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.