Borosil Ltd (NSE: BORORENEW) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Unidentified Speaker
Anirudh Joshi — Investor Relations
Shreevar Kheruka — Managing Director & CEO
Rajesh Chaudhary — Whole-Time Director
Anand Mahendra Sultania — CFO
Rituraj Sharma — President Consumer Product
Analysts:
Unidentified Participant
Dhaval Shah — Analyst
Resham Jain — Analyst
Bhavindra Pani — Analyst
Rakesh — Analyst
Akshat Mehta — Analyst
Ritesh Shah — Analyst
Pranay Roop Chatterjee — Analyst
Hitesh — Analyst
Harshit Nagpal — Analyst
Presentation:
operator
SA Sat. Sat. Sat. Sam. Ladies and gentlemen, good day and welcome to the Borussil Limited Q4 and FY25 earnings conference call. 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. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict.
Please note that this conference is being recorded. I now hand the conference over to Mr. Anirudh Joshi from ICICI Securities. Thank you. And over to you sir.
Anirudh Joshi — Investor Relations
Yeah, thanks Hamshad. On behalf of ICICI securities, we welcome you all to Q4, FY25 and FY25 results conference call of Borosil. We have with us today senior management represented by Mr. Srivar Keruka, Managing Director and CEO. Mr. Rajesh Kumar Saudari, Old Time Director Mr. Anand Sultania, Chief Financial Officer Mr. Rituraj Sharma, President Consumer Products and Mr. Balesh Talpadi, Vice President Investor Relation. Now I hand over the call to the management for initial comments on the quarterly as well as yearly performance and then we will open the floor for question and answer session. Thanks. And over to you Srivar sir.
Shreevar Kheruka — Managing Director & CEO
So thank you Anirudh and ICICI securities for arranging this call. I wish all of you a good afternoon. The Borosil team is delighted to be communicating with all our dear investors again. I’m very pleased to inform you that the Borosil Limited’s board has approved the financial results for quarter four, FY25 and the full year FY25. During our meeting held on the 19th of May, we submitted our results and an updated presentation to the stock exchanges and they’re also available on the company’s website for your review. Before I get into our financial performance I would like to list some of our achievements in the last financial year.
FY25 was a landmark year marked by several strategic and operational achievements beyond financial metrics. One of the most significant milestones was the commissioning of our new borosilicate glass furnace at the end of FY24 which not only expanded our production capacity but also reduced our dependence on imports. Aligning with our long term vision of strengthening domestic manufacturing and make in India. We are pleased to Update that on April 2, 2025. Borson Limited also announced the setting up of a manufacturing unit for vacuum insulated stainless steel flask bottles and containers through its wholly owned subsidiary Styleness India Ltd.
The estimated capital expenditure of the project is approximately 40 crores and which will be financed through a mixture of debt and internal accruals. The initial estimated production capacity is around 2.4 million units per annum with commercial production expected to begin by Q4FY26. Another achievement in the previous financial year was that revenue wise, Lara became the number one Opalwear brand in India. Lara was also awarded Gold for Best Brand Evolution in the Consumer category at the prestigious Transform Asia Awards. We also successfully launched the Lara Premia Collection which is designed to enhance dining experiences and combines exquisite aesthetics with practical functionality which makes it an ideal choice for contemporary homes.
This is the premium range of our Lara Opalware. In FY25 we also refreshed Borosil’s brand positioning to be enhanced every day for every Indian family. This shift was driven by consumer insights from nationwide research. We introduced a new logo and updated packaging and visual assets to reflect this stronger and more modern identity. We’re also thrilled to inform you that on the HR front Borosil Limited has been officially certified. Great place to work. This recognition enforces our commitment to provide a positive and empowering work environment for all our thousands of employees. We successfully raised 150 crore rupees through a QIP and and received a very encouraging response from the investor community.
We also received a long term credit rating upgrade from ICRA to AA with a stable outlook which is a testament to our strong governance and operational resilience. Our integrated marketing campaigns delivered strong engagement across digital platforms as well as offline and further deepened consumer connect. Finally, we continued our mission to promote healthier and more sustainable choices by encouraging the transition from plastic and melamine to glass, opalware and steel, further enhancing our brand relevance in modern Indian homes. So that’s quite a long list of things we tried to do and achieved in the last year beyond the financial numbers.
Now we’ll move on to the financial performance. I’m pleased to report that Borussa Limited has delivered a strong performance in FY25 and here we’re talking about the whole year. With revenue from operations reaching 1107.8 crores up from 948.5 crores during FY24. This represents an impressive 16.8% year over year growth placing us amongst the industry’s top performers. The growth is a testimony to the effectiveness of our strategy, operational excellence and most importantly the trust and loyalty of our customers. It highlights our ability to overcome challenges and capitalize on new opportunities, further strengthening Borsal’s market position. In FY25 the company achieved an operating EBITDA before investment and onetime income of INR 177.7 crores up from INR 144.9 crores in FY24 which is a 22.6% year on year growth.
Reflecting our continued focus on efficiency, the operating EBITDA margin for FY25 stood at 16.3% versus 15.4% during the previous period. On the downside, the introduction of UCP MP2024 which restricts incentives to healthcare professionals impacted our B2B sales specifically in the pharmaceutical segment by affecting bulk orders and distributor engagements. To offset this, we shifted focus to E Commerce and quick commerce which delivered strong growth but also led to higher customer acquisition costs and as a result our advertising and sales promotion expenses went from 68.3 crores in FY24 to 86.8 crores in FY25. Other operating income includes INR 18.4 crores from shared service support income for FY25 and the same number was INR 5.5 crores in the previous year with the associated expenses.
So here the point is that the associated expenses are captured on the total expenses. These are support services for the other two borosil companies which is borosil scientific renewables and we recover these expenses from them in the way of but that shows up in other income. Profit before tax for FY25 was INR 103.2 crores up from INR 87.8 crores and FY24. FY25 also includes a one time income of INR approximately INR 13.5 crores. At the same time depreciation and finance costs increased by INR 31.1 crores which is a very large increase owing to the commissioning of our new borosilicate glass furnace in the quarter four of FY24.
As a result, the PAT for FY25 reached INR 74.2 crores compared to INR 65.9 crores during the previous period. Furthermore, as per the Union Budget 2024, the discontinuation of indexation benefits on long term capital assets effective July 23,224 led to a reversal of deferred tax credit. This resulted in higher taxation for FY25 impacting profit after tax by INR 3.89 crores. Now let’s take a closer look at our category wise performance for FY25. Borussell’s consumer division continues to expand across both glassware and non glassware categories under the Borsal brand as well as our Opal Wear range under the Lara brand.
Speaking of Lara, first, the Lara open wear segment, known for its modern designs and superior quality reported sales of INR approximately 384 crores in FY25 up from INR 358 crores in FY24 reflecting a 7.3% growth in the glassware segment which includes borosilicate glass, microwavables, serving ware, lunch boxes, tumblers and storage solutions. We recorded an exceptional year over year growth of 27.2% with revenues reaching INR 252 crores in FY25 compared to 198 crores in FY24. The non glassware segment which encompasses a wide range of small home appliances, insulated bottles and flasks as well as cookware also performed strongly posting a 17.2% increase in revenue turnover for this segment reached INR 453 crores compared to INR 386 crores in FY24.
This impressive performance reflects the successful execution of our strategy to expand the borosil portfolio catering to the evolving culinary and serving needs of Indian households. It also reforms the strong brand equity and broad appeal of borosil across multiple product categories. Working capital has increased in FY25 mainly because of high inventory maintained for appliances and Hydra categories due to the regulatory challenges of BIS QCO implementation. The inventory of Borosuke glassware has increased as our furnace capacity which was commissioned in Q4 FY24 is higher than our current sales. Therefore this is adding to the glass borosilicate glass inventory increase.
Additionally, the inventory for raw material, packing material etc. Have increased due to shift towards in house manufacturing of borosilicate glassware. All of this has resulted in an average operating capital employed in the business that is Capital employed without capital, work in progress and investments to become INR 841.1 crores during this year. During FY25 the company earned an operating profit again excluding exceptional and one time items and income from investments of INR 96.7 crores and this translates into an operating ROCE of 11.5%. RO C moderated to 11.5% in FY25 from 15% last year and that is mainly driven by our strategic investments in the new production plant of Borosilicate Glass which was only capitalized at the end of Q4FY24 and as well as the expansion of opalware capacity which happened in FY23 but which is not yet at full capacity utilization.
This caused an additional depreciation of INR 27.1 crores from the previous year and that impacted the ROCE. This temporary dip reflects the conscious front loading of CAPEX to strengthen our leadership in Borosi glassware as well as Opalware. As these assets ramp up and begin contributing with larger and larger capacity utilization, we anticipate the ROCE to rebound in the very near future. During the quarter ended June 30, 2024, the company successfully raised INR 150 crores through a QIP to facilitate the repayment or prepayment of long term project loans, working capital loans and for general corporate purposes, post issue expenses of INR 4 crores.
The entire net proceeds of INR 146 crores have been utilized. The company has utilized INR 107 crores for the repayment of working capital loans and INR 39 crores for repayment prepayment or long term project loans. Moreover, pursuant to the Composite Scheme of Arrangement during the financial year 2425 the company has paid INR 97.81 crores to Borosil Scientific towards repayment of loan including interest. As on 31st March 2025, Borosil Limited has a net debt of INR 26.5 crores. At Borosil Limited we have built a legacy of trust and quality, becoming a household name and providing table and kitchenware solutions to India.
Our journey, which began with pioneering glassware, has evolved into a diversified portfolio that caters to the modern Indian consumer. Today, borosil stands at a pivotal juncture as India embarks on an era of unprecedented economic expansion. Over the next two decades, India’s rising middle class, increasing urbanization and growing disposable incomes will drive massive consumption growth, particularly in home and kitchen products. With its strength of new product development, innovation and commitment to quality, Borosil is uniquely positioned to cater to the aspiration of millions of Indian households seeking superior, sustainable and stylish kitchenware solutions. As mentioned, Borosil has expanded beyond glassware, emerging as a leader in opalware.
With Lara, we are among India’s largest opal wear manufacturers, providing elegant, durable and lightweight alternatives to steel, plastic and melamine. The Indian opalware market is growing as consumers embrace microwavable, stylish and brake resistant dining solutions. Since acquiring Lara in 2016, we have driven its revenues from 48 crores in financial year 16 to 384 crores in financial year 25 with a CAGR of 26% over nine years. Leveraging manufacturing scale, distribution strength and innovative design, Borosil’s non glassware portfolio spanning kitchen appliances, vacuum insulated flasks, cookware and storage solutions have also delivered outstanding growth with revenues rising from 23 crores in FY17 to 453 crores in FY25, clocking a 45% CAGR.
This surge is fueled by India’s expanding middle class and rising aspirational spending driving demand for premium yet affordable home and kitchen solutions. With a proven product range and strong brand equity, Borosil is strategically placed to capitalize on this consumption wave and scale its leadership in the fast growing non glassware segments. Borosil is driving India’s transition to healthier eco friendly kitchen solutions by replacing plastic with glass and stainless steel. Tapping into rising disposable incomes and growing health awareness, the brand is converting plastic users to glassware and opalware. With aspirational design, educational marketing and a focus on hygiene and elegance, Borosil is redefining the Indian kitchen and poised to challenge other materials.
India’s 4,000 crore lunchbox market is undergoing a structural shift towards safer, microwave friendly and sustainable alternatives. Boros is at the forefront of this transformation with its premium glass lunch boxes offering durability, leak proof design and microwave compatibility. Boros Hydra range of vacuum insulated stainless steel bottles, flasks and containers have demonstrated exceptional traction with sales going nearly 5x in the last five years. With India’s insulated steel bottle market valued at 2000 crores and rapidly expanding due to its rising demand for durable sustainable hydration solutions, Borosil is also uniquely positioned to capture significant growth in this category.
Borosil is proudly aligned with the make in India vision backed by state of the art manufacturing facilities which includes I 84 tons per day opal glass and and new 25 tons per day borosilicate pressware unit. By manufacturing locally, we ensure superior quality, faster delivery and cost efficiency while strengthening India’s industrial ecosystem. These investments drive regional job creation as well as substantial economic growth. Our great Place to Work certification underscores our strong leadership, inclusive work culture and focus on performance. We attract and retain top talent by fostering innovation, ownership and long term commitment. Our ESOP 2020 scheme actively rewards high performers with fresh stock Options, also approved in November 24.
By offering equity participation, we boost motivation, deepen alignment with our vision and strengthen Borsal’s position as an employer of choice. Borsal’s extensive omnichannel strategy, which spans general trade, modern trade, e Commerce and B2B, as well as export, has ensured deeper market penetration. With products available in over 24,000 retail outlets, we built a robust, diversified revenue base that connects both with urban consumers as well as rural markets. Our marketing engine has amplified brand leadership through impactful content led campaigns and strong digital engagement. By blending storytelling with immersive brand experiences, we expanded our reach and relevance. Media visibility, strategic partnerships and our core focus on quality continue to power Borusal’s growth and consumer trust.
So with that, I would like to end my opening remarks and I’m open to questions from the floor. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dhawal Shah from Girik Capital. Please go ahead.
Dhaval Shah
Yeah, hi. Am I audible?
Shreevar Kheruka
Hello. Yes, please go ahead. Hello.
operator
Mr. Dhawal. So he has disconnected. The next question is on the line of Resham Jain from DSP Asset Managers. Please go ahead.
Resham Jain
Yeah, hi. Hi Shriver. Good evening. Good afternoon. So I have three questions. First one is with respect to the boros indicate plant. If you can just help with the overall utilization level and compared to our initial expectation about margins, where are we and also what is the total capital employed in the borosilicate plant? You mentioned in your opening remarks that the inventory levels have gone up in the borosilicate both at the finished goods level and at the raw material level.
Shreevar Kheruka
Yeah, so thanks for the questions. As far as capacity utilization of borosiguit plant, we are running at about 65% at the moment for the previous period. So to give you some numbers, our plant is 25 tonnes per day and I would say that we are about 65 to 70% utilized on that plant and we have taken a very stretched target that we should go to closer to 90%, 95% in this current period, which would be very good success and which would therefore improve the roce quite well. Coming to the next point, you mentioned about I guess the total capital employed or the margins.
So Both of these I’ll take. Margins have been actually better than what we had anticipated in borrow circuit pressware and we are quite. I don’t share the margins by category but we’re quite happy with them that we’ve been able to expand our revenue by glassware by 25% or 27% as I shared. And we’ve not really had any challenge on the margin front. In fact, margins have only increased. So the import substitution has really worked for us well on the capital employed. Altogether it’s roughly 200 crores on the border circuit front on the pressware which includes the capex as well as probably some working capital that we have.
So that’s roughly it. But I mean frankly speaking, this plant at full capacity utilization should deliver roce more than 24%. That’s our working.
Resham Jain
Okay, understood. The second question is on vacuum flask capacity which you have announced. What is the kind of turnover you can get in this capex through this capex?
Shreevar Kheruka
Yeah, so actually in, you know, glass is a tough one where you get 1 is to 1, 1.2 is to 1 kind of turnover to capex ratios. In the case of steel it’s a bit different. In the case of steel you can get two to three times depending on product mix capex to turnover ratios. So if it’s a 40 crore capex you could probably do about 100 crores of revenue from that.
Resham Jain
Okay, got it. And the last one is with respect to the working capital. Last year also we had an increase in working capital in September we mentioned that because of festive and because of regulatory on the flask side we bought more of the Hydra range. But it seems that this year also there has been overall further increase in the inventory level. So on an aggregate basis, how much inventory can be reduced in a normalized environment? If you can just give your thoughts around that because it is maybe temporary but it is slightly on a higher side.
Shreevar Kheruka
So I’ll give you an example. In Opal glass we don’t have inventory of more than 60 days. 60 to 90 days would be the inventory range that we would operate at. Obviously during Diwali it comes down then in the middle of the year, meaning towards March it goes up. So the range would be maybe even 45 to 100 days. That would be the broad range of Opel glass inventory. And that’s because it’s a stabilized environment. We have our own manufacturing, we don’t import anything and. And. It’S quite stable for the last many years. I’m seeing it in the case of as you rightly mentioned, the regulatory issue, we had two consecutive years of regulatory issues. So last year it was the BIS on the vacuum flask which is our Hydra range. And this year now we got BIS on appliances. So we had two consecutive years with two separate product categories which were being imported which have these BIS notifications in which case we had to stock up for six, nine months. So in these categories the inventory has gone to 180, 210 days, maybe even 270 days in some cases while we develop the local vendor ecosystem.
Right. So that’s a separate issue. And this number if I remember correctly could be as high as 80, 90 crores, maybe even close to 100 crores of extra inventory we are carrying because of this reason. And as far as Borosik is concerned the issue is completely different. That’s like as already mentioned, our production capacity was three times what we were selling and we’ve not yet. So we obviously our sales have increased substantially this year but they are not yet caught up to the production capacity. So therefore and the glass plant you have to run at full output.
You can’t really run at lower output. So we have to stock that material. So to answer overall questions, say in a couple of years time when the BIS issues are solved and our glass plant is running at full utilization, I would say inventory would be similar to what our Opal glass inventory is between 45 and 90 days depending on the time of the year just after Diwali will come down and then maybe by March, April it will go up to 90 days. So that is broadly how it will work. Whether we can further tweak from there, that’s something we’ll have to look at there.
But I think that would be a good Internet target for us.
Resham Jain
Understood. But this is the peak inventory which you’re carrying. Is that a fair assumption?
Shreevar Kheruka
March is anyway peak inventory more or less for us because that’s just how the market works. March, April, May, these are the three months where probably you. And then the sales pick up from June, July onwards. But yeah, I don’t. I mean given these two years in addition to the March peak we’ve had these two BIS peaks which have really, you know, increase our costs or increase our inventory carrying costs.
Resham Jain
Okay, understood. Thanks Shivar. All the best.
Shreevar Kheruka
Thanks.
operator
Thank you. The next question is from the line of Tawal Shah from Kirik Capital. Please go ahead.
Dhaval Shah
Yeah, hi. Sorry, my line got disconnected. Yeah, so my question is regarding this board resolution for 250 crore fundraise. So could you give out Some details on it. What is it regarding? What is it?
Shreevar Kheruka
Enabling resolution. It’s an enabling resolution. We take it every year. Was in the past. In the past you had, you know, when we had to raise money then we couldn’t raise because we then had to go for an egm. So it’s an enabling resolution. We are not at the moment planning to raise anymore.
Dhaval Shah
Okay. So now if you were to ask that you know, weighing a rights issue versus a qip because we’ve just done a dilution. Yes. And both will lead to a. But you know, won’t that be a better option? Any thoughts?
Shreevar Kheruka
It as I’m going to repeat myself, it’s an enabling resolution. There’s no thoughts on raising money at all whether it be rights or whether it be qip. So I mean it, it, the, the secretary of department took it in the due course of business. Don’t read into it. I, I, I’m pretty sure we’ll not be raising any money this year unless something dramatically changes. It’s a moot point. It’s a moot point.
Dhaval Shah
Okay. Okay. Got it. Got it. Thank you. Yeah.
operator
Thank you. The next question is from the line of Bhavindra Pani from Investech. Please go ahead.
Bhavindra Pani
Yeah. Hi sir. Good afternoon and thank you for the opportunity. My first question is related to Hydra category. Sir, we did some channel checks around Hydra and what we observed is we have introduced a new scheme for stainless steel single wall bottles in the market. So how should one understand this more, sir?
Shreevar Kheruka
So look there’s as I already mentioned, our brand stands for sustainability and for daily use. So the Hydra insulated flask costs anywhere from 700 to 900 rupees plus. Entry level may be slightly lower but that’s broadly the average pricing. That’s for many kids. For many kids and for other socio economic classes that’s the price point is a bit high. So people use plastic bottles which are maybe priced much lower. So the idea of a single walled steel bottle is to enter into categories where the Investment cost of 700 rupees is too much because parents may not want to spend so much money for their kids bottles, school bottles and so on.
So this is just a way of expanding our presence in those areas and that is the thought behind it. And besides the production capacity in India for this product is quite good and we can assure a borosil type quality for the end customer. So it makes sense as a line extension to do it.
Bhavindra Pani
Clear, sir. So second, which is a follow up to the above question. So when we did the checks. We understood that some of our Hydra products have now started to deplete. Inventory has now started to deplete and availability of some of the products is an issue now. So can you give some more sense on how much inventory we have and do you think it will have any impact on revenue or margins in Q3 and Q4 until the new plant is commissioned?
Shreevar Kheruka
Yes, there is an absolute issue of that. I think in the last call I also mentioned it that this year will be a tough year. Maybe a tough year. Obviously we are trying to mitigate it. We have a major risk for running out of inventory in Hydra without having sufficient local sourcing available to supply. And that’s a risk to our revenue and to our margins. Absolutely. So we are working on mitigating that risk. We do have 150plus crores of inventory at sale value to mitigate it to some extent. But it’s. We are still not covered with the whole year’s inventory.
So we are working on it. Everything is not known today. But we will certainly try and reduce the loss of Hydra sales this year to the minimum extent possible.
Bhavindra Pani
And sir, you mentioned about 150 crores inventory. This should last for next six, seven months or nine months.
Shreevar Kheruka
I think so. I think we’ll have enough to pass Diwali.
Bhavindra Pani
Got it. Sir, second question is related to our expenses. Our warehousing expenses and freight cost as we understand and A and B cost is higher as compared to some of our peers in the industry. What are your thoughts on this and how do we try to balance revenue growth and higher overhead cost.
Shreevar Kheruka
Also? Look, we have a very clear philosophy. We want to expand our revenue growth. Okay. And in order to expand revenue, you need to have your product in front of the customer. You need to have product available, meaning the customer. It should be in the consideration set of the customer. So whichever channel they are looking at, whether it be trade, online, offline, they have to see our brand. And secondly, that from a retailer’s perspective, you need to be able to replenish the inventory as quickly as possible. So on both these perspectives you. So our goal is revenue growth.
These costs are something which in the short run may look higher whether it be advertising or whether it be freight and warehousing. But in the long run these costs will rationalize themselves as the volumes increase and there is a lot of operating leverage possible here. So as a company we can only solve for one thing at one time. It’s not very easy to solve for everything. So our focus is on increasing our brand salience. Our distribution in terms of number of stores, in terms of presence across the length of the breadth of the country as well as making sure our channel partners are happy with our service.
So we’ll worry about those expenses maybe two, three years down the road when we hit a certain reasonably larger revenue number. So if it’s slightly higher than what say the market averages, we are okay with it.
Bhavindra Pani
All right, sir, got it. And so last question, any guidance on revenue margins and capex for FY26?
Shreevar Kheruka
As far as I can’t, like I said, we don’t give guidance for short run. We still maintain. If you see a slide, I’m not sure which slide number on our presentation you see the CAGR of the company for last nine, 10 years where the CAGR has been about 20 or plus percent. You know, from 2016, I’m not sure which slide number it’s up front. So yeah, the sales cagrade saw it from 2018 to 2025 is about 23.5%. We’ve always guided for CAGR of between 15 and 20%. I think this year will be challenging to maintain that just because of the.
Mainly because of the QCO or the BIS issues both on appliances as well as Hydra. On the bright side, we still have capacity in Lara as well as a lot of capacity in Borosilicate which can cover that. But we will, we are looking that as if we may have to have some actually reduction in revenue in the categories of at least Hydra and maybe a little bit in DAP in domestic appliances. So this year I would say would be a tough year for us from a revenue perspective. But I think it’s a, you know, obviously we are trying to do things to mitigate it but I think it’s a bump in the road because from next year again we’ll have enough capacity and more to service the market.
So don’t want to give like a guidance for the year but I will say that we maintain our 15 to 20% CAGR over the next three, four years from here through 2030.
Bhavindra Pani
Got it sir. Thank you so much and all the best.
operator
Thank you. The next question is from the line of Rakesh from Nine Rivers Capital. Please go ahead.
Rakesh
Hi. Hi sir, thank you for the opportunity. It’s a one question with respect to the cash flow. There’s a entry of drastic increase in the trade payables and other payables. Can you please talk about that? What is that line item?
Shreevar Kheruka
So this trade table, basically the repayment of loan to Borosil Scientific Limited 100 crore rupees. This repayment is on account of demerger. The time of demerger. We decided to give 100 crore to. Boshu Scientific Ltd. That deployment has happened during the year.
Rakesh
Okay. Thank you sir. That was very helpful. Sir, with respect to the working capital cycle you mentioned last two years have been very difficult for the. Very difficult for the business because of the MPS BIS implementation. So assuming next year will be smoother. So what can be the working capital guidance for the number of days? Because in the past the numbers of days are very low.
Shreevar Kheruka
I think working capital. We discussed discussed about the inventory. The main receivables are well within control. Payables are well within control. It’s all. It’s all inventory. And we’ve already in the previous 30 minutes we’ve spoken a fair bit on inventory. So I don’t want to repeat it.
Rakesh
Sure. Thank you. Thank you, sir. And sir, with respect to the capex plan, any plan for the increasing the capacity in the opalware? Because if I look at the potential. If I look at the growth of the company in the last one, two year, last couple of years it has been north of 20%. And if we does the revenue in 36, 20% growth or something like that then next year we require some new capex in the plant. Any plan for that?
Shreevar Kheruka
No, we are. We. We are going to be putting a new plant for our stainless steel vacuum flask which is a capex of 40 crores. And then there’s regular maintenance capex which may happen which would not be a lot. Maybe 20 odd crores. So that’s the only capex we have in this particular year. We don’t have any current plans to either start a new third opel furnace or another borough circuit furnace. So that plan we will announce whenever it is, whenever it is approved by the board.
Rakesh
Okay, that’s it. From my side. Thank you. And all the best.
Shreevar Kheruka
Thank you.
operator
Thank you. The next question is from the line of Akshat Mehta from Seven Rivers Cap Holdings. Please go ahead.
Akshat Mehta
Hello.
Shreevar Kheruka
Yes please.
Akshat Mehta
My first question was if you can help us. What is the on ground current environment on each of the segments in the industry for glassware, for openware, for non glassware, you know, at the moment.
Shreevar Kheruka
So. Ritraj, are you on the call?
Rituraj Sharma
Yeah, sure. Hi, I’m there.
Shreevar Kheruka
Maybe you can take this.
Rituraj Sharma
Yeah, sure. So I think let’s go category wise. So for us in terms of glassware like Shival was mentioning we had a very good run this year. We were able to expand the category and the market primarily on account of having the new BG3 furnace coming in. And we could come out with a lot of new products in terms of the lunchbox and all, which has done very well for us. For the other categories, Opal also like we had a growth of 8% here. Also we have been able to come out with new products in terms of premium, high premium range.
We’ve earned it a lot for stainless steel and appliances. We have maintained a growth of about 17% for the year. For us again, we have been able to expand our distribution network and in terms of our offerings, the product portfolio also we have been able to expand which helped us to grow in terms of geopolitical situation and the overall environment. The markets have been tough and I think we have been able to, you know, in terms of our offering and the way we have segmented the market channel. For example, we may have suffered, you know, in the B2B segment due to the government, you know, policies, for example pharma, we suffered, but we were able to make up in the big commerce channel where we had tremendous growth.
So in terms of our channel strategy, that has helped us to ride the market. But overall the think the market conditions and the environment continues to be a challenging environment. And but I think going forward we expect things to get better.
Akshat Mehta
Secondly, sir, if you can help us, except for this 40 crores that we are going to spend on the bottle capacity, what is the other capex that we can expect in the year?
Shreevar Kheruka
I already mentioned, we have about 20 crores of maintenance capex which happens every year. So that’s it. There could be. Yeah.
Akshat Mehta
Secondly, sir, if you can help us, what is the current utilization that we are running on in the openware capacity and is there any plan in the next one or two years to set up additional capacity?
Shreevar Kheruka
Okay, so many, many questions are repeated, but I’ll answer it again. As far as plans to set up additional capacity, no, we do not have any plans to set up additional opal class capacity. And as far as opal utilization is concerned, we are at about 90% utilization.
Akshat Mehta
Okay.
operator
Thank you. Before we take the next question, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Ritesh Shah from Investech. Please go ahead.
Ritesh Shah
Yeah, hi sir, I’m audible.
Shreevar Kheruka
Yes, please.
Ritesh Shah
Yeah, hi. A couple of questions. First, Shubhar, you indicated on appliances. Basically that’s also attracted bis possible to quantify what was the revenue contribution from appliances this particular fiscal and what are the mitigating variables? That we are working on right now, including outsourcing partners.
Shreevar Kheruka
So appliances. I mean firstly I don’t share the exact numbers but you know, of the non glassware it’s a reasonable chunk. It’s a triple digit chunk of the non glassware so it’s large enough that it matters. But I would say that it’s a different kind of discussion compared to Hydra or compared to flask appliances. We’ve seen some good local manufacturers spring up who are OEMs and we do expect that we should be able to mitigate the challenge from BIS in a better way than has been the case for flasks. So I don’t sense that we will have too much of an impact on revenue growth in appliances because as I said before, we were also covered with inventory and we also seem to have a reasonably good supplier base which we can take over the load from our imports.
As far as the quantum is concerned, we do have about 70, 80 crores extra inventory in appliances for the BIS issue and I see that carrying us through at least Diwali. So I do believe that we shouldn’t have any kind of setback there.
Ritesh Shah
So just a clarification, 80 crores is purely from the inventory that we have which will help us to take care of things until Diwali.
Shreevar Kheruka
This extra inventory, extra over and above normal inventory.
Ritesh Shah
Okay, that’s perfect. So my second question was on distribution. Can you highlight the measures? What are our targets, the count right now and where we aspire to be in say a year out or three years out?
Shreevar Kheruka
I’ll let Ritu Raj answer that question.
Rituraj Sharma
Yeah, so in terms of distribution, we have about 24,000 retail outlets as of date. And the way we look at this thing is not like, you know, specific number and all. Essentially we look at what the product offering is and how best can we serve the end customer. And so we have, you know, implemented sales automation tools wherein the channel’s efficiency and productivity is what we are looking out for. So typically every year we have been increasing our width of distribution as also because of the portfolio of the depth of distribution. So we believe that this will.
Every year we have been adding a sizable number of retailers and distributors to the thing. So from the current 24,000 this number will again surely, you know, go more than about, you know, another. I would say depending on the category, this will get scaled up.
Ritesh Shah
Sure. Last question for Srivir sir, earlier we have spoken about one is A and P spends, secondly it’s warehousing and freight. I think you had indicated that we were looking to rationalize something on the warehousing because it was a variable wherein we were looking at turnaround time versus actual cost. So any progress on warehousing freight cost, and the third is basically the efficiency on A and P spends. And any numbers for A and P spend specifically for FY26?
Shreevar Kheruka
No. I think in the opening remarks I mentioned that A and P went up more than expected this year because we had to, you know, we had to pivot because our B2B sales to pharma came down and we had to pivot to other channels in this year and therefore A and P went up. So that was unexpected in the middle of the year to have that, but we had to do it. So these things happen during the year, we expect something and we have to kind of move quickly when things don’t work out in the way that we anticipated.
But coming to your question, as I mentioned again before, these are indicative numbers at 1000 crores or 1100 crores of revenue. I don’t think it really matters that whether your percentage is 7 or 6 or 8. What matters is can you grow the 1100 crores to 2000 crores in the next 3, 4 years. And once we hit that kind of scale, I believe that these numbers will automatically rationalize. And for example, and there’s a reason for I’m saying that when you for example, are doing 2000 crores of revenue, the number of trucks you send to your distributor increase.
And when that increases, you are able to replenish them faster. Then you don’t need warehouses in every part of the country. So therefore you can ship directly from central warehousing more as an example. But in the same way your freight, you ship more truckloads and less than container load shipments are lower, which is also cheaper. So those things automatically happen and you don’t have to actually work on it. It’s just by function of volume that you get those savings. Of course, advertising is one where it’s up to us. Many of the E commerce guys spend a much larger percentage on advertising to increase the pie.
We spend lesser and our competitors spend even lesser than us. So it’s a question of your philosophy. And right now our philosophy is to keep increasing top line, obviously without giving discounts. So that’s where the advertising comes in, is that you prove to the customer why your brand is better rather than give a discount and increase revenues. So directionally you’re right. We have said in the past many times that these numbers will rationalize when exactly it happens. It’s hard to say market keeps changing but I do believe in the next 2, 3 years these numbers will rationalize and will add maybe 2, 3, 4.
I would say 2 to 3% would be added to EBITDA with the rationalization of these numbers over the next two, three years.
Ritesh Shah
Sure, that’s helpful. Thank you so much. All the very best. Thank you.
operator
Thank you. The next question is from the line of Pranaroop Chatterjee from Berman Capital Management. Please go ahead.
Pranay Roop Chatterjee
Good afternoon sir. My first question is on your flaps and I’ll try to be as less repetitive as possible. Most of my questions were covered anyway. On your 40 crore capex you mentioned that the turnover would be about 100 crores basis. My understanding of how much revenue comes from flas in your non glass segment, I don’t think 100 crores would cover entirety of it. So am I missing something here? What is your sense and how do you plan to cover your entire current revenue base of flask basis in house? And earlier on in the call you mentioned that you know there could be a revenue risk and you are trying to mitigate it.
Can you possibly share some of the mitigation strategies that you are even if it is at the idea stage for the flask category in H2?
Shreevar Kheruka
Yeah. So I think your observation is absolutely spot on. The 100 crores will not be enough to substitute the entire sale of our flasks. So that’s a good observation. You have the two answers to that. Number one is this is a starting point. We will have space to double our capacity very shortly thereafter. That capex will not be anywhere close to 40 crores because large chunk of this is spent in infrastructure. You’re setting up the place and the machines themselves may only be 30, 40% or 40% of this. So to double the capacity will be only 40% of the cost roughly.
So as a first step we do this and the second step will be doubling. Obviously that will take some more time. In the interim we also have. It’s not that we have zero suppliers in India. We do have a reasonable supply base in India and they have also been ramping up. So once our own capacity and the suppliers capacity come together then I think which will definitely happen sometime in this year but in the interim, in the interim we may suffer some revenue loss. I’m not able to quantify it because like I said and the other question, what are the strategies? They are few.
I mean obviously keeping stock is one. Working with our current suppliers in India to expand their ability to supply actually going to their plants and helping them debottleneck their plants. Those are questions that we have been. Those are things that we have been trying to do and they are showing some positive results. But it’s too early to say that we’ll be able to replace the entire sale this year from next year. I think that challenge should be reasonably under our control.
Pranay Roop Chatterjee
Perfect. My second question is on Opalware. I presume that the lower growth this year is also because of the void in your B2B channel. Is it a fair estimate to say that we’ll have to wait for two more quarters till, you know, the missing B2B pharma piece comes into the base where we start seeing growth again? Is that a fair statement?
Shreevar Kheruka
We lost about 30 crores this year on B2B in opal so that was a big setback for us.
Pranay Roop Chatterjee
Got it. Okay. On Milton, any update on their entry into the segment? And I was receiving some feedback that, you know, the amount of promotional activity or discounting in the industry is not orocell but maybe some of your peers the discounting or promotional activity has increased. Is that your sense as well? And any update on the nuclear.
Shreevar Kheruka
Frankly, my job is to do, or rather my team’s always to do, what we can do. We do not keep tabs on exactly what is happening with the players. So I can’t give any comments on that. As far as discounting, of course we do keep tabs on because that impacts our pricing and as far as that is concerned, we have seen some higher discounting. I don’t think it’s a big issue in the sense that I don’t believe that that’s the reason for us not to be able to achieve our goals. People are free to do whatever they like and we have to do what we think is appropriate.
But we have been launching premium categories at even higher prices and there’s a differentiated product and that’s getting a lot of traction. We have been playing with our product mix to see what are the value additions we can do. We have been innovating on colors, for example. So there’s a lot of innovation happening and I think the moment you have that, then it’s not relevant and then you spend money to convince the customer that this is the right product for them. Then I don’t think for 50 rupees you want to lose the customer because someone is getting 50 rupees cheaper.
So I don’t believe that discounts are going to drive down our margins. I think our margins will be driven down by our own or our Product rather by our own activity or inactivity or our own understanding of the market. So I’m not too worried about the margins.
Pranay Roop Chatterjee
Got it. Clarification on the utilization number you mentioned. 90% in Opalware. Is it for FY25AS. Okay, I’ll tell you what I’m trying to do. I’m trying to gauge if theoretically in FY26 blended you reach 100% util. Would your revenue peak on current capacity be around 430 to 440 crores? Is that a fair number?
Shreevar Kheruka
That’s a fair number. That’s a fair number.
Pranay Roop Chatterjee
Finally, a housekeeping question for the cfo. There is a line item. I’m sorry, there was some discussion on loans but I’m not sure it’s related to that. There is a other current financial liability item. It was 215 crores last year and in FY25 it’s come down to 109 crores. And I think that has caused impacted your cash flow from operations as well. Is it possible to break down what has gone down here? Exactly.
Rajesh Chaudhary
So. So that was because.
Shreevar Kheruka
Yeah, please go ahead.
Rajesh Chaudhary
Yeah, so last year there was a scheme, scheme of arrangement by virtue of. Which probably about 100 crores was supposed to be paid to Boruso Scientific Limited. Which has been paid during the. During this financial year. So that has reduced by about 100 crores.
Pranay Roop Chatterjee
Oh, it was. It had to be paid. Hence it was written as a liability. Got it.
Rajesh Chaudhary
Oh, that’s right.
Pranay Roop Chatterjee
Thanks a lot, sir. And all the best for the upcoming year.
operator
Thank you. The next question is from the line of Hitesh from Kosha Capital. Please go ahead.
Hitesh
Hi. Thanks for the opportunity, Mr. Shiva. This year our growth is largely driven by glassware. Right. Glassware segment grew by 27% and our overall revenues grew by 15%. Any price action that we had to take because, you know, because of our capacity in pressware that came up during the year, did we take any price action action here to drive this growth?
Shreevar Kheruka
Yeah, I think we had thought we may have to. And in fact if you go through previous recordings I had mentioned that we may have to drop some prices but in fact we have not materially moved any price. If any price action it would be within single digit percentages, you know, 5% minus maybe.
Hitesh
Sure.
Shreevar Kheruka
So we did not in fact have to sacrifice pricing for volume growth in this previous year. And yes, I hope that answers your question.
Hitesh
Sure. And so for the next year when we are trying to hit a 90% utilization, do you think we’ll probably Maintain our prices or probably what is your thought on the pricing to hit this 90% utilization and once and if at all there’s no price action, then you think margins could be positive. There could be a positive impact on the margins because of this ramp up.
Shreevar Kheruka
So to answer your question, obviously we would prefer that we go to the full utilization without price and that’s the plan A. But obviously as a company we have to look at plan B also. So plan B we have taken that. We again will have to drop some prices in some, maybe in exports or in some other areas to, to utilize the entire capacity. So while we working towards plan A, we have plan B in the back pocket. And specifically if we are able to use the full capacity at this price point, what we already have established in this year, then it would be a substantial improve, I’m saying substantial improvement in our margin profile.
So that’s obviously the best goal or the best outcome for us. The only thing as I also mentioned, which is not related to Borosilicate at all this year we may have some impact on margins because of the lower sale of Hydra, if at all. We can’t get the product from somewhere. So we’ll try and towards the end of the year we’ll try from our side to explain what has happened where margins are being driven from in a better way. So people will understand that. But I hope I’ve been able to answer your question.
Hitesh
Yes. So now coming to the Hydra, I see that the prices have already moved higher by 15% for all the players. At least this is what I see on the E Commerce platforms. And so this inventory issue that you’re talking about, is this for the, for all the players or it is specific to us because I believe everyone is going through the same BIS challenges and the implementation of projects. So if at all there’s been a price increase, which at least I see on the platforms, then the margin should not get impacted. Maybe your revenue gets hit to some extent, but margins shouldn’t be that impacted, right? I mean what makes you believe that.
Shreevar Kheruka
The margins will clarify? Gross margins will not be impacted because of what you just mentioned. Net margins because we have over adsorbed. So if the revenue falls, the spreads get distributed over a lower base. Right. So the may be impacted because of that. But you’re absolutely right, gross margins will not be impacted. If anything they will actually increase.
Hitesh
Sure. Got it. And my last question again coming back to glassware, of this 250crores, how much is coming from our Borosilicate pressware products? Could you share that?
Shreevar Kheruka
I don’t share that data but now it’s a large chunk of it. But I don’t. I can’t give you an exact.
Shreevar Kheruka
Okay, great. Sure, sure, sure. Thanks.
operator
Thank you. The next question is from the line of Harshit Nagpal from yes, securities. Please go ahead.
Harshit Nagpal
Yeah, so just a quick question. If you share the data what would be the E commerce sales for the glassware and non glassware segment for us.
Shreevar Kheruka
If a ballpark figure you could give to that. Sorry, I don’t share this data by channel segment. Okay, no problem. Thank you and all the best.
operator
Thank you ladies and gentlemen. As there are no further questions from the participants I now hand the conference over to the management for closing comments.
Shreevar Kheruka
Well, thank you all for your involved discussions. Really appreciate it. Thank you for your interest in our company. We’ve had a very good many years now this year seems to be a bit tougher although I think my entire team is very motivated to find solutions which I expect that we will going for next year. I think we’ll be back on our growth path for sure and our desire to grow between 15 and 20% year on year remains unchanged and so far we’ve been out doing that and hopefully we can continue doing that. So thank you again for all your support and look forward to interacting with you in the future.
operator
Thank you on behalf of Borosil limited That concludes this concept. Thank you for joining us and you may now disconnect your lines. Sam.