Detailed Narrative
Q4 FY26 Performance and FY26 Overview
Synergy Green reported a total income of ₹123.45 crores for Q4 FY26, with a PBDIT of ₹14.83 crores, yielding a 12.01% margin. For the full FY26, total income reached ₹376 crores, and PBDIT was ₹48.67 crores, translating to a 13.10% margin. Revenue growth for FY26 was modest at 3.5%, primarily impacted by project delays and operational disruptions during the brownfield expansion phase.
Strategic Capacity Expansion and Milestones
FY26 was a year of significant strategic transformation, marked by the expansion of foundry capacity from 30,000 to 45,000 tons per annum. Additionally, new machining and coating capacities of 20,000 tons per annum were established. The maximum casting weight produced increased from 23 to 30 metric tons, enabling production for larger five-megawatt turbines. The company also successfully onboarded 10 megawatts of solar captive capacity from October 2025.
Market Outlook and FY27 Growth Projections
The global wind industry saw strong growth, with installations increasing by 40% in FY25 to 164.6 GW, and Indian installations growing 85% in FY26 to 6.34 GW. Synergy Green projects a 33% revenue growth for FY27, targeting ₹500 crores, driven by expanded capacities and new customer additions. Export revenues are expected to remain stable, contributing 25-30% of the total revenue.
Margin Dynamics and Improvement Strategy
The PBDIT margin for FY26 stood at 13.1%, an 8% absolute drop from the previous year, attributed to higher outsourcing costs, increased manpower, and commodity/energy cost inflations. For FY27, management anticipates a significant PBDIT margin expansion of over 300 basis points. This improvement is expected from manufacturing efficiencies, calibrated price pass-throughs, and operating leverage as expanded capacities stabilize and ramp up to 80% utilization.
Capital Expenditure and Debt Management
The company invested approximately ₹250 crores in capex during FY26 for its expansion projects, funded through a mix of internal accruals, equity, and debt. Gross debt is projected to be around ₹175-180 crores by the end of FY26. Looking ahead to FY27, Synergy Green aims to reduce its gross debt to ₹70-80 crores, targeting a comfortable net debt-to-EBITDA ratio of less than 1 or 0.8. Major greenfield capex is planned for FY28 onwards, with land acquisition for this phase expected in FY27 from internal accruals.
Client Diversification and Export-Domestic Balance
Synergy Green serves six out of 15 leading global OEMs and has expanded its non-wind client base to include Mahindra and L&T. While exports offer better realizations due to incentives and currency depreciation, management emphasizes maintaining a balance between domestic and export markets. This strategy aims to mitigate risks associated with external factors in exports and protect the domestic market, which is crucial for long-term stability.