Following poor Q3FY25 results that showed a net loss of ₹30 crore and a considerable decline in EBITDA, Borosil Renewables’ shares declined 5% to ₹472. Declining ex-factory prices and heightened competition from lower-priced imports strain the business.
Following an adverse reaction from investors to the company’s December quarter results, shares of Borosil Renewables, a major producer of solar glass and a subsidiary of the Borosil Group, were stuck in the 5% down circuit in early morning trade on February 17, reaching a 10-week low of ₹472.45 per share. In comparison to Q3FY24’s ₹330 crore and Q2FY25’s ₹373 crore, the quarter’s consolidated revenue was ₹361 crore.
EBITDA was ₹ five crore, a substantial decrease from ₹24.08 crore in Q3FY24. The primary cause of the steep drop in EBITDA was poorer profitability in Indian operations, fueled by declining purchasing prices. According to the bottom line, the company’s net loss increased to ₹30 crore from ₹16 crore during the same time the previous year.
According to the firm, the landing prices of imported glass were unaffected by the 10% Basic Customs Duty (BCD) imposed on imports starting on October 1, 2024. This was caused mainly by a steep and ongoing decline in FOB prices from China in Q2FY25, worsened by a drop in ocean freight prices in Q3FY25. EBITDA was further affected by non-routine maintenance costs of ₹4.59 crore and the debit of rights issuance costs of ₹2.01 crore.
According to the company’s results report, between June and September, exporters from China and Vietnam cut solar glass FOB prices by up to 32%, pushing domestic prices to unsupportable levels and endangering the industry’s existence.
In Q3FY25, export sales—including sales to SEZ clients—amounted to ₹16.02 crore, or 6% of revenue, as opposed to ₹34.39 crore in the previous quarter, when exports accounted for 13% of turnover. The business said that because inexpensive modules imported from China dominate installations, demand is declining in all key export markets owing to a lack of local production.
2-Month Stock Decline of 27%:
Over the last two months, the stock has dropped 27% in value, from ₹643.90 a share to the current trading price of ₹472.45. The first solar glass manufacturer in India, Borosil Renewables, is essential to producing low-iron, textured solar glass for use in power sector solar photovoltaic modules.
Solar power has remained the dominant source of new capacity expansions for the past seven years due to the rising electricity demand. The demand for solar glass in India is continuing to rise as a result of the government’s ambitious plan to install 280 GW of solar power by 2030, as well as policies like the Production-Linked Incentive (PLI) scheme, the imposition of BCD, and a preference for domestic solar modules.
