Summary
Borosil Renewables Limited - Q3 FY 2026 Earnings Call Summary Thursday, January 29, 2026, 4:00 PM IST
Event Participants
Executives 4 Ashok Jain (Non-Executive Director), Dhaval Patel (AVP - Investor Relations), Pradeep Kheruka (Executive Chairman), Sunil Roongta (Whole-Time Director & CFO)
Analysts 6 Deepak Purswani (Svan Capital), Karan Sanwal (Niveshaay), Mehul Panjwani (40 Cents), Nidhi Shah (ICICI Securities), Rikin Shah (The Boring AMC), Vikram Sharma (Niveshaay)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Standalone) | ₹386.50 crores | +40% YoY; all-time high quarterly sales driven primarily by increased realizations. |
| Revenue (Consolidated) | ₹390.46 crores | +3.1% QoQ; minimal difference from standalone following German subsidiary deconsolidation. |
| EBITDA (Standalone) | ₹129.04 crores | +518% YoY; margin expanded to 33.4% from 7.6% due to higher selling prices. |
| Avg. Selling Price | ₹149.97 / mm | +43.5% YoY; improved from ₹147.5/mm in Q2 FY26 due to rupee depreciation and stable demand. |
| Exports | ₹20.74 crores | 5.4% of turnover; facing demand challenges in EU, Turkey, and USA. |
| Capacity (Current) | 2,600 TPD | Equivalent to ~18 GW; company currently operating at full production levels. |
| Volume Growth | 6% | YoY growth for 9M FY26; management expects to maintain this through efficiency gains. |
| Power & Fuel Cost | 32% of CoP | Management offset Henry Hub gas price spikes through operational efficiencies. |
Geographic & Segment Commentary
- Domestic Market: Steady demand persists despite a temporary December slowdown caused by GST uncertainty and prolonged monsoons. India’s module manufacturing capacity reached 145 GW, with 70% of glass consumption still met by imports, providing significant headroom for import substitution.
- International Market: Exports to EU, Turkey, and USA remain challenged by low demand. However, the Indo-European Union Free Trade Agreement is viewed as a “landmark” catalyst that could turn India into a primary module sourcing hub for Europe’s 70 GW annual demand.
- Germany (Subsidiaries): The German holding company, Geosphere, filed for insolvency following a €4.81 million subsidy clawback demand. The assets are now under court control, and the company has fully provisioned all investments, effectively removing future losses from the consolidated P&L.
Company-Specific & Strategic Commentary
- Capacity Expansion: Plans to increase capacity by 60% are underway with two new furnaces expected to fire by December 2026 (commercial production by Q4 FY27). Management is exercising caution in further expansion timelines due to “poaching of expert people” by new market entrants.
- Import Protection: The CVD on Malaysian imports was extended to June 8, 2026. Management notes that while they price against Chinese landed costs, Malaysian/Vietnamese imports are typically 3-4% cheaper than Chinese glass.
- Efficiency & Renewables: A new renewable energy plant, delayed from September, is expected to commission by late February 2026. This initiative is projected to save approximately ₹1.25 crores per month in power costs (extending margins by ~1.5 bps).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | Stable through Q3 FY27 | Capacity is fully utilized; growth will remain flat until new furnaces commission. |
| Capacity Addition | +60% by March 2027 | Furnaces firing in Dec 2026 with a 1-3 month stabilization period budgeted. |
| ROCE | Target >25% | Metric expected to hit this threshold once the 4,600 TPD expansion is operational. |
| Solar Installations | 40 GW (FY26) | Reflects glass consumption of ~55 GW; domestic capacity (51 GW by 2027) will still undershoot demand. |
Risks & Constraints
| Risk | Context |
|---|---|
| Policy & ALMM | The June 2026 mandate for domestic cells (ALMM-II) and 2028 mandate for wafers (ALMM-III) could create temporary supply chain bottlenecks if local cell capacity (currently 24 GW) fails to ramp to 75 GW. |
| Input Cost Volatility | Natural gas prices, linked to the Henry Hub benchmark, have seen recent increases. While currently offset by batch-mix optimizations, sustained energy inflation remains a margin threat. |
| Competitive Intensity | Significant new domestic capacity is entering the market, leading to aggressive poaching of specialized technical talent and potential future overcapacity in modules. |
Q&A Highlights
Domestic Policy & ALMM
- Question: Will the June 2026 domestic cell mandate cause a demand dip for glass? (Rikin Shah)
- Answer: Cells can still be imported from China for non-DCR projects; the government is unlikely to allow module production to halt and may offer deferments if local cell capacity lags (Ashok Jain/Pradeep Kheruka).
Expansion Strategy
- Question: What is the trigger for even further expansion beyond the 600 TPD? (Vikram Sharma)
- Answer: Utilities and land at Bharuch are ready for an additional furnace; the primary constraint is “caution” and the need to stabilize the current workforce after poaching by competitors (Pradeep Kheruka).
German Insolvency Status
- Question: Can we expect any recovery or further losses from Germany? (Mehul Panjwani)
- Answer: Recovery is “unlikely”; the business is court-controlled. All financial impacts are already “de-consolidated” and provisioned; standalone and consolidated results will now be nearly identical (Ashok Jain).
Pricing & Imports
- Question: How do you price against imports from Malaysia? (Deepak Purswani)
- Answer: Pricing is benchmarked against Chinese landed costs. Malaysian/Vietnamese glass is 3-4% cheaper than Chinese, making the continuation of CVD critical (Ashok Jain).
Key Takeaway
Borosil Renewables delivered a record standalone performance in Q3 FY26, with revenue reaching ₹386.50 crores and EBITDA surging 518% YoY to ₹129.04 crores, driven by improved realisations of ₹149.97/mm. The company has successfully ring-fenced its balance sheet from the insolvency of its German subsidiaries, with the consolidated P&L now reflecting standalone operations. Strategically, Borosil is focused on a 60% capacity expansion targeted for Q4 FY27, while banking on the Indo-EU Free Trade Agreement to open export channels. Management maintains a cautious stance on further capex due to talent poaching in the sector, despite domestic demand reaching 55 GW. With the implementation of ALMM-II and III on the horizon, the company is positioned to benefit from a deepening local supply chain, provided it can navigate rising natural gas costs through its upcoming renewable energy integration and ongoing operational efficiencies. Constant monitoring of DGTR’s sunset review on Malaysian CVD remains the primary watch point for near-term pricing stability.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: