Borosil Q2 profit rises 40.5% as margin reaches 18.7%

Borosil Limited reported Q2FY27 profit after tax of Rs 31.9 crore, a 40.5% year-on-year increase, while revenue from operations rose 7.5% to Rs 369.8 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 31.5% to Rs 71.0 crore, and its margin expanded to 18.7% from 15.1% a year earlier.

How did Borosil perform in Q2FY27?

Borosil delivered faster growth in profit and operating earnings than in revenue during Q2FY27. Revenue from operations increased to Rs 369.8 crore from Rs 344.1 crore in Q2FY26, while gross profit rose 15.8% to Rs 229.7 crore from Rs 198.3 crore. That difference lifted gross profit margin by 4.5 percentage points to 62.1%, despite the reported 7.5% revenue increase.

Operating earnings also rose more quickly than sales. EBITDA including other income reached Rs 71.0 crore, compared with Rs 54.0 crore in Q2FY26 and Rs 41.1 crore in Q1FY27. Earnings before interest and tax, or EBIT, increased 45.5% year on year to Rs 46.5 crore, while profit before tax rose 40.6% to Rs 42.8 crore. After Rs 10.9 crore of tax, profit after tax was Rs 31.9 crore, versus Rs 22.7 crore in the previous-year quarter and Rs 12.8 crore in Q1FY27.

What drove Borosil's margin expansion?

Borosil's Q2FY27 margin expansion reflected gross profit growth that exceeded increases in employee and other expenses. Cost of goods sold fell to Rs 140.1 crore from Rs 145.8 crore in Q2FY26, even as revenue rose by Rs 25.7 crore. Gross profit consequently increased by Rs 31.4 crore and the gross margin reached 62.1%, compared with 57.6% a year earlier.

Employee cost rose to Rs 33.3 crore from Rs 30.1 crore, while other expenses increased to Rs 127.1 crore from Rs 116.1 crore. Those cost increases were lower than the Rs 17.0 crore increase in EBITDA including other income. Other income was Rs 1.8 crore, slightly below Rs 1.9 crore in Q2FY26, while EBITDA excluding other income grew 33.0% to Rs 69.2 crore. The reported EBITDA improvement therefore occurred despite a Rs 0.1 crore decline in other income.

Which Borosil categories grew in Q2FY27?

Borosil's non-glassware category recorded the largest Q2FY27 sales increase, rising 17.0% year on year to Rs 143.2 crore. The category includes appliances, cookware, gas stoves, Hydra flasks and bottles. It added Rs 20.7 crore of sales from Rs 122.5 crore in Q2FY26 and was the largest of the three reported categories during the quarter.

Opalware sales increased 6.5% to Rs 127.0 crore from Rs 119.3 crore, adding Rs 7.7 crore. In contrast, glassware sales declined 5.1% to Rs 87.8 crore from Rs 92.4 crore. Total category-wise sales rose 7.1% to Rs 358.0 crore, compared with Rs 334.2 crore a year earlier. Borosil says the difference between revenue from operations and category-wise sales is other operating income.

How did Borosil perform in the first half of FY27?

Borosil reported first-half, or H1FY27, revenue from operations of Rs 627.4 crore, up 8.8% from Rs 576.8 crore in H1FY26, while profit after tax rose 11.4% to Rs 44.7 crore. Gross profit increased 15.6% to Rs 408.9 crore, taking gross profit margin to 65.2% from 61.3%. EBITDA including other income rose 10.8% to Rs 112.1 crore, and EBITDA margin improved to 17.2% from 15.5%.

The half-year earnings comparison differed from the quarterly trend because other income fell to Rs 4.4 crore from Rs 11.8 crore. EBITDA excluding other income nevertheless increased 20.5% to Rs 107.7 crore from Rs 89.4 crore. By category, non-glassware sales grew 10.9% to Rs 240.2 crore, opalware rose 7.8% to Rs 210.7 crore and glassware increased 2.7% to Rs 152.6 crore. Total category-wise sales were Rs 603.4 crore, up 7.6%.

Why are Borosil's year-on-year comparisons qualified?

Borosil says the shift in the Diwali festival affected the timing of seasonal demand and sales, making Q2FY27 and H1FY27 sales and financial performance not strictly comparable with the corresponding prior-year periods. This qualification applies to the 7.5% Q2FY27 revenue growth, the 40.5% increase in quarterly profit after tax and the 8.8% H1FY27 revenue increase.

The reported quarter-on-quarter figures also show a substantial movement between the two FY27 quarters. Revenue increased to Rs 369.8 crore in Q2FY27 from Rs 257.6 crore in Q1FY27, while category-wise sales rose from Rs 245.4 crore to Rs 358.0 crore. EBITDA margin was 18.7% in Q2FY27, compared with 14.9% in Q1FY27. The presentation does not quantify the portion of these movements attributable to Diwali timing.

Conclusion

Borosil's Q2FY27 results show profit and EBITDA growth exceeding revenue growth, supported by a 4.5-percentage-point rise in gross margin and a 3.6-percentage-point increase in EBITDA margin from Q2FY26. Non-glassware supplied the largest category sales gain, while glassware declined, making category mix relevant to the overall outcome.

The next reported comparisons will need to be read alongside the Diwali timing qualification disclosed by Borosil. The unresolved matter is the extent to which seasonal timing affected Q2FY27 and H1FY27 sales and profitability, particularly as non-glassware grew 17.0% in the quarter while glassware sales fell 5.1%.