Borosil Renew.

Borosil Renewables delivered robust standalone results for Q1 FY26, with sales reaching INR 332.26 crores, marking a 37% increase year-on-year from INR 241.82 crores. EBITDA surged by 211% YoY to INR 92.53 crores, resulting in a healthy EBITDA margin of 27.8%. This significant improvement was primarily attributed to an increase in average selling prices, which rose to INR 138.1 per millimetre in Q1 FY26 from INR 105.5 per millimetre in the corresponding quarter last year.

The company's German step-down subsidiary, Geosphere Glassworks GmbH (GMB), filed for bankruptcy on July 4, 2025, due to a lack of demand recovery in European markets and persistent liquidity issues. This strategic decision led to a one-time^📎 provision of INR 325.91 crores in the accounts to arrest recurring losses and reallocate capital. Management clarified that Borosil Renewables will not be liable for GMB's external liabilities, estimated at INR 120-125 crores, as the insolvency process is managed by an administrator under German law.

Borosil Renewables is actively pursuing a brownfield expansion project to add 600 TPD of solar glass manufacturing capacity at its existing location. The total CAPEX for this project has been revised to INR 950 crores, up from an initial estimate of INR 675 crores. The funding strategy involves INR 650 crores from equity and internal accruals, complemented by INR 300 crores from debt. The company anticipates commissioning the new capacity between October and December 2026, with full stabilization expected by March 2027.

The Indian domestic market for solar glass continues to exhibit strong demand, with manufacturing capacity for solar modules already reaching 90 gigawatts and projected to grow to 150 gigawatts by March 2027. Domestic solar installations reached 25 gigawatts in 2024-25, a 60% increase from the previous year. With current domestic solar glass capacity at 15 gigawatts and an estimated demand of 50 gigawatts, imports currently fulfill 70% of consumption, highlighting a substantial opportunity for capacity addition and import substitution for Borosil Renewables.

While overall volume saw a slight quarter-on-quarter decline, this was a deliberate choice to produce higher-value-added products for specific European market requirements. This strategy, despite leading to lower net production, resulted in higher EBITDA. The company is actively optimizing its product mix, currently at 55% 2mm glass and 45% 3.2mm glass, with a future target of 80% 2mm and 20% 3.2mm to align with evolving demand. Continuous efforts are also underway to improve operational efficiencies and reduce costs, including investments in solar wind hybrid projects for further savings.

The imposition of anti-dumping duties on solar tempered glass from China and Vietnam has positively impacted the pricing environment, with average selling prices reverting to previous levels. Management indicated that the current landed price for imported Chinese glass is approximately INR 145 per square meter, which is closely aligned with Borosil's delivered price of INR 144-145 per square meter. The company expects a further improvement of a couple of percentage points in its EBITDA margin, potentially reaching a sustainable range of 28-30% in the coming quarters.