Borosil Renew.

Borosil Renewables reported a challenging Q3 FY25, with standalone sales volume growing 14% QoQ but value increasing only 3.6% to INR 275.28 crores. This was primarily due to a steep decline in average ex-factory prices to INR 105 per millimeter per square meter (INR 42,000 per ton) from INR 115 (INR 46,000 per ton) in the preceding quarter, driven by increased Chinese dumping. Consequently, standalone EBITDA reduced significantly to INR 20.89 crores from INR 52.88 crores QoQ, leading to a post-tax loss of INR 8.64 crores. Consolidated results also reflected this pressure, with net revenue at INR 361.49 crores and EBITDA at INR 5.0 crores, further impacted by a negative EBITDA of INR 14.38 crores from overseas subsidiaries.

A major positive development was the provisional antidumping duty (ADD) notification on solar glass imports from China and Vietnam on December 4, 2024. The DGTR has since issued final findings recommending a definitive ADD for 5 years. Management expects this measure to restore fair competition, with improved prices reflecting from January 2025, moving towards INR 140 per millimeter per square meter (INR 56,000 per ton). This price realization is projected to increase standalone revenue by approximately INR 60 crores per quarter and lead to a sustainable EBITDA margin of around 30%. Final approval from the Finance Ministry is anticipated by May 2025.

The company is proceeding with its expansion plans, including a new 500 tons per day (TPD) furnace with an initial estimated capex of INR 675 crores, expected to be commissioned by September 2026. This expansion is supported by the proceeds from a recent preferential issue of INR 517.66 crores. Management highlighted the buoyant demand for solar glass, with India's module manufacturing capacity expected to double to 150 gigawatts in 2-3 years and solar installations projected to rise to 40-50 gigawatts annually. The company's own capacity, including the new expansion, is set to reach 41.25 gigawatts or 6,300 tons per day.

The German subsidiary faced significant challenges, reporting a negative EBITDA of INR 14.38 crores in Q3 FY25. Due to political uncertainty and a lack of demand from local module manufacturers, the hot-end operations were temporarily paused from December 31, 2024. Management is implementing measures, including short-time work for employees, to minimize losses and expects to reduce the EBITDA loss from approximately INR 8 crores per month to INR 4 crores per month. The company remains optimistic about the long-term prospects in Germany, anticipating policy support for domestic manufacturing post-elections.

Borosil Renewables is actively pursuing cost efficiencies, including the planned installation of a 16.5 MW solar/wind hybrid captive power plant. This initiative is expected to generate annual savings of INR 17 crores and become operational by July/September 2025, further improving margins. Regarding capital structure, the company adheres to a policy of maintaining net debt to EBITDA below 2.5x. The recent preferential issue, which raised INR 517.66 crores, will be utilized for funding the ongoing capex, with the balance to be met through internal accruals and bank loans.