Borosil Renewables Limited

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.

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.

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.

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.

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.

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.