Borosil Renewables reported a consolidated profit of Rs 68.78 crore for Q2 FY27, up from Rs 61.58 crore a year ago. The company announced a delay in commissioning its 600 TPD SG4 and SG5 furnaces to March 2027, with costs increasing by Rs 150 crore to a total of Rs 1,100 crore. Additionally, the company extended the utilization deadline for its preferential issue proceeds to March 2027 and amended its ESOS 2017 scheme.
Borosil Renewables Q2 Profit Climbs to Rs 68.78 Crore Amid Expansion Delays
Q2 FY27 PAT stands at Rs 68.78 crore against Rs 61.58 crore YoY; total furnace expansion cost revised to Rs 1,100 crore.
Reader Takeaway: Revenue and profit show moderate growth, but increased project costs and commissioning delays create near-term capital pressure.
What just happened
Borosil Renewables announced its Q2 FY27 financial results alongside significant operational updates. The company reported a revenue of Rs 396.70 crore and a profit after tax of Rs 68.78 crore, showing improvement over the same quarter last year. However, the board approved a major revision to the timeline for its 600 TPD (tons per day) capacity expansion project at Bharuch, Gujarat. The SG4 and SG5 furnaces are now slated for commissioning by March 2027, pushed back from earlier expectations. This delay comes with an additional capital expenditure of Rs 150 crore, bringing the total project investment to Rs 1,100 crore.
Why this matters
The revision in project timelines and the increased financial outlay signal ongoing challenges in completing capital-intensive projects. For shareholders, the additional Rs 150 crore requirement may impact internal cash flow allocation, despite the company's decision to extend the utilization timeline for its Preferential Issue-2 proceeds to March 31, 2027. The company stated this extension is due to unforeseen operational exigencies.
Corporate Changes
Beyond financial and project updates, the board modified the 'Borosil Employee Stock Option Scheme 2017'. The amendment introduces a flexible structure allowing for either primary share issuance or secondary acquisition via a trust. A 'Direct Route' will be maintained until the trust becomes fully operational, ensuring consistency in how employees receive shares upon the exercise of vested options.
What to track next
Investors should monitor the company's progress on the SG4 and SG5 furnaces. Meeting the new March 2027 deadline is critical for operational scaling. Additionally, watch for any further updates on capital expenditure efficiency and the impact of the increased project cost on the company's balance sheet over the coming quarters.