Financial Performance Summary

Consolidated Financials (Q1 FY27 vs Q1 FY26):

  • Revenue from operations: ₹253.6 crores (up from ₹232.7 crores, +9% YoY)
  • Operating EBITDA: ₹35.9 crores (down from ₹40.2 crores)
  • EBITDA Margin: 14.6% (down from 17.8%)
  • Profit Before Tax: ₹17.4 crores (down from ₹23.5 crores)
  • Profit After Tax: ₹12.8 crores (down from ₹17.4 crores)
  • Other Operating Income: ₹8.2 crores (primarily shared service support income and export incentives)
  • Depreciation: ₹21.9 crores (slight decrease from ₹22.0 crores)
  • Finance Cost: ₹1.8 crores (slight increase from ₹1.7 crores)

Balance Sheet Position (as of June 30, 2026):

  • Investments, cash and bank balances: ₹56.2 crores
  • Total debt: ₹155.2 crores
  • Net debt position: ₹99.0 crores

Operational Highlights and Strategic Updates

Manufacturing Expansion:

  • Through wholly-owned subsidiary Stylenest India Limited, commissioned BIS-compliant manufacturing unit in Rajasthan for vacuum insulated stainless steel flasks, bottles and containers
  • Commercial production from 2 double-wall lines commenced on June 30, 2026
  • Third double-wall line expected to commence production during Q2 FY27

Solar Power Initiatives:

  • Commissioned third captive solar plant in Bikaner during Q1 FY27 with 20 MWp capacity integrated with battery energy storage system
  • First project under Green Energy Open Access Regulations 2025
  • Solar power now meets approximately 61% of overall energy requirements
  • Evaluating additional 6.5 MWp plant at Borosil Limited and 3-4 MWp plant at Stylenest India Limited for Hydra facility

Retail Expansion:

  • Launched first exclusive Borosil brand stores in Pune and Gurugram
  • Stores designed to offer complete range of kitchen, dining, home and lifestyle solutions
  • Additional store planned in Jaipur
  • Typical store capex: ₹40-50 lakhs per store

Capacity Expansion Projects:

1. Bharuch Glassware Manufacturing Project:

  • Board approved in Q4 FY26
  • Estimated capex: ₹42 crores
  • Currently sourcing approximately ₹100 crores of drinking glasses, storage jars, jugs and bottles from BSL's Bharuch plant
  • Expected commissioning by end of Q3 FY27

2. Jaipur Furnace Expansion:

  • Board approved expansion of borosilicate pressware blast furnace from 25 tons per day to 32 tons per day
  • Addition of third forming line with estimated capex of ₹50 crores
  • Existing furnace utilization at 90%
  • Expected commissioning by end of Q4 FY28

Category-wise Performance (Q1 FY27 vs Q1 FY26)

Larah Opalware Segment:

  • Sales: ₹83.6 crores (up from ₹76.2 crores, +9.8% YoY)
  • Primarily volume-led growth
  • Whiteware contribution: ~10% of Opalware sales (up from less than 5%)

Glassware Segment:

  • Includes borosilicate microwavables, serving-ware, glass tumblers, lunch boxes and storage solutions
  • Revenue: ₹65.6 crores (up from ₹56.2 crores, +16.8% YoY)
  • Double-digit YoY growth, primarily volume-led
  • Current utilization: 90%

Non-glassware Segment:

  • Includes small home appliances, insulated bottles and flasks, cookware and other kitchen essentials
  • Revenue: ₹98.1 crores (up from ₹94.2 crores, +4.2% YoY)
  • Hydra range impacted by BIS compliance requirements
  • Strong growth in domestic appliances and stainless steel cookware offset Hydra challenges

Impact Analysis

West Asia Conflict Impact:

  • Estimated overall impact on Q1 FY27: approximately ₹10 crores
  • Primarily through input cost inflation in fuel and packaging materials
  • Partial offset through price increases across multiple categories (5-7% range)
  • Fuel cost impact:
  • Opalware: increased from ~4% to 5.8% of sales
  • Glassware: increased from ~5.5% to higher levels

One-time Items (Q1 FY26):

  • Stamp duty reversal: ₹7.2 crores
  • Professional fees: ₹1.6 crores
  • Net impact: ₹5.6 crores

Q1 FY27 Other Income:

  • Royalty income: ₹4.0 crores
  • Investment income: ₹1.2 crores

Management Guidance and Commentary

FY27 Outlook:

  • EBITDA margin guidance: 18% (excluding West Asia conflict impact)
  • Total capex guidance: ₹125-150 crores
  • Glassware projects (Bharuch and Jaipur expansion)
  • Solar projects
  • Maintenance capex for opal glass furnace rebuild
  • Depreciation expectation: ~₹92 crores for FY27
  • Solar savings estimate: ~₹27-28 crores at EBITDA level

Growth Expectations:

  • Maintain growth momentum in both Glassware and Opalware segments
  • Price realization from hikes expected to materialize in Q2 onwards
  • Focus on replacing plastic with microwave-safe BPA-free glass and stainless steel products

Competitive Landscape:

  • Continued challenges from Chinese dumping in borosilicate glassware segment
  • Antidumping duty investigation pending with appropriate authorities
  • Market expansion remains primary objective despite competitive pressures

ROCE Improvement Focus:

  • Target ROCE: 20-24% in medium term
  • Current ROCE challenged by heavy capex investments in manufacturing facilities
  • Inventory build-up due to BIS challenges and manufacturing transition to India
  • Expected improvement through capacity utilization enhancement and margin expansion

Operational Metrics

Distribution Network:

  • Products available in over 24,000 retail outlets
  • Omnichannel presence across general trade, modern retail, e-commerce (Amazon, Flipkart, borosil.com), quick commerce (Blinkit, Zepto, Swiggy)
  • Strong B2B and export channels

Product Innovation:

  • Introduced Thermoware range for school and college students
  • Expanding with insulated casseroles for new home makers
  • Focus on convenience, durability, and style