Borosil

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.

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.

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.

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.

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.

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.