Borosil Q1 FY27 Earnings Call — Analysis (NSE: BOROLTD)

Borosil reported 9% YoY revenue growth in Q1 FY27 to ₹253.6 Cr, while EBITDA margins compressed 320 bps to 14.6% due to West Asia conflict-related fuel and packaging inflation.

26 Aug 2026 · Analysis by Alpha Inflection

Result quality: stable — Results context unavailable. Management sentiment: optimistic.

The take

Q1FY27 Revenue from Operations ₹253.6 Cr ( +9.0% YoY ) . New guidance — FY27 borosil limited consolidated eb… about 18% . New story: Domestic Manufacturing Shift for Hydra .

Results

Revenue ₹253.6 Cr +9.0% YoY; Operating EBITDA ₹35.9 Cr (-10.7% YoY) with EBITDA margin at 14.6% (-320 bps); PAT ₹12.8 Cr (-26.4% YoY).

Financial highlights

Guidance

Management targets ~18% EBITDA margin for FY27 supported by price hike realizations and captive solar savings of ₹27-28 Cr, with FY27 capex guided at ₹125-150 Cr.

What management committed to

• The production from [Stylenest India Limited's] third double-wall line is expected to commence during Q2 FY27. — Q2FY27
• The [Bharuch glassware manufacturing project] involves an estimated capital expenditure of INR 42 crores and is expected to commission by end of Q3 FY27. — INR 42 crores, Q3FY27
• The [Jaipur borosilicate pressware glass furnace expansion from 25 TPD to 32 TPD with 3rd forming line] involves an estimated capex of INR 50 crores and is expected to commission by end of Q4 FY28. — INR 50 crores, Q4FY28
• For FY27, overall EBITDA margin target remains about 18% EBITDA margins. — about 18%, FY27
• The total capex for FY27 is estimated to be about INR 125 crores to INR 150 crores. — INR 125 crores to INR 150 crores, FY27
• In FY27, the overall savings from the solar with the Phase 3 implementations that we have done so far will be about INR 27 crores, INR 28 crores at EBITDA level. — INR 27 crores, INR 28 crores, FY27
• Current year overall depreciation would be approximately INR 92 crores at a consolidated level. — approximately INR 92 crores, FY27
• Going forward, as we enhance capacity utilization and improve margins, we should definitely look at basically 20% to 24% ROCE margins on the business. — 20% to 24%, going forward / medium term

Key themes

Input cost inflation and capacity expansions

How the narrative shifted

• Input Cost Inflation and Margin Lag: Management attributes Q1 margin decline to ₹10 Cr cost impact from fuel and packaging spikes linked to the West Asia conflict, which will be recovered as 5-7% price hikes take effect with a quarterly lag.
• Domestic Manufacturing Shift for Hydra: Transitioning vacuum flask production from import-dependent supply chains to in-house BIS-compliant domestic manufacturing at Stylenest Rajasthan to resolve supply bottlenecks ahead of festive demand.
• Renewable Energy and Cost Optimization: Commissioning 20 MWp BESS solar project brings power self-sufficiency to 61%, generating recurring annual EBITDA savings of ₹27-28 Cr.
• Chinese Dumping and Anti-Dumping Remedy: Chinese dumping in borosilicate glassware continues despite higher freight and currency depreciation, with Borosil seeking protection via an ongoing anti-dumping duty investigation.
• Omnichannel and Retail Expansion: Piloting exclusive brand outlets in key metros alongside quick-commerce and general trade to strengthen brand visibility and consumer engagement.

Operational commentary

• Commissioned commercial production for 2 double-wall lines of BIS-compliant stainless steel Hydra vacuum flasks/bottles under subsidiary Stylenest India on 30 June 2026; line 3 to commence in Q2 FY27.
• Commissioned 20 MWp captive solar plant with BESS in Bikaner, raising solar share to 61% of total power needs; evaluating further 6.5 MWp at Borosil and 3-4 MWp at Stylenest.
• Progressing on ₹42 Cr dedicated glassware plant at Bharuch for jugs, jars, and bottles with planned commissioning by end of Q3 FY27.
• Approved ₹50 Cr expansion of Jaipur borosilicate glass furnace from 25 TPD to 32 TPD with a third forming line, targeting commissioning by end of Q4 FY28.
• Opened first two exclusive brand outlets in Pune and Gurugram (capex ₹40-50 lakh per store) with Jaipur planned next; total retail presence exceeds 24,000 outlets.

Analyst Q&A

• Q. Breakdown of Q1 FY27 revenue growth between price and volume across Glassware and Opalware.

  Growth in both Glassware (+16.8%) and Opalware (+9.8%) was primarily volume-led; price hikes of 5-7% announced in April/May were realized with a lag and will kick in starting Q2 FY27.

• Q. Margin outlook and path to achieving 18% EBITDA margin guidance for FY27 from 14.6% in Q1.

  Full realization of 5-7% price hikes starting Q2/Q3, reduction in fuel cost drag from ₹6 Cr to ~₹1.5 Cr per quarter in Opalware, and ₹27-28 Cr full-year solar savings support reaching ~18% EBITDA margins.

• Q. Category-wise EBITDA margin breakdown and specific borosilicate profitability under Chinese dumping pressure.

  Management declined to provide category-wise EBITDA margins, maintaining only that overall company EBITDA margin is targeted at ~18%.

• Q. Status of anti-dumping duty (ADD) investigation on Chinese borosilicate glassware.

  Investigation is ongoing before relevant authorities and will take time; guidance does not assume any immediate benefit from ADD imposition.

• Q. Bridging historical 10-11% ROCE to guided medium-term 20-24% target.

  Low ROCE was due to heavy front-ended capex in solar, furnaces, and inventory buildup for BIS transitions; ROCE will rise with operating leverage, lower incremental capex drag, and ₹30 Cr annual solar savings.

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