Borosil Renewables Limited

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.

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.

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.

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.

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.