Borosil

Borosil reported a strong H1 FY26, with consolidated revenues from operations growing 14.7% YoY to INR 573.0 crores. Operating EBITDA increased 9.5% YoY to INR 90.1 crores, though the margin slightly compressed to 16.1% from 16.8% in the previous year. PAT saw a significant surge of 45.3% YoY, reaching INR 40.1 crores, partly benefiting from a one-time^📎 stamp duty expense provision reversal of INR 7.2 crores. The company maintained a healthy balance sheet with net debt at INR 4.5 crores as of September 30, 2025.

The Larah Opalware segment recorded sales of INR 195.4 crores, growing 7.8% YoY. The glassware segment demonstrated impressive growth of 27.4% YoY, with revenue reaching INR 148.6 crores, driven by increased customer choices and a shift towards glass products. The non-glassware segment also performed strongly, posting a 12.4% increase in revenue to INR 216.6 crores, despite facing headwinds and degrowth in the hydra bottle category due to BIS compliance.

Borosil approved an INR 65 crores CAPEX for three double-wall production lines for vacuum-insulated steel flasks, bottles, and containers, targeting an estimated capacity of 3.6 million units per year. This investment is critical for BIS compliance and reducing dependence on imports. Two lines are expected to commence commercial production by Q4 FY26, with the third by Q1 FY27. Additionally, the new stainless steel facility and solar plant are expected to begin production by Q4 FY26, with their first full quarter of operation in Q1 FY27.

Operating EBITDA margin experienced a slight decline, primarily due to two factors. Firstly, the shift from imported to Made in India products in the non-glassware segment led to pressure on gross margins, as the local vendor ecosystem is less efficient in the short run. Secondly, the product mix was impacted by a loss of higher-margin hydra sales due to BIS compliance requirements. Management acknowledged losing potential revenue growth in hydra but expects a bounce-back from Q4 FY26 as new capacities become available.

The company maintained a prudent approach to cost management in H1 FY26. Advertising and sales promotion expenses remained stable at INR 38.1 crores, similar to the prior year. Power and fuel costs saw a decline from INR 42.3 crores to INR 36.9 crores, reflecting continued focus on operational efficiency. Shared service support income also contributed positively, increasing to INR 12.1 crores from INR 8.4 crores in the same period last year.

Management expressed a bullish long-term outlook, citing India's rising per capita GDP (projected INR 1.4 lakh for FY26) and the rapidly expanding brown goods market, expected to reach $9 billion by FY30. Borosil is well-positioned to capitalize on the clear shift towards health and sustainability, with consumers moving away from plastic to toxin-free, durable materials like glass, steel, and Opalware. The company sees strong potential in the INR 4,000 crore lunchbox market, aligning with its premium glass lunchbox offerings.