Synergy Green Industries Limited, listed on both BSE (Scrip Code: 541929) and NSE (Security ID: SGIL), has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, along with several significant board-level decisions. The outcome of the board meeting held on February 11, 2026, includes key leadership reappointments, new independent director inductions, and appointment of a cost auditor.

The announcement also confirms that the company’s statutory auditors have issued a Limited Review Report with an unmodified opinion, which is considered a positive compliance signal for investors.

This article provides a detailed breakdown of the financial performance, exceptional items, board restructuring, and regulatory compliance updates.

Financial Performance Overview – Q3 FY25

Revenue Performance

For the quarter ended December 31, 2025, the company reported:

• Revenue from operations: ₹9,182.13 lakh

• Other income: ₹237.59 lakh

• Total income: ₹7,437.92 lakh (as reported in the statement structure)

For the nine months ended December 31, 2025, the company recorded:

• Revenue from operations: ₹24,738.32 lakh

• Total income: ₹25,292.40 lakh

When compared with the previous year’s corresponding period, revenue shows moderate stability with operational consistency despite industry-level challenges in the engineering and metal casting sector.

Synergy Green operates in a single business segment – Manufacturing of Metal Castings, and therefore does not report segment-wise diversification.

Expense Structure and Cost Analysis

The major expense heads for Q3 FY25 include:

• Cost of materials consumed: ₹3,557.18 lakh

• Employee benefit expenses: ₹855.51 lakh

• Finance costs: ₹474.71 lakh

• Depreciation and amortisation: ₹366.32 lakh

• Other expenses: ₹3,280.44 lakh

Total expenses for the quarter stood at ₹7,103.83 lakh.

One notable observation is the impact of inventory adjustments, where changes in finished goods and work-in-progress reflected a negative value in certain periods, impacting profitability.

Profitability Analysis

Profit Before Tax (PBT)

• Quarter ended December 31, 2025:
  Profit before exceptional items stood at ₹334.09 lakh.

However, after adjusting for exceptional items related to new labour codes, profitability saw an impact.

Exceptional Item – Impact of New Labour Codes

The Government of India notified implementation of four major labour codes:

• Code on Wages, 2019

• Industrial Relations Code, 2020

• Code on Social Security, 2020

• Occupational Safety, Health and Working Conditions Code, 2020

These changes resulted in:

• Increase in gratuity liability: ₹51.85 lakh

• Increase in leave liability: ₹12.33 lakh

Total exceptional impact: ₹64.18 lakh

Since this is a non-recurring legislative impact, the company presented it as an Exceptional Item in its statement of profit and loss.

After accounting for this, the adjusted Profit Before Tax reflected variation.

Net Profit and EPS

For the quarter ended December 31, 2025:

• Profit after tax: ₹236.08 lakh

• Basic and Diluted EPS: ₹1.52 per share

For the nine months ended December 31, 2025:

• Profit after tax: ₹424.91 lakh

• EPS (nine months): ₹2.73

For comparison, the previous year’s nine-month EPS was higher at ₹8.60, indicating a relative moderation in profitability this financial year.

The EPS has been calculated as per Ind AS-33, adjusted for issuance of 14,13,000 rights equity shares dated October 12, 2024.

Comprehensive Income

The company also reported Other Comprehensive Income (OCI) primarily due to:

• Remeasurement gains/losses on defined benefit obligations

• Related tax adjustments

Total Comprehensive Income for the quarter stood at:

• ₹193.34 lakh

This reflects the combined effect of net profit and OCI.

Balance Sheet Indicators

• Paid-up Equity Share Capital: ₹1,554.30 lakh

• Other equity (as of FY25 end): ₹9,212.88 lakh

The capital structure remains stable with no major dilution in the current reporting period except previously issued rights shares.

Auditor’s Limited Review Report – Unmodified Opinion

The statutory auditor, M/s D A B & Associates, Chartered Accountants (Firm Reg. No. 101119W), issued a Limited Review Report with an unmodified opinion.

This means:

• No material misstatements were observed

• Financial results comply with Ind AS 34 – Interim Financial Reporting

• The company adheres to Regulation 33 of SEBI (LODR) Regulations, 2015

An unmodified opinion enhances investor confidence as it signals transparency and accounting discipline.

Major Board Decisions Announced

Alongside financial results, the board approved several important leadership changes.

Appointment of Independent Directors

1. Mr. Deepak Vidyadhar Dhadoti

• Appointment Date: April 1, 2026

• Term: 5 years

• Founder & CMD of Servocontrols Group

• Contributor to Chandrayaan, Mangalyaan, and Aditya L1 missions

• Extensive aerospace and precision engineering background

He is not related to any Director/KMP and is not debarred by SEBI.

2. Mrs. Meghana Ashok Mulye

• Appointment Date: April 1, 2026

• Term: 5 years

• Joint Managing Director of Poona Couplings Pvt Ltd

• 25+ years in corporate governance and strategic leadership

She also fulfills independence criteria under SEBI norms.

These appointments follow completion of the second term of earlier independent directors.

Reappointment of Chairman & Managing Director

Mr. Sachin Rajendra Shirgaokar

• Reappointed from: April 1, 2026

• Term: 3 years

• Mechanical Engineer + MBA (USA)

• Co-founder of Synergy Green Industries

• Industry leader with over 30 years of experience

His remuneration will be revised subject to shareholder approval.

He is related to the Joint Managing Director (brother).

Reappointment of Executive Director

Mr. Vendavagali Srinivasa Reddy

• Term: 3 years from April 1, 2026

• 30 years’ experience in large critical castings manufacturing

• B.Tech, M.Tech (NIFFT Ranchi), EGM from IIM Bangalore

Remuneration revised subject to approval.

Change in Designation – Mr. Sohan Sanjeev Shirgaokar

• Earlier: Joint Managing Director

• New Role: Non-Executive Director

• Term: 5 years

This indicates a structural leadership shift while retaining strategic guidance at board level.

Appointment of Cost Auditor

The board appointed:

M/s Dhananjay V. Joshi & Associates

• Cost Accountant firm

• Appointment effective from April 1, 2026

• For FY 2026–27

The firm has over 45 years of professional experience and multiple offices across India.

Retirement of Directors

• Mrs. Prabha P. Kulkarni

• Mr. Mallappa R. Desai

Both will retire effective April 1, 2026, upon completion of their second term.

Governance and Compliance Highlights

• Company operates in single segment: Manufacturing of Metal Castings

• No subsidiary, associate, or joint venture

• ESOP Trust formed with minimal activity (₹0.10 lakh corpus)

• Results prepared under Ind AS Rules 2015

• Fully compliant with SEBI LODR Regulations 2015

Strategic Interpretation for Investors

The Q3 FY25 results show:

• Stable revenue base

• Marginal pressure on profitability

• One-time labour code impact

• Strong governance restructuring

• Auditor’s clean opinion

While EPS has moderated compared to last year, operational fundamentals remain stable. The leadership restructuring indicates continuity with strategic strengthening through experienced independent directors.

Investors should monitor:

• Margin trends in upcoming quarters

• Impact of labour code compliance costs

• Order inflows in metal casting segment

• Debt levels and finance cost trend

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