Borosil — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Borosil Limited reported a steady performance for the first nine months of FY26, with consolidated revenue growing 8.83% to INR912 crores, primarily driven by strong growth in glassware and opalware. Operating EBITDA margin saw a slight compression to 16.2%, largely due to challenges in the hydra bottle segment caused by BIS compliance issues. The company is strategically investing in a new hydra manufacturing facility and a solar plant to enhance operational efficiency, ensure compliance, and improve long-term profitability.

Highlights

  • Consolidated revenues from operations grew 8.83% YoY to INR912 crores for 9MFY26, demonstrating resilience.

  • Glassware segment showed strong growth of 20.94% YoY, reaching INR231 crores, driven by the shift from plastic to glass.

  • Larah Opalware segment recorded a 7.53% YoY growth in sales, reaching INR314 crores.

  • The company is investing INR65 crores in a new hydra bottle manufacturing facility, with commercial production expected by end of Q4 FY26, to address BIS compliance issues.

  • A 20 MWp solar plant, costing INR75 crores, is set to be commissioned in Q4 FY26, expected to cover 65% of the company's power requirement and improve cost efficiency.

Concerns

  • Operating EBITDA margin for 9MFY26 was slightly lower at 16.2% compared to 17% in the previous year.

  • Hydra bottle sales were dramatically affected by BIS compliance requirements, leading to a 30% degrowth in the category.

  • The non-glassware segment (excluding hydra) posted a tepid 2.35% increase in revenue for 9MFY26.

  • Initial months of the new hydra plant are expected to have higher scrap rates and lower manpower productivity.

Key financials

  1. Revenue ₹912 Cr +8.8%YoY
  2. Operating EBITDA ₹145 Cr +3.6%YoY
  3. Operating EBITDA Margin 16.2%
  4. PBT ₹86.2 Cr -0.11%YoY
  5. PAT ₹64.1 Cr +1.6%YoY
  6. Operating Cash Flows ₹130 Cr
  7. Cash and Bank Balance ₹104 Cr
  8. Total Debt ₹91 Cr
  9. Net Cash Position ₹13 Cr

What they filed

Q1 FY27: revenue up 10.3%, net profit down 17.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue274 338 270 233 340 +24%339 +0%286 +6%257 +10%
EBITDA41 54 37 37 48 +17%53 −2%30 −19%35 −5%
Net profit18 35 11 17 23 +28%24 −31%11 +0%14 −18%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹894 Cr Total
  • Non-glassware ₹349 Cr 39.0%
  • Larah Opalware ₹314 Cr 35.1%
  • Glassware ₹231 Cr 25.8%

Capital allocation

high confidence
  • Capex Capex disclosed through a mix of equity, debt and internal accruals for hydra facility
    • Hydra bottle manufacturing facility in Rajasthan ₹65 Cr
    • 20 MWp ground-mounted solar plant ₹75 Cr
    • Opalware furnace rebuilding (maintenance capex) ₹15 Cr
    This project includes 3 double-wall production lines for vacuum insulated steel flasks, bottles and containers with an estimated capacity of close to 4 million units per year with an estimated capex of approximately INR65 crores. This investment of INR65 crores will be financed through a mix of equity, debt and internal accruals. (Page 5); The company is further investing INR75 crores towards setting up a 20 MWp ground-mounted solar plant (Page 6); It's roughly per furnace about INR15 crores to INR16 crores roughly. So, we have 2 furnaces so it's about so this is the part of maintenance capex. You can assume that, let's call it, INR15 crores per year from -- which is -- because I'm saying there's 2 furnaces. So that INR15 crores per year is our maintenance capex over there because every 2.5 years, you spend about INR32 crores, INR33 crores in this rebuilding. (Page 10)
  • Debt Net ₹13 Cr
    • Repayment Finance costs declined by INR6 crores primarily due to debt repayment. ₹6 Cr
    total debt, including working capital of INR91 crores, resulting in a net cash position of roughly INR13 crores. (Page 4)
  • Liquidity Cash ₹104 Cr Company maintains a strong balance sheet with investments, cash and bank balance.
    at a consolidated level, Borosil Limited maintains a strong balance sheet with investments, cash and bank balance of approximately INR104 crores and a total debt, including working capital of INR91 crores, resulting in a net cash position of roughly INR13 crores. (Page 4)

Guidance & targets

Capacity

  • Hydra bottle manufacturing facility capacity utilization Capacity · within 3 to 6 months · Medium confidence 100%
    I think that it may take between 3 and 6 months to ramp up the facility to 100% capacity utilization.

    — Shreevar Kheruka, Managing Director and CEO

  • Glassware expansion announcement Capacity · next quarter or so · Medium confidence announcement
    this is already in the planning phase, probably in the next quarter or so, we'll be able to make some announcements. In terms of expansion.

    — Shreevar Kheruka, Managing Director and CEO

Profitability

  • ROCE from new hydra plant Profitability · long-term · High confidence 24%
    our target would be that we should generate a ROCE of 24%. That's our target for across our business.

    — Shreevar Kheruka, Managing Director and CEO

  • Operating EBITDA Margin Profitability · very short foreseeable future · Medium confidence low-20s

    From 16.2% today

    we should be in the low-20s in the very short foreseeable future.

    — Shreevar Kheruka, Managing Director and CEO

Sourcing

  • Small kitchen appliances domestic sourcing percentage Sourcing · by the end of the coming year · High confidence 85%

    From 60% today

    I think we are now inching towards 60%. And I think by the end of the coming year, we'll be at 85%.

    — Shreevar Kheruka, Managing Director and CEO

Growth

  • Non-glassware segment growth Growth · next 2-3 years · Medium confidence grow independently of the overall market
    I don't see that at least for the next 2, 3 years being a challenge, and we should be able to grow independently of the overall growth rate of the market.

    — Shreevar Kheruka, Managing Director and CEO

Project Completion

  • Solar plant commissioning Project Completion · Q4 FY26 (this month) · High confidence commissioned
    This project is expected to be commissioned in this month itself, that is Q4 of FY '26.

    — Shreevar Kheruka, Managing Director and CEO

What to watch in Q4 FY26

Hydra manufacturing facility commercial production

Q4 FY26 (March 2026)
Current Estimated commercial production from 2 lines by end of Q4 FY26
Target Commercial production commenced from 2 lines

Why it matters

Crucial for recovering lost hydra sales, improving non-glassware segment performance, and achieving targeted ROCE.

Estimated commercial production from 2 of these lines is expected by the end of quarter 4 of this year, that is in March in the next month and from the third line by the end of quarter 1 of financial year '27, subject to receipt of necessary approvals. (Page 5)

Risks & concerns

  • BIS compliance requirements impacting hydra bottle sales

    high

    BIS compliance dramatically affected hydra bottle sales, leading to 30% degrowth, as many channels only accept certified steel products.

    Management acknowledged

  • Initial operational challenges with new hydra manufacturing facility

    medium

    The first few months of the new plant are likely to see higher scrap rates and lower manpower productivity as the team learns the process.

    Management acknowledged

  • Need for refresh in Opalware category to boost demand

    medium

    Opalware growth has not been great, and the category needs a refresh to generate excitement and push demand.

    Management acknowledged

  • Impact of BIS Quality Control Order for electrical appliances

    low

    Effective March 19, 2026, BIS certification is mandated for electrical appliances; Borosil is prepared by building domestic supply chains and advancing inventory.

    Management managed

Q&A highlights

7 direct
Hydra bottle manufacturing facility ramp-up and ROCE targets Direct
I think that it may take between 3 and 6 months to ramp up the facility to 100% capacity utilization. ... our target would be that we should generate a ROCE of 24%.

Provides specific timelines for capacity utilization and profitability targets for the new hydra plant, crucial for future growth.

Asked by Bhavin Rupani

Degrowth in Hydra bottle segment Direct
30% degrowth.

Quantifies the significant negative impact of BIS compliance issues on a key product category.

Asked by Bhavin Rupani

Progress on domestic sourcing for small kitchen appliances Direct
I think we are now inching towards 60%. And I think by the end of the coming year, we'll be at 85%.

Indicates progress on 'Make in India' initiatives, which are expected to improve cost efficiency and supply chain resilience.

Asked by Bhavin Rupani

Incremental capex for Opalware expansion Direct
No, that's small. That's just a debottlenecking. So there's no material capex for this.

Clarifies that the opalware capacity increase is through debottlenecking, not significant new capex, impacting future capital allocation expectations.

Asked by Bhavin Rupani

Current demand environment across segments Partial
So actually, demand, I think, which was a bit depressed in the first half of the year has definitely picked up in the second half of the year, okay? And this is across product categories.

Offers insights into market demand trends, noting a pickup in H2 FY26 and varying performance across product categories.

Asked by Akshat Mehta

Improvement in hydra/stainless steel flask supply crunch Direct
Yes, definitely. Like I said, there's definitely a growth in the last -- so last quarter in that sense has been better than the quarter before.

Confirms an easing of supply constraints for hydra bottles, which was a major concern impacting sales.

Asked by Akshat Mehta

Utilization levels for opalware and glassware furnaces Direct
Opal is close to 100%, I would say, 95% and glass would be about 90%.

Provides key operational metrics, indicating high capacity utilization in core manufacturing segments.

Asked by Akshat Mehta

Trajectory of EBITDA margins from current 16% Direct
we should be in the low-20s in the very short foreseeable future. This year itself, while we have reported 16% we would have been closer to 18% or slightly more than 18% if we have supply of hydra.

Sets clear expectations for future margin expansion, linking it to hydra supply recovery and cost control initiatives.

Asked by Keval Ashar

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Borosil Limited delivered a steady performance for the 9-months financial year '26, with consolidated revenues from operations reaching INR912 crores, marking an 8.83% year-over-year growth compared to INR838 crores in the same period last year. The operating EBITDA before investment income and one-time items stood at INR145 crores, a 3.57% increase from INR140 crores, though the operating EBITDA margin slightly decreased to 16.2% from 17%. Profit After Tax rose marginally by 1.58% to INR64.1 crores, and the company generated robust operating cash flows of INR130 crores.

Segmental Performance and Market Trends

The glassware segment demonstrated strong performance, growing 20.94% to INR231 crores, benefiting from a consumer shift from plastic to glass products. Larah Opalware sales increased by 7.53% to INR314 crores. However, the non-glassware segment, which includes small home appliances and insulated bottles, saw a tepid 2.35% revenue increase to INR349 crores, primarily due to BIS compliance requirements impacting hydra bottle sales, which experienced a 30% degrowth.

Strategic Investments and Capacity Expansion

To address the challenges in the hydra segment and reinforce its 'Make in India' commitment, Borosil is investing approximately INR65 crores in a new manufacturing facility in Rajasthan for double-wall vacuum insulated steel flasks. Commercial production from two lines is expected by the end of Q4 FY26. Additionally, the company is investing INR75 crores in a 20 MWp ground-mounted solar plant, anticipated to be commissioned in Q4 FY26, which will meet about 65% of its total power requirement.

Cost Optimization and Sustainability Initiatives

Borosil has focused on cost discipline, with advertising and sales promotion expenditure declining from INR62 crores to INR60 crores. Power and fuel costs also saw a significant reduction from INR64 crores to INR56 crores. The upcoming solar plant is expected to further reduce overall power costs, underscoring the company's commitment to sustainable manufacturing practices and energy efficiency, which earned its Jaipur facility a gold medal in the India Green Manufacturing Challenge 2025.

Regulatory Impact and Preparedness

BIS compliance requirements significantly impacted hydra bottle sales, as many channels now only accept BIS-certified steel products. The company is actively building domestic supply chains and advancing inventory to prepare for the BIS quality control order for electrical appliances, effective March 19, 2026, aiming to mitigate potential sales disruptions and ensure compliance without material impact on its appliances range.

Margin Outlook and Future Growth Drivers

Management expressed confidence in achieving EBITDA margins in the 'low-20s' in the very short foreseeable future, noting that margins would have been closer to 18% in 9MFY26 if hydra supply had been normal. This improvement is expected from the ramp-up of the new hydra plant, commissioning of the solar facility, and continued cost optimization. The company also aims to increase domestic sourcing for small kitchen appliances to 85% by the end of the coming year, further enhancing efficiency.

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