Financial Analysis Summary: Borosil Renewables Limited
Date of Filing: September 3, 2025
Period Covered: Quarter ended June 30, 2025 (Q1 FY26)
1. Auditor’s Note
- Type: Limited Review Report on Unaudited Consolidated Financial Results.
- Qualifications/Concerns: None reported.
- The auditors (Chaturvedi & Shah LLP) have issued an unmodified conclusion stating nothing has come to their attention indicating material misstatements.
- Reliance placed on other auditors’ reports for subsidiaries, including GMB Glasmanufaktur Brandenburg GmbH (GMB).
- No audit opinion (only review), which is standard for quarterly results.
- Conclusion: Auditor’s note is standard with no qualifications or concerns.
2. Financial Performance (Consolidated)
| Particulars | Q1 FY26 (Jun 30, 2025) | Q4 FY25 (Mar 31, 2025) | Q1 FY25 (Jun 30, 2024) | FY25 (Apr 1, 2024 - Mar 31, 2025) |
|---|---|---|---|---|
| Revenue from Operations (Rs. Lakhs) | 34,657.70 | 37,353.83 | 37,121.35 | 1,47,932.89 |
| Other Income | 628.43 | 1,190.81 | 310.84 | 3,524.61 |
| Total Income | 35,286.13 | 38,544.64 | 37,432.19 | 1,51,457.50 |
| Expenses: | ||||
| - Cost of Materials Consumed | 8,588.85 | 8,880.65 | 9,632.44 | 39,122.95 |
| - Changes in Inventories | 1,060.54 | 5,469.58 | 568.17 | 3,656.45 |
| - Employee Benefits Expense | 3,633.96 | 4,436.12 | 5,755.82 | 20,990.78 |
| - Finance Costs | 420.48 | 954.08 | 728.67 | 3,154.82 |
| - Depreciation & Amortisation | 2,949.71 | 3,624.48 | 3,395.10 | 13,542.07 |
| - Power and Fuel | 7,902.37 | 9,507.92 | 10,762.55 | 44,295.30 |
| - Other Expenses | 7,172.05 | 7,514.14 | 8,121.80 | 34,108.03 |
| Total Expenses | 31,727.96 | 40,386.97 | 38,964.55 | 1,58,870.40 |
| Profit/(Loss) before share of profit in associate, exceptional items and tax | 3,558.17 | (1,842.33) | (1,532.36) | (7,412.90) |
| Share of Profit/(Loss) in Associates | 14.90 | (7.66) | (24.57) | (25.25) |
| Profit/(Loss) before exceptional items and tax | 3,573.07 | (1,849.99) | (1,556.93) | (7,438.15) |
| Exceptional Items | 22,230.95 | - | - | - |
| Loss Before Tax | (18,657.88) | (1,849.99) | (1,556.93) | (7,438.15) |
| Tax Expense (Net) | 1,690.80 | 1,102.90 | (133.13) | 1,258.45 |
| Loss for the period/year | (20,348.68) | (2,952.89) | (1,423.80) | (8,696.60) |
| Other Comprehensive Income (OCI) | 1,550.13 | 11.28 | (105.86) | (45.65) |
| Total Comprehensive Income | (18,798.55) | (2,941.61) | (1,529.66) | (8,742.25) |
| Earnings Per Share (Rs.) (Face value Re. 1) | ||||
| - Basic (after Exceptional Items) | (12.56)* | (1.53)* | (0.99)* | (5.32) |
| - Diluted (after Exceptional Items) | (12.56)* | (1.53)* | (0.99)* | (5.32) |
| - Basic (before Exceptional Items) | 1.86* | (1.53)* | (0.99)* | (5.32) |
| - Diluted (before Exceptional Items) | 1.86* | (1.53)* | (0.99)* | (5.32) |
* Not annualised for quarters.
Margins:
- Operating profit before exceptional items (Q1 FY26): Rs. 3,573.07 Lakhs on revenue Rs. 35,286.13 Lakhs → ~10.1%
- Loss before tax including exceptional items (Q1 FY26): Rs. (18,657.88) Lakhs → significant impact from exceptional item.
- Exceptional item of Rs. 22,230.95 Lakhs in Q1 FY26 is a major impairment charge.
3. Detailed Notes / Management Commentary
-
Insolvency of GMB (Step-down Subsidiary):
- GMB is undergoing insolvency resolution in Germany due to no demand recovery and ongoing funding needs (~Euro 900k/month).
- Insolvency application filed on July 4, 2025.
- Exceptional item of Rs. 22,230.95 Lakhs represents impairment of GMB’s assets and additional liabilities due to insolvency.
- This has caused a significant loss in Q1 FY26.
- Delay in consolidated results approval due to delay in GMB’s financials.
-
Capital Raising:
- On Feb 14, 2025, preferential allotment of equity shares and warrants raised Rs. 51,766.31 Lakhs (Rs. 10,000 Lakhs from equity shares to promoters, Rs. 41,766.31 Lakhs from warrants to non-promoters).
- Rs. 18,500 Lakhs utilized to satisfy liability arising from Standby Letter of Credit (SBLC) extended on behalf of GMB lenders.
- Balance temporarily invested in mutual funds.
- Further allotment of 5,83,905 equity shares during Q1 FY26 from warrant exercise.
- Shareholders approved issuance of up to 70,28,456 equity shares at Rs. 535 each (~Rs. 37,602.24 Lakhs) to non-promoters; awaiting stock exchange approval.
-
Accounting Policies:
- No changes in accounting policies reported.
- Figures for previous periods regrouped for comparability.
-
Segment:
- Single business segment: Manufacturing of Flat Glass.
-
Geographical Revenue Split (Revenue from Operations):
| Geography | Q1 FY26 (Rs. Lakhs) | Q4 FY25 (Rs. Lakhs) | Q1 FY25 (Rs. Lakhs) | FY25 (Rs. Lakhs) |
|---|---|---|---|---|
| Within India | 29,763.59 | 30,937.83 | 22,088.07 | 1,02,282.17 |
| Outside India | 4,894.11 | 6,416.00 | 15,033.28 | 45,650.72 |
| Total | 34,657.70 | 37,353.83 | 37,121.35 | 1,47,932.89 |
- Notable decline in export revenue in Q1 FY26 compared to Q1 FY25 and Q4 FY25.
4. Segment Information
- Only one reportable segment: Flat Glass manufacturing.
- No further segment breakdown provided.
5. Capex, Projects, Corporate Activity
- Capital Expenditure: Not explicitly disclosed in this filing.
- Impairments:
- Rs. 22,230.95 Lakhs impairment related to GMB’s assets due to insolvency.
- Corporate Activity:
- Insolvency resolution process initiated for GMB (step-down subsidiary).
- Capital raising through preferential allotment and warrants completed partially; further issuance approved but pending.
- Rs. 18,500 Lakhs utilized to settle SBLC liability related to GMB.
- Restructuring:
- Insolvency filing of GMB indicates restructuring at subsidiary level.
- No other restructuring or cost-cutting measures disclosed.
6. Standalone vs Consolidated
- This filing contains Consolidated Unaudited Financial Results only.
- Standalone results for Q1 FY26 were approved earlier (July 23, 2025) but not included here.
- Consolidated results include subsidiaries and associates as listed:
- Subsidiaries: Geosphere Glassworks GmbH, Laxman AG, GMB Glasmanufaktur Brandenburg GmbH, Interfloat Corporation.
- Associates: ReNew Green (GJS Two) Pvt Ltd, Clean Max Prithvi Pvt Ltd.
- Loss attributable to owners and non-controlling interests separately disclosed.
Additional Key Points
- Loss Attributable:
- Owners of the Company: Rs. (16,656.82) Lakhs in Q1 FY26 vs Rs. (1,296.28) Lakhs in Q1 FY25.
- Non-controlling interest: Rs. (3,691.86) Lakhs in Q1 FY26.
- Paid-up Equity Share Capital: Increased to Rs. 1,330.51 Lakhs in Q1 FY26 from Rs. 1,324.67 Lakhs in FY25 due to warrant conversion.
- Other Equity (excluding revaluation reserve): Rs. 98,416.97 Lakhs as of March 31, 2025.
Summary for Investment Analysis Team
| Aspect | Key Takeaways |
|---|---|
| Auditor’s Note | Clean limited review report; no qualifications or concerns. |
| Financial Performance | Q1 FY26 shows revenue decline vs previous quarter and flat YoY; significant loss due to Rs. 222 Cr impairment related to GMB insolvency. Operating profit before exceptional items positive at Rs. 35.7 Cr (~10% margin). EPS after exceptional items sharply negative at Rs. (12.56). |
| Exceptional Items | Rs. 222.31 Cr impairment on GMB assets due to insolvency proceedings. |
| Capital Raising | Rs. 517.66 Cr raised via preferential allotment and warrants; Rs. 185 Cr used to settle SBLC liability related to GMB. Further Rs. 376 Cr equity issuance approved, pending approvals. |
| Subsidiary Insolvency | GMB insolvency initiated July 2025; no demand recovery expected; ongoing funding needs led to impairment and restructuring. |
| Segment & Geography | Single segment (Flat Glass); domestic revenue stable, export revenue declined sharply in Q1 FY26. |
| Standalone vs Consolidated | Only consolidated results presented here; standalone results approved earlier. |
| Outlook/Caveats | Significant risk and uncertainty due to GMB insolvency; impairment impacts profitability heavily. |
Actionable Points:
- Monitor progress of GMB insolvency resolution and impact on group financials.
- Track approvals and execution of further equity issuance for capital infusion.
- Watch export market dynamics given sharp decline in export revenue in Q1 FY26.
- Consider impact of impairment on valuation and near-term profitability.
- Review standalone results separately for detailed operational performance.
End of Analysis