Borosil Renewables Shines Bright in Q2 FY26 Amidst Strategic Shifts

Borosil Renewables Limited, a key player in India's solar glass manufacturing sector, has reported a robust performance for the second quarter of Fiscal Year 2026, demonstrating significant growth in profitability despite navigating complex global market dynamics. The company's consolidated revenue for Q2 FY26 stood at ₹378.88 crore, marking a steady 1.6% increase year-on-year. However, the highlight of the quarter was an exceptional surge in profitability, with consolidated EBITDA skyrocketing by 248.4% year-on-year to ₹120.42 crore. Profit Before Tax (PBT) before exceptional items also witnessed a remarkable jump of 1237.9% to ₹94.38 crore, underscoring the effectiveness of strategic initiatives and favorable market conditions.

This impressive financial uplift was primarily driven by a combination of factors, including a significant increase in average ex-factory selling prices, which rose to ₹147.50 per millimeter in Q2 FY26 from ₹115 per millimeter in the corresponding period last year. Enhanced production efficiencies further contributed to the improved margins. The company's standalone performance mirrored this positive trend, with sales climbing 42.5% year-on-year to ₹378.44 crore and standalone EBITDA surging 137.3% to ₹125.50 crore. This strong domestic showing helped offset some of the challenges faced in international operations.

Navigating Global Headwinds and Strategic Realignment

While the domestic market presented a strong growth trajectory, Borosil Renewables faced significant headwinds in its European operations. Interfloat Corporation, a step-down subsidiary, encountered severe challenges, including unremunerative prices and reduced demand, leading to the cessation of annealed glass production at GMB, Germany. Consequently, GMB filed for insolvency on July 4, 2025, prompting Borosil Renewables to deconsolidate its financial statements and record an impairment of ₹33.87 crore on its exposure to Interfloat. Additionally, exceptional items in Q2 FY26 included a ₹5.47 crore provision for a doubtful advance to GMB and a ₹2.28 crore loss from ex-rate differences on GMB's deconsolidation.

Management has been transparent about these challenges, acknowledging the impact of GMB's losses on consolidated results. This strategic realignment demonstrates the company's proactive approach to pruning underperforming assets and focusing resources where growth is more viable. The company's decision to re-activate its expansion plans immediately following the imposition of anti-dumping duty on solar glass imports further highlights its agility in responding to market and regulatory shifts.

Fueling Future Growth: Capacity Expansion and Fund Raises

Looking ahead, Borosil Renewables is firmly focused on expanding its manufacturing capabilities to capitalize on the burgeoning domestic demand for solar glass. The Board has approved the setup of two new furnaces, SG-4 and SG-5, each with a capacity of 300 TPD, totaling 600 TPD. This ambitious expansion, with an estimated investment of ₹950 crore, is targeted for commissioning by December 2026. This move is critical for import substitution and to meet the projected solar installations of approximately 35 GW in FY26, which translates to a glass requirement of 50 GW for domestic consumption.

To support these growth initiatives, the company successfully executed significant fund raises. In February 2025, it completed a preferential issue, raising ₹517.66 crore. This included ₹100 crore from promoters and ₹417.66 crore from non-promoter investors. Subsequently, in October 2025, an additional ₹371.49 crore was raised through the allotment of 69,43,691 equity shares to non-promoter investors on a preferential basis. These funds are earmarked for financing the expansion projects and other corporate purposes, ensuring a robust financial foundation for future growth.

Innovation and Sustainability at the Core

Borosil Renewables continues to prioritize innovation and sustainability. The company proudly holds a patent for being the first solar glass manufacturer to successfully produce textured solar glass without using Antimony, a harmful chemical. This eco-conscious approach extends to its energy consumption, with a 10 MW Wind-Solar Hybrid power plant commissioned in May 2023, contributing to 27% of its total electricity needs from renewable sources. An additional 16.5 MW plant is expected by Q3 FY26, aiming to increase renewable energy reliance to 60-65%.

Furthermore, the company is at the forefront of manufacturing thinner solar glass (2mm), aligning with the industry's shift towards bifacial and glass-glass modules that require lighter and more durable materials. This strategic focus on advanced products positions Borosil Renewables to capture evolving market trends and offer cost-efficient solutions to its customers.

Outlook: A Promising Horizon

Borosil Renewables is well-positioned to leverage India's robust solar energy growth story. With strong government support through schemes like the PLI Scheme, PM Suryaghar Yojana, and the National Solar Mission, the demand for solar modules and components, including solar glass, is expected to remain high. The company's strategic capacity expansion, coupled with its commitment to innovation and sustainability, provides a clear pathway for sustained growth and market leadership. Management expressed confidence in maintaining its improved performance and EBITDA margins in the coming quarters, barring unforeseen circumstances, signaling a promising horizon for the company.