Synergy Green FY26 PAT Drops 72%; Projects FY27 Growth

Synergy Green Industries has released its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. For the full year, the company reported a standalone Profit After Tax (PAT) of ₹465.83 lakh, a sharp decline from ₹1,688.82 lakh in the previous year. Revenue from operations for FY26 stood at ₹36,641.94 lakh, marginally higher than ₹36,226.90 lakh in FY25, while total income rose to ₹37,637.36 lakh from ₹36,368.30 lakh. Total expenses, however, increased significantly to ₹36,816.66 lakh from ₹33,869.71 lakh, compressing profitability. The results were reviewed and recommended by the Audit Committee before being approved by the Board.

Standalone Financial Performance

The following table summarises the key standalone financial metrics for the year and the latest quarter:

Particulars: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations (₹ Lakh) 11,903.61 9,182.13 9,747.35 36,641.94 36,226.90 Other Income (₹ Lakh) 441.34 134.50 43.61 995.42 141.40 Total Income (₹ Lakh) 12,344.95 9,316.63 9,790.96 37,637.36 36,368.30 Total Expenses (₹ Lakh) 12,312.51 9,375.67 9,024.32 36,816.66 33,869.71 Profit Before Exceptional Items & Tax (₹ Lakh) 32.44 (59.04) 766.64 820.70 2,498.59 Exceptional Items – Labour Codes (₹ Lakh) 1.24 64.18 — 65.42 — Profit Before Tax (₹ Lakh) 31.20 (123.22) 766.64 755.28 2,498.59 Net Profit/PAT (₹ Lakh) 40.92 (148.88) 383.51 465.83 1,688.82 Basic & Diluted EPS (₹) 0.26 (0.96) 2.53 3.00 11.14

On a quarterly basis, Q4 FY26 revenue stood at 1.2B rupees compared to 975M rupees in Q4 FY25, reflecting year-on-year top-line growth. However, profitability metrics deteriorated sharply, with Q4 EBITDA declining to 104M rupees from 149M rupees in the same period last year. The Q4 EBITDA margin contracted to 8.8% from 15.3% year-on-year, underscoring the pressure from rising costs. Q4 standalone net profit came in at 4M rupees versus 38M rupees in Q4 FY25. The key Q4 operating metrics are summarised below:

Metric: Q4 FY26 Q4 FY25 Change (YoY) Revenue 1.2B rupees 975M rupees Higher EBITDA 104M rupees 149M rupees Lower EBITDA Margin 8.8% 15.3% Contracted Standalone Net Profit 4M rupees 38M rupees Lower

The decline in profitability was partly attributable to an exceptional item — the statutory impact of new Labour Codes amounting to ₹65.42 lakh for the full year. On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, which consolidate twenty-nine existing labour laws. The company assessed the financial implications, resulting in an increase in gratuity liability of ₹56.55 lakh arising from past service cost and an increase in leave liability of ₹8.87 lakh. This incremental amount has been presented as an exceptional item in the Statement of Profit and Loss.

Consolidated Financial Performance

The consolidated results, which include Synergy Green Industries Limited and the Synergy Green Industries Limited ESOP Trust, are largely in line with the standalone figures. The following table presents the key consolidated metrics:

Particulars: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations (₹ Lakh) 11,903.61 9,182.13 9,747.35 36,641.94 36,226.90 Total Income (₹ Lakh) 12,344.95 9,316.63 9,790.96 37,637.36 36,368.30 Total Expenses (₹ Lakh) 12,312.69 9,375.67 9,024.32 36,816.84 33,869.71 Profit Before Tax (₹ Lakh) 31.02 (123.22) 766.64 755.10 2,498.59 Net Profit/PAT (₹ Lakh) 40.74 (148.88) 383.51 465.65 1,688.82 Basic & Diluted EPS (₹) 0.26 (0.96) 2.53 3.00 11.14

Balance Sheet Highlights

The company's total assets expanded significantly to ₹47,276.00 lakh as of March 31, 2026, from ₹34,200.47 lakh a year earlier, reflecting substantial capital investment. Key balance sheet items are presented below:

Particulars: 31-Mar-2026 (₹ Lakh) 31-Mar-2025 (₹ Lakh) Non-Current Assets 29,832.66 16,379.79 Property, Plant & Equipment 24,008.94 9,101.79 Capital Work-in-Progress 4,746.44 3,403.05 Current Assets 17,443.34 17,820.68 Total Assets 47,276.00 34,200.47 Equity 11,108.70 10,767.18 Long-Term Borrowings 14,800.18 5,534.59 Short-Term Borrowings 10,239.08 10,069.74 Total Equity & Liabilities 47,276.00 34,200.47

Cash Flow Summary

On a standalone basis, net cash from operating activities improved to ₹1,926.54 lakh for FY26, compared to a net outflow of ₹1,639.05 lakh in FY25. Net cash used in investing activities was ₹(9,436.06) lakh, driven primarily by payments of ₹13,830.82 lakh for property, plant, and equipment and intangible assets. Net cash from financing activities was ₹7,356.58 lakh, supported by proceeds of ₹10,761.03 lakh from long-term borrowings. Cash and cash equivalents at the end of the period stood at ₹33.14 lakh, down from ₹186.08 lakh at the beginning of the period.

Dividend and Board Decisions

The Board of Directors has not recommended any dividend for Equity Shareholders for FY 2025-26, compared to Re. 1/- per equity share paid in the previous year. However, the Board has declared a 10% dividend, equivalent to ₹10/- per Preference Share of ₹100/- each, on the 10% Redeemable Cumulative Preference Shares for FY 2025-26, subject to approval of members at the ensuing Annual General Meeting (AGM). The 16th AGM is scheduled to be held on Thursday, July 23, 2026, at the registered office in Kolhapur via Video Conference (VC) or Other Audio Visual Means (OAVM).

The Board also approved the continuation of Mr. Subhash Kutte as an Independent Director and the re-appointment of Mr. Jitendra M. Patil as Internal Auditor. Notably, the Board appointed M/s. P. G. Bhagwat LLP as Statutory Auditor for a period of five consecutive years commencing from FY 2026-27 to FY 2030-31, subject to shareholder approval, following the completion of the five-year term of the outgoing auditor, M/s. DAB & Associates. P. G. Bhagwat LLP is a Chartered Accountants firm established in 1938 with over 85 years of experience, operating through offices at Pune, Mumbai, Bengaluru, Kolhapur, Belagavi, and Dharwad, with a team of 15 partners and over 350 professionals.

ESOP and Other Disclosures

An Employee Stock Option Plan (ESOP) was approved by shareholders on April 22, 2025, offering employees the right to buy shares at a predetermined price of ₹70/- per share after the vesting period. The NRC approved 22,980 options on August 21, 2025. The company has created the Synergy Green Industries Limited ESOP Trust as a vehicle for distributing shares under the Employee Stock Option Plan 2025. As at March 31, 2026, the ESOP Trust had acquired 8,000 equity shares from the open market, treated as Treasury Shares by the company. The paid-up Equity Share Capital has been disclosed net of Treasury Shares, and the weighted average number of equity shares held by the trust has been reduced while computing basic and diluted earnings per share. The company operates in a single segment: Manufacturing of Metal Castings.

Strategic Outlook and Capacity Expansion

According to the investor presentation for Q4 FY 2025-26, the company has achieved significant milestones in FY26, including a brownfield expansion of foundry capacity from 30,000 TPA to 45,000 TPA. The maximum single piece casting weight has been enhanced from 23 MT to 30 MT, enabling production up to 5 MW components. Additionally, machining and coating capacity was commissioned at 20,000 TPA, and solar captive capacity was enhanced from 2 MW to 10 MW.

Looking ahead to FY27, the company projects a revenue growth of approximately 33% backed by new customer additions and enhanced capacity. PBDIT margins are expected to expand by over 300 basis points year-on-year. The medium-term capacity plan includes increasing capacity to 75,000 MT/Annum by FY 28-29 and 1,00,000 MT/Annum by FY 29-30. The company noted that revenue growth in FY26 was muted due to project delays and operational disruptions amid the brownfield expansion, but with expanded capacity and new customer development, visibility exists for healthy double-digit revenue growth in FY27.