Earnings call transcript: Borosil Q1 2026 profit falls as margins narrow

Borosil Limited shared its first quarter results for fiscal 2027, revealing a 9% year-over-year increase in consolidated revenue to INR 253.6 crores, or approximately $2.6 billion. However, the profit declined due to increased fuel and packaging costs that pressured margins. Earnings per share amounted to $1.07. The West Asia conflict contributed about INR 10 crores to the cost pressure in the quarter.

Despite the margin squeeze, the company's gross profit margins remain strong, positioning Borosil as a key player in the Household Durables industry. The stock experienced a brief rise after the earnings announcement, closing at $248.46, a 0.75% decrease from the previous close of $250.34. Revenue growth remained steady, but profitability faced significant challenges.

Glassware sales surged by 16.8% to INR 65.6 crores, while opalware sales rose by 9.8% to INR 83.6 crores, and non-glassware sales grew by 4.2% to INR 98.1 crores. The expansion in glassware and opalware was primarily volume-driven, with price increases expected to begin in the second quarter. The company faced higher fuel costs, which rose to 5.8% of sales from 2.9% a year earlier, and attributed about INR 10 crores of the decline in EBITDA margin to the West Asia conflict.

Management maintained a target of around 18% EBITDA margin for FY 2027, excluding other income and the pending antidumping duty case. CEO Rituraj Sharma highlighted the company's resilience and the shift towards healthier, eco-friendly kitchen products. CFO Anand Sultania expressed optimism about potential margin improvements once pricing and cost trends normalize.

Analysts were keen on determining whether the growth was driven by price or volume increases and whether Borosil could achieve the 18% EBITDA margin target in a steady-state environment without the West Asia impact.