Borosil Renewables swings to Q1 profit as German hit drops out
Standalone net profit of ₹87.7 crore in Q1 FY27 against a loss of ₹272.3 crore a year ago, which had a one-time exceptional charge of ₹325.9 crore for German subsidiaries.
— 4 earlier stories on Borosil Renewables Ltd. →What's new
- Standalone revenue rose 22% YoY to ₹405.7 crore.
- Net profit of ₹87.7 crore vs loss of ₹272.3 crore last year, which included a ₹325.9 crore exceptional.
- EBIT before exceptional doubled to ₹118.3 crore from ₹66.6 crore.
Why this matters
The swing to profit is largely mechanical: last year's huge exceptional charge is gone. But operating earnings doubling shows real improvement. The high P/E of 67 suggests the stock already priced in this recovery; the next test is whether demand sustains.
What we're watching
- Whether the sequential revenue dip from ₹440 cr in Mar 2026 to ₹405.7 cr is seasonal or trend.
- Any update on the insolvency resolution of German subsidiaries.
- Consolidated net profit of ₹86.6 cr vs standalone ₹87.7 cr: near identical, but no further detail.
The full read
Borosil Renewables' Q1 FY27 numbers are a clean recovery from the year-ago mess. Standalone net profit of ₹87.7 crore reverses a ₹272.3 crore loss that had been hammered by a ₹325.9 crore exceptional charge for its German subsidiaries. Strip that out, and operating profit before exceptional doubled to ₹118.3 crore on 22% higher revenue of ₹405.7 crore. But the headline swing masks two things: the ₹440 crore revenue reported in the March quarter means sequential revenue slipped about 8%, and the stock already trades at a P/E of 67, leaving little room for error. No guidance was given. The next quarter will show whether the sequential dip was just a seasonal blip or something more.
Questions answered
- Why did net profit jump so sharply year-on-year?
- Last year's Q1 had a ₹325.9 crore exceptional charge for the German subsidiaries' insolvency, dragging PAT to a loss of ₹272.3 crore. Excluding that, operating profit doubled to ₹118.3 crore.
- How does Q1 FY27 revenue compare with the previous quarter?
- Revenue fell to ₹405.7 crore from ₹440 crore in the March 2026 quarter, a sequential decline of about 8%. The filing does not comment on the cause.
- Is the German subsidiary problem resolved?
- No update in this filing. The ₹325.9 crore charge was booked in the year-ago quarter, but the filing does not state any resolution or future impact.
- What is the company's current valuation?
- Borosil Renewables has a market cap of ₹8,641 crore and a trailing P/E of 67, implying investors are pricing in strong future growth.
- Did the board provide any guidance or outlook?
- No. This was a routine quarterly earnings release. The board approved the unaudited results on July 16 without any forward-looking statements.
Borosil Renewables Ltd.
Latest quarter · Jun 2026
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All notes on BORORENEW →- 16 Jul 2026 · 3:39 PM IST Borosil Renewables swings to Q1 profit as German hit drops out
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