Borosil Ltd reported a 26.4% year-over-year decline in profit after tax for the first quarter of fiscal 2027, as rising fuel costs and regional conflicts weighed on margins. Consolidated revenue from operations increased 9% to INR 253.6 crore, up from INR 232.7 crore in the same period a year earlier.
Operating EBITDA fell 10.7% to INR 35.9 crore, with the EBITDA margin contracting to 14.6% from 17.8% in Q1 FY2026. Profit before tax declined to INR 17.4 crore from INR 23.5 crore, while profit after tax dropped to INR 12.8 crore from INR 17.4 crore. Earnings per share stood at $1.07.
The company attributed margin pressure to a 5.8% rise in fuel costs as a percentage of sales, compared with 2.9% in the prior-year quarter. Geopolitical tensions in West Asia added an estimated INR 10-12 crore in cost pressure during the quarter. One-time items in Q1 FY2026, including a stamp duty reversal and investment income, further widened the year-over-year comparison.
Segment performance showed mixed trends. Larah opalware sales rose 9.8% to INR 83.6 crore, while glassware revenue increased 16.8% to INR 65.6 crore. Non-glassware turnover grew 4.2% to INR 98.1 crore. Depreciation remained flat at INR 21.9 crore, while finance costs edged up to INR 1.8 crore.
Borosil’s balance sheet as of June 30, 2026, showed investments, cash and bank balances of INR 56.2 crore, total debt of INR 155.2 crore, and a net debt position of INR 99 crore. The company maintained its full-year EBITDA margin target of about 18% for FY2027, excluding other income and pending antidumping duty cases, assuming steady-state operations absent further geopolitical disruptions.
Capital expenditure for FY2027 is projected at INR 125-150 crore, with depreciation expected to reach INR 92 crore. Solar energy now accounts for 61% of the company’s energy requirements following the commissioning of a 20 MWp captive plant in Bikaner. Additional solar capacity of 6.5 MWp at Borosil and 3-4 MWp at Stylenest India is under evaluation.
Management announced price increases of 5-7% in April, with realization effects expected to begin in Q2. The medium-term return on capital employed target remains 20-24%.
