Synergy Green Q2 revenue rises 61%, but loss hits Rs 5.08 crore

Synergy Green Industries Limited reported a standalone net loss of Rs 5.08 crore for the quarter ended September 30, 2026, reversing a Rs 2.36 crore profit a year earlier, although revenue from operations rose 61% to Rs 115.78 crore. Total expenses increased to Rs 121.60 crore, exceeding total income of Rs 116.31 crore.

Why did Synergy Green report a Q2 loss despite higher revenue?

Synergy Green reported a loss because its Rs 121.60 crore of total expenses exceeded Rs 116.31 crore of total income in the quarter ended September 30, 2026. In the quarter ended September 30, 2025, total income was Rs 74.38 crore and expenses were Rs 71.04 crore, resulting in a pre-tax profit of Rs 3.34 crore.

Revenue from operations increased to Rs 115.78 crore from Rs 72.00 crore a year earlier and Rs 75.15 crore in the quarter ended June 30, 2026. Other income declined to Rs 52.79 lakh from Rs 2.38 crore in the prior-year quarter, while the pre-tax result moved to a Rs 5.29 crore loss from a Rs 3.34 crore profit.

The September-quarter net loss of Rs 5.08 crore was lower than the Rs 10.11 crore loss reported in the June 2026 quarter. A deferred-tax credit of Rs 20.71 lakh reduced the post-tax loss in the September quarter, compared with a total tax expense of Rs 98.01 lakh in the quarter ended September 30, 2025.

Which costs increased in Synergy Green's September quarter?

Synergy Green's two largest cost increases were in other expenses and materials consumed. Other expenses rose by Rs 19.39 crore year-on-year to Rs 52.19 crore, while material consumption increased by Rs 16.39 crore to Rs 51.02 crore in the quarter ended September 30, 2026.

Employee benefit expenses increased to Rs 11.15 crore from Rs 7.79 crore, finance costs rose to Rs 7.15 crore from Rs 4.70 crore, and depreciation and amortisation increased to Rs 9.97 crore from Rs 3.66 crore. The inventory-change line was a Rs 9.88 crore credit, smaller than the Rs 12.54 crore credit reported a year earlier.

Sequentially, material consumption rose from Rs 41.61 crore in the June 2026 quarter and other expenses increased from Rs 41.07 crore. Employee benefit expenses increased from Rs 10.33 crore and depreciation rose from Rs 8.81 crore, while finance costs were marginally lower than Rs 7.18 crore.

Synergy Green operates in one segment, manufacturing of metal castings, so the filing does not separate revenue, costs or margins by product category. Consolidated loss after tax was Rs 5.08 crore, nearly the same as the standalone Rs 5.08 crore loss, with the controlled entity being the Synergy Green Industries Limited ESOP Trust.

What do Synergy Green's half-year results show?

Synergy Green posted a standalone loss after tax of Rs 15.19 crore for the half year ended September 30, 2026, compared with a Rs 5.74 crore profit for the half year ended September 30, 2025. Revenue from operations nevertheless increased to Rs 190.93 crore from Rs 155.56 crore over that comparison.

Total income for the six months was Rs 192.02 crore, compared with Rs 159.76 crore a year earlier, while total expenses rose to Rs 208.00 crore from Rs 151.28 crore. The resulting pre-tax loss was Rs 15.98 crore, reversing a pre-tax profit of Rs 8.47 crore in the prior-year half.

Materials consumed over the six months increased to Rs 92.63 crore from Rs 69.73 crore, while other expenses rose to Rs 93.26 crore from Rs 65.98 crore. Employee benefits increased to Rs 21.48 crore, finance costs to Rs 14.33 crore and depreciation and amortisation to Rs 18.78 crore, against Rs 15.54 crore, Rs 9.35 crore and Rs 7.04 crore respectively a year earlier.

There was no exceptional item in the September 2026 quarter or half year. For the year ended March 31, 2026, Synergy Green reported a Rs 65.42 lakh exceptional statutory impact from new labour codes, comprising Rs 56.55 lakh of additional gratuity liability and Rs 8.87 lakh of additional leave liability.

How did Synergy Green's balance sheet and cash flow change?

Synergy Green's standalone total assets increased to Rs 485.76 crore at September 30, 2026 from Rs 472.76 crore at March 31, 2026. Property, plant and equipment rose to Rs 282.19 crore from Rs 240.09 crore, while capital work-in-progress declined to Rs 1.47 crore from Rs 47.46 crore.

Inventories increased to Rs 97.90 crore from Rs 62.72 crore, while trade receivables reduced to Rs 47.84 crore from Rs 64.97 crore. Cash and cash equivalents rose to Rs 1.52 crore from Rs 33.14 lakh, whereas bank balances other than cash equivalents declined to Rs 8.84 crore from Rs 11.63 crore.

Equity declined to Rs 95.10 crore from Rs 111.09 crore during the half year, while long-term borrowings increased to Rs 157.95 crore from Rs 148.00 crore. Current borrowings fell to Rs 100.26 crore from Rs 102.39 crore, but trade and other payables rose to Rs 101.91 crore from Rs 70.90 crore.

Outstanding dues to micro, small and medium enterprises were Rs 53.43 crore at September 30, 2026, compared with Rs 23.77 crore at March 31, 2026. Net cash from operating activities was Rs 27.44 crore in the half year, while investing activities used Rs 20.35 crore, including Rs 23.50 crore spent on property, plant, equipment and intangible assets.

What did Synergy Green disclose about the review and ESOP?

Synergy Green's board approved the unaudited results on November 3, 2026 after the audit committee reviewed and recommended them. P G Bhagwat LLP conducted a limited review under Standard on Review Engagements 2410 and reported that nothing had come to its attention indicating material misstatement in the standalone results.

The review report said the September 2025 quarterly and half-year statements, together with the March 2026 annual results, had been audited by another auditor that issued an unmodified opinion on May 19, 2026. The current filing is a limited review rather than an audit, and the review report states that it provides moderate assurance.

Shareholders approved an employee stock option plan on April 22, 2025, and Synergy Green offered 22,980 options on August 21, 2025 at an exercise price of Rs 70 per share after the applicable vesting period. At March 31, 2026, the ESOP Trust had acquired 8,000 equity shares from the open market, which the company treats as treasury shares.

Conclusion

Synergy Green's September 2026 quarter shows that a Rs 43.78 crore year-on-year increase in operating revenue did not offset a Rs 50.56 crore increase in total expenses. The company moved from a Rs 2.36 crore quarterly profit to a Rs 5.08 crore loss, while the first-half result changed from a Rs 5.74 crore profit to a Rs 15.19 crore loss.

The next results will show whether revenue remains near the Rs 115.78 crore recorded in the September quarter and whether material costs, other expenses and depreciation change from their reported levels. The filing also leaves investors to track execution of the 22,980 options offered at Rs 70 per share, subject to vesting under the disclosed ESOP.