According to the latest unaudited financial results approved by the Board of Directors on August 13, 2026, Synergy Green Industries reported a standalone net loss of ₹10.1 crore for Q1FY27, marking a significant deterioration from the net profit of ₹3.4 crore recorded in the corresponding quarter of the previous fiscal year. The company's financial performance was impacted by multiple factors including input cost inflation, lower capacity utilization, and logistics disruptions related to the West Asia conflict.
As reported in the latest financial results, Synergy Green Industries' total income declined 11.3% year-on-year to ₹75.7 crore, down from ₹85.4 crore in Q1FY26. The revenue contraction was attributed to delayed material lifting, prototype approvals, and West Asia conflict-related logistics disruptions that affected dispatches and export deliveries. Despite the topline decline, profitability pressures intensified significantly, with PBDIT (Profit Before Depreciation, Interest and Tax) falling 59.7% to ₹5.3 crore from ₹13.2 crore in the previous year, while PBDIT margin moderated by 841 basis points to 7.0% from 15.4% in Q1FY26.
The company faced substantial margin erosion driven by multiple cost inflation factors. Cost of materials consumed rose 18.5% to ₹41.6 crore, while finance costs increased 54.4% to ₹7.2 crore. Depreciation and amortization expenses more than doubled to ₹8.8 crore from ₹3.4 crore in the previous year. The margin compression was primarily attributed to raw material inflation impacting 200 basis points, consumable cost inflation contributing 300 basis points, and higher electricity costs due to policy changes and manpower increases affecting approximately 300 basis points. Employee benefit expenses rose 33% to ₹10.3 crore, while other income declined significantly to ₹5.6 lakh from ₹18.2 lakh in the previous year.
A critical operational challenge emerged with capacity utilization dipping to 66% in Q1FY27 (gross production of 7,600 MT against total capacity of 11,500 MT), down from 93% in FY26. This underutilization, combined with fixed cost inflation, exacerbated the margin squeeze despite a 9.7% year-on-year increase in production volume. However, the company experienced a substantial drawdown of finished goods or work-in-progress stock with inventory reduction showing a credit of ₹22.6 crore, indicating either production exceeding immediate sales realization or clearing of older stock. This inventory reduction partially offset high input costs but was insufficient to prevent the bottom-line loss.
