Borosil Renewables: A Cloudy Quarter, But a Clear Capital Vision

Image Source: Value Research

Borosil Renewables Ltd. reported a challenging first quarter of FY26, with a net loss of ₹2.72 billion for the quarter ended June 2025. Even though the company posted a robust revenue from operations of ₹3.32 billion, heavy one-off provisions negatively impacted profitability. Trying to help operations and facilitate future growth, Borosil announced an issue of ₹3.80 billion equity.

Key Points

Revenue from Operations (Q1 FY26):

₹3.32 billion, indicating sustained market acceptability amidst adverse macroeconomic conditions.

Net Loss (Q1 FY26):

₹2.72 billion, largely because of extra items and increased operating costs.

Equity Issuance Disclosed:

The board has approved raising ₹3.80 billion via equity and convertible warrants, where a major part of it will be offered to non-promoter shareholders. It includes a preferential allotment of warrants and equity shares at ₹530 a share.
Fund Utilization Proceeds will be applied to enhance the balance sheet, increase manufacturing capacity, and meet working capital requirements.

Promoter Shareholding:

Moderate dip to 61.93% in June 2025 quarter, marking infusion of new capital by non-promoter sources.

Shareholders' Meeting:

There will be an Extra Ordinary General Meeting (EGM) on August 14, 2025, to authorize the plan of equity issuance in principle. Prospects Management is hopeful in its intentions to deploy funds raised to enhance resilience and orchestrate a turnaround in the coming quarters. Strategic investment and greater emphasis on core activities will be set to drive medium-term recovery and growth.

Source: NewsDrum, Reuters, NSE, Company filings.