Borosil Renewables reported a net loss of ₹300.7 Million (~$3.46 million) in the third quarter (Q3) of the financial year (FY) 2025, from a loss of ₹158.9 million (~$1.83 million) in Q3 FY 2024.

The company attributed the higher loss to a significant reduction in average selling prices of solar glass, which dropped from ₹113 (~$1.3)/mm in Q2 FY 2025 to ₹108 (~$1.2)/mm in Q3 FY 2025 due to price cuts by Chinese exporters and lower ocean freight costs.

The company’s revenue for the quarter stood at ₹3.61 billion (~$41.52 million), a 9.4% year-over-year (YoY) growth but a 3.1% quarter-over-quarter (QoQ) decline.

The company’s total sales volume grew by 14% compared to the previous quarter. However, revenue growth was limited to 3.6% due to price pressure.

Despite the imposition of a 10% basic customs duty on solar glass imports from China since October 1, 2024, prices remained unaffected as Chinese exporters reduced their FOB prices by 18%.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹50 million (~$575,000), decreasing 79.2% YoY and 85.5% QoQ.

The company said its EBITDA was also impacted by non-routine repairs and rights issue expenses of ₹45.9 million (~$530,000) and ₹20.1 million (~$230,000), respectively.

Export sales during the quarter stood at ₹160.2 million (~$1.84 million), 6% of the total turnover, down from ₹343.9 million (~$3.95 million) or 13% of the total turnover in Q2 FY 2025.

9M FY2025 Financial Performance

For the nine months (9M) of FY 2025, Borosil Renewables reported consolidated revenue of ₹11.05 billion (~$127.08 million), a 1.4% YoY growth.

Its net loss stood at ₹574.4 million (~$6.61 million) compared to a profit of ₹30.5 million (~$350,000) during the corresponding period of the previous year.

Export sales for 9M FY 2025 reduced to ₹728.4 million (~$8.38 million) due to lower demand and increased competition from cheaper imports, a 155% YoY decrease from ₹1.86 billion (~$21.39 million).

Operational Highlights

Borosil Renewables raised ₹6.97 billion (~$80.16 million) through a preferential issue, including ₹1 billion (~$11.50 million) from promoters and ₹5.97 billion (~$68.66 million) from non-promoter investors.

The company allocated these funds for debt repayment, liabilities of its German subsidiary Glasmanufaktur Brandenburg, furnace capex, and general corporate purposes.

The company revised its plans for a 1,100 TPD furnace to a 500 TPD facility with an investment of ₹6.75 billion (~$77.63 million). The facility is expected to be commissioned by Q2 FY 2027.

It temporarily shut down its 350 TPD furnace in January 2025 due to low demand, falling prices, and cash flow issues, with a review planned after the German elections in April 2025.

The shutdown reduced the monthly EBITDA losses from ₹80 million (~$916,000) to ₹40 million (~$458,000).

During the earnings call with analysts, the company said it expects the anti-dumping and countervailing duties on solar glass imports from China and Vietnam to support domestic .

According to P.K. Kheruka, Executive Chairman, India’s current solar glass production capacity is 2,300 tons/day, supporting about 15 GW of solar installations. By the end of 2025, an additional 15 GW will be commissioned. Despite the rising demand, imports account for 55% to 60% of domestic consumption, highlighting the need for import substitution.

With the imposition of anti-dumping duties, work has commenced on expanding capacity by another 11.25 GW, including 3.25 GW from Borosil. This will bring the total capacity to 41.25 GW (6,300 tons per day), ensuring a stable supply chain for the solar industry.

Ashok Jain, Whole-Time Director, acknowledged the potential risks of Chinese manufacturers circumventing the anti-dumping duty by routing products through other countries such as Malaysia. He said that while imports from Malaysia might increase, they are unlikely to replace Chinese imports fully.

Jain added that the Finance Ministry typically takes up to three months to approve the anti-dumping duty, suggesting that a resolution could be anticipated by early May. This duty is expected to favor Borosil’s financials, as improved selling prices could lead to a substantial 30% EBITDA margin, provided that prices reach ₹56,000 (~$644.34)/ ton.

Kheruka added that India is expected to install around 25 GW of solar power this year, potentially reaching 45 GW next year. He noted that some module capacity  manufactured in India is exported, and imported glass purchased under an advanced license is often used for these exports. However, he believed there will be no supply-demand mismatch, as India’s solar glass capacity is expected to exceed 40 GW by the end of the year.

The company is also working towards increasing production utilization from 950 TPD to its full capacity of 1,000 TPD. Additionally, it plans to install a 16.5 MW solar-wind hybrid power project to reduce electricity costs, which is expected to generate annual savings of approximately ₹170 million (~$1.95 million).

Recently, Borosil announced a 50% expansion of its manufacturing capacity of solar glass from 1,000 to 1,500 tons a day.

In November 2024, Borosil reported a net loss of ₹131.27 million (~$1.55 million) in Q2 of FY 2025 from a net profit of ₹304.74 million (~$3.61 million) in the same quarter a year ago.