Borosil Renewables Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Borosil Renewables delivered a strong Q2 FY26 performance with stand-alone sales growing 42.48% YoY to INR378.44 crores and EBITDA margin expanding to 33.2%. This was driven by higher selling prices and improved production efficiencies. The company took an INR33.87 crores impairment for its European subsidiary, Interfloat, but expects no further write-offs and will decide on its future by next quarter. Management is confident in sustaining current margin levels amidst robust domestic demand and planned capacity additions.

Highlights

  • Stand-alone sales grew 42.48% YoY to INR378.44 crores, demonstrating strong top-line growth.

  • Stand-alone EBITDA margin expanded significantly to 33.2% from 19.9% YoY, driven by higher selling prices and improved efficiencies.

  • Average ex-factory selling price increased to INR147.5 per millimeter in Q2 FY26, up 28.26% YoY, indicating strong pricing power.

  • Management expressed confidence in sustaining the current EBITDA margin levels going forward.

  • No further write-offs are anticipated for the European subsidiary, Interfloat, after the current INR33.87 crores impairment.

Concerns

  • An exceptional item of INR33.87 crores was provisioned as an impairment for the step-down subsidiary, Interfloat Corporation.

  • Overseas subsidiaries reported negative EBITDA of INR7.71 crores in Q2 FY26.

  • Other expenses increased quarter-on-quarter to INR72 crores from INR62 crores, attributed to one-time legal and sales support costs.

  • A build-up of module inventory in the broader ecosystem was noted due to GST reduction implementation and monsoon delays.

Key financials

  1. Stand-alone Sales ₹378.44 Cr +42.5%YoY
  2. Stand-alone EBITDA Margin 33.2%
  3. Stand-alone Absolute EBITDA ₹125.5 Cr +137.3%YoY
  4. Avg. Selling Price ₹147.5/mm +28.3%YoY
  5. Consolidated Net Revenue ₹378.88 Cr +9.3%QoQ
  6. Consolidated EBITDA ₹120.42 Cr +73.8%QoQ
  7. Other Expenses ₹72 Cr +16.1%QoQ

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.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Expansion project for glass manufacturing
    • Rebuilding two furnaces (SG1 and SG2)
    The work on company's expansion project is in progress as per schedule. ... So right now, we've got refractories for setting up rebuilding our two furnaces, SG1 and SG2, which have been in operation since 2019.
  • M&A Interfloat Corporation Acquisition · Integrated

    Step-down subsidiary facing significant challenges and cessation of annealed glass production at GMB, Germany.

    INR33.87 crores impairment provision taken out of INR57.59 crores total exposure; negative EBITDA of INR7.71 crores in Q2 FY26.

    Interfloat Corporation, a step-down subsidiary of the company, has faced significant challenges in retaining customers following the cessation of annealed glass production at GMB, Germany from 31st December 2024. ... INR33.87 crores have been considered as impaired out of total exposure of INR57.59 crores and has been provided for in the books of account of the company and disclosed as an exceptional item in the above results.

Guidance & targets

Profitability

  • Stand-alone EBITDA Margin Profitability · future · High confidence 33.2%
    I think we are fairly confident to sustain this margin at this level.

    — Pradeep Kheruka

  • Other Expenses Profitability · Q3 FY26 · Medium confidence normalize
    Yes, we hope to normalize the expense. Some cut down will be there in those expenses.

    — Ashok Jain

Efficiency

  • Production Efficiency Efficiency · Ongoing · Medium confidence some improvement
    And hopefully, we can expect some improvement, not very significant perhaps, but improvement nonetheless.

    — Pradeep Kheruka

Cost

  • Power Cost & Raw Material Cost Cost · End of November 2025 (for power plant) · High confidence certain savings / some efficiencies
    There is also an effort to reduce the cost in terms of the, say, power cost, we will be achieving some savings because our captive -- group captive power plant will get commissioned by end of this month most likely. So, we will have certain savings arising out of that. And also, some operational improvements or some work which we have done in raw materials or coating materials will help us to achieve some efficiencies.

    — Ashok Jain

Capacity

  • Debottlenecking Capacity Capacity · Ongoing · Medium confidence ~3%
    I think, maybe 3% something what we are targeting, about 3%.

    — Ashok Jain

  • Total Solar Glass Capacity (India) Capacity · March 2027 · High confidence 48 GW

    From 18 GW today

    So 18 plus 12 -- Reliance plus 12 of Borosil plus Vishakha, this makes it 48 gigawatts, which should happen by March '27.

    — Pradeep Kheruka

Sales Mix

  • Export Percentage of Turnover Sales Mix · Normal course · High confidence 7% to 10%
    7% to 10% in export is something what we can consider in a normal course, 7% to 10%.

    — Ashok Jain

What to watch in Q3 FY26

Interfloat Corporation Future Decision

By next quarter (Q3 FY26)
Current Facing challenges, impairment taken, decision pending.
Target Decision on continued operations or shutdown.

Why it matters

Will clarify the long-term impact on consolidated financials and potential for further provisions related to the European subsidiary.

And by next quarter or so, we will have taken a decision regarding this.

Risks & concerns

  • Interfloat Corporation Challenges & Impairment

    high

    Interfloat Corporation, a step-down subsidiary, faced significant challenges and cessation of annealed glass production, leading to an INR33.87 crores impairment provision out of INR57.59 crores total exposure.

    Management acknowledged

  • Increased Other Expenses

    medium

    Other expenses rose to INR72 crores in Q2 FY26 from INR62 crores in Q1 FY26, attributed to one-time legal fees for GMB resolution and sales support services, with normalization expected in Q3 FY26.

    Analyst acknowledged

  • Module Inventory Build-up in Ecosystem

    medium

    A build-up of module inventory occurred in the ecosystem due to GST reduction and monsoon delays, but management expects it to clear during the December-March period.

    Management downplayed

  • Competition from Chinese Imports

    medium

    Chinese glass imports continue in huge volumes, fulfilling over 70% of domestic module consumption, though anti-dumping duties help Borosil maintain pricing.

    Management acknowledged

Q&A highlights

4 direct
Future of Interfloat Corporation and potential for further write-offs Partial
You're right, that option also will come for discussion actually. We are trying to first see whether there are any improvements possible or not in terms of its profitability. And by next quarter or so, we will have taken a decision regarding this. For this quarter, we'll just try whether this can still be got into a positive position.

Management indicated a decision on Interfloat's future (potential shutdown) will be made by next quarter, impacting future consolidated financials and potential for further provisions.

Asked by Akash Jain

Sustainability of the reported 33% EBITDA margin Direct
I think we are fairly confident to sustain this margin at this level.

Confirms management's positive outlook on margin stability, which is a key driver of profitability and investor confidence.

Asked by Ronak Jain

Impact of Chinese imports and pricing pressure on solar glass Direct
At our level, I think currently or so far, we have not experienced any pushback from the customers with regard to the selling prices. So, this antidumping duty in the form of MIP has been helping us a lot. And as of now, we are not finding any pressure for reduction or any kind of pushback in the prices.

Reassures investors about the company's pricing power and the effectiveness of anti-dumping measures in the face of continued imports.

Asked by Rikin Shah

Constraints on accelerating capex and capacity expansion despite strong demand Direct
At the moment, you see, we are sticking to this because it's not a question of money. You need people. Ours is a very highly skilled operation... So, we would rather do what we think we can manage rather than stretching too far and then landing in the soup.

Highlights human capital and skilled labor as a key constraint to faster growth and capacity expansion, rather than just financial resources.

Asked by Vikrant Sibal

Rumors about Borosil Renewables entering module rooftop manufacturing Direct
But at this moment, the expansion plans for glass for the new furnaces for 600 tons per day are very important and they are large capex... So at the moment, we are not looking at making modules at this time.

Clarifies the company's immediate strategic focus remains on solar glass expansion, dispelling rumors about diversification into module manufacturing.

Asked by Ronak Jain

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Detailed narrative

Strong Stand-alone Performance Driven by Pricing and Efficiency

Borosil Renewables delivered a robust stand-alone performance in Q2 FY26, with sales growing 42.48% year-on-year to INR378.44 crores. The stand-alone EBITDA margin significantly expanded to 33.2% from 19.9% in the corresponding quarter last year, and 27.8% in the preceding quarter. This improvement was primarily attributed to a 29% increase in sales value driven by higher average ex-factory selling prices, which reached INR147.5 per millimeter, up from INR115 per millimeter YoY. Additionally, enhanced production efficiencies contributed to the margin expansion.

Interfloat Subsidiary Impairment and Strategic Review

The company recorded an exceptional item of INR33.87 crores as an impairment provision for its step-down subsidiary, Interfloat Corporation, out of a total exposure of INR57.59 crores. Interfloat has faced significant challenges, including the cessation of annealed glass production at GMB, Germany, and intense competition leading to unremunerative prices. Management indicated that a decision regarding the future operations of Interfloat, including a potential shutdown, will be made by next quarter to prevent further losses.

Robust Domestic Demand and Capacity Expansion Outlook

Domestic demand for solar glass remains robust, with current manufacturing capacity for solar modules in India at 110 GW, projected to reach 150 GW by March 2027. The country's solar glass capacity stands at 2,600 tons per day (17 GW), while domestic demand is approximately 50 GW, with imports fulfilling about 70% of this requirement. The company anticipates significant capacity additions in India, including 4 GW from Borosil Renewables, contributing to a total national capacity of 48 GW by March 2027, with potential to reach 55-58 GW with other players.

Cost Reduction Initiatives and Operational Efficiencies

Management is actively pursuing cost reduction initiatives, including the commissioning of a captive group power plant by the end of November 2025, which is expected to yield certain savings. Efforts are also underway to improve operational efficiencies through better raw material and coating material usage. These measures are anticipated to provide an 'uptick' in margins and further enhance the company's competitive position, where it already demonstrates better unit consumption metrics than Chinese counterparts, despite higher input costs.

Capital Infusion and Inventory Management

Borosil Renewables successfully raised INR371.49 crores through a preferential issue of equity shares, with an additional INR282.52 crores expected from warrant conversions by August 2026. While there was a build-up of module inventory in the broader ecosystem due to GST changes and monsoon-related installation delays, management expects this inventory to clear rapidly during the December-March period, which typically sees high installation volumes. The company maintains a practice of minimizing its own inventory at quarter-ends.

Strategic Focus on Solar Glass Expansion

The company's immediate strategic focus remains firmly on expanding its solar glass manufacturing capacity, with work on its current expansion project progressing as per schedule. Management clarified that while they continuously explore various options, including module manufacturing, they are not currently pursuing diversification into module production. The primary constraint for faster capacity expansion is identified as the availability of skilled manpower, rather than financial resources, given the highly specialized nature of glass manufacturing.

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