Borosil Renewables Limited – Q1 FY26 Earnings Call Summary

Borosil Renewables Limited is India’s only manufacturer of solar glass and a key player in the renewable energy value chain. Headquartered in Mumbai, the company caters to both domestic and international solar module makers, offering high-quality tempered glass essential for photovoltaic panels. With a strong focus on capacity expansion, import substitution, and technology upgrades, Borosil is strategically positioned to capitalize on India’s rapid solar adoption and global renewable energy transition.

1. Fundraising and Expansion Plans

• The Board approved a preferential issue of ₹379.5 crores to investors, in addition to the earlier ₹600 crores warrants issue to finance expansion.
• The ongoing expansion project was scaled up from 500 TPD to 600 TPD, raising the total CAPEX to ₹950 crores.
• Financing mix: ₹650 crores from equity/internal accruals and ₹300 crores debt.
• The new furnaces are being built at the existing location (brownfield expansion). Land acquisition is complete.
• Commissioning expected in Q3 FY27 (Oct–Dec 2026), with stabilization by March 2027.

2. Insolvency of German Subsidiary (GMB)

• The German unit filed for insolvency (July 4, 2025) due to prolonged weak demand, policy delays, and heavy competition from dumped Chinese modules.
• Earlier attempts to restart operations with annealed glass sourcing failed.
• Losses of ₹9 crores per month were unsustainable.
• A ₹325.9 crores one-time provision was made against exposure in GMB, ensuring no further drag on consolidated results.
• An administrator appointed under German law now manages the insolvency. Borosil expects no recoverable surplus but may use some of the equipment in India if feasible.

3. Standalone Financial Performance

• Revenue: ₹332.3 crores (vs ₹327.2 crores QoQ and ₹241.8 crores YoY).
• EBITDA: ₹92.5 crores (27.8% margin), up 211% YoY.
• ASP: ₹138.1/mm (vs ₹105.5/mm YoY, ₹127.6/mm QoQ).
• Exports: ₹35.7 crores (10.7% of revenue), up from 5.8% last quarter.
• EBITDA margin guidance: Expected to rise modestly to 28–30% on stable pricing and efficiency gains.

4. Sector and Demand Outlook

• Indian solar module capacity: 90 GW now, targeted to reach 150 GW by FY27.
• Solar installations in FY25: Record 25 GW (vs 15 GW in FY24, up 60%).
• FY26 expected demand: ~50 GW modules → requires ~7.5 MT solar glass.
• Domestic glass production capacity: 2,300 TPD (15 GW); 12 GW more to be commissioned by FY26. Imports still cater to ~70% demand.
• Government support: Anti-dumping duties (ADD) on China & Vietnam have restored pricing power.
• Borosil sees long-term demand growth, import substitution opportunity, and stable ASPs.

5. Strategic Outlook

• Focus is to strengthen India operations, given robust demand, favorable policies (ADD, ALMM), and stable pricing.
• Borosil is evaluating additional CAPEX beyond the current 600 TPD expansion, possibly in FY26–27.
• Exports will remain opportunistic (10–15% mix), with strong domestic demand prioritized.
• Raw material costs remain stable; efficiency measures and renewable energy integration (solar-wind hybrid project) expected to save 1.5–2% of EBITDA.
• Company expects steady improvement in sales, margins, ROCE, and EPS in FY26.

Question and Answer Session Highlights

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Q: What is the timeline for the 600 TPD expansion project?
A: It’s a brownfield expansion at the existing site. Land acquisition is done. Commissioning is expected by Oct–Dec 2026, with stabilization by March 2027.

Q: What is the future of the German subsidiary (GMB)?
A: It is under insolvency, managed by a court-appointed administrator. Borosil has no control or further liability. The focus will remain on serving European customers from India.

Q: EBITDA margins reached 28% this quarter. Can we expect further improvement?
A: Yes, margins may improve by 1–2%, reaching around 30% on better realizations, cost savings, and efficiency gains.

Q: What is the current market size of solar glass in India?
A: About 50 GW module demand (~7.5 MT glass) in FY26. Domestic supply is ~15 GW equivalent, leaving ~35 GW gap, largely met by imports.

Q: Was the GMB acquisition a mistake? What lessons were learned?
A: At the time of acquisition (2022), GMB was profitable and strategically fit for European growth. The collapse was due to unforeseen dumping of Chinese modules (~80 GW) that destroyed European demand. Learning: be more cautious with acquisitions in highly policy-dependent geographies.

Q: Can GMB equipment be used in India CAPEX?
A: Some post-production equipment may be usable, but it depends on insolvency proceedings and cost comparisons with alternate suppliers.

Q: Why has depreciation reduced this quarter?
A: The original furnace (2010) is now fully depreciated, lowering overall depreciation expense.

Q: What is the landed price of imported Chinese solar glass post duties?
A: Around ₹145/sqm, very close to Borosil’s delivered price (₹144–145/sqm).

Q: Why was CAPEX scaled down from 1000 TPD to 600 TPD?
A: Initially scaled down due to ADD removal in 2022, then revised upward to 600 TPD after market recovery and policy support. CAPEX is ₹950 crores.

Q: What is Borosil’s production mix (2mm vs 3.2mm glass)?
A: Currently 55% 2mm, 45% 3.2mm. Long-term, it will move to 80% 2mm as demand shifts.

Q: Do you supply to Waaree?
A: Supplies are very limited due to Waaree’s huge requirements and need for stable BOM. Historically, they were among Borosil’s top 3 buyers.

Q: Is there scope to further reduce working capital?
A: Yes, the company is already squeezing debtor days and negotiating better credit terms. Domestic customers often pay faster due to strong module profitability.

Q: Any chance of recovery from GMB insolvency?
A: Unlikely. Valuer’s report suggests liabilities exceed asset value. If any surplus arises, Borosil will record it, but probability is low.

Q: What is the long-term margin guidance?
A: Sustainable margins are expected in the 28–30% range, supported by ADD, efficiency measures, and robust demand.