Borosil Renew. Q2 FY27 Earnings Call — Analysis (NSE: BORORENEW)

Borosil Renewables reported Q2FY27 consolidated revenue of ₹396.7 Cr with EBITDA margin dipping to 30.4% on maintenance and fuel cost lag, while keeping its 600 TPD expansion on track for Q4FY27 commissioning.

4 Nov 2026 · Analysis by Alpha Inflection

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

The take

Q2FY27 Consolidated Net Revenue ₹396.7 Cr ( +4.70% YoY ) . Guidance cut — Q3FY27 margin recovery target back to ~31%+ EBITDA margin . New story: Capacity expansion as growth engine .

Results

Standalone revenue stood at ₹396.2 Cr with EBITDA of ₹116.34 Cr (30.4% margin, down 260 bps YoY) impacted by a temporary maintenance outage and partial rollback of fuel surcharges.

Financial highlights

Guidance

Management reaffirmed the commissioning of the 600 TPD capacity expansion towards the end of Q4FY27 (firing in Feb-Mar 2027) and expects EBITDA margins to normalize above 30%.

What management committed to

• We expect the margins to move back to higher levels at the end of this quarter [Q3 FY27]. — back to ~31%+ EBITDA margin, Q3FY27
• we will make good the [production volume] loss which has happened in the months of July and August in the rest of the year [FY27]. — make good Q2 volume loss, FY27
• we should be happy to have additional 2%, 3% operating leverage out of the new facility [600 TPD expansion]. — 2-3% margin improvement, FY28
• Board has decided to increase the project cost by INR150 crores... all this put together... INR1100 crores will be funded internally by INR800 crores and INR300 crores is the debt. — ₹1,100 Cr total, ₹800 Cr internal + ₹300 Cr debt, Q4FY27
• This work [evaluating next growth opportunities] should get over by before end of the financial year [FY27] and we should be in a position to that time take a call [on the next expansion]. — Q4FY27

Key themes

Capacity expansion and margin recovery

How the narrative shifted

• Policy tailwinds and import protection: Management explicitly cites anti-dumping duty in place until December 2029 and ALMM-II driving domestic cell capacity, asserting that demand for domestic solar glass is structurally ensured.
• Capacity expansion as growth engine: 600 TPD commissioning timeline is concretized with specific furnace firing months; next expansion is being evaluated with the help of external consultants and a decision is committed by end of financial year.
• Premium realisations sustained by demand-supply gap: Management quantifies the supply gap (62 GW module demand vs 18 GW domestic solar glass supply) and expresses high confidence that expanded capacity will be easily absorbed without pricing pressure.
• Fuel cost volatility and geopolitical risk: Management frames the surcharge reduction and reinstatement as proactive pricing management, turning a cost volatility episode into a demonstration of market power to protect margins.
• Rooftop solar diversification: Management reports very strong customer response, signed projects for the current quarter, and letters from customers confirming quality; the business is being scaled deliberately in four states.
• Furnace maintenance and production disruption: The Q2 disruption is reframed as a successful fine-tuning exercise that has already led to record production levels in October, downplaying the financial impact.
• Module industry consolidation risk: Not actively raised in management commentary; ALMM-II is mentioned as a positive driver for domestic cell manufacturing rather than a source of distress for module players.
• Raw material cost pressure (soda ash, dolomite, freight): Management openly acknowledges a ~10% soda ash price hike and increased costs for imported dolomite and freight from China, outlining active mitigation via domestic sourcing shifts and operational savings.

Operational commentary

• Work on the 600 TPD (60% capacity increase) expansion at Bharuch is in full swing with furnace firing scheduled for February and March 2027.
• Project capex was revised up from ₹950 Cr to ~₹1,100 Cr due to inclusion of fuel cost-saving equipment, power redundancy systems (₹25 Cr), and USD/INR exchange rate impact (~20% of increase).
• Production dropped ~4.5% during Q2 due to furnace maintenance and tuning; post-tuning yields from mid-September and October exceeded historical peaks by 8-10%.
• Furnaces SG1 and SG2 (7 years in operation) are scheduled for a sequential 75-day maintenance rebuild during H1FY28 once the new capacity comes online.
• Fuel surcharge that was partially rolled back in July was reinstated in October to counter rising gas prices.
• Rooftop solar kits distribution commenced across four states generating ₹14.1 Cr in Q2, serving as a captive channel pull for domestic solar glass.

Analyst Q&A

• Q. Can you quantify the revenue and EBITDA loss in Q2 due to furnace maintenance and explain the higher fuel costs?

  The production loss caused a revenue shortfall of approximately ₹15 Cr. The fuel surcharge reduction in July reduced realization by ₹4.4/sqm, but surcharge restoration in October and post-maintenance output gains will recover the shortfall in H2.

• Q. Will the 75-day shutdown of SG1 and SG2 furnaces in H1FY28 reduce projected volume growth from 60% to 48%?

  Management stated that the rebuild will increase efficiency and output of those furnaces, though Executive Chairman noted it is an operational attempt rather than a guaranteed volume recovery.

• Q. What led to the project capex increase to ₹1,100 Cr and how is it funded?

  The ₹150 Cr increase was driven by fuel-saving equipment, ₹25 Cr for power redundancy, and 20% on FX depreciation; funded entirely from internal accruals/equity without incremental debt.

• Q. Why did raw material costs rise and can they be passed on via surcharge?

  Soda ash prices rose ~10% and imported dolomite/limestone incurred higher ocean freight from China. There is no pass-through formula like fuel; the company is increasing domestic sourcing of dolomite from 30-40% to offset freight.

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