Financial Performance Highlights

Standalone Results (H1 FY27):

  • Sales: INR 801.8 crores (including INR 15.4 crores from solar kits), representing 12.8% growth versus INR 710.7 crores in H1 FY26
  • EBITDA: INR 258.3 crores, up 18.5% from INR 218 crores in H1 FY26

Standalone Results (Q2 FY27):

  • Total Sales: INR 396.2 crores (including INR 14.1 crores from solar kits)
  • Solar Glass Sales: INR 382.1 crores versus INR 378.4 crores in Q2 FY26 and INR 405.7 crores in Q1 FY27
  • EBITDA: INR 116.34 crores at 30.4% margin based on solar glass sales
  • Q2 FY26 Comparison: EBITDA of INR 125.5 crores at 33% margin
  • Q1 FY27 Comparison: EBITDA of INR 142.0 crores at 33.8% margin
  • Average ex-factory selling price: INR 155.9 per square meter versus INR 147.5 in Q2 FY26 and INR 160.3 in Q1 FY27

Consolidated Results (Q2 FY27):

  • Net Revenue: INR 396.7 crores
  • EBITDA: INR 116.22 crores
  • Overseas subsidiaries generated negative EBITDA of INR 0.11 crores with no net revenue

Operational Performance and Challenges

Production Issues:

  • Production declined by approximately 4.5% in Q2 FY27 due to furnace maintenance and parameter fine-tuning
  • Revenue impact estimated at INR 15 crores due to production shortfall
  • Production recovered strongly in October 2026, reaching levels higher than any previous period in company history
  • Management expects to make up the production shortfall in remaining quarters

Margin Pressures:

  • Margin decline attributed to 2.8% price reduction from reduced fuel surcharge collection following temporary gas price correction
  • Fuel surcharge partially rolled back in July 2026 but reinstated in October 2026 due to resumed gas price increases
  • Raw material cost pressures from:
  • 10% price increase in soda ash (30-32% of raw material basket)
  • Higher freight costs for imported dolomite and limestone from China
  • Company working to increase domestic sourcing from current 30-40% mix

Capacity Expansion Project

Project Details:

  • 60% capacity expansion adding 600 tons per day production facilities
  • Project cost revised upward by INR 150 crores to INR 1,100 crores total
  • Cost increase breakdown:
  • 20% (INR 30 crores) due to rupee depreciation against dollar
  • Major portion for fuel cost saving equipment with payback benefits
  • INR 25 crores for enhanced power redundancy systems
  • Funding: INR 800 crores internal funds, INR 300 crores debt (already tied up but not drawn)
  • Commissioning expected toward end of Q4 FY27 (February-March 2027)
  • Furnace 1 and 2 may require 75-day shutdown each for rebuild in H1 FY28

Market Context:

  • Domestic module manufacturing capacity: 23 GW against annual installations of 62 GW (DC basis)
  • Solar cell manufacturing capacity expected to reach 75 GW by 2027 from current 38 GW
  • Domestic solar glass supply currently meets only 18 GW demand, rest imported
  • Anti-dumping duty against China and Vietnam in place until December 2029

New Business Initiatives

Solar Kit Business:

  • Q2 FY27 sales: INR 14.1 crores (negligible EBITDA contribution)
  • Business focused on rooftop solar solutions using Borosil brand recognition
  • Initial operations in four states with positive customer response
  • Modules sourced from existing glass customers who use Borosil glass
  • Margins characterized as low due to competitive trading nature
  • Approach cautious with focus on customer experience evaluation

Financial Management

Investment Portfolio:

  • INR 600+ crores invested in secured instruments (liquid mutual funds, debt markets)
  • Current yield: below 7%, target yield: 7.3-7.5% through AAA securities
  • Funds earmarked for project requirements

Capital Structure:

  • All warrant conversions and equity issuances completed with no pending dilution
  • Promoter equity issuance completed in February 2025 with full payment
  • No further dilution anticipated in foreseeable future
  • Tax rate: 25%

Forward Outlook

Operational Expectations:

  • Production levels significantly improved in October 2026
  • Target to maintain 30%+ EBITDA margins through:
  • Reinstated fuel surcharge
  • Operational efficiencies
  • Production increases (8-10% higher than previous levels)
  • Raw material sourcing optimization

Growth Strategy:

  • Exploring new specialty glass opportunities beyond solar
  • External consultants engaged to identify suitable growth areas
  • Decision on next growth phase expected by end of FY27
  • Company philosophy emphasizes managed growth without overstretching management capacity