Borosil Renewables Surges 518% EBITDA on Record Sales, Capacity Drive

RENEWABLES
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AuthorKavya Nair|Published at:
Borosil Renewables Surges 518% EBITDA on Record Sales, Capacity Drive
Overview

Borosil Renewables delivered a stellar Q3 FY26 with record standalone sales of INR 386.5 Cr (+40% YoY) and an exceptional 518% YoY EBITDA surge to INR 129 Cr, driven by improved realisations. Despite export market headwinds, domestic demand remains robust. The company is expanding solar glass capacity, poised to benefit from India's solar push and import substitution policies.

📉 The Financial Deep Dive

  • The Numbers:

    • Standalone Revenue: INR 386.5 Cr in Q3 FY26, an all-time high, marking a robust 40% YoY growth from INR 275.28 Cr in Q3 FY25 and a 2.1% QoQ increase from INR 378.44 Cr.
    • Average Ex-Factory Selling Price (per mm): Increased significantly to INR 149.97 from INR 104.54 YoY, a key driver for revenue growth.
    • EBITDA: Surged 518% YoY to INR 129.04 Cr (constituting 33.4% of sales) in Q3 FY26, a substantial jump from INR 20.89 Cr (7.6% of sales) in Q3 FY25. QoQ, EBITDA remained stable at INR 125.5 Cr (33.2% of sales).
    • 9MFY26 Performance: Standalone sales reached INR 1,097 Cr (+40% YoY), with EBITDA climbing 235% YoY to INR 347 Cr.
    • Consolidated Q3 FY26: Revenue at INR 390.46 Cr, EBITDA at INR 130.94 Cr.

  • The Quality:

    • Profitability soared due to improved selling prices and operational efficiencies, leading to a dramatic margin expansion.
    • Volume growth for 9MFY26 was approximately 6% YoY, indicating that price realisations were the primary growth lever.
    • Management confirmed no equity dilution for current expansions, with funding secured and future expansions potentially funded by cash accruals.

  • The Grill:

    • Management acknowledged challenges in export markets like the EU, Turkey, and the US due to subdued demand.
    • The insolvency filing by its German subsidiary, Geosphere, was addressed; the company has deconsolidated it, expecting no further impact on consolidated P&L.
    • Cost pressures from natural gas prices were noted, but the impact is projected to be minimal owing to operational efficiencies and cost optimization.

🚩 Risks & Outlook

  • Specific Risks:

    • Continued weakness in key export markets.
    • Potential volatility in commodity prices, particularly natural gas.
    • Execution risks associated with large capacity expansions.
    • The insolvency of a foreign subsidiary, though contained.

  • The Forward View:

    • The company is expanding solar glass capacity by 600 TPD, expected to be operational by March 2027 (phased start from Dec 2026), which will significantly boost its domestic production.
    • Supportive government policies, including ALMM-II and ALMM-III, and the potential Indo-EU free trade agreement, are expected to drive domestic demand and favor local manufacturers.
    • India's projected module manufacturing capacity (200 GW by 2027) and ongoing capacity additions (51 GW by Mar '27) highlight strong underlying demand for solar glass, where imports still hold a substantial share, creating import substitution opportunities.
    • Management targets a Return on Capital Employed (ROCE) of upwards of 25% post-expansion.
    • The extension of Countervailing Duty (CVD) on imports from Malaysia provides a protective buffer until June 2026.
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