Announced Fri, 22 May · 16:36 IST

Synergy Green Industries Limited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementMgmt Guided Margin PressureOrder Pipeline DisclosedAnalyst Day Multiyear TargetsCfo Debt Reduction RoadmapInvestor Communications View source PDF

SGIL · price

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₹505.00
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AI summary

Synergy Green Industries held its Q4 FY2026 earnings call on May 19, 2026. The company, a leading foundry producing wind turbine and gearbox castings, reported FY26 total income of Rs 376 crores with PBDIT margin of 13.1%. Management guided for FY27 revenue of Rs 500-530 crores (33% growth) and PBDIT margin expansion of over 300 basis points to ~16-16.5%. Key growth drivers include expanded foundry capacity (45,000 MTPA from 30,000), new machining facilities (20,000 MTPA), and new customers including Nordex, Vestas, L&T, and BHEL. Management flagged headwinds from commodity price inflation due to West Asia tensions (20% rise in commodity costs) with a 1-quarter lag in price pass-through. Current debt stands at ~Rs 165 crores, expected to peak at Rs 175-180 crores by FY27 year-end before declining as EBITDA grows.

Likely market impact

The company is in a high-investment phase with expanding capacity and adding customers, which is temporarily compressing margins. However, the 33% revenue growth guidance and 300 bps margin expansion target for FY27 suggest a strong recovery trajectory. The order book visibility appears healthy, but execution risks exist during the capacity ramp-up period.