Borosil Renewables Limited , India's largest solar glass manufacturer, has provided a positive outlook for its financial performance and growth prospects in its recent investor presentation for Q1 FY26.

Strong Financial Performance

The company reported robust financial results for Q1 FY26, with revenue reaching ₹332.26 crore, a 37.40% year-on-year increase. EBITDA saw a significant jump to ₹92.53 crore, up 211.40% year-on-year, with EBITDA margins expanding to 27.80% from 12.30% in the same quarter last year.

Sustainable EBITDA Margins and Volume Growth

Borosil Renewables projects sustainable EBITDA margins between 28-30% and anticipates improvement by a few percentage points moving forward. The company expects potential EBITDA margin increase from 28% and forecasts 6-8% volume growth for FY26 compared to the previous year.

Strategic Focus on Indian Market

Following the insolvency filing of its German subsidiary GMB, Borosil Renewables has realigned its focus on the rapidly growing Indian solar market. The company cited the collapse in European demand due to Chinese solar module flooding and lack of government intervention as reasons for the strategic exit from Europe.

Capacity Expansion Plans

The Board has approved the setup of two new furnaces (SG-4 & SG-5), each with a capacity of 300 tons per day (TPD), totaling 600 TPD. This expansion, estimated to cost ₹950 crore, is expected to be commissioned by December 2026. The increased capacity aims to capture growing domestic demand for solar glass and provide an import substitute.

Funding for Expansion

To support its growth plans, Borosil Renewables has proposed a ₹379.52 crore preferential equity issue, subject to shareholder and stock exchange approvals. This fundraise, along with earlier warrants and debt, will help finance the capacity expansion project.

Industry Tailwinds

The company is benefiting from favorable policy measures, including a 5-year anti-dumping duty on solar glass imports from China and Vietnam, effective from December 2024. This has led to an increase in solar glass prices, with Q1 FY26 showing a 31% year-on-year rise.

Export Strategy

Borosil Renewables is also focusing on increasing its export mix, targeting 10-15% of total sales. In Q1 FY26, exports amounted to ₹35.67 crore, accounting for 10.70% of the turnover, compared to 5.80% in the preceding quarter.

While the company has provided a positive outlook, it has chosen not to share exact guidance numbers, instead offering directional indicators for its future performance. As Borosil Renewables continues to capitalize on the growing solar energy sector in India, investors will be watching closely to see if the company can deliver on its projected margins and volume growth in the coming quarters.

Borosil Renewables Limited , India's largest solar glass manufacturer, reported a strong 37% year-over-year revenue growth for the first quarter, despite facing a significant setback from its German subsidiary's insolvency.

Financial Highlights

The company achieved a revenue of ₹332.26 crores in Q1, up from ₹241.82 crores in the same quarter last year. EBITDA surged by 211% to ₹92.53 crores, representing a margin of 27.8%, compared to ₹29.71 crores (12.3% margin) in the previous year's Q1.

Operational Performance

The company's average selling prices increased by 31% to ₹138.10/mm from ₹105.52/mm in the corresponding quarter. This price improvement was primarily driven by anti-dumping duties imposed on Chinese and Vietnamese solar glass imports.

German Subsidiary Insolvency

Despite the strong operational performance, Borosil Renewables recorded an exceptional loss of ₹325.91 crores due to the full provisioning of its exposure to its German subsidiary, GMB Glasmanufaktur Brandenburg GmbH (GMB). GMB filed for insolvency on July 4, citing a complete absence of demand recovery in the European market.

Given the uncertainty surrounding the insolvency proceedings, Borosil Renewables decided to fully provide for this exposure, resulting in a net loss of ₹272.35 crores for the quarter.

Expansion Plans

Looking ahead, Borosil Renewables' Board has approved the expansion of two new furnaces, each with a capacity of 300 TPD, totaling 600 TPD. This expansion, estimated to cost ₹950 crores, is targeted for commissioning by December 2026.

To fund this growth, the company has approved a ₹379.52 crore preferential equity issue, subject to shareholder approval at the upcoming Extraordinary General Meeting scheduled for August 14.

Future Outlook

With the exit from the European market, Borosil Renewables is realigning its focus on India's growing solar industry. The company aims to leverage the strong policy tailwinds, including the five-year anti-dumping duty on Chinese and Vietnamese imports, to drive its growth in the domestic market.

The planned capacity expansion is expected to address the significant supply gap in the Indian market, where imports currently account for almost 75% of the demand. As India's solar module manufacturing capacity is projected to rise, Borosil Renewables is positioning itself to capitalize on this growth opportunity.

Despite the short-term impact of the German subsidiary's insolvency, Borosil Renewables appears well-positioned to benefit from the positive trends in the Indian solar glass market, supported by favorable government policies and increasing domestic demand for solar modules.