Q1 2027 Synergy Green Industries Ltd Earnings Call Transcript
Key Points
- Production increased by 10% year-over-year in Q1 FY27, with capacity utilization already at 66% of the expanded 45,000-ton capacity and expected to reach 80% for the full year.
- Strong industry tailwinds: global wind installations grew 40% in 2025, and India's wind capacity is projected to more than double by 2030, supporting long-term demand.
- New customer wins and product approvals: Nordex 5MW platform received clearance and is in serial production; Vestas 4MW contract signed, with tooling development underway.
- In-house machining facility is ramping up well, with 50% of products developed and approved, expected to reduce outsourcing costs and improve margins.
- Management maintains FY27 guidance of 33% revenue growth to INR500 crore and 300 basis points PBDIT margin expansion, citing strong order book and export schedule.
- Diversification into non-wind segments (mining, power) is gaining traction, with new orders from L&T and BHEL, and increased demand from existing customers like Terex.
- Cost mitigation measures: signed 5MW wind PPA via open access to offset electricity tariff hikes, and raw material indexation with customers will recover cost inflation with a one-quarter lag.
- Q1 FY27 revenue was impacted by lower dispatches due to delays in customer material lifting and prototype approvals, leading to a 7% PBDIT margin (down from prior year).
- Raw material inflation (scrap, consumables) impacted PBDIT by ~200 basis points, with recovery only partially possible via indexation and price revisions.
- Consumable cost inflation (e.g., resin, crude-oil-linked) rose sharply (up to 60% for some items), impacting margins by ~300 basis points, with only partial recovery.
- Electricity policy changes and retrospective tariff revisions by MSEDCL caused a one-time impact on margins, reducing solar banking benefits and increasing energy costs.
- West Asia conflict disrupted global logistics, causing shipping delays and export order roll-outs, leading to a marginal drop in export revenues in Q1.
- Capacity expansion to 45,000 tons is still in ramp-up phase, with utilization at 66% in Q1, and full benefits are expected only in the second half of FY27.
- Customer concentration remains high (Vestas historically >40% of revenue), though management expects this to reduce as new OEMs ramp up.
(audio in progress) -- so next slide. Yeah. This is a disclaimer. You can take a print-screen of the presentation.
Next slide. This is today's meeting agenda. First, brief introduction will be given for the organization. Then, investor presentation will be given by Shreya, madam. And then, question-answer will be taken.
Next. Yeah. These are the guidelines of the call.
Next. Dear participants, welcome to the Q1 of the financial year 2026-'27 earnings call and investor presentation of Synergy Green Industries Limited.
Synergy Green Industries Limited is one of India's leading state-of-the-art foundries, producing SG iron, gray iron, and steel casting for Wind Turbine, Wind Gear Box, and General Engineering industries in weight range of 3 to 30 metric tons.
Synergy Green has an installed capacity of 45,000 metric ton per annum and in-house machining facility of 20,000 metric ton per annum.
The company houses best-in-class equipment, IT infrastructure, and quality testing facilities, and
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