Borosil Renew. Q1 FY27 Earnings Call — Analysis (NSE: BORORENEW)
Standalone revenue surges 53% YoY on anti-dumping driven realisations; 600 TPD expansion on track for Q4 FY27, management sees quarterly EBITDA rising by ₹80-85 Cr from FY28
The take
Q1FY27 Consolidated Revenue ₹405.69 Cr ( +17% YoY ) . New guidance — FY28 post-expansion sales and ebitda… 60% rise in sales . New story: Capacity expansion as growth engine .
Results
Revenue ₹405.69 Cr (+53% YoY), EBITDA ₹142 Cr (35% margin); PAT ₹87.71 Cr (down QoQ only due to a ₹75 Cr tax shield write-back in Q4FY26)
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Standalone Revenue | ₹405.69 Cr | +53% | yoy · Q1FY27 |
| Standalone EBITDA | ₹142 Cr | +53% | yoy · Q1FY27 |
| Standalone EBITDA Margin | 35% | +7.1pp | yoy · Q1FY27 |
| Consolidated Revenue | ₹405.69 Cr | +17% | yoy · Q1FY27 |
| Consolidated EBITDA | ₹141.16 Cr | +104% | yoy · Q1FY27 |
| PAT (After Tax) | ₹87.71 Cr | +na | point_in_time · Q1FY27 · Q4FY26 PAT ₹169 Cr included ₹75 Cr tax write-back; no comparable Q1FY26 PAT provided |
| Sales Volume Growth | 8% | +na | yoy · Q1FY27 |
| Average Ex-Factory Price | ₹160.30/mm2 | +16% | yoy · Q1FY27 · includes ₹9.50 fuel surcharge |
| Gross Margin | 78% | +na | point_in_time · Q1FY27 · as raw material + mfg expenses; mgmt indicates raw material ~23-24% of sales |
| Effective Tax Rate | 25.2% | +na | point_in_time · FY27 · guided for full year FY27 |
Guidance
600 TPD expansion to commission in Q4 FY27, adding ~₹80-85 Cr quarterly EBITDA from FY28; rooftop solar target ₹36 Cr revenue in FY27
What management committed to
- The 600 TPD expansion project will be commissioned in Q4 FY27 (by March 2027). — Q4FY27
- Commissioning of [600 TPD expansion] will result in sales to rise by 60% with a corresponding rise in EBITDA amount. — 60% rise in sales, FY28
- Incremental quarterly EBITDA from the [600 TPD expansion] is expected to be ₹80-85 Cr, assuming current realisations. — ₹80-85 Cr extra EBITDA quarterly, FY28
- Rooftop solar kit business will generate revenue of about ₹36 Cr in FY27. — ₹36 Cr, FY27
- The company does not foresee any equity raise in the near future. — near future
- Planned refurbishment of SG1 and SG2 furnaces will occur around Q4 FY27 or H1 FY28, each with ~90 days of production loss. — Q4FY27
- A decision on the next phase of expansion will be made within 5-6 months. — Q3FY27
- Company aims to grow revenue from ~₹2,500 Cr to at least ₹4,000 Cr in 3-4 years after March 2027. — ₹4,000 Cr, FY30
Key themes
Policy tailwinds, capacity expansion, and premium realisations
How the narrative shifted
- Policy tailwinds and import protection: Management highlights anti-dumping duties, CVD extension, and ALMM mandates as a durable shield that keeps domestic realisations high and supports expansion.
- Capacity expansion as growth engine: 600 TPD expansion on schedule, next expansion under evaluation, leveraging gap between demand and domestic supply to drive volume and EBITDA.
- Premium realisations sustained by demand-supply gap: Even with capacity additions, domestic supply remains in deficit, allowing import parity pricing; fuel surcharge ensures margin protection during cost spikes.
- Fuel cost volatility and geopolitical risk: West Asia conflict caused fuel supply disruptions; company passed cost through a fuel surcharge, which is now being reduced as costs ease, with profit neutrality maintained.
- Rooftop solar diversification: Company enters solar kit trading to leverage brand; low single-digit margins but scalable volume opportunity; very early stage.
- Furnace maintenance and production disruption: SG1/SG2 will require rebuild in the coming fiscal year, temporarily capping effective capacity; planned after new furnaces ramp up to limit disruption.
- Module industry consolidation risk: Module overcapacity and technology shifts may weed out smaller players; Borosil will adapt customer mix accordingly, but near-term demand remains secure.
Operational commentary
- 600 TPD expansion (SG4 & SG5) on schedule; civil works, equipment orders in progress; both furnaces expected to fire by March 2027, revenue from April 2027
- New solar-wind hybrid captive power plant commissioned March 2026; renewable power share reached 93%, saving ₹6 Cr in Q1 (~₹18 Cr annualised)
- Policy support: anti-dumping on Chinese/Vietnamese solar glass (Dec '24), CVD 9.71% on Malaysian imports extended for 5 years from June '26, ALMM-2 mandating domestic cells from June '26, ALMM-3 planned for ingots/wafers from June '28
- Domestic solar glass demand-supply: requirement 11,000 TPD vs installed 2,600 TPD; expected to rise to 7,700 TPD by March '27 (substantially captive), leaving supply gap
- Exports negligible; focus on high-demand domestic market with import parity pricing
- SG1/SG2 furnace refurbishment likely in Q4 FY27 or H1 FY28, each furnace to have ~90 days production loss for rebuild
- Rooftop solar kit business launched (on-grid residential), Q1 revenue ₹1.3 Cr, internal FY27 target ₹36 Cr; low single-digit EBITDA margin
- Customer concentration: top 10 customers ~65-68% of volumes; new capacity will add selective customers as module industry consolidates
Analyst Q&A
Q. Why did net profit fall from ₹169 Cr in Q4 to ₹87 Cr in Q1 despite only 8% revenue decline?
Q4 PAT included a ₹75 Cr tax write-back on the German subsidiary investment write-off; excluding that, performance is comparable.
Q. What is the timeline for SG1 and SG2 furnace refurbishment and how much volume will be lost?
Repair may happen in Q4 FY27 or H1 FY28; each furnace will require ~90 days shutdown. Exact timing depends on furnace condition.
Q. Is the company in advanced talks for a strategic investment?
I cannot offer any comment on this.
Research and educational content only. Not investment advice.