Borosil Renewables reported a 12.8% YoY growth in H1 FY27 sales, despite a temporary 4.5% production dip in Q2 due to furnace maintenance. The company has revised its expansion CAPEX to Rs 1,100 crore, fully funded through internal accruals and existing debt. Management expects production to stabilize and remains committed to maintaining EBITDA margins above 30% through operational efficiencies and strategic fuel surcharge adjustments.
Borosil Renewables Q2 Performance and Expansion Update
Standalone H1 FY27 sales rose 12.8% YoY to Rs 801.8 crore with EBITDA of Rs 258.3 crore. The company increased its expansion project budget by Rs 150 crore to a total of Rs 1,100 crore.
Reader Takeaway: Production has rebounded from Q2 maintenance dips; management maintains 30%+ EBITDA margin targets despite rising input costs.
What just happened
Borosil Renewables reported consolidated Q2 FY27 revenue of Rs 396.7 crore, up from Rs 378.88 crore in the same period last year. The temporary volume dip of 4.5% in Q2, caused by necessary furnace maintenance, has been addressed, with production levels exceeding previous peaks as of October. The company also announced a revision in the total cost for its 600 tons per day expansion project, now pegged at Rs 1,100 crore.
Why this matters
The revision in CAPEX is primarily driven by rupee devaluation and strategic upgrades, including fuel-saving equipment and power redundancy to ensure furnace stability. Crucially, management confirmed the project is fully funded through Rs 800 crore of internal accruals and Rs 300 crore in existing debt, removing the need for further bank borrowing.
Risks to watch
Investors should monitor the upcoming 75-day maintenance cycles for Furnace 1 and 2 scheduled for H1 FY28. While management aims to use new plant capacity to buffer this downtime, execution risks remain. Additionally, gas price volatility continues to impact margins, necessitating active management of fuel surcharges. Rising soda ash prices, which account for roughly a third of raw material costs, are being managed through operational efficiencies and a shift toward a higher domestic sourcing mix for limestone and dolomite.
What to track next
Management remains confident in the domestic solar glass supply gap. The company's new B2C rooftop solar entry, while currently yielding low margins due to competitive trading, is a key long-term area to monitor as operations scale. The firm's conservative growth strategy focuses on sustaining the 30%+ EBITDA margin target through disciplined cost management.