Shares of Borosil declined over 2% on Wednesday, May 20, after the company reported a weak operational performance for the March quarter, with pressure on profitability and margins despite revenue growth.
The stock fell after Borosil reported a 5% year on year decline in Q4 net profit to Rs 10.6 crore compared to Rs 11.1 crore in the corresponding quarter last year.
Revenue for the quarter rose 5.2% YoY to Rs 284.1 crore from Rs 270.2 crore a year ago. However, the company’s operational performance remained under pressure as EBITDA declined 18.7% YoY to Rs 30.2 crore from Rs 37.1 crore in the year ago period.
EBITDA margin also narrowed sharply to 10.6% from 13.8% last year, which weighed on investor sentiment.
The company attributed part of the weakness to temporary production disruptions during the quarter after LPG supplies were restricted by Oil Marketing Companies citing force majeure conditions linked to the ongoing West Asia conflict.
Earlier in March, Borosil had informed exchanges that production at its borosilicate glass furnace in Jaipur was temporarily suspended, while operations at its opal glass furnaces were scaled down because of restricted LPG supply availability.
Apart from operational concerns, investors were also reacting to the company’s proposal to seek shareholder approval for raising up to Rs 250 crore through multiple routes including QIP, debt instruments, FCCBs, ADRs and GDRs, subject to regulatory approvals.
The audited FY26 results also included the impact of a one time exceptional item related to new labour code implementation.
Despite the near term pressure, Borosil reported year on year growth in FY26 revenue and profit, while the board also approved key financing and governance related measures.
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