Borosil Ltd (NSE: BORORENEW) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Shreevar Kheruka — CEO
Anand Sultania — CFO
Analysts:
Marran Goel — Analyst
Bhavin Rupani — Analyst
Akshit Gandhi — Analyst
Samir — Analyst
Bhavin Rupani — Analyst
Kewal Ashar — Analyst
Resham Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Borosil Q3FY26 earnings conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Maran Goyal from ICICI Securities. Thank you. And over to you sir.
Marran Goel — Analyst
Thank you. Good evening ladies and gentlemen. On behalf of ICIC securities we welcome you all to Q3 and 9 months FY26 results conference call of Borisill Ltd. Today we have with the senior management represented by Mr. Sriva Kheruka, Managing Director and CEO Mr. Rajesh Kumar Chaudhary, Full Time Director Mr. Anand Sultanya, CFO Mr. Ritwajarma President and Mr. Dhawal Patel, Head Investor Relations. Now I hand over the call to management for initial comments on the quarterly performance. Then we will open the floor for Q and A session. Thank you. And over to you Shriver sir.
Shreevar Kheruka — CEO
Well, thank you Mr. Goyal and ICICI securities for arranging this call. I wish all of you a good good afternoon. The Borosil team is delighted to be communicating with you once again. I’m pleased to inform you that Borussell Limited’s board has approved the financial results for quarter three and nine month financial year ended 26. During our meeting on the 5th of February 2026 we have submitted our results and an updated presentation to the stock exchanges and they’re also available on the company’s website for your review. I’m pleased to share that Borisa Limited delivered a steady performance in the nine month financial year 26 with consolidated revenues from operations at approximately INR 912 crores compared to INR 838 crores in the.
This translates to about 9% year over year growth despite a challenging year and we’ll come to the reasons for the challenge shortly. The nine months growth highlights. The nine months growth highlights the resilience of our business model, strong execution capabilities and the continued trust of our customers and keeping us well positioned. We also have a fantastic team that ensures in spite of the odds driven by BIS we are able to continue. We shall focus on the year to date performance rather than quarterly for that because Diwali this year was quite early as compared to the last year and hence the quarter three numbers are not comparable.
This point was also noted in the last conference call in the last quarter. So coming to the nine month financial year 26 numbers at the consolidated level, the company recorded an operating EBITDA before investment income and one time items of INR 145 crores compared to INR 140 crores in the same period last year marking a 3.4% year over year increase. The operating EBITDA margin was slightly lower at 16.2% compared to 17% in the previous year. We will come to the reasons for that in a short period of time. Other operating income for the nine month financial year 26 includes INR 18.1 crores from shared service support income compared to INR 12.6 crores in the same period last year with the related expenses reflected under total expenses.
Profit before tax for the period was INR 86.2 crores compared to roughly the same INR 86.3 crores in the previous year. This year includes a one time stamp duty expense provision reversal related to demerger of INR 7.2 crores which is shown under the head other income and also includes one time expenses of INR 1.8 crores towards professional fees for a strategic assignment. The income from investments on the other side is INR 2.6 crores and and royalty income is INR 7.6 crores in nine months FY26. Last year during the same period the company had recognized a one time income on account of transfer of tenancy rights on one of its properties of INR 13.5 crores with income from investments of around INR 4.0 crores coming to depreciation, the depreciation increased by INR 5 crores while finance cost declined INR 6 crores primarily due to debt repayment in 9 month FY26 as compared to last year.
The gratuity and leave provision on account of the new labor code is approximately INR 4 crores in the 9 months FY26 which is shown as an exceptional item. As a result, PAT rose marginally from INR 63.1 crores in 9 month FY20 in 9 month. Sorry it rose marginally from INR 63.1 Crores in last year’s 9 months versus INR 64.1 Crores in 9 month FY26 reflecting a deep growth of approximately 2% year over year. Another point on the balance sheet is the company generated robust cash flows of approximately INR130 crores in the first nine months of this year.
Therefore, as a result of all of this as at a consolidated level, Borosil Ltd. Maintains a strong balance sheet with investments, cash and bank balance of approximately INR 104 crores and a total debt including working capital of INR 91 crores resulting in a net cash position of roughly INR 13 crores. So coming to the operating performance, I want to start with a big trend that we have seen and we have been a part of is a shift from plastic to glass. So as we see in the results, India is shifting from plastic storage and plastic lunchboxes to glass storage and lunch boxes.
It’s not just a material shift but also a change in usage behavior. India’s food storage and lunch habits are undergoing a quiet but decisive transformation. For decades plastic lunch boxes and storage containers dominated Indian kitchens and office bags. This was driven by affordability and convenience. Today that dominance is being challenged by health awareness, hygiene expectations and lifestyle evolution. This marks a fundamental behavior change. Glass lunchboxes are becoming the preferred choice for office lunch, college meals, travel and long commutes and a fitness led routine due to exposure to informative media and medical content. Indian consumers are far more aware of chemical leaching from plastics stains, odors and long term health impact of various plastic lunch boxes available in the market.
Glass, especially borosilicate glass answers these questions with no chemical leaching, no reaction with organic food and safe reheating. Glass also offers visible hygiene what you see is what you eat. This transparency builds confidence especially when food is consumed outside the home. Borosil’s credibility of being the glass experts and scientific precision along with the brand trust makes it the favorable deciding factor for customers. Borosil has customized the glass lunchbox and the storage range for daily Indian usage. This is reflected in the numbers that we will see on the growth in the glassware business. India’s INR 4,000 crore lunchbox market is seeing growing demand for safe, microwave friendly and sustainable products.
Borosil stands out with its mass premium glass lunchboxes offering durability, leak proof designs and microwave compatibility making them a hero product in our portfolio and a clear beneficiary of this structural trend. Coming to Numbers as far as the category is concerned, Borosil has the glassware range has grown by an impressive 21% in nine months FY26 compared to the same period last year with a revenue of 231crores compared to INR 191crores in 9 month FY25. This reflects growing demand for glassware as well as trends which I’ve Just spoken of coming to Lara Lahara Opalware segment recorded sales of INR 314 crores in this year 9 months compared to INR 292 crores in the same period last year which is a growth of 7%.
Non glassware segment which encompasses a wide range of small home appliances, insulated bottles and flasks, cookware and other kitchen essentials posted a very tepid 2% increase in revenue. Turnover for this segment reached INR 349 crores in 9 month FY26 compared to INR 341 crores in the same period last year. The main cause for this was the BIS compliance requirements which have dramatically affected our Hydra bottle sales as some of the channels or many of the channels are only accepting BIS certified steel products. As we have already communicated in the quarters past, our team has recognized these headwinds and and we have now the board has approved the project for our upcoming manufacturing facility in Rajasthan for these bottles through our wholly owned subsidiary StyleNest India Ltd.
This project includes three double walled production lines for vacuum insulated steel flasks, bottles and containers with an estimated capacity of close to 4 million units per year with an estimated CapEx of approximately INR 65 crores. Estimated commercial production from two of these lines is expected by the end of quarter four of this year, I.e. in March, in the next month and from the third line by the end of quarter one of financial year 27 subject to receipt of necessary approvals. This investment of 65 crores will be financed through a mix of equity, debt and internal accruals and the expansion reinforces our commitment to make in India will enhance cost efficiency and ensure BIS compliance and of course strengthen our supply chain resilience by reducing dependence on import, especially the rupee depreciation which we have all seen during this nine month period.
The company has also strengthened its focus on cost discipline to improve operating efficiency. Expenditure on advertising and sales promotion remained well controlled declining from INR 62 crores to to INR 60 crores in this calendar in this nine months FY26. Again the main reason for this was the lack of availability of the bottles which therefore were not. There were no reason to advertise but we switched some of the advertising to glassware. Power and fuel costs also show a very good reduction falling from INR 64 crores to INR 56 crores over the same period. Underscoring the effectiveness of our ongoing cost optimization initiatives and margin focused approach, the company is further investing in INR 75 crores towards setting up a 20 megawatt ground mounted solar plant with a battery energy storage system that will further reduce overall power cost and this project is expected to be commissioned in this month itself, that is Q4 of FY26.
This phase three of solar shall take care about 65% of the overall power requirement of the company which means that as a large power consumer approximately 65% of our total power will come from renewable energy sources which is also fantastic from a ESG perspective. The Company’s Jaipur manufacturing facility was also awarded the Gold Medal at the prestigious India Green Manufacturing Challenge 2025 by the International Research Institute for Manufacturing India. This recognition underscores a continued commitment to sustainable manufacturing practices, energy efficiency and environmentally responsible operations. The award reflects the strength of our process optimization initiatives and reinforces our focus on integrating sustainability with long term operational and cost efficiency.
As a cornerstone of Boros’s long term strategy is its make in India commitment. In addition to the capex already outlined before, we also as we are aware we operate one of the country’s largest opalware facilities at 84 tons per day which will soon be expanded to 90 tons per day alongside a 25 ton per day borosilicate glassware plant that was commissioned in early 2024. Building on this foundation, we are expanding our footprint with manufacturing facilities in some of the other areas that we have that are in our products range between FY18 and FY25. The company has delivered strong and consistent growth with revenues recording a CAGR of 23.5% over seven years and EBITDA expanding at a faster 34.3% CAGR reflecting operating leverage and thereby improve profitability.
Since the acquisition of Lara which is the Opal Web brand in 2016, revenue increased from INR 48 crores in that year to INR 384 crores in FY25 reflecting a 26% CAGR. Also, the non glassware portfolio scaled from INR 23 crores in FY17 to INR 453 crores in FY25 achieving an exceptional 45% CAGR underscoring the company’s ability to successfully grow into new target categories as well as create long term value. In keeping with this, another point to note is that in May 2025 Government of India notified the safety of household, commercial and similar electrical appliances that is a Quality Control Order 2025 marking a significant step towards enhancing consumer safety, quality, quality assurance and market regulation.
Effective 19 March 2026, that is in the next month. The order mandates BIS certification for a broad range of electrical appliances including coffee makers and cooking ranges, hobs, ovens and similar appliances. Accordingly, the company is building up not only a domestic supply chain but also advancing inventory to mitigate potential sales disruptions as non certified products will not be permitted for sale in India beyond the prescribed timelines. I’m happy to note that having the experience of the issues we have faced in our Hydra bottle category, we have been aware of this for quite some time now and thereby have already moved a large part of our sourcing from international sourcing to local sourcing and thereby do not expect any material impact of this QCO on our appliances range.
Borosil is leading India’s shift towards healthier eco friendly kitchens by replacing plastic with microwave safe glass and stainless steel products. Rising incomes and growing health awareness are driving adoption while aspirational design, educational marketing and a focus on hygiene and elegance are helping Borosil convert plastic users into glass and setting new standards for the modern kitchen. Borz’s strong omnichannel presence spanning general trade, large format stores, leading E commerce and quick commerce platforms and growing B2B and export networks have driven deeper market penetration. With availability in over 24,000 retail outlets, we have built a well diversified revenue base serving both urban consumers as well as rural ones.
Borosil’s strong brand equity, diversified portfolio and expanding manufacturing footprint have geared the company for long term sustainable growth both on the revenue as well as the profitability side. With that, I would now like to open the floor to any questions that you may have. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press STAR and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Bhavin Rupani from Investech. Please go ahead.
Bhavin Rupani
Yep hi sir, thanks for the opportunity. First question related to Hydra so I understand we have 3.6 million or 4 million pieces of expansion coming in in couple of quarters. How should one understand ramp up of this category that is forced and and second is what is our EBITDA margins that we’re targeting from this category at peak utilization.
Shreevar Kheruka
So as far as ramp up is concerned, I mean like any manufacturing facility it may take three to six months to come to which is let’s say at 100% capacity utilization. We hope to do it in three months, but with experience, normally it takes about six months to get there. So that’s also built the last year good domestic sourcing.
operator
Interrupt you, sir, but your voice is breaking.
Shreevar Kheruka
Okay. Okay, let’s try that again. Is it better now? Can you hear me?
operator
Yeah, comparatively better.
Shreevar Kheruka
Okay. So as I was saying that I. I think that it may take between three and six months to ramp up the facility to 100% capacity utilization. But in the meantime, the team’s been working very hard to develop a structure to develop a domestic sourcing ecosystem, and that’s also delivered good results. So I do believe that between our own production as well as the domestic sourcing, we have a very good chance of going back to at least last year’s level of Hydra in the coming year.
Bhavin Rupani
Okay. And any sense on rocs that we plan to clock from this plant.
Shreevar Kheruka
So quite frankly, I think this is a question I’d not like to take at the moment. The reason is that a lot of it depends on the achievement of, you know, the productivity as well as the material efficiency or the scrap rates, as is generally known. So obviously our target would be that we should generate a ROCE of 24%. That’s our target for across our business. And therefore this business is no different. So that would definitely be a target for us to achieve. But again, the first few months, there is likely to be higher scrap rates and lower manpower productivity as the team learns the process.
And obviously we can never compromise quality while delivering the product to the customer. So keeping that in mind, I think I would stay away from that except giving you a target. What is to be expected in the coming six months, I don’t know. But long term, we definitely will achieve this target of 24% return on capital on the investments we have made, which includes the working capital as well.
Bhavin Rupani
And this 24% is pre tax.
Shreevar Kheruka
Yes, Prejax.
Bhavin Rupani
And I understand we don’t disclose subcategory wise details on Hydra, but would it be possible to specify what growth or the growth we have seen in this category as compared to last year? This is just to help us more appreciate it. 30%. Okay.
Shreevar Kheruka
Yeah.
Bhavin Rupani
So next question. And that only. That’s subject to material availability only, not demand. Demand’s been strong, but we’ve not been able to. Next question is on small kitchen appliances. We earlier in our calls indicated 50% of supply chain is now in India. How should one understand the progress of the same in this quarter?
Shreevar Kheruka
Yeah, I think we are now inching towards 60 and I think by the end of the coming year we’ll be at 85%.
Bhavin Rupani
Okay. And you had mentioned about incremental Capex in this category as well from FY27 onwards in from Panelization that we have done during the quarter.
Shreevar Kheruka
Sorry, I didn’t quite get the question.
Bhavin Rupani
We had indicated that we manufactured, we plan to manufacture this in house and the capex for this has been done from FY27 or 20.
Shreevar Kheruka
No, I said we have considered and we’ve never announced any manufacturing in this yet. We have only indicated that we are considering it. But at the moment I have no nothing to disclose in terms of Capex or if we’re going to do it or when we’re going to do it. But yes, given the fact that BIS has been implemented on this, there is always we will be evaluating whether we should, you know, what, how this, what products we should do. Because the big range of products, you can’t do everything. So we have to understand whether to do it.
If you’re doing it, what to do, what will the cost be compared to what happen? Will already local supply available and so on. So I don’t have any update on that at the moment.
Bhavin Rupani
Next question is on opalware. So opalware expansion in timelines you spoke about 6 PDF expansion and what would be the incremental capex for this expansion?
Shreevar Kheruka
No, that is a small, that’s just a debottlenecking. So there’s no, there’s no material capex for this. So nothing to discuss here but that, that will happen at the time of the next furnace reconstruction which will happen next year. Yeah, next year.
Bhavin Rupani
Okay.
Shreevar Kheruka
And there’s so much, there’s no material.
Bhavin Rupani
Yeah, yeah, yeah. And when we do.
operator
If you have a follow up question.
Bhavin Rupani
Yeah, I think. Yes.
operator
Thank you. Our next question comes from the line of Akshat Mehta from Seven Rivers Holding. Please go ahead.
Akshit Gandhi
Hello.
operator
Yes sir, you are just again want.
Akshit Gandhi
To understand what is the kind of current demand environment that you’re seeing for. Each one of them? Glassware, open web, you know, non glassware. And how has it evolved in quarter. Three and what’s going on in quarter four now?
Shreevar Kheruka
So actually demand I think which was a bit depressed in the first half of the year has definitely picked up in the second half of the year. Okay. And this is across product categories, of course. As you can see, our glassware is doing the best amongst all the, you know, three ranges that we have. And that is because of a shift in behavior as already highlighted earlier. So quite, quite happy to see growth of glassware. The team’s done a wonderful job and we have some tailwinds, you know, in our favor from a overall structural perspective.
As far as demand for appliances has been fantastic. Our stainless steel, again, the same trend on health and better products, upgrading kitchens, all of those trends are leading to very strong demand in appliances and steel. There’s also great demand, by the way, for the double walled bottles. But because of our inability to supply, we’ve not been able to satisfy that and that’s a setback for us for this year. Opalware and the growth has not been great and that’s something I think we need as an industry. We have to look into this and you know, get some excitement back into openwear.
The category has been there in the market for quite some time and I think customers need, it needs a bit of a refresh. So we are also thinking about how, what to do and you know, evaluating what needs to be done to push the demand here.
Akshit Gandhi
Okay, following up on that, sir, in the, specifically in the Hydra segment or the stainless steel flash segments, the last quarter you said that there was a lot of stress on the channel in terms of, you know, procuring domestically. People are not able to supply the demand that was there from the players. Right. How has this been in this quarter and in Q3 and then probably now a couple of months in Q4 because we’re seeing some margin improvement quarter on quarter as well. So what’s happening there?
Shreevar Kheruka
No, as far as the demand, like I said, we have actually taken a big hit because we are not available in many of the shops and many of the large format stores and so on. So we’ve taken a hit. That shelf space has been taken by others in this, in this period, those who had local manufacturing. So it’s been unfortunate and I guess it’s a miss on our side and we are paying the consequences, we’re bearing the consequences for that miss. But going forward, I think once our plant is up and running, then I think that’s certainly something that will, you know, we will be able to get back that shelf space because the brand remains very strong in the segment.
So because our quality has, we’ve never compromised on quality. Even today we could technically fill this space with lower quality products, which we’ve chosen not to do.
Akshit Gandhi
So this last quarter you said that even not just you but everyone else in the industry is also seeing a crunch from. Because domestic suppliers are not able to supply the amount of demand from players like you, Cello, Milton, all Of that and there has been a glutton in terms of supply. I was asking specifically on that, has that situation improved in three or four months?
Shreevar Kheruka
Yeah, definitely. Like I said, there’s definitely a growth in the last. So last quarter in that sense has been better than the quarter before. And I believe Q4 will be better than Q3 because even the manufacturers in India, as I already mentioned, we found that some people have been able to start ramping up more capacity and therefore and also supplying quality products. So I think we are over the worst of it. And I Hope that this Q4 and ongoing quarters will be better from our supply perspective. From domestic.
Akshit Gandhi
Can you share the utilization levels of both the furnaces for Opal and for glass?
Shreevar Kheruka
Opal is close to 100%. I would say 95% and glass would be about 90%.
Akshit Gandhi
Okay, thank you.
Shreevar Kheruka
Thank you.
operator
Thank you. Our next question comes from the line of Sameer, an individual investor. Please go ahead.
Samir
Hi, I have two small questions. Number one, our revenue growth has been very lukewarm over the last few quarters. Can I basically attribute almost the entire part of this due to the hydra reason that we are not really selling that piece? Is that the main or majority reason for the revenue?
Shreevar Kheruka
That’s literally the only reason.
Samir
Secondly, just a comment. Your shareholding pattern, if one goes over a long time has been from an FII perspective for an institutional investor there’s been sub 1%. And I know we are a small cap company but from a brand perspective we are literally top of the heap. Everybody knows across India border still has a brand but our market cap is like 3,000 crore. Small FII holdings are some 1%. How do we get the news out to the investment community that we are forced to reckon with? Isn’t that a missed opportunity as we go forward?
Shreevar Kheruka
I mean look from management’s perspective we don’t look, I mean we don’t control our stock price except we control performance and the performance hopefully drives the stock price. Right. So there’s very little I can say about stock price. And B, on the FIIs we do have quarterly calls such as this one and once in a while we participate in various shows, you know, your roadshows, not roadshows as much as conferences that many of the larger players such as ICICI for example, organize. Beyond that our focus is definitely to, you know, growing to grow our business.
As you already mentioned, we are a small company only 1200 crores of 11, 1200 crores of, you know, top line. And I think we need to hit closer to the 2000 crore mark to start getting more interest from more firs. And I think that will happen. So we are focused on performance and I’m sure eventually the word will automatically get out and you know, coverage as well as holding of FIs should increase. If we do the right things, we expand revenue and margins.
Samir
Okay, thank you so much.
Shreevar Kheruka
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Anyone who wishes to ask a question may press star and one on the touchstone telephone. Our next question comes from the line of Bhavin Rupani from investec. Please go ahead.
Bhavin Rupani
Yeah, thanks for the opportunity again. Sir, wanted to ask on opalware. So as you said, we plan to do realignment of furnace. So it will be shut for how many days? And what is the capex that we plan over here?
Shreevar Kheruka
So this is something we do every two years and a half. Okay. So it’s not something new. Normally get shut for 30 days. 30 to 30, 40 days. That’s a range of shutdown. But we always plan for the inventory so that we don’t lose any sales at that period of time. So this will happen. Not in this financial year. In the next financial year. I believe. It’s roughly per furnace about 15 to 16 crores. Roughly. So we have two furnaces.
Yeah, so that. So it’s about you. So this is the part of maintenance capex you can assume that, you know, let’s call it 15 crores per year from which is because I’m saying there’s two furnaces. So that, that 50 crores per year is our maintenance capex over there. Because every two and a half years you spend about 30 to 33 crores in this, in this rebuilding.
Bhavin Rupani
Right. And so on glassware we are hitting almost 90% in that. So any plans for further expansion?
Shreevar Kheruka
Yeah, so this is already planned in the planning phase. Deep in the plan. Probably in the next quarter or so we’ll be able to make some announcements here. No brownfield, we have space in the existing facility to expand by 50%.
Bhavin Rupani
Okay. And sir, any guidance on CapEx for FY27?
Shreevar Kheruka
FY27 CapEx has not been approved yet by the board so I would not like to take a stab at it. But it’s, you know, we see many growth opportunities. So there will be reasonable capex in FY27 I think. Let’s see.
Bhavin Rupani
Okay. Couple of questions for Anand, sir. What is our absolute inventory receivables and cables Number as on December 25?
Shreevar Kheruka
Anand, you there? Anyone for the finance Team, Anyone there?
operator
The management line has been reconnected.
Anand Sultania
Hello.
Shreevar Kheruka
Okay. Yeah. Did you hear the question?
Anand Sultania
Sorry, I dropped off from the call by mistake. Yeah, Bhavin, can you please repeat the question?
Bhavin Rupani
Yes sir. What is our absolute inventory receivable and payable Numbers as on December 25th?
Anand Sultania
So inventory as of 31st December 25th is roughly 324 crores. So which is about 99 days of inventory. This includes the inventory that we are trying to build up for the appliances in terms of the quality control order which is going to be implemented. And receivables is about 35, 36 days.
Bhavin Rupani
Absolute number of receivables as well as payables.
Anand Sultania
Receivables is about 120 crores.
Bhavin Rupani
Okay. And payables?
Anand Sultania
Roughly 83 crores.
Bhavin Rupani
And also sir, we get some royalty income from.
operator
But if you have a follow up question please rejoin the queue. Thank you. Our next question comes from the line of Kewala sir from IO Research. Please go ahead.
Kewal Ashar
Hi. Thanks for taking my question. I’ve got one question. So Shiva, we’ve taken initiatives on backward integration as well as cost control. So these are ongoing. So once these initiatives are executed, how do we see the margin spanning out on the EBITDA level from current levels of 16%?
Shreevar Kheruka
So I’ve mentioned this in the past that we believe that we should be in the low 20s on in fact this year had we had Hydra supply we would be closer slightly more than 18% EBITDA. So with back, you know, with the supply rather coming back and with other further costs.
Kewal Ashar
But your voice is breaking.
Shreevar Kheruka
Sorry. Okay, so yeah, like I said before, we are the low 20s in the, in the very short, you know, foreseeable future. This year itself while you reported, you know percent we would have been closer to 18 or slightly more than 8. The we had supply of Hydra and with the further cost measures and for the utilization of our furnaces I think we’ll we see a clear roadmap to low 20s and then you know, we’ll try and. But low 20s is what I see on the horizon.
Kewal Ashar
Got it. Sure. Thanks. And all the rest of the coming years. Thank you.
operator
Thank you. Our next question comes from the line of Resham Jain from VVD Asset Managers. Please go ahead.
Resham Jain
Yeah. Hi. Good evening. So I have this question on glassware that 90 utilization. Are we optimized in terms of margins? And I think initially beware of the view that glassware margin would be very similar to bulware. So just any comments on this?
Shreevar Kheruka
Yeah, so I’ll answer this in a few Senses, as far as our production is concerned, having now run this production for a couple of years, we’ve identified areas where we can further cut costs and reduce, you know, mainly fuel costs. And that’s something we are working on. And I believe that we should be able to further bump up margins by reducing those costs. Over and above that, the solar project that we are now doing will definitely improve glassware margins because that feeding the cost of energy we are paying is still very high for our glassware production line and that will reduce reasonably substantially over and above that as we achieve.
So our focus in the first two years of this glassware furnace was to sell the entire capacity across various segments, which I believe that the team’s done a fantastic job to achieve. Having achieved that, there is scope for cutting off maybe some areas and adding more profitable products. So that is some scope there. But that probably will happen. Not next year, the year after. I think that’s more of a scope to happen the year after. But the glassware margins are very attractive and while they’re not at Opalware margins yet, I still stand by my statement that in the next two years we probably will achieve or surpass the open wear margins. I’m quite confident about that.
Resham Jain
So just under all the three divisions, if you look at independently, we don’t get margins. But given that glassware you will have with Groundfield and the product mix, improving margin should improve. Opalware also with not much of capacity, the premiumization journey should keep happening there. So there also margins will improve. And in non glassware, with Hydra coming in, which is a significant portion of non glass fare, there also margin should improve. So basically there should be like as Keval asked in the previous question, this should happen in the next two years is how one should think about.
Shreevar Kheruka
Yeah. So as far as open glassware is concerned, I’m very confident of, you know, happening immediately like in the, you know, very foreseeable future. Hydra, I would still say we would need to the first time we’re producing it and we would need to see how quickly we can ramp up the production output as well as the efficiency. So being very honest, rather than just give a rosy picture and say margins will improve, we need to be realistic. So our eye will be very closely on that ball over there. But yes, logically, having manufactured the product, that it should give you manufacturing margin versus quote unquote, trading margin. So therefore, definitely there should be a structural improvement in margin. But I don’t want to comment on that till I see proof of pulling has to be in the E team. So I want to see it
Resham Jain
Understood. And the last one is with respect to the non glassware business, if I look at hydra growing by 30%, which is a good portion of the business, the other part, the appliances and the cookware seems to have grown at maybe 3x faster than the industry. So what has led to this growth and will you be able to sustain this growth in coming year as well?
Shreevar Kheruka
Yeah, I already said that our stainless steel range and our appliances have done phenomenally well before and they have been growing at really good rates. And we are still scratching the surface of this industry both for appliances as well as for the serveware, cookware, stainless steel products. So I don’t see that other players or their growth because those players are much bigger than us and therefore, you know, the overall market growth has a bearing on their growth, whereas we are too small and therefore we still can grow even if the overall market is not growing that rapidly, you know, with innovation and with things we’re doing at the margins.
So I don’t see that at least for the next two, three years being a challenge. And we should be able to grow independently of the overall growth rate of the market. Obviously, as we hit bigger and bigger size then the overall growth rate does matter. But at this moment I don’t think, at least in the short run, it’s going to impact us much.
Resham Jain
Okay, perfect. Thank you so much and all the best.
Shreevar Kheruka
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the Touchstone telephone. Anyone who wishes to ask a question may press star and one on the Touchstone telephone.
Shreevar Kheruka
If we’re done, then I think I just want to wrap up by saying thank you all for, you know, your questions and your active participation. We remain very confident about the future at Borussell Limited. We remain extremely bullish on India and the trends we are seeing in the market. Moving towards glass, moving towards healthier options, moving towards stainless steel. And we also are very committed to making India. We believe that India is a great place to manufacture and the change in policies for solar have been absolute game changer from a production cost perspective because cost of energy is reducing in the country and plus the cost of transportation and other overhead expenses also reducing. So I think it’s going to be a great next five years and we look forward to be a part of that journey. So thank you very much and see you after one quarter.
operator
Thank you on behalf of ICICI Securities Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.