Borosil Renewables Limited — Q1 FY26 earnings call

Call held 24 Jul 2025

Management summary

Borosil Renewables delivered strong Q1 FY26 standalone results, with substantial revenue and EBITDA growth driven by improved selling prices and robust domestic demand. The quarter was impacted by a significant one-time provision of ₹325.91 crores related to the insolvency of its German subsidiary, GMB. The company is progressing with a 600 TPD capacity expansion, expected to be commissioned by Q3 FY27, and aims for sustainable EBITDA margins of 28-30%.

Highlights

  • Revenue of ₹332.26 crores, up 37.3% YoY from ₹241.82 crores in the corresponding quarter last year.

  • EBITDA of ₹92.53 crores, a quantum leap of 211.4% YoY from ₹29.71 crores in the corresponding quarter last year.

  • EBITDA margin significantly improved to 27.8% in Q1 FY26 from 12.28% YoY.

  • Average selling price increased to ₹138.1 per millimetre, up 30.9% YoY, contributing to margin improvement.

  • Domestic demand remains robust, with solar module manufacturing capacity reaching 90 GW and expected to rise to 150 GW by March 2027.

Concerns

  • One-time provision of ₹325.91 crores due to the insolvency of the German step-down subsidiary GMB.

  • Uncertainty regarding the final financial results and any potential recovery from the GMB insolvency proceedings.

  • Imports continue to occupy a significant 70% share of the domestic solar glass consumption, despite anti-dumping duties.

Key financials

  1. Revenue ₹332.26 Cr +37.3%YoY
  2. EBITDA ₹92.53 Cr +211.4%YoY
  3. EBITDA Margin 27.8%
  4. Average Selling Price ₹138.1/mm +30.9%YoY
  5. One-time Provision ₹325.91 Cr
  6. Volume Growth 0.06 yoy_pct

What they filed

Q1 FY27: revenue up 17.0%, net profit up 142.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue373 361 374 347 379 +2%390 +8%440 +18%406 +17%
EBITDA29 -10 15 63 118 +307%123 +1330%136 +807%127 +102%
Net profit-13 -30 -30 -203 62 +577%100 +433%169 +663%87 +143%
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.

Order book

medium confidence
Domestic demand for solar glass is robust, with significant growth in solar module manufacturing capacity and installations. The current domestic solar glass capacity is 15 GW, with another 12 GW expected by end of FY26. However, imports still hold a 70% share of domestic consumption, indicating large scope for import substitution.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹950 Cr Raised — project size and cost revised to 600 TPD and increased CAPEX · ₹650 crores from equity and internal accruals, ₹300 crores from debt
    • 600 TPD capacity expansion, including 2mm glass capability ₹950 Cr

    Previously planned ₹675 Cr

    The project size and cost were later revised to 600 TPD and the CAPEX was increased to INR 950 crores. The additional issuance will be utilised for the CAPEX and other objects as per the object of the issue. The revised means of finance would include INR 650 crores from equity and internal accruals and INR 300 crores of debt.
  • Debt Debt disclosed
    The revised means of finance would include INR 650 crores from equity and internal accruals and INR 300 crores of debt.
  • M&A Geosphere Glassworks GmbH (GMB) Divestment · Abandoned · Consideration ₹[object Object] (undisclosed)

    Filing of bankruptcy due to absence of clear indications of demand recovery in Europe and liquidity issues, to arrest recurring losses and reallocate capital.

    One-time provision of ₹325.91 crores made in accounts. External liabilities of ₹120-125 crores for GMB are not expected to be borne by Borosil Renewables.

    The other important development relates to the filing of bankruptcy by the German step-down subsidiary of BRL on 4th July 2025 due to the absence of clear indications of demand recovery in the near future in Europe, as well as possible liquidity issues. ... Hence, a provision for the entire exposure of INR 325.91 crores in a German subsidiary has been made in the accounts as a one-time loss. ... So based on whatever estimate we have, it could be close to INR 120-125 crores. ... This will not be coming on to Borosil because there are assets available in the Company and once the liquidator or the court decides to deal with the assets and realize money, they will settle those liabilities. In case they are able to realize less amount, then less amount will be paid to them. Liability will not travel to us.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY26 · Medium confidence 28-30%
    But we are already at 28%. So, it's a reasonably good margin and maybe a couple of percent more we can expect.

    — Shreevar Kheruka, Ashok Jain

Volume

  • Volume Growth Volume · FY26 · High confidence 6-8%
    And I think for the year as a whole we should be able to maintain 6% to 8% growth compared to last completed financial year.

    — Ashok Jain

Capacity

  • New Capacity Commissioning (600 TPD) Capacity · Q3 FY27 (October to December 2026) · High confidence Commissioned
    The project itself, as I already mentioned, is likely to be commissioned in the October to December quarter of 2026.

    — Shreevar Kheruka

  • New Capacity Stabilization Capacity · March 2027 · Medium confidence Stable commercial production
    So, December is the commissioning, stabilizing may take another one or two months. So that is how we may say by at least March we should have the stable commercial production.

    — Ashok Jain

Market Share

  • Export Mix Market Share · Ongoing · Medium confidence 10-15%
    So, 10%-15% is something what we would always like to do. And currently we should expect between this range only 10%-15% only.

    — Ashok Jain

Working Capital

  • Working Capital Cycle Working Capital · FY26 · Medium confidence Squeeze average credit days
    So, we are attempting to do that already in terms of squeezing the working capital cycle and trying to tighten on the debtors as well as on the other current assets. And also, in terms of the credit also, we are trying to expand our credit period. So, we will squeeze the average credit number of days as we go along in this financial year.

    — Ashok Jain

What to watch in Q2 FY26

New Capacity Expansion Progress

Next quarter (updates on progress towards Q3 FY27 commissioning)
Current Under construction, 600 TPD, ₹950 crores CAPEX
Target On track for commissioning

Why it matters

Key to future revenue and market share growth, especially given strong domestic demand and import substitution opportunities.

Our work on the expansion project is in progress, and we expect the project to be commissioned by the third quarter of financial year '26-27.

Risks & concerns

  • German subsidiary (GMB) insolvency and associated financial exposure

    high

    Filing of bankruptcy by German step-down subsidiary GMB due to absence of clear demand recovery and liquidity issues in Europe, leading to a one-time provision of INR 325.91 crores.

    Management acknowledged

  • Uncertainty of GMB financial results and recovery

    medium

    GMB's financial results are delayed due to insolvency proceedings, and the chance of recovery for Borosil Renewables is minimal.

    Management acknowledged

  • Continued high imports in the domestic market

    medium

    Imports still occupy about 70% share of domestic consumption, despite anti-dumping duties, indicating ongoing competition and the need for further domestic capacity.

    Management acknowledged

Q&A highlights

5 direct
GMB acquisition rationale and subsequent insolvency Direct
So, in the case of first question regarding GMB, when the decision is made, it is based on certain situations and certain parameters. When we started to look at this opportunity in 2022 beginning, the EBITDA and the turnover was very good for this Company. The brand and the quality was absolutely fantastic and we were all hoping that this acquisition will pave our way for our growth in the European and overseas markets. But things have not always worked out as per your plans and designs.

Management explains the strategic rationale behind the GMB acquisition and acknowledges that unforeseen market changes led to its failure and subsequent insolvency.

Asked by Vivek Gupta

Potential for using GMB equipment for India CAPEX Partial
Yes, some of the equipment which are post-glass production equipment like processing lines are possible to use in India because they are doing the similar jobs... So, yes, possibility is there to use, but we will have to eventually evaluate what is good for the Company in India to buy in terms of the next requirement. And if you have to buy the German equipment, it will be under insolvency proceedings now, which is quite uncertain as of now. So, we can't depend whether we can get some equipment from there and then budget it in our CAPEX plan.

Addresses a potential cost-saving opportunity for the ongoing CAPEX but highlights the uncertainty due to the GMB insolvency process.

Asked by Sunny

External liabilities of GMB and Borosil Renewables' exposure Direct
So based on whatever estimate we have, it could be close to INR 120-125 crores. ... This will not be coming on to Borosil because there are assets available in the Company and once the liquidator or the court decides to deal with the assets and realize money, they will settle those liabilities. In case they are able to realize less amount, then less amount will be paid to them. Liability will not travel to us.

Quantifies the potential external liabilities of the insolvent subsidiary and clarifies that Borosil Renewables expects no further financial liability.

Asked by Akshay Malhotra

Scale-down of CAPEX from 1000 TPD to 600 TPD Direct
Initially the project was approved for 1100 tons I think long back but after the anti-dumping duty was discontinued in August 22, we had to scale it down because the cash generation had reduced by that time and we then brought it to 500 tons project. Now when we scouted for the equipment and we started enquiry with the various suppliers and then we figured out that even 600 can be achieved in the similar equipment and similar furnace. Then we have gone ahead and increased the size to 600 tons per day because the market is available and when we did the revise estimate the figure came to INR 950 crores which included certain items of expenses which we had not budgeted earlier. So now it is 600 tons project at INR 950 crores.

Provides historical context and rationale for the CAPEX plan's evolution, explaining the changes in capacity and cost based on market conditions and cash generation.

Asked by Akshay Malhotra

Current import scenario and domestic market share Direct
The imports are quite high as we mentioned in the call initially. The imports are close to 70% of the domestic demand as of now. And since the domestic production is limited ultimately the demand has to be made by somebody else. So, it is the imports who are right now being offered in the market.

Highlights the significant market share still held by imports (70%) despite domestic demand and ADD, indicating large scope for import substitution for future capacity.

Asked by Nikhil Gada

Realization and DCR/non-DCR market for solar glass Direct
So, for glass, there is no such market like DCR related market or non-DCR related market, unlike solar cells or solar modules. So, that is one question. In terms of the realization, we already have given you the indication that imported landed cost is about Rs. 145 and we are close to that number only.

Clarifies that the DCR/non-DCR distinction does not apply to solar glass, simplifying market analysis, and reiterates pricing strategy relative to imported costs.

Asked by Deepak

Scope for recovery from GMB insolvency Partial
As per him, the sales value of the assets which GMB possesses is slightly lower than what liabilities it may be required to meet in terms of insolvency proceedings. So, current indications are that nothing is recoverable from the perspective of Borosil. Now, in case something better happens like the sale of business or any significant amount they receive because somebody is willing to pay and the amount is exceeding the liabilities, in that event, we will stand to receive something. But that chance is quite minimal as far as we can see right now, which is the reason why we have provided for the entire amount.

Provides a clear expectation of minimal to no recovery from the GMB write-off, reinforcing the one-time nature of the loss and removing lingering uncertainty.

Asked by Rikin

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Borosil Renewables reported robust standalone financial results for Q1 FY26, with revenue reaching ₹332.26 crores, marking a 37.3% increase year-on-year from ₹241.82 crores in the corresponding quarter last year. EBITDA saw a significant jump of 211.4% year-on-year to ₹92.53 crores, resulting in an improved EBITDA margin of 27.8%. This strong performance was primarily driven by an increase in average selling prices to ₹138.1 per millimetre, up from ₹105.5 per millimetre in the corresponding quarter last year.

German Subsidiary Insolvency & One-time Write-off

The company's German step-down subsidiary, GMB, filed for bankruptcy on July 4, 2025, due to a lack of demand recovery in Europe and liquidity issues. This led to a substantial one-time provision of ₹325.91 crores for the entire exposure in the accounts. Management clarified that while GMB has external liabilities estimated at ₹120-125 crores, Borosil Renewables expects no further liability as assets within GMB are expected to cover these. The insolvency process is ongoing, and the chance of recovery for Borosil is considered minimal.

Capacity Expansion Plans & Funding

Borosil Renewables is progressing with a 600 TPD capacity expansion project, with a revised CAPEX of ₹950 crores. This project is expected to be commissioned by Q3 FY27 (October to December 2026), with stabilized commercial production anticipated by March 2027. The funding mix for this expansion includes ₹650 crores from equity and internal accruals, and ₹300 crores from debt. A preferential issue of ₹379.52 crores for 70,93,874 equity shares has been approved to support this expansion.

Market Dynamics & Anti-Dumping Duty Impact

The domestic market for solar glass continues to be robust, with solar module manufacturing capacity reaching 90 GW and projected to hit 150 GW by March 2027. Domestic solar installation was 25 GW in 2024-25, a 60% increase year-on-year. The current domestic solar glass capacity is 2,300 tons per day (15 GW), with another 12 GW expected by the end of FY26. Despite anti-dumping duties imposed in December 2024, imports still account for about 70% of domestic consumption, highlighting significant scope for import substitution.

EBITDA Margin and Pricing Outlook

The company achieved a strong 27.8% EBITDA margin in Q1 FY26, a substantial improvement from the previous year. Management guided for a sustainable EBITDA margin in the range of 28-30% for FY26, driven by continued price improvements and ongoing cost-saving measures, including work on coatings and a solar-wind hybrid project. The average selling price of ₹138.1 per millimetre is expected to remain stable, aligning closely with the imported landed cost of approximately ₹145 per square meter.

Operational Efficiencies and Future Outlook

Borosil Renewables aims for 6-8% volume growth for FY26, primarily through optimizing existing capacity. The company is also actively focusing on improving its working capital cycle by squeezing average credit days and tightening debtor management. While the European market remains challenging, the company continues to serve European customers from its Indian operations. The long-term outlook for the solar sector in India remains positive, supported by strong policy backing and growing demand.

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