Borosil Renewables Q1 FY27: Pricing strength lifts margins as the next expansion stays on track

Borosil Renewables entered FY27 with a strong operating quarter, helped by firm realizations, full utilization, and a rising share of renewable power in its cost mix. For the quarter ended June 2026 (Q1 FY27), the company reported standalone revenue of INR 405.69 crore and EBITDA of INR 142.00 crore. EBITDA margin expanded to 35.0%, continuing a run of margins above 33% for four consecutive quarters as highlighted by management.

On a consolidated basis, revenue was also INR 405.69 crore and EBITDA was INR 141.16 crore, reflecting negligible contribution from overseas subsidiaries. Management explicitly stated that overseas subsidiaries did not generate any revenue in Q1 FY27 and posted a negative EBITDA of INR 0.84 crore.

The quarter’s narrative is largely driven by pricing and operational stability. Management attributed the major increase in sales value to higher selling prices, with average ex-factory realization stated at INR 160.3 per millimetre per square metre, versus INR 138.1 in the same quarter last year and INR 150.2 in the preceding quarter. This included a fuel surcharge introduced from 10 March 2026 to offset higher fuel prices following the West Asia conflict. Volume growth was also present, with management stating sales quantity rose 8% year-on-year and net production was about 125 lakh square meters, about 10% higher versus the corresponding quarter.

Financial performance: strong margins, clean year-on-year base

While quarterly PAT comparisons versus Q4 FY26 can look volatile, management clarified that Q4 FY26 PAT was boosted by a tax shield recognized after a write-off related to the German subsidiary investment. For Q1 FY27, standalone PAT was INR 87.71 crore, while consolidated PAT was INR 86.64 crore.

Management also noted that Q4 FY26 included INR 32.07 crore of sales for goods dispatched earlier but delivered in Q4, with related EBITDA of INR 9.77 crore. This nuance matters when interpreting quarter-on-quarter movements.

Expansion plan: SG-4 and SG-5 keep the growth lever visible

The company’s key growth project is the addition of two new furnaces, SG-4 and SG-5, each with 300 TPD capacity, at the existing location. The investor presentation puts the estimated investment at INR 950 crore and states a commissioning target of December 2026, with work progressing as per schedule and key equipment orders already placed.

During the Q1 FY27 call, management reiterated that execution is on track and guided that both furnaces should be commissioned by March 2027, one after the other with a gap of about a month. Importantly, management urged conservatism on revenue timing, stating that glass furnaces may need one to two months for stabilization and suggested assuming revenue from 1 April 2027 for modelling purposes.

Strategically, the company linked the expansion to supportive trade measures and a structural domestic supply gap. The presentation cites a five-year anti-dumping duty on solar glass imports from China and Vietnam effective 4 December 2024, and also references a customs notification dated 2 June 2026 extending countervailing duty of 9.71% on imports from Malaysia for another five years.

Management provided a demand-side framing that translates installations into glass requirements. It stated that 62 GW (DC basis) of solar installations in 2025-26 translates into around 11,000 TPD of solar glass capacity, while local capacity is about 2,600 TPD. Even with domestic capacity expected to rise to about 7,700 TPD by March 2027, the company expects a supply gap to remain, while also noting that a meaningful portion of new capacity could be for captive consumption.

Cost structure and energy: renewable power becomes a margin support

A key operational lever in Q1 FY27 was the step-up in renewable power. Management stated that a new solar-wind hybrid captive power plant commissioned in March 2026 lifted the share of renewable sources to 93% of total power requirement during the quarter.

The call also quantified savings. Management indicated expected annual savings of about INR 18 crore per annum from the March 2026 project, while noting that Q1 FY27 savings were higher due to strong wind and solar generation, exceeding INR 6 crore for the quarter.

On fuel costs, the company’s approach was presented as pass-through driven, rather than a one-way benefit. The higher realizations in Q1 FY27 included a fuel surcharge (management referenced INR 9.50 as the full surcharge invoiced). As fuel costs eased, the company stated it had already started reducing this surcharge, consistent with its commitment to customers.

New division: rooftop solar enters with a cautious playbook

Borosil Renewables also used the quarter to outline a new business line: rooftop solar solutions. The company is offering Borosil branded solar panels along with inverters and lithium batteries, positioned as an end-to-end rooftop system.

The strategy described in the presentation is structured as co-branding, then OEM, then CKD, indicating a pilot-first approach. It also laid out an initial geographic focus on Gujarat, Rajasthan, and Uttar Pradesh, and a target customer set spanning residential rooftops (1 to 10 kW), C&I rooftops (up to 1 MW), and off-grid segments.

Management was clear that profitability will not resemble the solar glass business. It described rooftop solar as more of a trading and solutions activity and suggested EBITDA margins would be in single digits. For traction, it disclosed an internal FY27 revenue target of about INR 36 crore and stated Q1 FY27 revenue from the new division was about INR 1.3 crore.

What investors should track next

Two operational watch items stood out in the call. First, maintenance risk for existing furnaces SG-1 and SG-2. Management explained that furnace repairs require shutdown and rebuild cycles, and quantified a typical downtime of around 90 days per furnace (about 75 days shutdown plus roughly 15 days to restart). Timing was not committed, with management stating it could occur in Q4 FY27 or in Q1 or Q2 of the next financial year depending on furnace condition.

Second, the broader solar manufacturing landscape. Management highlighted rapid expansion in Indian module capacity and the possibility of consolidation, especially as domestic cell sourcing requirements under ALMM-II (effective 1 June 2026) reshape the competitive structure. The company also described ALMM-III as scheduled from June 2028, which would mandate domestic sourcing of ingot and wafer, potentially improving value-chain resilience.

Takeaways

Q1 FY27 reinforced three themes for Borosil Renewables: sustained pricing power in a protected domestic market, disciplined operations at full utilization, and a clearly timed expansion plan that can change the scale of the business from FY28. The 600 TPD addition is the near-term growth engine, while the rooftop solar initiative is a smaller, lower-margin but potentially scalable adjacency that management is approaching cautiously.

Near-term performance will remain sensitive to fuel costs and the pace of surcharge normalization, while medium-term reported volumes could be affected by furnace rebuild cycles. The next inflection point, as guided by management, is commissioning and stabilization of SG-4 and SG-5 by March 2027, with meaningful revenue impact expected from April 2027.