Borosil Renewables Limited — Q1 FY27 earnings call

Call held 17 Jul 2026

Management summary

Borosil Renewables delivered strong Q1 FY27 results, with significant year-on-year growth in sales and EBITDA, driven by favorable pricing and operational efficiencies. The company's capacity expansion is on schedule, and a new hybrid power plant is contributing to cost savings. While the reported PAT was lower sequentially due to a prior period tax adjustment, operational profitability remains robust. Management acknowledged ongoing market uncertainties and upcoming furnace refurbishment challenges but expressed confidence in long-term growth.

Highlights

  • Standalone sales increased by 22.1% YoY to INR405.69 crores, driven by higher selling prices and 8% growth in quantity terms.

  • Standalone EBITDA grew by 53.5% YoY to INR142 crores, with EBITDA margin expanding to 35% from 27.9% in Q1 FY26.

  • The new solar wind hybrid captive power plant, commissioned in March 2026, contributed over INR6 crores in savings in Q1 FY27 and increased renewable power share to 93%.

  • The 600 TPD capacity expansion is on track for commissioning in Q4 FY27, expected to boost sales by 60% and EBITDA by INR80-85 crores.

Concerns

  • Q1 FY27 Net Profit (PAT) of INR87 crores was lower than Q4 FY26 PAT of INR169 crores, primarily due to a one-time tax shield recognition in Q4 FY26.

  • Uncertainties persist regarding fuel prices and the West Asia war situation, despite some recent easing.

  • Planned refurbishment of SG1 and SG2 furnaces will lead to an estimated 90-day production shutdown, impacting future volumes.

Key financials

  1. Standalone Sales ₹405.69 Cr +22.1%YoY
  2. Standalone EBITDA ₹142 Cr +53.5%YoY
  3. Standalone EBITDA Margin 35%
  4. Standalone PAT ₹87 Cr
  5. Average Ex-Factory Price ₹160.3/mm/sqm
  6. Working Capital Days 60 days

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
Management indicated robust demand for solar glass, with a significant supply gap in the country, ensuring ready demand for its production.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed fully funded for current expansion
    • 600 TPD capacity expansion
    • Solar wind hybrid captive power plant
    For the current expansion, which is already ongoing, we are already fully funded.
  • Debt Debt disclosed
    some amount of debt may be required in case the size of the project is high. We don't foresee any equity raise in the near future.

Guidance & targets

Revenue

  • Rooftop Solar Business Revenue Revenue · FY27 · High confidence INR36 crores
    our internal target is to generate revenue of about INR36 crores in this financial year.

    — Ashok Jain

  • Long-term Topline Vision Revenue · Next 3-4 years (after March '27) · Medium confidence INR4,000 crores

    From INR2,500 crores today

    we certainly are looking to grow this company from here after March '27 from INR2,500 crores to at least INR4,000 crores or so. So that's how we are looking at in terms of growing the company in the next 3, 4 years.

    — Ashok Jain

Capacity

  • 600 TPD Expansion Commissioning Capacity · Q4 FY27 · High confidence Q4 FY27
    we expect the commissioning of the project in Q4 FY27.

    — Ashok Jain

Sales

  • Sales Growth from 600 TPD Expansion Sales · Post Q4 FY27 commissioning · High confidence 60%
    Once commissioned, this will result in sales to rise by 60% with corresponding rise in the EBITDA amount.

    — Ashok Jain

Profitability

  • EBITDA from 600 TPD Expansion Profitability · Post Q4 FY27 commissioning · High confidence INR80-85 crores
    you can expect another INR80 crores to INR85 crores to be the extra EBITDA, assuming everything remains in line with what we are doing today.

    — Ashok Jain

Tax

  • Effective Tax Rate Tax · FY27 · High confidence 25.2%
    I think it's about 25.2%, which is what we should assume.

    — Ashok Jain

What to watch in Q2 FY27

Decision on Next Growth Strategy

Within 5-6 months
Current Evaluating options for additional solar glass capacity or diversification into allied fields.
Target Finalized strategy for next round of growth.

Why it matters

This decision will determine the company's long-term growth trajectory and capital allocation for future expansion.

we hope to conclude on these aspects in next 6 months or so. And the project size and the turnover, everything will be known by that time.

Risks & concerns

  • Fuel Price Volatility & West Asia War

    medium

    The West Asia war situation seems to have slightly eased and the prices of fuels have come off in the last few weeks, although uncertainties still prevail.

    Management acknowledged

  • Module Industry Consolidation & Technology Changes

    medium

    The module industry is undergoing rapid capacity expansion and technological shifts (e.g., ALMM, Mono PERC cells), which could lead to consolidation and impact customer base.

    Management acknowledged

  • Furnace Refurbishment Production Loss

    medium

    Planned refurbishment of SG1 and SG2 furnaces will require a production shutdown of approximately 90 days, leading to a quantum loss of glass production.

    Management acknowledged

Q&A highlights

7 direct
PAT decline from Q4 FY26 to Q1 FY27 Direct
in the quarter 4 of last year, we had recognized the tax shield on the amount provided against the German subsidiary investment of INR325 crores... So if you really remove that INR75 crores, the performance is not inferior.

Clarified that a significant reported profit decline was due to a one-time tax shield recognition in the previous quarter, not an operational decline, reassuring investors about core profitability.

Asked by Shivam Gupta

Impact of US tariffs on exports Direct
our exports to U.S. are very, very small. And we are dealing with customers who are having niche products and niche applications. So our export to that extent are not impacted.

Confirmed minimal impact of US tariffs on the company's current export business, indicating limited direct exposure to this geopolitical risk.

Asked by Purvi

Funding for capacity expansion Direct
For the current expansion, which is already ongoing, we are already fully funded... we don't foresee any equity raise in the near future.

Management confirmed that the ongoing 600 TPD expansion is fully funded without needing further equity, providing clarity on capital structure plans.

Asked by Purvi

Impact of increased domestic capacity on pricing Direct
the demand in the country is quite high. And currently, the domestic industry is able to supply only about 25% of the demand. So even after the capacities have expanded to 7,700 tons per day, it will still be 75% of the demand only.

Management explained that robust domestic demand and captive consumption for new capacities would prevent significant downward pressure on prices despite increased supply, addressing a key investor concern.

Asked by Dhairya Trivedi

Timeline for 600 TPD expansion and revenue recognition Direct
we hope to complete the construction and everything by December '26 and commission the project within first quarter, that is January to March '27... I would advise to be conservative and take from 1st April.

Provided a clear timeline for the commissioning of both new furnaces (SG4 and SG5) by March '27, with conservative revenue recognition from April '27, aiding financial modeling.

Asked by Sanyam Dhoka

Savings from solar wind hybrid captive power plant Direct
the annual savings are expected to be about INR18 crores per annum... Our savings were more than INR6 crores in the quarter.

Quantified the significant cost savings from the recently commissioned hybrid power plant, highlighting its positive impact on operational profitability.

Asked by Karan

Future of fuel surcharge Direct
we had committed to our customers that whatever reduction happens in the oil prices or gas prices, we'll pass it on to the customers. So we have started to do that.

Management confirmed that the fuel surcharge would be adjusted downwards as fuel costs ease, ensuring that profit margins are maintained as both costs and realizations decline.

Asked by Deepak Purswani

Timeline for SG1/SG2 furnace refurbishment Partial
actual repair might happen somewhere in 2027. Whether it will happen in Q1 or Q2 or Q3, right now, I cannot commit. But my sense is that once we have commissioned the SG4, SG5 and the production has come into market, it will be sensible to do planned repair around that time.

Revealed that older furnace refurbishment, which will cause a 90-day production loss, is likely in 2027 but the exact timing is uncertain, indicating a potential future impact on volumes.

Asked by Deepak Purswani

2 min read 5 chapters

Detailed narrative

Robust Q1 FY27 Performance Driven by Pricing and Efficiency

Borosil Renewables reported strong standalone sales of INR405.69 crores in Q1 FY27, marking a 22.1% increase year-on-year. EBITDA surged by 53.5% to INR142 crores, with the EBITDA margin expanding to 35% from 27.9% in the prior year, maintaining above 33% for the fourth consecutive quarter. This performance was primarily attributed to an increase in average ex-factory selling prices to INR160.30 per millimeter, per square meter, partly due to a fuel surcharge, alongside an 8% increase in sales quantity and full plant capacity utilization.

Strategic Capacity Expansion and Renewable Energy Integration

The company's 600 tons per day (TPD) capacity expansion project is on track for commissioning in Q4 FY27 (January-March 2027), with construction expected to be completed by December '26. This fully funded expansion is projected to increase sales by 60% and generate an additional INR80-85 crores in EBITDA. Additionally, Borosil Renewables commissioned a new solar-wind hybrid captive power plant in March 2026, which now covers 93% of its total power requirements, resulting in over INR6 crores in cost savings during Q1 FY27 and an estimated annual saving of INR18 crores.

Navigating Market Dynamics and Government Support

The Indian solar manufacturing sector continues to benefit from strong government support, including PLI schemes, basic customs duty, and ALMM schemes, which have significantly boosted module manufacturing capacity. The government has also extended a 9.71% CVD on solar glass imports from Malaysia for five years. Despite the increase in domestic solar glass capacity, a substantial supply gap persists, with local capacity at 2,600 tons per day against a 62 gigawatt module requirement. Management believes robust demand and captive consumption for new capacities will prevent significant downward pressure on prices.

Long-Term Growth Vision and Diversification Initiatives

Borosil Renewables is actively exploring opportunities for its next phase of growth, aiming to expand its topline from INR2,500 crores to at least INR4,000 crores within 3-4 years post-March 2027. This includes evaluating options for further solar glass capacity expansion or diversification into allied fields to broaden revenue streams and reduce single-product concentration. The new rooftop solar business, launched to leverage the Borosil brand, is targeted to generate INR36 crores in revenue for FY27, despite being in its nascent stage with lower single-digit profitability compared to glass manufacturing.

Operational Challenges and Future Outlook

While the West Asia war situation has eased somewhat, uncertainties regarding fuel prices persist, though the company has begun curtailing the fuel surcharge to customers as costs decline. A key operational challenge on the horizon is the planned refurbishment of older furnaces (SG1 and SG2), which will necessitate a production shutdown of approximately 90 days. The exact timing for this is not yet fixed but is likely in 2027 after the new capacities are commissioned. The company also acknowledges potential consolidation and technological shifts within the module industry, which could impact its customer base, and plans to adapt its customer arrangements accordingly.

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