Borosil up 12.4% on Q2FY27 margin jump and capex push into glass & insulated steel

The presentation for the quarter and half-year ended 30 September 2026 (page 13) highlights three headline consolidated numbers for Q2FY27:

• Revenue from operations of Rs 369.80 cr, up 7.5% YoY versus Q2FY26.
• EBITDA (including other income) of Rs 71.00 cr, up 31.5% YoY.
• Profit After Tax of Rs 31.90 cr, up 40.5% YoY.

The detailed consolidated P&L on page 14 shows why the market focused on quality of earnings rather than just the modest top-line growth:

• Gross profit rose to Rs 229.70 cr from Rs 198.30 cr a year ago, with gross margin improving to 62.1% from 57.6%.
• EBITDA margin expanded to 18.7% from 15.1%.
• Profit Before Tax climbed to Rs 42.80 cr from Rs 30.50 cr.

In other words, Borosil converted a mid-single-digit revenue increase into double-digit operating and bottom-line growth, helped by better mix and operating leverage. That margin expansion is a key reason the stock re-rated intraday.

The company also flags (pages 13–15) that the shift in the Diwali festival impacts the timing of seasonal demand and sales, making Q2 FY27 and H1 FY27 not strictly comparable with the previous year. Despite that caveat, H1FY27 consolidated revenue from operations of Rs 627.40 cr was up 8.8% YoY, with EBITDA (including other income) of Rs 112.10 cr (up 10.8% YoY) and PAT of Rs 44.70 cr (up 11.4% YoY).

The category-wise sales table on page 15 helps explain the margin story and where growth is coming from:

• Q2FY27 glassware sales were Rs 87.80 cr, down 5.1% YoY.
• Non-glassware (appliances, cookware, gas stoves, Hydra flasks and bottles) grew to Rs 143.20 cr, up 17.0% YoY.
• Opalware (Larah) rose to Rs 127.00 cr, up 6.5% YoY.
• Total category-wise sales were Rs 358.00 cr, up 7.1% YoY.

For H1FY27 (page 15):

• Glassware sales were Rs 152.60 cr, up 2.7% YoY.
• Non-glassware reached Rs 240.20 cr, up 10.9% YoY.
• Opalware came in at Rs 210.70 cr, up 7.8% YoY.
• Total category-wise sales were Rs 603.40 cr, up 7.6% YoY.

Investors appear to be rewarding this shift towards higher-value, brandable categories like non-glassware and opalware, which the company positions as “mass premium” (page 30). These segments typically support better realisations and brand pull, which ties back to the improved gross and EBITDA margins.

The deck devotes several slides to capacity and Make-in-India plans, which help the market look beyond the next couple of quarters.

On page 28, Borosil reiterates that it operates 84 TPD Opalware furnaces and a 25 TPD Borosilicate Glassware furnace commissioned in March 2024. Page 30 then details a fresh expansion of the borosilicate glass (BG) furnace at Jaipur:

• Existing furnace capacity of 25 TPD with 2 forming lines, commissioned in Jan’24 and scheduled for rebuild in Jan’28.
• Current capacity utilisation at ~90%.
• Board-approved expansion to 32 TPD with addition of a 3rd forming line.
• Estimated capex of Rs 50.00 cr.

The company states that this expansion is expected to remove capacity bottlenecks, enable product diversification and portfolio expansion, improve operating efficiency and lower production cost.

Separately, page 28–29 outlines a new manufacturing unit for vacuum-insulated stainless-steel flasks, bottles and containers in Rajasthan:

• Setting up three double-wall lines for vacuum insulated stainless-steel products.
• Estimated initial capex of Rs 65.00 cr.
• Initial capacity of ~3.6 million units annually.
• Two double-wall lines started in Q1FY27, with the third targeted by January’27.

These numbers matter for the stock because they show Borosil is not just riding a one-off demand bump; it is committing capital to categories like Hydra insulated steel bottles and borosilicate glassware where it sees structural growth and better margins.

The consolidated balance sheet on page 17 shows total assets of Rs 1,397.80 cr as of H1FY27, up from Rs 1,281.70 cr at FY26 end. Property, plant and equipment rose to Rs 640.20 cr from Rs 530.20 cr, reflecting ongoing capex.

On the liabilities side (page 17):

• Equity share capital stood at Rs 12.00 cr, with other equity of Rs 920.90 cr, taking total equity to Rs 932.80 cr.
• Non-current borrowings were Rs 101.10 cr, while current borrowings were Rs 61.60 cr.

The cash flow statement (page 18) shows H1FY27 cash flow from operating activities at ₹ -2.90 cr, impacted by ₹ -91.40 cr of working capital changes, against Rs 50.10 cr in H1FY26. Cash used in investing activities was ₹ -15.20 cr in H1FY27, while financing activities contributed Rs 17.20 cr.

While the working-capital drag is a watchpoint, the overall equity base and borrowing levels suggest the company has room to fund its announced capex without stretching the balance sheet unduly. The investor deck (page 22) also pitches Borosil as having “resilient financials” with “steady cashflows and negligible net debt”; the filing, however, does not quantify net debt.

Beyond the near-term numbers, several slides are clearly aimed at framing Borosil as a play on long-duration consumption trends:

• Pages 23–26 highlight rising per capita GDP and Private Final Consumption Expenditure, with per capita GDP figures such as 2,00,654, 2,12,979 and 2,27,065 (₹) and per capita PFCE of 1,07,910, 1,13,117, 1,18,602 and 1,26,573 (₹), alongside growth in brown goods and discretionary spending.
• Page 26 cites the brown goods market growing from $5 billion in FY24 to $9 billion by FY30.
• Page 27 shows the Indian health and wellness market rising from 50 to 90 (in US$ billion) between FY24 and FY30 across nutrition, beauty & personal care, fitness and mindfulness.
• Page 46–47 emphasise the shift “from plastic to glass”, with the company arguing that glass lunch boxes are benefiting from rising health awareness and concerns around plastics.

The company also sets a medium-term aspiration on page 52 to “achieve revenue CAGR of ~ 15%-20%”, improve EBITDA margins, and optimise capital employed, though it does not provide formal numerical guidance beyond this range.

For investors, this narrative – Borosil as a branded, mass-premium, Make-in-India consumer story aligned with health, sustainability and rising incomes – helps justify paying up for the stock when margins are moving in the right direction and capacity is being added in the right places.

The investor presentation is rich on strategy and medium-term themes but leaves some questions open:

• It does not break out profitability by segment (glassware vs non-glassware vs opalware), so the exact margin profile of each growth pillar is not disclosed.
• While it notes that the Diwali shift affects comparability, it does not quantify the specific revenue or profit impact.
• There is no explicit EPS figure or detailed guidance on capex phasing beyond the Rs 50.00 cr BG furnace expansion and Rs 65.00 cr insulated steel capex.

Even so, the combination of a 40.5% YoY PAT jump in Q2FY27, visible margin expansion, and clearly articulated capex into high-growth categories appears to be the main driver behind the 12.4% move in Borosil’s shares to Rs 322 following the presentation.