Borosil Renewables Limited — Q4 FY26 earnings call

Call held 13 May 2026

Management summary

Borosil Renewables delivered a strong Q4 and full FY26, driven by higher selling prices due to anti-dumping duties and improved efficiencies, resulting in significant revenue and EBITDA growth. The company is expanding capacity by 60% with new furnaces expected online in Q1 FY27 and has launched a new rooftop solar solutions business. While geopolitical events impacted fuel costs and overseas subsidiaries saw declines, management remains confident in maintaining strong margins and leveraging government policies for domestic growth.

Highlights

  • Standalone sales for FY26 reached INR 1,534.83 crores, up 38.28% YoY, achieving a significant milestone of INR 1,500 crores.

  • Standalone EBITDA for FY26 was INR 491.68 crores, a 172.38% jump YoY, with EBITDA margin at 32% (vs 16% last year).

  • Q4 FY26 standalone sales of INR 437.62 crores surpassed previous all-time high, showing 33.73% YoY and 13.23% QoQ growth.

  • Q4 FY26 standalone EBITDA of INR 144.61 crores demonstrated 87.73% YoY and 12.07% QoQ growth, with EBITDA margin at 33%.

  • Average ex-factory selling price for FY26 increased to INR 146.7 per millimeter (vs INR 113.44 last year) due to anti-dumping duties.

Concerns

  • Overseas subsidiaries' net revenue declined to INR 2.3 crores in Q4 FY26 (down 41.9% QoQ) and EBITDA to INR 0.82 crores (down 56.8% QoQ).

  • Exports in Q4 FY26 amounted to only INR 12.32 crores, accounting for 2.8% of turnover, compared to 5.5% in the corresponding quarter last year, indicating low demand in major export markets.

  • The ongoing war in West Asia led to significant increases in fuel prices (imported gas more than doubled, furnace oil up 50%), necessitating a fuel surcharge.

Key financials

  1. Standalone Sales FY26 ₹1,534.83 Cr +38.3%YoY
  2. Standalone EBITDA FY26 ₹491.68 Cr +172.4%YoY
  3. Standalone EBITDA Margin FY26 32%
  4. Standalone Sales Q4 FY26 ₹437.62 Cr +33.7%YoY
  5. Standalone EBITDA Q4 FY26 ₹144.61 Cr +87.7%YoY
  6. Standalone EBITDA Margin Q4 FY26 33%

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

medium confidence
  • Capex ₹950 Cr Primarily internal accruals, as rooftop solar business is self-financed and no capex plans for initial period.
    • Capitalization for new production capacity (2 furnaces, 600 tons per day) ₹950 Cr
    So actually, next year, we are going to capitalize our expansion. So that way our tax outgo would be very minimal because INR950 crores capitalization we'll be doing in the current financial year.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · financial year and onwards · High confidence 30% to 33%
    I think we already said 30% to 33% margin is something what we consider achievable, barring any unforeseen circumstances.

    — Ashok Jain

  • Rooftop Solar Initial EBITDA Margin Profitability · Initially · Medium confidence less than 10%
    Initially, we may expect less than 10%, just to give you a number.

    — Ashok Jain

Revenue

  • Rooftop Solar Sales Revenue · first year · Medium confidence INR75 crores
    But let's say, we might be aiming for about INR75 crores sales for the first year, which is very modest.

    — P. K. Kheruka

  • Normal Run Rate Sales (excluding Ind AS impact) Revenue · Quarterly · High confidence INR400 crores, INR410 crores
    So, on a run rate basis, if you want to look at maybe INR400 crores or thereabouts is a good -- INR400 crores, INR410 crores is a good amount to look at.

    — Ashok Jain

Capacity

  • New Furnaces Production Start Capacity · Q1 FY27 · High confidence Q1 of next year
    Sensibly, we should take it from the next year. Q1 of next year.

    — P. K. Kheruka

Other

  • Tax Percentage Other · next year · Medium confidence 21% or so
    With deferred tax, it would be same 21% or so.

    — Ashok Jain

What to watch in Q1 FY27

New Furnaces Commercial Operation & Revenue Contribution

Q1 FY27
Current Under construction, expected to be in production within FY27
Target Commercial operations started, contributing to Q1 FY27 revenue

Why it matters

Significant capacity addition (60%) expected to drive future revenue growth and will be a key indicator of execution.

Sensibly, we should take it from the next year. Q1 of next year.

Risks & concerns

  • Geopolitical conflict impacting fuel and raw material costs

    medium

    Ongoing war in West Asia led to significant increases in imported gas (doubled) and furnace oil (50% rise), necessitating a fuel surcharge, though no impact on margins so far.

    Management acknowledged

  • Low demand in major export markets

    low

    Exports accounted for only 2.8% of Q4 turnover, down from 5.5% in the prior year's corresponding quarter, due to low demand.

    Management acknowledged

  • Competition in the rooftop solar market

    low

    The rooftop solar market is highly competitive with established players like Havells and Tata, but management plans to leverage Borosil's brand and quality.

    Analyst acknowledged

  • Price pressure from solar glass imports

    low

    While imports from Malaysia and Indonesia exist, their selling prices are currently higher than Chinese imports, and anti-dumping duties are expected to be extended, mitigating immediate threat.

    Analyst downplayed

Q&A highlights

8 direct
Headroom for pricing in the solar glass market Direct
You see, the only other -- I mean, fundamentally, the solar glass supply is coming from China, Indonesia, Vietnam and Malaysia... So, we do not really see any challenge from any other producer as of now.

Clarifies the competitive landscape and the company's pricing power, supported by anti-dumping duties and geopolitical factors limiting other suppliers.

Asked by Anuj Jain

Sustainability of 30-33% EBITDA margin Direct
Yes, the same reply was same question was asked and reply is already given that on a normal basis, we expect 30% to 33% margin in this business.

Reaffirms management's confidence in maintaining strong profitability margins in the foreseeable future.

Asked by Anuj Jain

Impact of West Asia crisis on raw materials beyond fuel Direct
Yes, you're right. There are several raw materials which are affected by oil prices. So obviously, there has been cost pressure and there is some disturbance coming... But should the conflict continue for a long time, there will be additional burden on the cost of certain inputs...

Acknowledges broader cost pressures from geopolitical events but indicates the impact on raw material costs has been limited so far.

Asked by Mehul Panjwani

Future expansion plans for manufacturing capacity Direct
So, as you know that we are already well on way to set up new production of 300 tons per day 2 furnaces. So that is 600 tons per day, which we hope to see in production within this financial year. And that could increase our production capacity by 60%, which is quite sizable.

Confirms significant ongoing capacity expansion and its expected timeline for production, indicating future growth drivers.

Asked by Mehul Panjwani

Timeline for new furnaces to contribute to top line Direct
Sensibly, we should take it from the next year. Q1 of next year.

Provides a clear timeline for when the substantial new capacity will begin generating revenue.

Asked by Amit Mehta

Strategic rationale for entering the competitive rooftop solar market Direct
Borosil as a group has a lot of marketing experience across different market segments... people would have faith in that, and we could -- they would give us a little bit of a premium over other people who are unknown.

Explains the company's strategic move into a new, competitive segment by leveraging its established brand and customer trust.

Asked by Vikram Sharma

Potential price pressure from solar glass imports from Indonesia Direct
The Chinese company based in Indonesia is very, very keenly aware of the prices at which glass is being sold in India... So, their selling prices are very much higher than what they would have been if they're selling from China.

Addresses concerns about competitive threats from imports, indicating that current Indonesian import prices are not significantly disruptive.

Asked by Daksh Malhotra

Plans for further capacity expansion beyond current projects Direct
It's not at all out of the realm of possibility, let me say that. But we'll have to see how it goes. I've spent my life trying to make sure that I don't disappoint. And I try to bite as much as I can chew, and getting 60% higher output. This is a skilled job, making solar glass.

Suggests potential for future expansions but emphasizes a cautious and measured approach to growth, focusing on successful execution of current projects.

Asked by Daksh Malhotra

3 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY26 and Q4 FY26

Borosil Renewables delivered a robust standalone performance for FY26, with sales reaching INR 1,534.83 crores, marking a 38.28% increase year-over-year. EBITDA for the year surged 172.38% to INR 491.68 crores, achieving an impressive 32% margin. The strong momentum continued into Q4 FY26, with sales of INR 437.62 crores (up 33.73% YoY and 13.23% QoQ) and EBITDA of INR 144.61 crores (up 87.73% YoY and 12.07% QoQ), resulting in a 33% EBITDA margin. This significant turnaround was primarily driven by an increase in average ex-factory selling prices to INR 146.7 per millimeter for FY26, largely attributed to the government's anti-dumping duties on solar glass imports.

Significant Capacity Expansion Underway

The company is actively progressing with its capacity expansion plans, which include setting up two new furnaces that will add 600 tons per day of production. This expansion is expected to increase the company's overall production capacity by 60%. Management anticipates these new furnaces will be in production within the current financial year, with significant revenue contribution commencing from Q1 FY27. A capitalization of INR 950 crores is planned for this expansion in the current financial year.

Government Policy Driving Domestic Manufacturing Growth

Domestic demand for solar glass remains robust, supported by government initiatives like the ALMM mechanism for solar modules, which has spurred significant capacity additions in India, now totaling 193 gigawatts. Further policy support includes ALMM-II, effective June 2026, mandating domestic solar cells, and ALMM-III, from June 2028, requiring locally produced ingots and wafers. These measures are expected to foster a strong local supply chain, reduce import dependence, and ensure sustained demand for domestically produced solar glass.

Strategic Entry into Rooftop Solar Solutions

Borosil Renewables has launched a new division focused on selling rooftop solar solutions under its established brand. This initiative aims to offer superior products by sourcing modules, inverters, and batteries from external vendors, operating on an asset-light model without immediate capex plans. The company is targeting INR 75 crores in sales for the first year, though initial EBITDA margins for this segment are expected to be less than 10%. Management believes its strong brand reputation and customer trust will enable it to capture a significant share of the growing rooftop market.

Geopolitical Impact and Import Dynamics

The ongoing conflict in West Asia has adversely affected oil and gas supplies, leading to a more than doubling of imported gas prices and over 50% increase in furnace oil prices. Despite these cost pressures, the company has maintained its margins by implementing a fuel surcharge and enhancing operational efficiencies. Regarding imports, while solar glass from Malaysia and Indonesia is available, management notes that their selling prices are currently higher than Chinese imports, and the expected extension of anti-dumping duties on Malaysian imports will continue to protect the domestic market.

German Subsidiary Insolvency and Write-off

A provision of INR 325.91 crores was made in Q2 FY25 for the company's exposure in its German subsidiary, Geosphere, and its step-down subsidiary GMB, following an insolvency filing. The court-appointed insolvency administrator's report confirmed that GMB's assets are insufficient to cover its liabilities. Consequently, this exposure has been written off in the books for FY26. However, as the provision was already made in prior periods, this write-off does not result in any additional loss in the current financial year.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls