Borosil Renewables Ltd (BORORENEW) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to Borosil Renewables Q2 FY '27 earnings call, hosted by Go India Advisors LLP. As a reminder, all participant line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Tanishqa Tanvi from Go India Advisors. Thank you, and over to you, ma'am.
Tanishqa Tanvi (Go India Advisors): Thank you, Saisha. Good evening, everyone, and welcome to Borosil Renewables Limited earnings call to discuss Q2 and H1 FY '27 results. We have the senior management of the company on call: Mr. P. K. Kheruka, Executive Chairman; Mr. Ashok Jain, Director; Mr. Melvin Moses, Chief Executive Officer; Mr. Sunil Roongta, Whole-time Director and CFO; Mr. Dhaval Patel, AVP - Investor Relations. We must remind you that the discussion on today's call may include certain forward-looking statements, and must be, therefore, viewed in conjunction with the risks that the company may face. May I now request Mr. P. K. Kheruka, sir, to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you and over to you, sir.
P. K. Kheruka (Borosil Renewables Ltd): Good afternoon. Welcome to the Borosil Renewables Q2 FY '27 investor call. The standalone and consolidated results for the quarter and half year ended September '26, as approved by the board today and an updated presentation, have been uploaded at both the stock exchange and company's website. We will now discuss the operations of company on a standalone and consolidated basis. Standalone results, half-yearly, sales at Rs. 801.8 crores, including Rs. 15.4 crore sales of solar kits, registered a rise of 12.8% versus Rs. 710.7 crores in first half FY '26. The EBITDA rose by 18.5% to 258.3 crores from 218 crores in first half year financial year '25-'26. Coming to the quarterly sales, total sales during the quarter stood at 396.2 crores, including solar kits, which accounted for Rs. 14.1 crores. Solar glass sales stood at Rs. 382.1 crores versus Rs. 378.4 crores in Q2 FY '26 and Rs. 405.7 crores in Q1 FY '27. There was negligible EBITDA in sales of solar kits. EBITDA, Rs. 116.34 crores, stood at 30.4% based on sales of solar glass versus Rs. 125.5 crores in Q2 FY '26 at 33% and Rs. 142.0 crores in Q1 FY '27 at 33.8%. There was a small drop in margins compared to Q2 FY '26 due to lower production. I should inform our investors that in the quarter that went by, we had a decline in solar glass volumes, which was because of furnace maintenance and also a price decline of 2.8%, as collection of fuel surcharge on sales was reduced, looking at the collection
P. K. Kheruka (Borosil Renewables Ltd): prices. The production was also being adjusted by the production team to correct small anomalies and come to a finer tuning which would eventually raise result in higher production which worked very well and production has gradually increased from middle of September to levels which are higher than at any time before in the history of the company. During the month of October, we have had exceptionally good production, which we hope is going to continue for the rest of the quarter. With more positive results in the cu- current quarter, we feel it will be possible to make good this shortfall in the rest of the year. The average ex-factory selling price during Q2 FY '27 was ₹155.9 per millimeter as compared to ₹147.5 per millimeter in Q2 FY '26 and against 160.3 per millimeter in Q1 FY '27. The surcharge levied to offset the fuel cost increase after outbreak of West Asia war was partially rolled back in July looking at decline in gas prices on the hope of improvement in war situation. However, this was short-lived. Disturbances resumed after a brief time taking prices of oil and gas to higher levels as compared to before, putting an additional cost burden on the company's operations. We have recently taken steps to raise the fuel surcharge to offset this. As production and selling prices have normalized in the current quarter, we expect the margins to move back to higher levels at the end of this quarter. Solar manufacturing continues to show strong growth on the back of government support. The module manufacturing capacity, on the support by way of PLI, BCD, and ALMM 1, has reached 233 GW as against annual installations of about 62 GW on DC basis. Solar cell manufacturing supported by ALMM 2 is leading to speedy increase in capacity, which is expected to rise to about 75 GW by 2027 from about 38 GW currently, as significant capacities are under installation. We expect the annual solar installations to maintain at a level of 45 GW, which translates to 62 GW on DC basis, while other emerging sectors like EV, data centers and green hydrogen may take this to a higher level going forward. Thus, solar glass demand for domestic installations can be expected at least at 62 GW, leaving a huge supply gap. In view of supply gap and its customer relationships, the company does not foresee any challenges in selling the additional production. Work on our ongoing 60% capacity expansion by adding production facilities of 600 tonnes per day at our existing location is in full swing, and we expect the commissioning of the project towards the end of Q4 FY '27. While the existing furnaces are operating at full capacity, we may have to take furnace 1 and 2 for a temporary shutdown of 75 days each for rebuild, which may happen in first half of the next financial year 27-28. The company is exploring further opportunities for the next round of growth. Now I come to the consolidated results for the quarter. The overseas subsidiaries, including the step-down subsidiaries, did not generate any net revenue for Q2 FY '27 and had a negative EBITDA of 0.11 crore rupees as against net net revenue of 0.43 crores and negative EBITDA of ₹5.08 crores in Q2 FY '26. The consolidated net revenue for the quarter stands at ₹396.7 crores and EBITDA of ₹116.22 crores as compared to net revenue of 378.88 crores and EBITDA of ₹120.42 crores in Q2 FY '27. With that, I would now like to open the floor to questions that you may have.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while
Moderator: having a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pankaj Kumar from Kotak Neo. Please go ahead.
Pankaj Kumar (Kotak Neo): Thank you, thanks for taking my question. Good evening, sir.
Moderator: Mr. Pankaj, please go ahead.
Pankaj Kumar (Kotak Neo): Am I audible? Yes. Hello, am I audible? Hello, audible?
Moderator: Since Mr. Pankaj is not audible, the next question is from the line of Deepak Purswani from Swan Investments. Please go ahead.
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