Key Financial Performance (Q1 FY27 Consolidated)

Revenue & Profitability:

  • Revenue from operations: INR 253.6 crores (up from INR 232.7 crores in Q1 FY26), representing 9% YoY growth
  • Operating EBITDA (before investment income and one-time items): INR 35.9 crores (vs. INR 40.2 crores in Q1 FY26)
  • EBITDA margin: 14.6% (vs. 17.8% in Q1 FY26)
  • Profit before tax: INR 17.4 crores (vs. INR 23.5 crores in Q1 FY26)
  • Profit after tax: INR 12.8 crores (vs. INR 17.4 crores in Q1 FY26)

Other Income & Costs:

  • Other operating income: INR 8.2 crores (primarily shared service support income and export incentives)
  • Royalty income: INR 4 crores
  • Investment income: INR 1.2 crores
  • Depreciation: INR 21.9 crores (slight decrease from INR 22 crores in Q1 FY26)
  • Finance cost: INR 1.8 crores (slight increase from INR 1.7 crores in Q1 FY26)

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

  • Investments, cash and bank balances: INR 56.2 crores
  • Total debt: INR 155.2 crores
  • Net debt position: INR 99 crores

Operational Highlights & Business 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

Sustainability Initiatives:

  • Successfully commissioned third captive solar plant in Bikaner with 20 MWp capacity integrated with battery energy storage system
  • Solar power now meets approximately 61% of overall energy requirements
  • Evaluating additional solar projects: 6.5 MWp at Borosil Limited and 3-4 MWp at Stylenest India Limited

Retail Expansion:

  • Launched first exclusive Borosil brand stores in Pune and Gurugram
  • Stores designed to showcase complete range of kitchen, dining, home and lifestyle solutions

Category-wise Performance (Q1 FY27)

Larah Opalware Segment:

  • Sales: INR 83.6 crores (vs. INR 76.2 crores in Q1 FY26)
  • Growth: 9.8% YoY, primarily volume-led

Glassware Segment:

  • Includes borosilicate microwavables, serving-ware, glass tumblers, lunch boxes and storage solutions
  • Revenue: INR 65.6 crores (vs. INR 56.2 crores in Q1 FY26)
  • Growth: 16.8% YoY, primarily volume-led

Non-glassware Segment:

  • Includes small home appliances, insulated bottles and flasks, cookware and other kitchen essentials
  • Revenue: INR 98.1 crores (vs. INR 94.2 crores in Q1 FY26)
  • Growth: 4.2% YoY
  • Hydra range (vacuum insulated stainless-steel flasks and bottles) continued to face challenges due to BIS compliance requirements

Strategic Projects & Capex Plans

Bharuch Glassware Manufacturing Project:

  • Board approved in Q4 FY26
  • Estimated capital expenditure: INR 42 crores
  • To manufacture drinking glasses, storage jars, jugs and bottles
  • Expected commissioning by end of Q3 FY27

Jaipur Furnace Expansion:

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

FY27 Capex Guidance:

  • Total estimated capex: INR 125-150 crores
  • Includes glassware projects, solar projects, and maintenance capex for opal glass furnace rebuild

Management Commentary & Guidance

Margin Pressure Factors:

  • EBITDA margin decline primarily attributable to input cost inflation, particularly in fuel and packaging materials
  • West Asia conflict impact on Q1 FY27: approximately INR 10 crores
  • Impact partially offset through price increases implemented across multiple categories (5-7% range)

FY27 Outlook:

  • EBITDA margin guidance: 18% (excluding West Asia conflict impact)
  • Expected solar savings: INR 27-28 crores at EBITDA level
  • Depreciation guidance: approximately INR 92 crores for FY27

Growth Strategy:

  • Focus on replacing plastic with microwave-safe BPA-free glass and stainless steel products
  • Omnichannel presence across general trade, modern retail, e-commerce platforms (Amazon, Flipkart, borosil.com), quick commerce platforms (Blinkit, Zepto, Swiggy)
  • Products available in over 24,000 retail outlets

Q&A Session Highlights

Margin Improvement Drivers:

  • Price increases implemented with realization expected in Q2 onwards
  • Fuel cost impact reduction expected: Opalware from INR 6 crores to ~INR 1.5 crores per quarter; Glassware from INR 2.5 crores to ~INR 0.6-0.7 crores per quarter
  • Solar savings contributing to cost competitiveness

Capacity Utilization:

  • Glassware utilization: 90%
  • Opalware utilization: near full capacity

ROCE Profile:

  • Target ROCE: 20-24% in medium term
  • Current lower ROCE attributed to heavy capex investments in manufacturing facilities and inventory build-up due to BIS challenges

Product Segments:

  • Whiteware contribution: ~10% of Opalware sales (up from less than 5% last year)
  • HoReCa channel: minimal focus, not a structured distribution channel

Exclusive Stores:

  • Capex per store: INR 40-50 lakhs
  • Next store planned in Jaipur
  • No specific target for store count expansion