Thank you, Shubham. Good evening.

On behalf of Axis Capital, I am pleased to welcome you all for the Q3 FY26 earnings conference call of Borosil Renewables Limited. We have with us the management represented by Mr.

P. K.

Kheruka, Executive Chairman; Mr. Ashok Jain, Non-Executive Director; Mr.

Sunil Rungta, Whole-time Director and Chief Financial Officer; and Mr. Dhaval Patel, AVP, Investor Relations.

We will begin with the opening remarks from the management, followed by an interactive Q&A session. Thank you, and over to you, sir.

This is Pradeep Kheruka, Chairman. Good afternoon, and welcome to the Borosil Renewables quarter three FY26 investor call.

The standalone and consolidated financial results for the quarter ended 31st December 2025 were approved by the board of Borosil Renewables on Wednesday, 28th January. Our results and an updated presentation have been sent to the stock exchanges, and have also been uploaded on the company's website.

We will now discuss the operations of company on a standalone and consolidated basis. On standalone basis, the company achieved an all-time high quarterly sales of ₹386.5 crores versus ₹275.28 crores in the same quarter last year, and ₹378.44 crores in the preceding quarter.

The company's EBITDA at ₹129.04 crores, which is 33.4% of sales, shows a quantum jump of 518% from ₹20.89 crores, which is 7.6% of sales, in the corresponding quarter last year, while it remains consistent with an EBITDA of Indian ₹125.5 crores, which is 33.2% of sales, in the preceding quarter. Sales rose by 40% during this period compared to the corresponding quarter last year.

Almost the entire increase in sales value for the quarter came from increased sales prices. Average ex-factory selling price during the quarter increased to ₹149.97 per millimeter as compared to ₹104.54 per millimeter in the corresponding quarter last year.

This compares with ₹147.5 in the preceding quarter, leading to a significant rise in the margins. Exports amounted to ₹20.74 crores, accounting for 5.4% of the turnover, compared to ₹16 crores in the corresponding quarter, when exports made up 5.8% of the turnover.

Company's major markets, that is EU, Turkey, and USA, continue to face challenges due to low demand. The domestic demand continues to be steady, even though the anticipated changes in GST and prolonged monsoon challenged solar module manufacturers with postponed deliveries.

This had led to cash flow blockages for the manufacturers and a decline in the selling prices of modules, affecting the margins. The delivery situation started to improve towards the middle of December and is now normalizing.

With a 145 GW of module manufacturing capacity, India is now an international manufacturing hub. This is expected to rise further to 200 GW by 2027.

While conventional wisdom projects capacity utilization of module manufactures to come down, my personal guess is the reverse. With the landmark Indo-European Union free trade agreement now a reality, I foresee the European Union to start sourcing a portion of its solar modules from India.

If this is handled right within the agreement, the solar module manufacturing industry could become a significant beneficiary under this agreement. Coming to solar installations in India, in the first nine months, these have been around 30 GW, and another 10 GW can be expected to be added in the last quarter, making a total of 40 GW in 2025-26, which would reflect modules glass consumption of about 55 GW as against 24 GW during the previous year.

ALMM mechanism for modules implemented from April 2024 has led to rush for capacity additions, and which many feel could lead to overcapacity, which would have its own repercussions in the future. Considering challenges in grid stability and power evacuation, we see a trend of increasing adoption of battery energy storage systems.

The cost of fully dispatchable renewable power with battery storage is now reduced considerably with aggressive bidding and has come down to about ₹4.5 per watt peak. Significant investments are seen in this space.

Government has introduced ALMM II with effect from June 2026, mandating use of domestically produced solar cells. It is expected that the solar cell capacity, which is currently at 24 GW, will rise to 75 GW by 2027, looking to the momentum to add capacities.

The next step will be to introduce ALMM 2 3 from June 2028, under which ingot and wafer will also be mandated to be locally produced. These measures will ensure building up of a local supply chain and ecosystem.

While we expect the strong demand for glass to continue, we are in dialogue with the government to develop and introduce measures to ensure a continued robust demand for all domestic components, including solar glass. Present solar glass capacity in the country is 2,600 tonnes per day, which translates to about 18 GW.

Considering the expected current demand of about 55 GW on DC basis for domestic installations, imports occupy about 70% share of the consumption, leaving huge scope for capacity addition for import substitution. We understand that new capacity additions, majority being for captive consumption from the existing and new players, will take the total domestic capacity to about 51 GW by March '27, which will still be short of the real demand.

CVD on imports from Malaysia set to expire on 8th March 2026 has now been extended by three months to 8th June 2026, since DGTR is considering the sunset review. We expect the authority to issue the final findings in the next couple of months.

Now I come to the consolidated results for the quarter, which include the operations of the subsidiaries. The overseas subsidiaries, including the step-down subsidiaries, have generated net revenue of ₹3.96 crores and EBITDA of ₹1.9 crores for quarter three financial year 2026 as against net revenue of ₹0.43 crores and a negative EBITDA of ₹5.08 crores [in the previous quarter?]

. The consolidated net revenue for the quarter under review stands at ₹390.46 crores and an EBITDA of ₹130.94 crores as compared to net revenue of ₹378.88 crores and EBITDA of ₹120.42 crores in the preceding quarter.

The wholly owned German subsidiary, Geosphere, filed for insolvency after a German bank, ILB, demanded payment of capital subsidy of €4.81 million given by them to GMB to support capex plans, as GMB has undergone insolvency. Geosphere has denied obligation to make such payment as the condition of operating GMB for five years could not be fulfilled due to force majeure situation arising out of inaction by the EU, German government to support domestic solar glass manufacturing.

I'm happy to report that the company has been able to achieve significantly better sales and EBITDA for the last few quarters on the back of improved domestic operations. Sales on standalone basis for nine months in this financial year at ₹1,097 crores, showing an increase of 40% for the corresponding nine months in the last year, and an EBITDA shows a jump of 235% over the corresponding nine months.

With that, I would now like to open the floor to questions that you may have. Thank you.

Hello. Hi, sir.

Congratulations on good set of numbers.

Thank you.

Sir, my first question is what would be a trigger for announcing further capacity expansion? If demand remain very strong and if we see other players are announcing aggressive expansion plans, we also have feedback from the market that Borosil offers the best quality among Indian players.

If we are unable to supply, then definitely demand may shift to other manufacturers. What is management's view on this, and how are we thinking?

It's like this, that there has been a very significant increase in the number of new participants. Can you mute your microphone?

Because there's a lot of background noise coming from your phone. With the increase in number of new entrants, there's been a lot of poaching of expert people, and when we are now currently in the process of taking up production by 60%, which is quite a lot actually and requires a lot of people, we are cautious.

We don't want to move in a hurry and not be able to manage the situation. I guess that should answer your question, but we are very conscious, we are acutely conscious of the increased demand, and we are acutely conscious of the fact that we may have to do something about it.

Thank you.

The second, sir, what will be the impact of rupee depreciation? Has our selling price improved in this quarter or are we expecting it will improve further?

You can see in the last quarter, our average realization was 147.50, and this quarter, it is nearly ₹150. Some advantage we are gaining out of this depreciation, but it's only marginal to the increase and not a significant one.

Sir. Thank you.

Thank you.

Thank you so much for taking my question. I wanted to know firstly on the divestment from the German subsidiary.

What are our timelines on that, when can we expect the loss to sort of go away from our consol P&L? That's the first one.

The answer to that is that, you see, the company has filed for insolvency. A gentleman has been appointed by the court to look into the affairs of the company and see whether liquidation is required or some new buyer can be found, etc.

Until that entire process is complete and a final recommendation is placed before the court, the next action cannot be foreseen by us. Now, from our point of view, what we had done was that we had provisioned the entire amount of money which we had invested and which had remained outstanding from that company.

There is nothing more that we could do, and that would really be the limit of our involvement in the matter by our understanding. They will take what time they will.

Sir, one one sec. From the perspective of accounting and losses, we already deconsolidated the balance sheet by deconsolidating GMB, which is the operating step-down subsidiary, and now we also deconsolidated Geosphere, which was the holding company of GMB.

The deconsolidation is already done in the balance sheet, assets have been removed, the investment has been removed, and even the losses which were in the form of other equity earlier have been adjusted back. All that has been done and there are no more losses, as you can see, the consolidated and standalone results, there are hardly any differences.

It is more or less standalone which is being shown as consolidated now.

All right. Got it.

Thank you. My second question would be on the expansion.

I think earlier we were on track to complete by December by December '26. Is this the entire capacity then or will we be phasing it out?

When can we expect, say, utilizations upwards of 85% on the expansion?

We expect that, you see, the date announced by us had been March '27, and we are discussing December '26 based on indications which we can see today. As setting up a project entails a lot of different agencies, lot of supplies coming together, and it's very difficult to accurately predict when all of these will actually come together, and then the people required to set it up.

We are also going to be looking at a monsoon this year, and that also has a tendency to delay matters. We expect that always to start one furnace first, stabilize it, and then start the second one.

As matters stand, we are building both the furnaces side by side. They should be getting complete within just a couple of weeks of each other, in my opinion.

All right.

Thank you. My last question would be on the macro is that where do you think the prices for solar glass specifically are headed given that there are a lot of other macroeconomic factors that are affecting these prices?

Where do we see in the next year probably solar glass prices will go given that it's a steady state of tariffs and duties?

You see, because there is a minimum import price set by the government, the prices which are coming in from China are fixed to that. We are looking at what the government might do with glass coming from Malaysia because we cannot hazard a guess.

We did have a 9.71% CVD on that. There are only three possibilities: it might go down, it might stay the same, it might go up.

Whatever that is, the module manufacturers generally, they set their purchase for the longer term rather than the shorter term. Wherever we have business which is ours, to whom we are supplying, we do not expect there to be interruptions in that.

If small changes in prices are always possible. When that happens, that will happen, and to that extent, it's impossible to predict anything with certainty.

All right. Thank you so much.

Pleasure. Thank you.

Yeah. Hi, congratulations for good set of numbers and thank you for the opportunity.

Firstly wanted to check it out in like we mentioned 70% of the import I mean 70% of the consumption is catered through the import. If you can also give the broader sense in terms of the if the ADD on Malaysia is getting extended, what is the There is no ADD on Malaysia.

It is countervailing duty. Countervailing duty.

You see, I have to be accurate in the terms that I use. There is an ADD on imports from China.

There is a CVD on imports from Malaysia as it stands. Now once the government comes out with its findings, whatever those might be, that we will be able to know once the government has said so, which might take a couple of months, yeah.

Sir, just wanted to check it out, what is the pricing difference between Malaysia and India route? Indian manufacturer and Malaysian route?

See, Indian domestic industry is pricing the products based on the Chinese landed cost, and the Vietnam cost and Malaysian cost is slightly below the Chinese cost. We always try to position ourselves as a import substitute for Chinese prices and try to get that much price.

The difference between Chinese and Malaysian and Vietnam pricing is of the order of 3% to 4% in my view.

Okay. Just wanted to check it out, is there any further scope for the price hike at the current level given the further depreciation of rupee?

Or how has been our dialogues with the clients at this point of time?

We don't foresee a significant change going forward. The prices are quite stable at these levels, and they are fairly competitive in that sense, and we are comfortable at these prices.

Okay. Secondly, sir, if you can also give the broader sense in terms of the any raw material or fuel cost inflation, are we facing any

Hello?

We are not able to hear you completely. We lost the end of your question.

Just wanted to check it out, sir, if you can give the broader sense in terms of, are we facing any raw material or fuel cost inflation at the current juncture, or how we are placed at the current juncture?

At the moment, we do not see any inflationary tendencies in the cost of inputs, whether raw materials or fuel. You see, we are living in a very volatile environment, as we all know, and there is no doubt about it that the Indo-European Union deal has brought a sense of stability generally, not just to India, but to other markets which are not related to us as well.

I don't know that there might be any volatility. At the moment, nothing is foreseen.

Things look like they should be stable. There have been some increase in prices of one or two key inputs, but the plant operations have worked very diligently in order to do away with the impact of this price increase of that in particular input by increasing their efficiency.

and they have increased the efficiency, they've changed the batch mix and done many other operational adjustments, due to which the impact is not felt in the final results. Of course, there have been some changes at the price levels, but the team has been able to control the impact.

Okay. Finally, sir, if you can give the data related to the volume growth in the nine months, and we were also talking some efficiency gains which we would look out in the existing capacity.

If you can just update on that part, that would be really helpful.

The operational gains in the form of volume is about 6% up compared to last year's nine months, and we expect this to continue in the current quarter as well. On the whole, compared to last year, we will have at least 6% volume growth.

Okay. Is there any further possibility to optimize or get some more efficiency gain till the time new capacity get operationalize?

We keep trying every day, and we are not stopping here at 6%. Obviously, the team is there to try for increasing the output further.

It would be marginal, in my view, because at least 2%, 3% percentage is what we can expect.

Okay. Thank you, and wish you all the best, sir.

Thank you so much.

Namaskar ji. Namaskar, sir.

Congratulations on a steady set of results. Sir, my question is a little on the policy end.

On the module manufacturing end, the ALMM policy for cells is going to be implemented in June 2026, which is going to mandate a large part of cells in the projects to have a good DCR content, I think complete DCR content. With that logic, on the ground, I don't find enough cell capacity in India at the moment.

It is being put up. Do you think a temporary demand issue could come up because the module manufacturers may not be able to sell if they don't have their own cell capacity?

There is no bar on the import of cells. I do not see anybody who has orders for modules not being able to manufacture and supply that because the cells can be very easily sourced from China.

There's a certain price attached to it, that's all. From your perspective, your question is regarding what happens after June '26.

The government and the industry are working together and in case the situation comes in where the cell capacity cannot ramp up to the current level of module manufacturing and demand, the government and industry together would be able to find some solution, I suppose, and the government may come up with some deferment or some leeway for certain projects, certain type of projects, whereby the manufacturing can continue using the imported cell till the time that domestic production of solar cell increases to the level of consumption. We have to leave it to the government, I think.

I do not think government will take a stand that the module production has to stop if the solar cells are not available locally. I can add one thing about the government, that I'm seeing a level of interaction with industry and with customers by the government which I have not seen before.

They are very clued in, they know exactly what they're doing, and in industry and in consumers, I think we are very satisfied and comfortable that the government is doing every single thing possible to increase solarization and deployment of solar energy in the country.

Thanks, sir. That helps a lot.

The reason I asked is because your commentary is a little conflicting from module manufacturers who already have their cells in place, but obviously, that's to each their own. My next question is along the lines of Bharuch.

We've obviously been very cautious about expansions, but do we have any room for further expansions after the 600 TPD is in place? The land space, and the utilities-wise.

We can easily go for another furnace.

Sir. Got it.

That's all.

The land is all there. We have to decide to do it and it can get done.

Sure. Sure, sir.

Thanks, sir. That helps.

In fact, we have all the utilities, batch house, everything is ready in case we want to go ahead. There's nothing stopping us other than caution.

Sure, sir. That helps.

Thanks, sir.

Yes. My first question is related to the revenue.

What will be the revenue visibility for next two or four quarters?

We do not expect any major changes in revenue, and the reason for that is that we are manufacturing at full production and selling everything that we make. I don't think there'll be much change in revenue.

There can be a few percentage points plus or minus, but I don't see any major change.

Okay. We can say that till the end of FY27, it will be quarter-on-quarter basis?

Generally, up to December, it will be similar kind of revenue, and once we start the production from the new furnace, which are under construction right now, in the Q4 FY27, we might see some revenue coming from them, and then thereafter, the revenue will increase by 60% as the capacity is going up by 60%.

Okay. My second question is related to equity.

Will there be any other equity dilution?

No, there will be no further equity dilution. We are completely funded from the perspective of these expansions, and in case we need to expand further, the cash accruals will support us.

As of now, there is no plan to raise further equity.

Okay. What can you tell about targeted ROCE after 6,000 sorry, 600 expansion is on place?

ROCE will be upwards of 25%.

Okay. Thank you.

Yeah. Thank you.

Hello, sir. Thank you so much for the opportunity.

As you mentioned that the government is doing a lot for the solar sector, what can be some of the positive developments from the budget for our company?

That's a million-dollar question.

What are the some of the possibilities? I know that we don't have any privy information, but what can we expect in terms of what developments we have seen so far in the last one year?

See, according to me, as far as the solar glass production is concerned, our big ask was for anti-dumping duty, which the government was able to grant us last year. That part has been done.

For the rest of it, there are no hiccups in our quest for implementation of our new project, and other glass manufacturers also who are trying to implement new glass projects also are coming up, coming online, and I don't see that there's any hiccup from the side of the government. Far as what they can do, it's impossible for me to think, though I can say one thing.

Recently, we saw in GST, in many items, they reduced the GST from 18% to 5%, and that made a very big impact on the sales of those products like automobiles and other things. In that sense, I don't know what the government might do for rooftop solar, for right now, there's a certain limitation on companies being able to set up renewable energy projects.

Normally, it's limited to 100% of their contract demand. Now when you set up a project for 100% of contract demand, you'll only get about 20% of that.

You're still buying 80% from the grid. Now if the government goes up and says you can make it double, triple, quadruple, I don't know, that would really set the market on fire.

I don't know what the government can come up with in their effort to increase this. One thing now is there that from a module manufacturing capacity of 10 GW of what three, four years ago, we are at 120 GW.

We have the muscle power now in terms of manufacturing, and I've also mentioned about the European trade deal. If something works out over there, Europe has installed about 70 GW of modules in the year '24.

The '25 year figures are not yet out. If they take, say, even half of that, that'll be 35 GW they can buy from India.

Everything is open-ended. This trade deal is a big deal, in my opinion.

Let us see in what way this plays out.

Sir, my second question is regarding our German subsidiary. Can we say that all the negative developments are out of the way now?

As

we have been advised by lawyers, according to the advice given by lawyers, there's nothing more that we can be stuck with.

Is there any possibility of any positive thing happening? Like we are able to sell the subsidiary to a another company and recover some of the losses?

Frankly, I think that is unlikely. The German subsidiary, the manufacturing company, is under the control of court now, and court-appointed administrator.

We have lost the control already, we have deconsoled the balance sheet, it's not in our control now, though we have shares. It is the court and the administrator will take a decision whether to sell the company, where they can find any buyer, or they have to sell the assets of the company, that's to be decided by the court and the administrator.

Sir. Thank you so much for the all the answers.

Thank you, and all the best.

Thank you.

Thank you.

Thank you for the opportunity. Sir, I wanted to ask that what would be the proportion of electricity and natural gas in our power cost, and how much savings can be made from addition of renewable energy that the plant that we have set up?

How does the recent increase in natural gas pricing, does it affect our power and fuel cost?

Power and fuel is close to 32% of the cost of production, both put together. In terms of the saving on the power cost, we can save almost 1.5 bps in terms of the incremental margin on the company sales.

It's a quite substantial saving which we can achieve through the renewable energy deployment, which this is slightly delayed from the developer side, this was to be commissioned in September, but we expect it to be commissioned by end of February now. This will save about ₹1.25 crores per month or something like that, and yeah, these are the things which we can see in the coming quarters.

Natural gas price recently has gone up to some extent because of the increase in the prices of the USA gas, the Henry Hub gas. We have certain benchmark contracts which are linked to those benchmarks, and we have to pay as per those movement in those benchmarks.

The cost is slightly gone up in the last quarters.

Do we anticipate impact on margins due to this increase in natural gas prices?

It will not be significant because we are doing our bit to save on the consumptions, and in terms of both power and fuel, and try to optimize our production, which can offset these cost increases. There will not be any significant change in the margins.

Understood. Sir, what would be the proportion of imports from Malaysia currently versus during the time the ADD was implemented?

See,

in say 2024, before the ADD was levied on China and Vietnam, the imports from Malaysia was almost nil. As soon as the ADD started in December '24, the imports started in a big way.

Currently, Malaysian imports are to the tune of about 25% of the total imports, and Vietnam is about 10%, 65% is basically from China. This is a broad composition of the imports as of now.

Malaysia has become significant only after the anti-dumping duty has been levied on China and Vietnam. It is important for us to get the CVD continued so that it does not increase further from here.

Do they have the capacity to increase imports from here as well, the Malaysian domestic players?

Yes, they have commissioned more capacity in Malaysia, the capacity is available for export to India or to any other part of the world. That will not be a constraint.

We have to take concrete steps in terms of the government to continue levying the CVD and control the imports from Malaysia.

Understood. One last question, how much time would we take to stabilize our line and scale the utilization once the lines are commissioned, the new line?

We expect to fire the furnace in December '26, and thereafter, we generally plan for three months trial periods to stabilize the production. Now it all depends on the process adjustments and behavior of the synchronization of the all the equipment and furnace.

It might be done in one month, it might take three months. We have to see, but three months is something what we have budgeted.

Understood. Thank you so much, and all the very best.

Thank you.

Thank you very much. It was nice to have the questions from participants.

It's very interesting to see the amount of interest which investors take in the company and its process. We assure that from our side, we will do our very best to continue to run the company professionally and efficiently.

Thank you very much. Bye-bye.