Synergy Green Industries Reports Q1 Results: Revenue Declines Amid Cost Pressures but maintains Strong Outlook

Synergy Green Industries Reports Q1 Results: Revenue Declines Amid Cost Pressures but maintains Strong Outlook​

Synergy Green Industries Limited has released its unaudited financial results for the quarter ending June 30, 2026. While the company faced revenue decline and margin moderation in the current quarter, it expressed confidence in its future trajectory, citing a robust order book and strategic mitigation plans against rising costs.

The Q1 FY27 results showed Total Income at ₹75.71 Cr, marking an 11.32% year-on-year (YoY) decline compared to the ₹85.38 Cr recorded in Q1 FY26. The revenue dip was attributed to several operational and external factors, including delayed material lifting, incomplete prototype approvals, and logistics disruptions resulting from the ongoing West Asia conflict, which specifically impacted dispatches and export deliveries.

Profitability also saw moderation as Profit before Depreciation, Interest and Tax (PBDIT) stood at ₹5.30 Cr in Q1 FY27, down from ₹13.15 Cr in Q1 FY26. This resulted in the PBDIT margin moderating to 7.0%, a decline of 841 basis points (bps) from the 15.40% achieved in Q1 FY26.

The pressure on margins was primarily attributed to increases across several operational costs. These included raw material inflation, estimated at around 200 bps; consumable cost inflation, which stood around 300 bps; and rising electricity costs, policy changes, manpower increase, and other factors, also estimated at around 300 bps.

Looking ahead, the company indicated a clear path toward margin improvement. The impact of raw material and certain consumable cost inflation is slated to be recovered through customer price revisions, which are set to become effective starting Q2 FY27. To counter higher electricity costs, Synergy Green Industries plans to leverage an additional 5 MW wind Power Purchase Agreement (PPA) under open access, combined with planned increases in production volumes.

Despite the current quarter's margin compression, management expects PBDIT margins to improve by more than 300 bps during FY27. This recovery is expected to be supported by increased business volume, a growing contribution from export revenue (projected at a stable 25-30% going forward), and enhanced operations stemming from in-house machining activities. The company noted that its overall outlook for FY27 remains strong, bolstered by a roughly 33% growth in the order book and robust customer schedules, alongside new product additions and increased production capacity.

The following table provides a detailed summary of the unaudited financial results:

SGIL Stock Price Movement​

Today, Synergy Green Industries Limited shares tumbled in the post-market session, shedding 9.06% and settling at ₹545.80 after closing below its previous day's close. The stock saw 56,601 shares traded during the period, having declined significantly from an intraday high of ₹624.90.