Borosil

Borosil Limited reported an 8% year-over-year growth in revenue from operations for FY26, reaching INR 1,195.9 crores, up from INR 1,107.8 crores in FY25. However, the operating EBITDA margin for FY26 reduced to 15.1% from 16.3% in the previous year, primarily due to challenges in the Hydra category and increased costs. For Q4 FY26, operating revenues grew 5.2% to INR 284.1 crores, but the EBITDA margin was 11.5% compared to 14.2% in Q4 FY25, and PAT declined marginally to INR 10.6 crores from INR 11.1 crores in the prior year.

The company is making significant investments in new manufacturing capabilities, including a INR 65 crores facility for vacuum-insulated stainless steel flasks, with commercial production for the first two lines expected by the end of Q1 FY27. Additionally, Borosil is investing INR 75 crores in a 20-megawatt ground-mounted solar plant, anticipated to be commissioned in Q1 FY27, which is projected to save INR 28 crores at the EBITDA level annually. Further capex includes INR 50 crores for furnace capacity expansion by FY27/FY28 and INR 42 crores for a new glassware manufacturing plant in Bharuch by Q3 FY27.

In FY26, the Larah opalware segment recorded sales of INR 411.9 crores, growing 7.3% year-over-year. The glassware segment, including borosilicate microwavable products, saw a robust 17.3% growth, reaching INR 295.5 crores. The non-glassware segment, encompassing small home appliances and insulated products, grew 2.4% to INR 463.7 crores. Management noted that while opalware utilization is high at 90-95%, demand growth has been less robust than in prior years.

The Hydra category faced substantial pressure due to the quality control BIS order implemented in FY25, leading to supply chain challenges^🌐 that impacted revenue and margins. Q4 FY26 operations were also affected by restrictions in LPG supply caused by the West Asia crisis, resulting in higher fuel costs, with a direct impact of INR 30-35 crores annually. The company continues to face significant dumping from China across various categories, which puts pressure on domestic pricing and margins.

Borosil Limited received a Jury Recommendation at the Economic Times Award for Design & Creativity for its packaging redesign, which focused on enhancing shelf impact and brand presence. The company's manufacturing facility was also recognized with the India Green Manufacturing Challenge 2025 award. Borosil maintained its 'Great Place to Work' certification, reflecting its commitment to a positive workplace culture and employee satisfaction.

As of March 31, 2026, Borosil maintained a net debt position of INR 49.7 crores. While debt has seen some short-term increases, management reassured that the company generated approximately INR 119 crores in cash from operations in FY26, providing sufficient liquidity for planned capex and working capital needs. The planned capex for FY27 is broadly estimated at INR 110 crores, which will be funded through a mix of equity, debt, and internal accruals.

Despite short-term challenges, Borosil remains committed to its long-term growth trajectory, aiming for 15-20% year-on-year revenue growth and achieving an EBITDA margin closer to 20%+ in the medium term. The company's 'Make in India' commitment is strong, with new facilities and expansions designed to enhance cost efficiency, ensure compliance, and strengthen the supply chain. Management expects inventory levels to normalize in the coming year after two consecutive years of growth, driven by new product categories and local sourcing.