Borosil Renewables Limited has received a significant credit rating update from India Ratings & Research Private Limited, with the outlook revised to positive from negative while maintaining the IND A rating on its bank loan facilities. The rating action, announced on December 30, 2025, reflects substantial improvements in the company's financial performance and credit metrics.

Rating Action Details

India Ratings has taken comprehensive rating actions on Borosil Renewables' banking facilities:

The rating agency has taken a fully consolidated view of Borosil Renewables and its wholly owned subsidiary, Laxman AG. Notably, the German subsidiary GMB Glasmanufaktur Brandenburg GmbH filed for bankruptcy in July 2025 and ceased to be part of the Borosil group effective July 4, 2025.

Financial Performance Improvement

The outlook revision primarily stems from dramatic improvements in operational profitability and credit metrics during the first half of FY26:

The substantial margin improvement reflects better selling prices following the implementation of anti-dumping duty on solar glass imports from December 2024, effective cost-saving measures, and the de-consolidation of the loss-making German operations.

Key Rating Strengths

India Ratings highlighted several positive factors supporting the rating:

• Consistent Revenue Growth: The company achieved revenue CAGR of over 30.00% during FY22-FY25, with expectations of ₹15,200.00-15,500.00 million in FY26
• Market Leadership: Dominant position with highest installed capacity of 1,000 tonnes per day and first-mover advantage in India's solar glass manufacturing
• Improved Profitability: EBITDA margins surged to 25.00% in 1HFY26 from 4.00% in FY25, supported by price improvements and operational efficiencies
• Strengthened Balance Sheet: Equity fundraise of ₹3,710.00 million completed in October 2025, with additional ₹2,800.00 million expected from warrant conversion by August 2026

Expansion Plans and Future Outlook

Borosil Renewables is expanding its manufacturing capacity by 600 tonnes per day at an estimated cost of ₹9,500.00 million, expected to be operational by end of FY27. The expansion will be largely funded through the recent equity raise and planned warrant conversions, ensuring minimal impact on leverage ratios.

India Ratings expects the company to maintain similar margin levels through 2HFY26 and FY27, supported by continued price improvements and a 10.00% reduction in power expenses from 4QFY26 due to a new captive solar-wind hybrid plant.

Rating Sensitivities

The rating agency outlined clear parameters for future rating actions:

Positive Triggers:

• Sustained improvement in consolidated revenue and EBITDA while maintaining net leverage below 2.00x

Negative Triggers:

• Lower-than-expected revenue growth or operating profitability
• Working capital cycle elongation or significant capex increases leading to net leverage exceeding 2.00x

The positive outlook revision reflects Borosil Renewables' successful operational turnaround and strengthened financial position, positioning the company well for continued growth in India's expanding solar glass market.

Borosil Renewables has issued a regulatory notification regarding the extension of countervailing duty on textured tempered glass/solar glass imports from Malaysia, following a Ministry of Finance notification dated December 7, 2025. The company informed stock exchanges that the protective trade measure will continue until June 8, 2026, providing sustained protection for domestic solar glass manufacturers.

Regulatory Notification Details

The company filed the notification under Regulation 30 with both BSE Limited and National Stock Exchange of India Limited. According to the filing, the Ministry of Finance originally imposed the countervailing duty through a notification dated March 9, 2021, for a five-year period that was set to conclude on March 8, 2026.

Sunset Review Process

The Designated Authority, Ministry of Commerce, Government of India (DGTR) initiated a sunset review in June 2025 to examine the company's request for continuation and variation in the countervailing duty. The three-month extension provides time for DGTR to complete its investigation while protecting domestic producers from unfairly priced imports from Malaysia.

Market Protection Framework

The countervailing duty serves as a critical trade remedy tool, allowing India to impose additional tariffs on imports that benefit from government subsidies in their country of origin. This measure aligns with India's strategy to strengthen its renewable energy manufacturing ecosystem and support domestic solar glass production capabilities.

Industry Impact

The extension provides market stability for domestic solar glass manufacturers operating in India's competitive renewable energy sector. Solar glass is a critical component in photovoltaic modules, making this trade protection measure significant for the country's solar energy manufacturing ambitions and reducing dependence on subsidized imports.