Mumbai: Borosil Renewables Ltd reported a standalone net loss of Rs 272.3 crore for the quarter ended June 30, 2025 (Q1 FY26), mainly due to an exceptional item related to its insolvent German subsidiary GMB Glasmanufaktur Brandenburg GmbH. The company’s financials include a one-time provision of Rs 325.9 crore towards its exposure to the German unit, which filed for insolvency earlier this month due to prolonged demand weakness in the European solar glass market.
Despite the exceptional charge, operational performance remained steady. Revenue from operations rose 1.5 percent quarter-on-quarter (QoQ) to Rs 332.3 crore, compared to Rs 327.2 crore in Q4 FY25. On a year-on-year (YoY) basis, revenue grew by a robust 37.4 percent from Rs 241.8 crore in Q1 FY25, driven by higher domestic and export sales of solar glass.
EBITDA (earnings before interest, tax, depreciation, and amortisation) grew 39.7 percent QoQ to Rs 9.3 crore, up from Rs 6.6 crore in the previous quarter. This translated into an improved EBITDA margin of 27.5 percent versus 19.8 percent in Q4 FY25.
The improvement was supported by cost efficiencies, particularly in power and fuel expenses (down 8.8 percent QoQ), and relatively stable raw material costs. Employee costs and other overheads also showed marginal improvement.
Excluding the Rs 325.9 crore exceptional loss, profit before tax stood at Rs 66.6 crore in Q1, up 48.1 percent QoQ from Rs 44.9 crore and sharply up from a Rs 5 crore loss in Q1 FY25. However, after accounting for the exceptional provision and taxes of Rs 13 crore, the net loss came in at Rs 272.3 crore versus a net profit of Rs 33.1 crore in Q4 and a loss of Rs 3.6 crore a year ago.
Earnings per share (EPS) for the quarter stood at Rs–20.54, compared to Rs 2.52 in the previous quarter and Rs–0.28 in the same period last year. The significant decline was entirely due to the non-cash write-off related to the German business.
In a related development, the board approved a preferential issue of equity shares to raise Rs 379.5 crore from institutional and non-promoter investors. The funds are likely to be used to strengthen the balance sheet and support ongoing operations.
The issue price has been set at Rs 535 per share, and an extraordinary general meeting (EGM) will be held on August 14, 2025, to seek shareholder approval.
