Borosil Board Approves ₹107 Cr Expansion in Gujarat and Rajasthan
Borosil Limited's investor presentation for the year ended March 31, 2026, reported a total capital employed of ₹1,042.9 crore and an operational ROCE of 10.7%. The company announced Board approvals for capital expenditure totaling ₹107 crore, including a ₹42 crore manufacturing facility in Bharuch and a ₹50 crore expansion of its Jaipur furnace capacity to 32 TPD. These initiatives aim to capitalize on rising demand for premium kitchenware driven by increasing per capita income and a shift away from plastic products.
*this image is generated using AI for illustrative purposes only.
Borosil Limited has released its investor presentation for the quarter and financial year ended March 31, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The presentation outlines the company's financial performance and strategic capital expenditure plans aimed at expanding manufacturing capabilities across Gujarat and Rajasthan.
Financial Performance
The company reported an operational Return on Capital Employed (ROCE) of 11.5% for FY25 and 10.7% for FY26. Total capital employed increased from ₹904.3 crore in FY25 to ₹1,042.9 crore in FY26. The following table details the changes in capital employed and profitability metrics:
| Particulars: | FY25 (₹ Crs) | FY26 (₹ Crs) |
|---|---|---|
| Shareholders Funds | 807.7 | 886.9 |
| Deferred Tax Liability | 19.0 | 19.5 |
| Total Debt | 77.7 | 136.4 |
| Capital Employed | 904.3 | 1,042.9 |
| CWIP & Investments | (63.2) | (201.2) |
| Operating Capital Employed (A) | 841.1 | 841.7 |
| PBT (Before Exceptional Items) | 103.2 | 105.0 |
| Operational EBIT (B) | 96.7 | 89.9 |
| Operational ROCE (B/A) | 11.5% | 10.7% |
Strategic Expansion Plans
Borosil Limited outlined significant capital expenditure plans. The Board has approved a new 100,000 sq. ft. manufacturing facility at Bharuch, Gujarat, with an estimated capex of ₹42 crore. This project, expected to be commissioned by the end of Q3 FY27, will utilize Borosilicate 3.3 glass tubes to produce drinking glasses, storage jars, jugs, and bottles. Operations will be managed by Borosil Renewables Limited under a contract manufacturing arrangement.
Additionally, the Board approved an expansion of the existing furnace capacity in Jaipur from 25 TPD to 32 TPD with the addition of a third forming line. This expansion entails an estimated capex of ₹50 crore. The company is also setting up a new manufacturing unit in Rajasthan with an estimated capex of ₹65 crore for vacuum-insulated stainless-steel flasks, bottles, and containers, with an initial capacity of approximately 3.6 million units annually. Commercial production for the Rajasthan unit is expected to commence by the end of Q1 FY27 and Q2 FY27.
Expansion at a Glance
| Parameter: | Bharuch, Gujarat | Rajasthan (Jaipur Expansion) |
|---|---|---|
| Estimated Capex | ₹42 crore | ₹50 crore |
| Facility Size | 100,000 sq. ft. | — |
| Product Focus | Drinking glasses, storage jars, jugs, bottles | Furnace capacity expansion to 32 TPD |
| Glass Type | Borosilicate 3.3 | — |
| Initial Capacity | — | Additional 3rd forming line |
| Target Commissioning | End of Q3 FY27 | — |
| Operations Managed By | Borosil Renewables Limited | — |
Market Outlook
The presentation highlighted favorable macroeconomic trends supporting growth. With India's per capita income expected to reach $4,000 by FY30 and discretionary spending projected to grow at an 8.7% CAGR, demand for premium kitchenware is poised for rapid growth. The company noted a significant consumer shift from plastic to glass and steel products, driven by health and environmental concerns.
Historical Stock Returns for Borosil
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.00% | -0.74% | -10.37% | -30.43% | -34.85% | +22.05% |
How will the contract manufacturing arrangement with Borosil Renewables Limited at the Bharuch facility impact revenue recognition and margin profiles for both entities going forward?
Given the declining operational ROCE from 11.5% to 10.7% amid rising capital deployment, at what timeline does management expect the new capex investments to meaningfully improve returns on capital?
As Borosil expands into vacuum-insulated stainless-steel products in Rajasthan, how will the company compete against established domestic and Chinese players already entrenched in this segment?
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