BORORENEW - BOROSIL RENEWABLES LIMITED Share Price

In the Q1 FY26 earnings call for Borosil Renewables Limited, management provided a positive outlook reflecting strong domestic demand and anticipated improvements in sales and EBITDA. Key forward-looking points discussed include:

1. Financial Performance: The company reported sales of INR 332.26 crores, up 37% year-over-year, with an EBITDA of INR 92.53 crores (27.8% margin), representing a 211% increase from the corresponding quarter last year. Management expects continued rise in EBITDA margin due to favorable pricing trends.

2. Expansion Plans: A preferential issue of 70,93,874 equity shares for INR 379.52 crores has been approved to fund ongoing projects. The new project, expanding capacity to 600 TPD, is projected to be commissioned by the third quarter of FY26-27.

3. Domestic Demand Projections: Domestic solar glass demand is anticipated to reach 50 gigawatts in the current year, with solar module manufacturing capacity expected to rise from 90 gigawatts to 150 gigawatts by March 2027.

4. Market Dynamics: The anti-dumping duty on solar tempered glass imports from China and Vietnam has significantly stabilised selling prices, with average selling prices recorded at INR 138.1 per square meter, up from INR 105.5 per square meter in the previous quarter.

5. Strategic Focus: Following the insolvency of its German subsidiary, management intends to recalibrate focus towards Indian operations. The write-off of INR 325.91 crores related to the German subsidiary is expected to streamline future financial results.

6. Future Guidance: Management indicated that while improvements in selling prices are likely, any substantial changes will be moderate. EBITDA margins may increase by an additional couple of percentage points over the coming quarters.

These factors collectively suggest a robust outlook for Borosil Renewables, with a strong focus on domestic operations and product pricing stability amidst ongoing global challenges.

1. Question: "Can you provide a more detailed project timeline and specific milestones for the new 600 TPD extension, especially regarding land acquisition?" Answer: "The expansion is a brownfield project at our current location, and the necessary land acquisition is complete. We expect the project to be commissioned between October and December of 2026. There are currently no factors foreseen that would cause delays."

2. Question: "What is the strategic vision for the European presence, particularly for the GMB plant?" Answer: "The GMB plant has been declared insolvent, and the insolvency process is managed by an administrator. As shareholders, we have limited influence over this, and we will continue acknowledging our customers from the Indian operations while the GMB situation plays out."

3. Question: "Is there any revised EBITDA margin guidance for FY26?" Answer: "We anticipate some improvement in margins; while we are currently at 28%, we expect them to increase by a couple of percent as prices trend upward monthly."

4. Question: "Are you expecting any further price increases in the coming financial year and how will it impact EBITDA margins?" Answer: "Price estimates can vary, but broadly, we expect slight increases that should boost our EBITDA margins. Increasing prices will contribute positively to cash conversion, and a target of 75%-80% cash flow conversion on EBITDA is reasonable."

5. Question: "What is the current average selling price, and how will it improve post-ADD?" Answer: "Our current average selling price is INR 138 per square meter. The import duties on Vietnamese glass should stabilize prices, allowing for some incremental improvements."

6. Question: "What is the domestic market size for solar glass and unit economics?" Answer: "Current market size reflects about 50 gigawatts of module production, with domestic glass production at 15 gigawatts, indicating a 35-gigawatt gap yet to fill."

7. Question: "What precautions and learnings has management taken from the GMB acquisition?" Answer: "The GMB acquisition was based on favorable market conditions, but external shocks led to demand loss. Our learning is to remain adaptable and responsive to market conditions, avoiding long-term commitments without substantiated demand."

8. Question: "Can we use GMB equipment for CAPEX in India?" Answer: "Yes, some of the equipment, especially processing lines, can be utilized in India. However, we need to evaluate alternatives and costs before making a final decision."

9. Question: "What kind of volume growth do you envisage for FY26?" Answer: "We expect 6% to 8% volume growth for FY26 compared to the last financial year, though actual figures may vary based on operational efficiencies."

10. Question: "Will we be able to recover anything from the GMB write-off?" Answer: "Currently, valuations indicate that assets may not exceed liabilities, thus making recovery unlikely. Should a future sale or better outcome arise, we would revisit this."

These summarized questions and answers provide insights into the company's operational outlook and key strategies, reflecting its focus on growth amidst challenges.