Expansion on track, margins reset lower—60% growth comes at cost of near-term pain

Q2 consolidated EBITDA margin 29.3%, down from 33%+ guidance

Revenue declined 2.2% QoQ; solar glass volumes down vs Q1 FY27

Unverified; depends on demand absorption and utilization

Management confirmed ₹800 Cr internal + ₹300 Cr debt already arranged

Early stage; distributors appointed in 4 states; projects signed but revenue unproven

From 33%+ (Q1 call) to 31%-32% (Q2 call), floor 30%. Q2 delivered 29.3%. Clear step-down; management expects recovery but cautious.

New plant capex revised from ~₹950 Cr to ₹1,100 Cr. Exchange impact ~20%, additional cost redundancy for power failure. But full funding confirmed (internal + debt).

Management disclosed 75-day shutdown for 2 existing furnaces in H1 FY28; estimated ₹15 Cr revenue loss but offset by new plant.

From implied ₹36 Cr (Q1 call) to ₹100 Cr in FY27 end. Early response 'extremely good'; distributors in 4 states, projects signed. But unproven at scale.

Soda ash +10%, imported limestone/dolomite +10% from freight/China tariffs. Pass-through to customers limited; gross margin erosion persists.

Estimated ₹15 Cr revenue loss from 4.5% production dip. Capex revised up ₹150 Cr due to exchange (20%) and redundancy for power supply—fully funded internally + ₹300 Cr debt already arranged.

Currently ₹155.9/mm, targeting ₹160/mm by Q3 FY27. Two furnaces to fire in February and March respectively; on track to deliver by end of FY27.

New plant comes online end of Q4 FY27, offsetting old furnace downtime. New plant production 600 TPD will more than compensate; no net output loss expected.

₹800 Cr from internal accruals, ₹300 Cr debt already committed (no further debt needed). Equity already raised via warrant/preferential issuance. Fully funded; no increase in debt post-commissioning.

Very early stage; leveraging Borosil brand and distributor network. Early response 'extremely good' from customers. Margins will be low initially (trading model) but improve as operations scale. ₹100 Cr revenue target for FY27-end; full profitability and scale plan TBD by end of year.

Soda ash prices up 10% but negotiated; dolomite/limestone imported at 10% higher cost due to China tariffs and freight. Limited pass-through model due to market pricing. Plan to increase domestic sourcing (currently 30-40%, target ~60%) and productivity gains to offset.

Company well-positioned in solar glass due to skill and cost efficiency. For now, focus on commissioning the 600-TPD plant and achieving 1,600 TPD total capacity. Exploring other specialty glass options by end of year; no committed capex beyond the announced ₹1,100 Cr.

All warrants fully resolved. Promoters paid in full by February 2025. SEBI-compliant; no pending dilution. Equity issuance already accounted for.

New plant adds ~600 TPD; at current ex-factory price ₹155-160/mm, annualized revenue potential ~₹800-1,000 Cr. Overall 1,600 TPD capacity by FY28 can support 50-60% growth if demand absorbed and pricing held.

Very early stage (4-state entry, projects signed). Extremely optimistic given typical solar rooftop project ramp; likely to be partially deferred to FY28.

Reset down from 33%+ (prior call). Q2 delivered 29.3%. Management expects recovery with Oct production ramp and fuel surcharge stabilization by Q3.

Distribution of overheads over larger production base; achievable if volume absorbed and pricing maintained. But depends on market absorption and cost inflation trajectory.

Building ~complete; machinery delivery underway; installation to start end of Q4. Full capex expected by March 2027. Commissioning targeted Q4 FY27.

CEO stated no recklessness; will expand in profitable directions. Focus now on 600-TPD ramp and furnace maintenance.

₹1,100 Cr capex could see further cost escalation (exchange, material, labor). New plant may not fire on time (Q4 FY27) if machinery delivery or installation delayed. 600 TPD ramp-up pace unproven.

Raw material costs (soda ash +10%, imported dolomite/limestone +10%) rising. Limited pass-through to customers due to market pricing. EBITDA margin guided 31%-32% vs delivered 29.3%. If cost inflation persists, margins could stay below 30%.

Existing furnaces (SG1, SG2, 7 years old) require 75-day rebuild each in H1 FY28. Management claims new plant will offset; but if new plant delay or ramp slower than expected, output gap opens.

₹100 Cr revenue target for rooftop solar business by end of FY27 is aspirational. Only 4 states launched; early-stage distributor model untested at scale. Margins likely low (trading model); profitability path unclear.

While supply gap exists (62 GW demand vs 18 GW domestic supply), absorbing 600 TPD additional volume at current or higher prices is not guaranteed. Module manufacturers may vertically integrate glass in-house.