Any current/future capex/capital investment/strategic investment?

Current Capex underway includes: - Brownfield expansion from 30,000 to 45,000 tons capacity with an allocation of around Rs.60 crores. - Establishing in-house machining capacity of about 10,000 tons per annum (previously 100% outsourced), allocated Rs.67 crores. - Captive renewable power (solar project) expansion from 2 MW to 10 MW, with Rs.30 crores allocated; project already initiated. Future Capex plans: - Greenfield project to increase capacity to 100,000 tons, estimated investment of Rs.400-500 crores (foundry Rs.250-300 crores + machining Rs.150 crores). - Planned start of the

Future growth expectations in sales/revenue/volumes?

Projecting around 20% revenue growth for FY26 and FY27 (Page 6). Expected revenue to reach Rs. 370 crores for FY 2024-25 and Rs. 450 crores for FY 2025-26 based on order book projections (Page 5). Targeting Rs. 550-600 crores in revenues at full capacity utilization after current Capex (Page 6 & 10). Capacity utilization currently around 86%, expected to exceed 90% soon (Page 6). Planning Greenfield expansion to increase capacity from 45,000 MT to 100,000 MT starting FY 26-27, triggered by market demand and capacity utilization (Page 10). Direct exports anticipated to grow by 20% wit

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth for FY26 & FY27 is projected around 20% annually. Current EBITDA margins are at approximately 14.5%, expected to expand by 250-350 basis points over the next 2 years after full Capex deployment, targeting around 18% EBITDA margin. Profit before tax (PBT) and profit after tax (PAT) have shown significant growth; PBT jumped 42.5% in Q2 FY24 vs. Q2 FY23, with continued improvements expected. Margins are expected to rise from current 13-14% levels to over 18% by end of next year, driven by operational efficiencies and in-house machining. EPS will benefit from margin expansio

Current/ Expected Orderbook/ Pending Orders?

The company expects revenues around Rs. 370 crores for FY 2024-2025 and Rs. 450 crores for FY 2025-2026 based on executable order book projections. Order book schedules indicate a growth trajectory aligned with these revenue targets. Despite some moderation in demand from domestic wind and non-wind segments, strong order inflows in OEM export, direct exports, and gearbox segments support overall order book strength. The company is managing order execution timelines carefully, with new capacity expansions planned to cater to growing order volumes. The management expects to complete capacity exp

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Synergy Green Industries LtdQ3 FY25Industrial Products

Synergy Green Industries Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹595P/E: 115.4Market Cap: ₹905 CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 3

→Projecting around 20% revenue growth for FY26 and FY27 (Page 6).
→Expected revenue to reach Rs. 370 crores for FY 2024-25 and Rs. 450 crores for FY 2025-26 based on order book projections (Page 5).
→Targeting Rs. 550-600 crores in revenues at full capacity utilization after current Capex (Page 6 & 10).
→Capacity utilization currently around 86%, expected to exceed 90% soon (Page 6).
→Planning Greenfield expansion to increase capacity from 45,000 MT to 100,000 MT starting FY 26-27, triggered by market demand and capacity utilization (Page 10).
→Direct exports anticipated to grow by 20% with total exports contributing ~35-40% to revenue (Page 11).
→Volume growth supported by expansion of machining capacity and introduction of inhouse machining (Page 8).
→Margins expected to improve alongside volume growth, aiding bottom-line expansion (Pages 6, 9, 14).

Margin guidance

Category 1

→Revenue growth for FY26 & FY27 is projected around 20% annually.
→Current EBITDA margins are at approximately 14.5%, expected to expand by 250-350 basis points over the next 2 years after full Capex deployment, targeting around 18% EBITDA margin.
→Profit before tax (PBT) and profit after tax (PAT) have shown significant growth; PBT jumped 42.5% in Q2 FY24 vs. Q2 FY23, with continued improvements expected.
→Margins are expected to rise from current 13-14% levels to over 18% by end of next year, driven by operational efficiencies and in-house machining.
→EPS will benefit from margin expansion and revenue growth, supported by stable commodity prices and an improving product mix.
→Capex plans to increase capacity from 30,000 to 45,000 tons (and eventually to 100,000 tons) align with revenue and margin growth targets.

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Fundraise plans

Yes

No information is provided regarding the same in the latest conference call.

Order book

Yes

→The company expects revenues around Rs. 370 crores for FY 2024-2025 and Rs. 450 crores for FY 2025-2026 based on executable order book projections.
→Order book schedules indicate a growth trajectory aligned with these revenue targets.
→Despite some moderation in demand from domestic wind and non-wind segments, strong order inflows in OEM export, direct exports, and gearbox segments support overall order book strength.
→The company is managing order execution timelines carefully, with new capacity expansions planned to cater to growing order volumes.
→The management expects to complete capacity expansions and increase production to meet the order book demand by the end of the next year, supporting targeted revenue growth of around 20% for the next two years.

Capex plans

Yes

→Current Capex underway includes:
→ - Brownfield expansion from 30,000 to 45,000 tons capacity with an allocation of around Rs.60 crores.
→ - Establishing in-house machining capacity of about 10,000 tons per annum (previously 100% outsourced), allocated Rs.67 crores.
→ - Captive renewable power (solar project) expansion from 2 MW to 10 MW, with Rs.30 crores allocated; project already initiated.
→Future Capex plans:
→ - Greenfield project to increase capacity to 100,000 tons, estimated investment of Rs.400-500 crores (foundry Rs.250-300 crores + machining Rs.150 crores).
→ - Planned start of the Greenfield capacity expansion around FY 2026-27.
→ - Funding mix includes internal accruals, debt (Rs.95 crores debt sanctioned but not fully utilized), and potential market fundraising if required.
→Strategic aims:
→ - Margin expansion to 18-20% through operational reorganizations (e.g., renewable energy savings, process improvements).
→ - Diversification across wind, non-wind, gearbox, and other sectors like mining and plastics injection.

How does Synergy Green Industries Ltd rank vs peers in Industrial Products?

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1Synergy Green Industries Ltd

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