Assets | 342 | 473 |
The balance sheet reflects a deliberate capital allocation strategy focused on growth: borrowings rose to ₹250 crores from ₹156 crores YoY, enabling funding of new capacity and expansion. Equity remains stable at ₹16 crores, with reserves growing to ₹96 crores, suggesting retained earnings are being reinvested rather than distributed. This indicates a reinvestment phase aimed at scaling margins and market share in capital goods.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +19 |
| Investing | -94 |
| Financing | +74 |
| Net Cash Flow | -2 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 69.4% | 69.5% | 69.5% | 69.5% |
| FII | 0.4% | 0.3% | 0.2% | 0.2% |
| DII | 0.0% | 0.0% | 1.5% | 1.7% |
| Public | 23.2% | 22.7% | 23.5% | 24.4% |
| # Shareholders | 13,180 | 12,032 | 10,897 | 10,203 |
Promoter holding remains stable at 69.5%, signaling confidence in long-term prospects. Institutional interest is emerging, with FII shareholding rising to 0.23% from 0.22% and DII to 1.73% from 1.51% in Q4FY26, while public holding increased to 24.36%. The growing institutional footprint, despite low absolute levels, suggests increasing market validation of the company’s turnaround narrative.
⚖️ Peer Comparison — Castings, Forgings & Fasteners
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| BHARATFORG | 93,419 | 132.3 | 9.9% | — | 0.72 |
| AIAENG | 35,810 | 28.3 | 22.0% | — | 0.07 |
| PTCIL | 32,579 | 259.4 | 11.4% | — | 0.04 |
| HAPPYFORGE | 18,812 | 57.4 | 18.2% | — | 0.15 |
| CIEINDIA | 14,564 | 16.1 | 15.4% | — | 0.05 |
| RKFORGE | 12,797 | 119.3 | 6.3% | — | 0.72 |
| KENNAMET | 9,074 | 77.5 | 23.8% | — | 0.00 |
| BALUFORGE | 5,921 | 20.3 | 33.6% | — | 0.04 |
| ELECTCAST | 4,458 | 36.8 | 4.0% | — | 0.26 |
| STEELCAS | 3,736 | 41.3 | 30.9% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Persistent raw material inflation (200 bps impact) and consumable cost increases (300 bps) continue to pressure near-term margins. 2) Export recovery remains vulnerable to geopolitical disruptions, as seen in West Asia logistics challenges affecting Q1 performance. 3) Capacity utilization is still below target (66% vs 80% goal), meaning execution risk remains in scaling operations efficiently. 4) Low float and thin trading (10,203 shareholders) may lead to volatility amid mixed financial results.
📋 Recent Filings
- 🟡 Board Meeting2026-09-29On September 29, 2026, Synergy Green Industries Ltd informed BSE and NSE that its Nomination and Remuneration Committee approved the vesting of 7,060 …
- Announcement2026-09-26Synergy Green Industries Ltd announced that its trading window will close on October 1, 2026, and remain shut until 48 hours after the unaudited quart…
- 🔴 Financial Results2026-08-18Synergy Green Industries Limited reported Q1 FY27 revenue of ₹75.71 crores, up from prior year, with production rising nearly 10% despite export delay…
- 🔴 Corporate Action2026-08-13Crisil Ratings reaffirmed Synergy Green Industries Limited's BBB/Stable rating for its Rs. 334 crore bank facilities and Rs. 14.5 crore fixed deposits…
- 🟡 Board Meeting2026-08-13The board of Synergy Green Industries Limited approved the unmodified audit report for the quarter ended June 30, 2026, confirming financial accuracy …
- Announcement2026-08-13Synergy Green Industries Limited (SGIL) presented its Q1 FY2026-27 investor update, highlighting a 9.7% YoY production increase but revenue impacted b…
- Announcement2026-08-12Synergy Green Industries Limited announced an investor conference call scheduled for August 13, 2026 at 4 p.m. IST to discuss Q1FY26-27 financial resu…
- 🟡 Board Meeting2026-07-25SGIL shareholders approved all AGM resolutions via e-voting on July 23, 2026, including adopting FY2026 audited financials, appointing a new director,…
- 🟡 Board Meeting2026-07-23SGIL held its 16th AGM on July 23, 2026 via video conference, approving audited financials for FY2025-26, reappointing Niraj Shirgaokar as director, d…
- Announcement2026-07-16Synergy Green Industries Limited received a SEBI-mandated certificate confirming dematerialisation of securities for the quarter ended June 30, 2026, …
🧠 Analyst's Read
SGIL is executing a capital-intensive expansion with early signs of operational progress, but profitability remains sensitive to cost volatility and export dynamics. Investors should monitor execution against capacity utilization and margin guidance, as well as export order visibility, to assess progress toward sustainable earnings growth.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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