Synergy Green reports stronger margins despite revenue dip in H1 FY26

Synergy Green Industries reported a slight revenue drop of 16.4% quarter-on-quarter and 49.49% half-yearly for H1 FY26, primarily due to customer scheduling and slower offtake in the domestic wind industry. Despite this, profit before depreciation, interest, and taxes (PBDIT) margins improved to 15.74% for the quarter and 15.56% for the half-year, a 143-basis-point increase over the previous financial year. This was driven by stable business conditions and raw material prices. The company projects an overall increase of around 100 basis points in PBDIT for the full FY26.

The company's foundry expansion to 45,000 metric tons is on track, with capacity expected online by Q3 FY26. A 10-MW captive solar power project has been operational since October, and the in-house machining project is progressing, with Phase 1 expected to be fully operational by Q3 FY26 and Phase 2 by Q4 FY26. Synergy Green has a robust 20% order book outlook for FY26, supported by new product developments for customers like Envision, Nordex, and Adani.

The company aims to expand its capacity beyond 45,000 tons, with a long-term vision of reaching 100,000 tons, estimating a total investment of around INR 400-500 crores for this expansion, including land acquisition, foundry, machining, and renewables. Funding is expected from internal accruals (25%), equity inflation (25%), and borrowing (50%).