Borosil Renewables has pushed the commissioning of its 600 TPD Bharuch expansion to March 2027, with costs rising to Rs 1,100 crore. The firm cites supply chain disruptions and project scope changes as the primary drivers but confirmed that the additional Rs 150 crore will be funded entirely via internal accruals, keeping debt levels unchanged.
Borosil Renewables Adjusts Capacity Expansion Timeline and Budget
Project commissioning deferred to March 2027 from December 2026.
Total project budget increased to Rs 1,100 crore from Rs 950 crore.
Reader Takeaway: Internal funding keeps debt stable, but timeline slippage and global supply chain volatility remain key performance risks.
What just happened
Borosil Renewables has revised the status of its major capacity expansion project at Bharuch, Gujarat. The company is adding 600 tonnes per day (TPD) of production capacity through two new 300 TPD furnaces. The project completion date has been extended from December 2026 to the end of March 2027. Simultaneously, the total project cost has been revised upward from Rs 950 crore to Rs 1,100 crore.
Why this matters
The revision reflects the impact of broader macroeconomic headwinds. Management noted that the ongoing conflict in the Middle East has disrupted critical supply chains, triggered currency volatility, and inflated commodity costs. Furthermore, the company has opted to expand the original project scope, which accounts for the additional Rs 150 crore expenditure.
Financial Implications
Crucially, the company has committed to funding the entire Rs 150 crore cost increase through internal accruals. There is no anticipated increase in corporate borrowings, which protects the balance sheet from additional interest burdens. Additionally, the company is preparing to leverage the newly notified 'Viksit Gujarat Industrial Policy – 2026,' which offers interest, power, and capital subsidies alongside EPF reimbursements.
Operating Outlook
Once the expansion is fully commissioned, Borosil Renewables’ total production capacity will scale to 1,600 TPD from the current 1,000 TPD. This enhancement is expected to drive significant growth in production volumes and long-term revenue generation.
Risks to watch
Investors must watch for further execution delays as the project approaches the new March 2027 deadline. Additionally, the company remains sensitive to ongoing geopolitical tensions that continue to impact global logistics and input costs.