Summary
Synergy Green Industries Limited - Q3 FY2026 Earnings Call Summary Wednesday, February 11, 2026 4:00 PM
Event Participants
Executives 3 Nilesh Mankar (Company Secretary), Shreya Shirgaokar (AVP Commercials), V.S. Reddy (Executive Director)
Analysts 7 Amitabh Vatsya, Jignesh Vayda, Niteen Dharmawat, Parth (Organization not specified), Praneeth Bommisetti, Pratik Jain, Riken Gopani
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹92.17 crores | -4.8% YoY; Impacted by delayed ramp-up of new wind segments and relocation disruptions. |
| PBDIT | ₹9.62 crores | -34% YoY; Compressed by relocation costs, higher manpower, and finance costs. |
| PBDIT Margin | 10.32% | -412 bps YoY; Affected by transitory outsourcing costs (+1% impact) and export price discounts. |
| Capacity Utilization | 89% | Based on existing 30,000 MT capacity; Highest monthly production achieved in Jan 2026. |
| Installed Capacity | 30,000 MT | Upgrading to 45,000 MT; Foundry expansion in final stages of commissioning. |
| Net Debt-to-Equity | ~0.50x | Management noted a 1:2 ratio; highlighted ₹200cr capex spend in a single year. |
| Order Book (Executable) | ₹380 crores | Full-year FY26 estimate; revised downward from previous 20% growth guidance. |
Geographic & Segment Commentary
- Wind Castings: Approximately 70% of total revenue; significant focus on developing 4MW and 5MW platforms for global OEMs like Nordex and Vestas. Management notes that the removal of trade tariffs has spurred immediate demand from US clients.
- Gearbox & Non-Wind: Gearbox castings contribute 15%, with the balance in mining and pumps; newly secured BHEL and L&T approvals for power equipment are expected to contribute ₹20-25 crores annually starting H2 FY27.
- Export Market: Impacted by lower realizations in Q3 due to a tactical 3% discount offered to Vestas to eliminate future logistics costs to China; volume remains stable with high expectations for US market growth post-tariff waivers.
Company-Specific & Strategic Commentary
- Capacity Expansion: Increasing capacity from 30,000 MT to 45,000 MT; manual line is operational while the automated line is expected to finish commissioning by March 2026.
- In-house Machining: Phase 1 is operational with approvals from Vestas/Senvion; Phase 2 commissioning in Q1 FY27 is expected to save 3% in logistics costs and improve net margins by 300 bps.
- Renewable Energy: 10 MW solar plant operational since Oct 2025; currently saving ₹60-70 lakhs per month in electricity costs, expected to contribute ~200 bps to margins.
- Product Development: Successfully developed 5MW components for Nordex and 3.3MW for Envision; serial production for Envision (10,000 MT potential) is postponed to Q1 FY27 due to commercial clarifications.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 Revenue Growth | ~5% YoY | Revised downward from 20% due to expansion disruptions and Envision delay. |
| FY27 Revenue | ₹500 crores+ | Based on new product serial production and 45,000 MT capacity availability. |
| PBDIT Margin (FY26) | ~14% | Blended rate accounting for Q3 weakness and higher Q4 volumes. |
| PBDIT Margin (FY27) | 16% - 18% | Driven by solar savings and elimination of external machining/logistics costs. |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Volatility | Management noted an ₹3,000-4,000 per tonne increase in raw materials since Jan 2026, which cannot be passed to customers until the next quarter. |
| Execution Delays | Recent 3-month delay in capex commissioning due to civil contractor performance and relocation disruptions among the 300-person workforce. |
| Customer Concentration | Heavy reliance on the “take-off” speed of four major OEMs (Envision, Siemens Gamesa, Nordex, Adani) for FY27 growth targets. |
Q&A Highlights
Relocation & Margins
- Question: Why did revenue and margins drop so significantly this quarter? (Niteen Dharmawat)
- Answer: Relocating the fettling section to Unit 2 in Nov 2025 disrupted the workforce and production flow more than anticipated. Additionally, we incurred ₹12-13/kg extra cost by outsourcing heat treatment to Hyderabad while equipment was being moved (V.S. Reddy).
Export Pricing & Logistics
- Question: What is the “discount” mentioned in the press release? (Pratik Jain)
- Answer: We negotiated a price reduction with Vestas starting Jan 2026 to reflect the future shift from machining in China to in-house machining in Kolhapur. We are currently paying for logistics to China while receiving the lower “in-house” price, a temporary margin drag (V.S. Reddy).
Market Competitiveness
- Question: How do Indian castings compare to Chinese ones now? (Praneeth Bommisetti)
- Answer: With INR depreciation and the 8% basic custom duty, Indian castings are now 3-5% cheaper than Chinese imports within India. In the US, the reduction of tariffs from 50% to 18% makes us highly competitive (V.S. Reddy).
Future Growth & Diversification
- Question: What is the status of the Adani and Envision orders? (Riken Gopani)
- Answer: Adani 3.3MW development is finishing this month with a ₹60-80cr potential. Envision has a massive 65,000 MT requirement; we are conservative and targeting an initial 10,000 MT share (V.S. Reddy).
Key Takeaway
Synergy Green Industries reported a transitional Q3 FY2026, where a 4.8% revenue dip and margin compression to 10.32% were driven by self-inflicted disruptions from a massive ₹200 crore expansion program. The company is doubling its historical capex in a single year, relocating its workforce and equipment to a new unit, which necessitated temporary, high-cost outsourcing for heat treatment. Strategically, the company has successfully pivoted toward higher-capacity 5MW platforms and secured critical facility approvals from L&T and BHEL to diversify into the power sector. Management maintains a confident FY2027 outlook of ₹500 crore+ revenue and 16-18% margins, predicated on the full utilization of the expanded 45,000 MT capacity and the elimination of logistics costs through in-house machining and solar power integration. Investors should monitor the stabilization of the automated production line in Q4 and the timely commencement of serial supplies to Envision and Adani in Q1 FY2027.
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