Borosil Renewables Eyes 30% Margins Amid Stable Solar Glass Prices

Introduction

Borosil Renewables Ltd, India's largest solar glass manufacturer, expects to sustain its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins at or above 30%. Executive Chairman Pradeep Kumar Kheruka expressed confidence in this outlook, citing stable pricing, full capacity utilisation, and a robust demand environment for solar components within India. The company's performance is underpinned by supportive government policies and strategic operational efficiencies.

Sustained High-Margin Performance

For the past two quarters, Borosil Renewables has exceeded its margin expectations, recording an EBITDA margin of 33.4% in the last quarter. This strong performance is largely attributed to the stable pricing environment for solar glass in the domestic market. The Indian government's imposition of a minimum import price on solar glass from China has been a key factor in preventing price erosion and allowing domestic manufacturers to operate profitably. The company is currently running its facilities at full capacity and is able to sell its entire output, reflecting the strong demand from solar module manufacturers.

Operational Efficiency and Future Cost Savings

To further bolster its profitability, Borosil Renewables is set to commission a captive renewable power installation in February. This move is expected to reduce the company's reliance on the grid and lower its electricity costs, which is a significant component of glass manufacturing expenses. While the exact financial impact was not quantified, a reduction in the cost per tonne of glass will directly support and potentially enhance the company's margins going forward. This strategic initiative highlights a focus on long-term cost control and operational excellence.

Navigating Domestic Competition

Despite the anticipated entry of new players and capacity additions in the Indian solar glass market, Borosil's management remains unconcerned about a near-term disruption. Kheruka pointed out that India's demand for solar glass far outstrips its current domestic production capacity. The country imports nearly 7,000 tonnes of solar glass daily, leaving significant room for local producers to expand and capture market share. The company's strategy is to focus on meeting customer requirements and leveraging its established position and quality standards to maintain its leadership.

Strategic Exit from German Operations

The company recently announced that its German subsidiary, GMB Glasmanufaktur Brandenburg GmbH, has filed for insolvency. This decision was driven by a collapse in the European solar module market, which was flooded by severely underpriced modules from Chinese manufacturers. This led to the shutdown of many European module producers, causing a sharp drop in demand for solar glass. By exiting the German market, Borosil Renewables will no longer have to account for GMB's financial losses, which amounted to approximately ₹9 crore per month. This move frees up management bandwidth and financial resources to focus on the high-growth Indian market.

Financial and Stock Performance Snapshot

Here is a brief overview of Borosil Renewables' key market data as of January 29, 2026.

Ambitious Expansion Plans

To capitalize on the growing domestic demand, Borosil Renewables is embarking on a significant capacity expansion. The company plans to invest approximately ₹950 crore to add 600 tonnes per day (TPD) of manufacturing capacity through two new furnaces. This represents a 60% increase over its current capacity of 1,000 TPD. This expansion aligns with the expected growth in India's solar module manufacturing capacity, which is projected to increase from 90 GW to 150 GW by March 2027.

Favorable Industry and Policy Tailwinds

The Indian government's ambitious target of achieving 280 GW of solar power capacity by 2030 provides a strong, long-term demand forecast for the entire solar value chain. Policies such as anti-dumping duties and the Production Linked Incentive (PLI) scheme are designed to foster a self-reliant domestic manufacturing ecosystem. These initiatives create a favorable operating environment for companies like Borosil Renewables, protecting them from unfair international competition and encouraging further investment in local production.

Conclusion

Borosil Renewables is strategically positioned to benefit from India's renewable energy push. With stable pricing, strong demand, and upcoming cost efficiencies, the company's outlook for maintaining high margins appears solid. The strategic decision to exit its loss-making German operations further strengthens its focus on the profitable and rapidly expanding Indian market. Supported by ambitious expansion plans and favorable government policies, Borosil Renewables is well-equipped to solidify its leadership in the domestic solar glass industry.