Borosil Scienti. H1FY27 Results (NSE: BOROSCI)
Signal: Loss reversed
The read
The H1FY27 PAT turnaround to 968.33 lakh from a 127.16 lakh loss is a clear inflection after the prior-year loss, supported by a 244bps gross-margin expansion and the absence of the prior 661.31 lakh exceptional charge; however, the 314.27 lakh Primary Pharma Packaging loss and 321.05 lakh subsidiary loss show that the recovery is concentrated in Scientific and is now paired with a ₹70 crore backward-integration commitment.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹221.72 Cr | +9.3% | N/A |
| Net profit | ₹9.68 Cr | turnaround from loss of 127.16 lakh | |
| EPS | ₹1.09 | turnaround from loss of 0.14 | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue increased 9.3% to 22,171.60 lakh and gross margin expanded 244bps to 66.4%; operating profit before tax and exceptional items rose 78.1% to 1,365.17 lakh, while the subsidiary and Primary Pharma Packaging continued to dilute group earnings.
Segments
Scientific remained the earnings engine with revenue of 14,744.31 lakh, up 7.8%, and result of 2,298.01 lakh, up 6.6%; Primary Pharma Packaging dragged with a 314.27 lakh loss despite revenue rising 26.5%, while the subsidiary also reported a 321.05 lakh half-year loss.
Key positives
- Consolidated H1 revenue reached 22,171.60 lakh, up 9.3% YoY, while Scientific segment revenue rose 7.8% to 14,744.31 lakh.
- Gross margin expanded 244bps to 66.4% despite raw material consumption increasing to 38.0% of revenue from 35.9%; the filing does not disclose the driver, so repeatability remains unproven.
- Consolidated owner PAT turned positive at 968.33 lakh from a 127.16 lakh loss, with EPS moving to ₹1.09 from ₹(0.14).
- Standalone operating cash flow improved to 1,772.43 lakh from 1,262.49 lakh, while standalone borrowings remained low at 30.71 lakh.
- The proposed 20 MT-per-day furnace targets imported tubing dependence, supply-chain reliability and quality control, with commercial production expected by March 31, 2028.
Key concerns
- Primary Pharma Packaging remained loss-making at 314.27 lakh in H1FY27 despite revenue growth of 26.5% to 4,402.21 lakh.
- The subsidiary reported a 321.05 lakh half-year loss on revenue of 1,890.72 lakh, leaving consolidated owner PAT at 968.33 lakh versus standalone PAT of 1,309.33 lakh.
- Consumer Glassware revenue declined 3.5% to 3,025.08 lakh and its segment result fell 2.7% to 158.79 lakh.
- Standalone employee costs grew 13.7% to 3,603.14 lakh, faster than standalone revenue growth of 8.3%, unlike the consolidated cost trend.
- The proposed furnace requires capital expenditure of up to Rs. 70 crores and commercial production is not expected until March 31, 2028, creating execution and funding risk before benefits materialise.
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