Borosil Renewables Targets ₹2,500 Cr Revenue Run-Rate with ₹1,100 Cr Capacity Expansion

Key numbers

H1 Revenue	₹801.8 Cr12.8% YoY Growth
Market Cap	₹5,740 CrConsumer Durables
Revenue TTM	₹1,614.95 CrOperating Revenue
RSI	28.04Oversold Zone

Key highlights

• H1 FY27 standalone sales reached ₹801.8 crore, including ₹15.4 crore from the new solar kit business
• Standalone EBITDA margin for Q2 stood at 30.4%, compared to 33% in the same quarter last year
• Company is investing ₹1,100 crore to add 600 TPD capacity, with commissioning targeted for March 2027
• Average ex-factory selling price for solar glass dropped to ₹155.9 per mm in Q2 from ₹160.3 in Q1
• Maintenance of SG1 and SG2 furnaces led to a 4.5% production drop in Q2, with recovery seen in October

Maintenance Outages Impact Q2 Production Volumes

Borosil Renewables faced operational challenges during the second quarter as standalone solar glass volumes declined by 4.5% due to essential furnace maintenance. Total standalone sales for the quarter were recorded at ₹396.2 crore, which included ₹14.1 crore from the newly launched solar kit business. Standalone EBITDA margins compressed to 30.4% from 33.8% in the previous sequential quarter.

Management attributed this dip to lower production levels and a 4.4% drop in average selling prices. However, production efficiency improved significantly in October, surpassing previous historical highs, which the company expects will offset the shortfall in the coming months.

The ₹1,100 Crore Bharuch Expansion Roadmap

• The expansion project will add 600 tonnes per day (TPD) of solar glass production capacity.
• Commissioning of the SG4 and SG5 furnaces is scheduled for the end of March 2027.
• Total investment is pegged at ₹1,100 crore, funded through a mix of internal accruals and ₹300 crore debt.
• Post-expansion annual revenue run-rate is guided to reach approximately ₹2,500 crore.
• Management plans to scale revenue beyond ₹4,000 crore within three to four years post-commissioning.

Management on Operational Efficiency

During the month of October, we have had exceptionally good production, which we hope is going to continue for the rest of the quarter. With more positive results in the current quarter, we feel it would be possible to make good this shortfall in the rest of the year.

Energy Volatility and New Market Segments

To counter volatile energy costs, Borosil Renewables has reintroduced fuel surcharges following a surge in gas prices caused by geopolitical tensions in West Asia. The surcharge, which was partially rolled back in July 2024, is being utilized to protect margins as input costs for soda ash also rose by 10%. Meanwhile, the company is diversifying into the B2C segment through solar rooftop kits.

This vertical has been launched across four states, leveraging the Borosil brand. Initial distributor response has been strong, and management believes this high-synergy business will eventually contribute significant volume to the company's glass sales.

Favourable Domestic Demand and Regulatory Support

• Annual domestic solar installations are expected to maintain a level of 45 GW through 2027.
• Current domestic solar glass supply stands at 18 GW against a requirement of 62 GW on a DC basis.
• Anti-dumping duties on glass imports from China and Vietnam provide price protection until 2029.
• Expansion of domestic module manufacturing capacity via PLI schemes has reached 233 GW.
• Company maintains a Piotroski Score of 8, indicating robust financial health despite operational volatility.

What to watch next

• Commissioning of the 600 TPD expansion at Bharuch by 31 March 2027
• Planned 75-day maintenance shutdown of SG1 and SG2 furnaces in H1 FY28
• Scaling of rooftop solar kit business beyond the initial four-state launch
• Potential evaluation of new growth areas beyond solar glass by the end of FY27

“We will remain net cash positive by end of March as we foresee, and the next financial year's cash flows will be available for us to deploy for any new growth areas.”

BOROSIL RENEWABLES · financial snapshot

Share price	₹390
Market capitalisation	₹5,740.16 Cr
Revenue (annual)	₹1,555.84 Cr
Net profit (annual)	₹129.08 Cr
Revenue (latest quarter)	₹405.69 Cr-7.78% vs previous quarter
Net profit (latest quarter)	₹86.84 Cr-48.66% vs previous quarter
P/E (TTM)	15.01×Sector 41.24×
Promoter holding	56.02%-2.75% QoQ
FII holding	5.88%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.