BOROSIL RENEWABLES LTD (NSE: BORORENE) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Unidentified Speaker
Shreevar Kheruka — Vice-Chairman
Analysts:
Unidentified Participant
Rohan Gheewala — Analyst
Jayshree Bajaj — Analyst
Raman Kerti — Analyst
Vivek Gupta — Analyst
Akshay Malhotra — Analyst
Nikhil Gara — Analyst
Arvind Kothari — Analyst
Kaushal Sharma — Analyst
Manik Bansal — Analyst
Aashish Upganlawar — Analyst
Presentation:
operator
Sam it It SA Sam it. Ladies and gentlemen, good day and welcome to the Boris Hill Renewables Limited Q1 FY26 results conference call hosted by Access Capital Limited. As a reminder, all participant lines will be in 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 a Touchstone phone. Please note that this call is being recorded with this. I now hand the conference over to Mr. Rohan Giwala. Thank you. And over to you sir.
Rohan Gheewala — Analyst
Thank you, Samya. Good evening everyone. On behalf of Access Capital, I’m pleased to welcome you all for the Q1FY26 earnings conference call of Porosity New Meat Limited. We have with us the management represented by Mr. P.K. keruka, Executive Chairman. Mr. Srivar Keruka, Vice Chairman Mr. Ashok Jain, Hold Time Director. Mr. Sunil Yungta, Whole time Director and Chief financial officer and Mr. Balish Talapari, VP investor relations. We will begin with the opening remarks from the management followed by an interactive Q and A session. Thank you. And over to you sir.
Shreevar Kheruka — Vice-Chairman
Okay. Well, good afternoon everyone. I’m Shiva Keruba here and I welcome you all to the BootShield Renewable Q1 FY26 Investor Call. The standalone financial results for the quarter ended 30 June 2025 were approved by the Board of BRL on Wednesday 23 July. Our results and an updated presentation have been sent to the Stock exchange and have also been uploaded to the company’s website. We will now discuss the operations of our company on a standalone basis. But first I would like to update you on some important events which have happened recently. The board has approved a preferential issue of 70 93,874 equity shares of the company for INR 379.52 crores to investors who have given expression of interest and whose documents were found compliant.
The share issue was subject to the approval of members at the EOGM to be held on 14th August 2025 as well as the stock exchanges. You will recall the company had done an issuance of warrants of INR 600 crores to part finance the 500 ppd expansion of INR 675 crores in February 2025 against this against which it has received applications for INR 417 crores. The project size and costs were later revised to 600 cpd and the capex was increased to INR 950 crores the additional insurance will be utilized for the CAPEX and other objects as per the objects of the issue.
The revised means of finance would include INR 650 crore crores from equity and internal accruals and INR 300 crores of debts. The other important development relates to the filing of bankruptcy by the German step down subsidiary of BRL on 4 July 2025 due to the absence of clear indications of demand recovery in the near future in Europe as well as possible liquidity issues. We have in the previous call indicated that the furnace at GmbH we cooled down due to the paucity of demand and depleted market conditions across the European Union. This was the aim to reduce losses.
Since then, even despite our best expectations, there was no material improvement in the European markets which would allow GMB to resume the operations of its furnace. The company and GMB approach concerned authorities to get some quick measures in place to support local industry. Unfortunately nothing has been forthcoming although policy level announcements have been made in Europe in order to support domestic manufacturing. However, these announcements have not yet materialized into any specific policy action. Moreover, any policy action, if and when announced, will take considerable time to show any results in terms of reduction of production of our customers as the closed solar module plants will take some time to restart.
For the company, this would mean that you would need to have heavy continued losses without much hope of a substantial recovery. In the past few months GMB also attempted to resume coal and operations by sourcing annealance with an idea to provide tempered glass locally. However, this too could not work out for many different reasons. As such, the company did not feel it prudent to continue funding the standing charges to the tune of INR 9 crores per month through its wholly owned subsidy due sale for our company. This filing of insolvency of the subsidiary would arrest recurring losses and permit reallocation of capital and managerial focus towards the India operations where we see a long term potential and policy support.
I would like to further inform you that Geosphere’s Yaraswas GmbH, a wholly owned subsidiary of the company, intimated that it is yet to receive the financial results of the set quarter from GmbH whose application for insolvency is currently in process in Germany. As previously disclosed via our letter dated 07.05.2025, the affairs of GMP are now being managed by an administrator appointed by the Insolvency Court who works as for prevailing German laws. Keeping in view that the administrator has been appointed recently, preparing financial results of GMB for the quarter ended June 2025 is expected to take time as communicated by GmbH.
Until these results are received by Geosphere, it cannot consolidate GMB’s financials into its own financial results and in turn would not be able to provide consolidated financial results to the company due to uncertainty and reasons. As explained above, the Company will be able to approve and submit its consolidated financial results for the quarter ended June 30, 2025 at a later date. So therefore we are presently only discussing standalone results. Coming now to the performance the company achieved sales of INR 332.26 crores versus INR 327.23 crores in the trading quarter and INR 241.82 crores in the same quarter.
Last year the company registered an absolute EBITDA of 92.53 crores which corresponds to an EBITDA of 27.8%. This shows a quantum leap of 211% from INR 29.71 crores in the corresponding quarter, whereas the INR 77.06 crores in the preceding quarter sales rose by 37% during this period compared to the corresponding quarter last year and the major increase has come from the increase of selling prices as the average selling prices during the quarter increased to INR138 per millimeter as compared to INR105 per millimeter. This has led to improvement in margins. The imposition of anti dumping duty on imports of solar tempered glass from China and Vietnam in December 2024 has provided a great relief on the prices which have now reverted back to where they were a few years ago.
Exports amounted to INR 35.67 crores accounting for 10.7% of the turnover compared to INR 18.9 crores in the preceding quarter when exports made 5.8% of the turnover. In view of the filing of insolvency by the step down subsidiary gmb, it was considered necessarily to estimate the value of net assets to a certain weather and how much division needs to be made against the exposure in GMP and Geosphere, although the outcome of insolvency proceedings will only be known after a few quarters. Accordingly, based on the valuation confirmed by a valuer, GMP is not likely to leave any surplus available for the company after paying off the outside liabilities.
Hence, a provision for the entire exposure of INR3.25.91 crores in a German subsidiary and has been made in the accounts as a one time loss. However, this one time provision will ensure that there’s no continued drag on the consolidated results and performance and the ROCE and EPS will substantially improve. The company is confident to achieve good improvement both in sales and numbers for the year on the back of better performance of the Indian operations as the selling prices maintain an upward bias in addition to cost saving measures and the stoppage of the drag of losses from the German operations.
Our work on the expansion project is in progress and we expect the project to be commissioned by the third quarter of financial year 2627 the domestic demand continues to be robust. Manufacturing capacity for solar modules has already reached 90 plus gigawatts and is expected to rise to 150 gigawatts by March 2027. The country has also seen its highest set of solar installations at 25 gigawatts in 202425 as against 15 gigawatts during the previous year, which corresponds to a 60% increase. We estimate the domestic demand to be about 50 gigors in the current year. Use of locally produced modules have risen sharply after the implementation of alm mechanism from April 2024 which is leading to increase demand for all components including solar glass.
The present solar glass capacity in the country is 2,300 tons per day, that is 15 gigawatts. Another 12 gigawatt capacity is getting commissioned by the end of FY26. With the expected current demand of about 50 heroes for domestic installations, imports are occupying about 70% share of the consumption, leaving huge scope for capacity addition and import substitution. That is the area we are planning to play when our new project comes on stream. Therefore, we see good prospects for the company over the next few years looking at the growth in the sector, robust demand and stable selling prices of solar glass.
Just to round up the sectoral outlook, renewables are poised to transform the global power landscape by 2030. India is driving this revolution. According to the International energy agency, over 5,500 gigawatts of new renewable energy capacity shall be added worldwide by 2030, equivalent to the current power capacity of China, the EU, India and the US combined. Solar PV will dominate this, accounting for 50% of global renewable capacity growth. This surge will come from both large scale utility projects and rapidly rising rooftop installations. Therefore, we see the future of solar is very bright and India’s place in the whole solar ecosystem as strong and with a very positive outlook.
So with that I thank you for your patience and listening to me. I would now like to open the floor to any questions that you may have.
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’ll wait for a moment while the question queue assembles. The first question comes from the line of Jaishree Bajaj from Trinitra Asset Managers. Please go ahead.
Jayshree Bajaj
Hello, sir. Am I audible?
Shreevar Kheruka
Yes. Yes.
Jayshree Bajaj
Yeah. So thanks for the opportunity. And my question is the board is approved for the setting up of two new fundamentals, adding 600 tpd for the with the current capacities. So can you provide a more detailed project timeline and specific milestone for this extension and especially regarding land acquisition and all?
Shreevar Kheruka
Yeah. So as far as you know, the project is concerned, this is happening at the current location, it’s a brownfield expansion and whatever land acquisition needed to happen has already happened and therefore there is no risk of that being a delaying factor. The project itself, as I already mentioned, is likely to be commissioned in the October to December quarter of 2026. And at the moment we don’t see any reason for delaying beyond that. So that’s. I think, I hope that answers your question.
Jayshree Bajaj
Okay. And as you stated that the Germany plant will remain unfeasible for in the longer term. So what is the strategic vision for its European presence, particularly for the GMV plant?
Shreevar Kheruka
So that plant has been declared insolvent, or rather the company is indicated insolvent. So now there’s an insolvency process which is managed by a third party which is an administrator under German law. And frankly they will follow their own process. And even though we are shareholders, we have very limited say in this process and we are, you know, it totally depends on what they, what they do. And we are out of the sole equation as far as our customers are concerned. We are still continuing to sell our customers in Europe from our Indian operations and that will continue.
Jayshree Bajaj
Okay, sir, and my last question is like the standard EBITDA has, EBITDA margin has improved for this quarter. And so is there any revised EBITDA margin for the FY26?
Shreevar Kheruka
I think there will be as pricing will be improving somewhat. You know, every month there’s a slight increase. So on the margins there’ll be somewhat, a little bit better margin than what we had in this quarter. But we already have 28%, so it’s a reasonably good margin and maybe a couple of percent more we can expect.
operator
Thank you. Thank you. The next question comes from the line of Swan Mittal from mrf Please go ahead.
Unidentified Participant
Hello. So thank you for, for the opportunity. I have three questions lined up. The first question being the last con call. We are guided for approximately the prices of, you know, the expected rise being approximately rupees 135 per mm but we’ve exceeded it by touching 138 per mm. So if you could give any color that as for the industry in the coming financial year, are we expecting any further price increase and like as to in the what range and if there is any price increase, how will it impact margins for the fy? And lastly as a third question, basis above EBITDA margins like can we guide that at least the cash flow conversion for that should be upwards of 75 to 80% on a quarterly basis.
Shreevar Kheruka
See as far as pricing is concerned it’s only always an estimate and there may be plus minus 5% on the pricing which may differ than whatever suggested. So if we had guided 125 and come out at 138, I don’t think that there’s a material difference there. And it depends on product mix, it depends on, you know, value addition. Sometimes that we do for our customers. So there are many reasons. Broadly yes, there may be somewhat an improvement in pricing but I think it’s not going to be dramatic and therefore any increase in pricing will definitely add to a ridda because that’s clear.
And I’ve already guided on margins so I think that’s to take care of that question and all of that RIDDA basically comes into cash conversion. I mean I think 75, 80% is absolutely a fair number.
Unidentified Participant
Yeah. Okay. Thank you sir. Thank you.
operator
Thank you. The next question comes from the line of Raman from Sequent Investments. Please go ahead.
Raman Kerti
Hello sir, can you hear me?
operator
Yes.
Raman Kerti
So what is the current average selling price and how will the selling price improve imposed on Vietnam by India comes into place.
Shreevar Kheruka
So we already indicated the current average selling price which has been achieved during the quarter and also indicated that couple of basis points it can still go up in the coming quarters and anti dumping duties are varied for five years so we should see stable pricing.
Raman Kerti
Okay, and how much upside are you expecting post this? Probably after a year of implementation.
Shreevar Kheruka
So this is already, duties are already implemented and the prices are already up. So I mean the increase has already taken place in prices.
Raman Kerti
Okay so and my second question is what is the domestic market size with respect to solar? And I also wanted to understand the unit economics. I mean from the presentation I can, can we say that 150 ton of solar hours is required per gigawatt.
Shreevar Kheruka
Yeah, your estimate is right. It is almost around that 150 tons per day from the perspective of GW conversion.
Raman Kerti
And sir, what’s the entire market domestic market size of this solar glass manufacturing?
Shreevar Kheruka
Market size was mentioned in the, in the, in the opening remarks to be around 50 gigawatts of module production, which is the market. And India is currently supplying about 15 gigawatt from the domestic production of glass. So the gap is about 35 gigawatts in terms of the availability of glass domestically.
Raman Kerti
Oh, thank you sir.
operator
Thank you. The next question comes from the line of Vivek Gupta, an investor. Please go ahead.
Vivek Gupta
Yeah, hi. Thanks for the opportunity. So congratulations for good set of numbers. So I have some basic questions. So this GMB acquisition which was done, so it has proved to be a blunder. So what precautions and what learning management has taken from the strong acquisition. That’s the first question.
Shreevar Kheruka
You want to take the second question also or the reply to this?
Vivek Gupta
The second question is. So management has proposed for additional capacity of 600 tons per day. So I was going through the presentation and I understand that that capacity is to be on stream by December 2026.
Shreevar Kheruka
So is that the understanding that both.
Vivek Gupta
The furnaces would be up in one go or we can expect some like 300 tons per day on stream before December 26th also?
Shreevar Kheruka
Yeah. So taking the second question first, we are planning to start the two furnaces one by one in which may have some gap of one or two months. But both the furnaces should be commissioned by end of December 26th. That is the target. And in the case of first question regarding gmb, when the decision is made, it is based on certain situations and certain parameters. When we started to look at this opportunity in 2022, beginning the EBITDA and the turnover was very good for this company. The brand and the quality was absolutely fantastic. And we were all hoping that this acquisition will pave our way for our growth in the European and overseas markets.
But things have not always worked out as per your plans and designs. And that’s what happened with us as well. In June 23, just immediately after six to seven months of our takeover of the company, the imported Chinese modules started to be dumped in European markets. Almost 80 GHz of modules were dumped in a couple of months time over there, which destroyed the local manufacturing. Now this is a very abnormal situation which we had to face and with the result that the customers started to disappear. And you know, the glass, the solar glass is made as per the size, age and thickness, age and various parameters of requirement by the customer, each customer.
So these are very tailor made items and unless you have a customer in a demand, it is not easy to produce and keep in stock. So we were trying to tide over this situation by diverting our goods to other markets like Turkey USA and even to sell in European markets at a cheaper price. But finally the demand was not up to the mark and we were not able to sell beyond 50% of the production in glass furnaces. If you keep operating at a lower percentage, it doesn’t work out. So ultimately we had to cool down the furnace in January 25th.
And finally, when the hopes of German policy intervention were based and there was nothing coming forward then we have taken a call. So ultimately you have to see that the management and the business is able to take call as per the necessity of the situation and move decisively in the direction in which the growth can be achieved and value addition for the stakeholders can be still ensured despite facing this rough timeline.
Vivek Gupta
Okay, thank you.
operator
Thank you. The next question comes from the line of Sunny from ias. Please go ahead Sir.
Unidentified Participant
Am I audible?
operator
Yes, sir.
Unidentified Participant
Sir, I have one question. Sorry, two questions. First one is on gender side. Sir, can we use the GND equipment to do our CAT action in India?
Shreevar Kheruka
Yes, some of the equipment which are post glass production equipment like processing lines are possible to use in India because they are doing the similar jobs and these were purchased recently in 2023 only. So it is quite possible to buy and start using here. But we have to do evaluation based on the alternate costing and alternate equipment available from other sources. So possibilities there to use. But we will have to eventually evaluate what is good for the company in India to buy in terms of the next equipment. And if you have to buy the German equipment it will be under insolvency proceedings now which is quite uncertain as of now.
So we can’t depend whether we can get some equipment from there and then budget it in our capex plan.
Unidentified Participant
Okay, and the next question is can we see further EBITDA margin increase on a standard basis?
Shreevar Kheruka
Yeah, so that was already said by our vice chairman in the in the opening remarks that couple of point percentage points can still go up because there are continuous effort to improve the efficiency and also the price increase by few basis points is still possible to get. So yes, EBITDA can still go beyond this level. We have not been giving any specific guidance but this should be enough for you to understand how much it would be.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question comes from the Line of Nidhi Saha from ICICI securities. Please go ahead.
Unidentified Participant
Thank you so much for taking my question. So firstly, the depreciation this quarter on a quarter to quarter basis is slightly low. Is there any reason on the standing on this, Is there any reason why the depreciation?
Shreevar Kheruka
Yes, actually the initial furnace which we had set up long back in 2010 that is completed depreciated now and the depreciation of that first unit has started to come in the accounts. So which is why the depreciation gone down, not for any other reasons.
Unidentified Participant
And secondly. So you mentioned that you realized 138 rupees per square meter in the quarter. Now posted duties. What is the landing size of the. Of the Chinese glass in the market? Is it a similar levels or is it higher?
Shreevar Kheruka
Well, lending. Lending price from China is close to 145 rupees per square meter. And our prices are close to that number only.
Unidentified Participant
All right, thank you so much.
operator
Thank you. The next question comes from the line of Akshay Malhotra from hsbc. Please go ahead.
Akshay Malhotra
Thanks a lot for the opportunity. Congratulations on a good set of numbers. I had a couple of questions starting from the first one on the European subsidiary. I see that while you provided provision in the books of accounts, you wanted to understand what’s the monthly cash bond with respect to this closure of the subsidiary. Secondly, what do you expect? You know, when do you expect this to close and do we have any additional liabilities there in that subsidiary? That’s the first thing.
Shreevar Kheruka
This insolvency has been filed by the managing director of the unit over there and which is after the assessment of the cash flow situation, the order situation and business scenario of the company. And under the provisions of German law, he’s the person who is responsible to report to the code that if the liquidity is not available then he should go and file for the insolvency. So he has gone and done it because no, no more funding was available from the shareholders and the business was not looking to start again in terms of the cash flow generation.
So after having filed for the insolvency, the shareholders are actually not in control of the unit or company and they are outsiders from the perspective court proceedings. So we do not have any control. And since we do not have any control, we do not have any liability to incur further expenses on the company. All the expenses are to be managed by the administrator who is appointed by the court. He will be taking necessary steps and he will be submitting necessary plans to the code as to what can be done about the company. Whether a sale is sale of the business is possible or sale of assets is possible or whatever steps he suggests the court will be able to decide after he submits his report.
So from the. From the perspective overseel there will not be any additional expenses on the. Or any additional losses on the. On account of general German operations going forward. And there are no additional liabilities as such on us. Because what we feel is that or what we are told by the our lawyers over there is that all the liabilities will fall to the company. And in the sense there are no outside creditors except for the employees who are largely paid up to the date but severance pay has to be paid to them and government grants which is outstanding in the books of company which is to be settled if they claim.
So these are the major liabilities which needs to be settled under the insolvency proceedings now.
Akshay Malhotra
Very clear. Sir. Do you have. Can you put a broad number to you know what the external liabilities could be? The. The two that you mentioned, the employees and the land.
Shreevar Kheruka
So based on whatever estimate we have it could be close to 120,125crores. This will not be coming on to borrow sale because the assets. There are assets available in the company and once the liquidator or the court decides to to deal with the assets and realize money they will settle those liabilities. In case they are able to realize less amount then less amount will be paid to them. Liability will not travel to us.
Akshay Malhotra
Okay. Okay, got it. So secondly, I think you mentioned a couple of times about the EBITDA margin improvement and a couple of percentage points. Just wanted to understand similarly on what kind of movement on the raw material prices are you seeing and is there any more room to generate more efficiencies in the business?
Shreevar Kheruka
So raw material prices are for last few one or two quarters are stable except for one item which has been which has risen in the past but now it is under control imported item. In terms of the other cost optimization which we are attempting, we are. We have done some work on the coatings and also we are doing some. We have invested money into our own solar wind hybrid project which will. Which will give further savings. So these two together should kick in about one and a half to 2% savings in the percentage terms of the EBITDA.
You can see.
Akshay Malhotra
Got it sir, very clear. Also are you evaluating more export opportunities from here in lights of more tariffs on the Chinese brand?
Shreevar Kheruka
I think the major area which is becoming addressable right now is the USA market because Some customers who are not willing to buy earlier because of the price regions have started to place orders or send their inquiries. So that is a slight increase is possible. But it’s not material enough. And the domestic prices are fairly decent now. So there is no real, real urge to increase exports. Because the price in exports in US markets could be as much as prevailing in India only and nothing better. Whereas European prices are a little better compared to India prices.
Akshay Malhotra
Got it sir. And my last question is on the capacity condition front, if I understand correctly, the initial plan earlier was to add about 1,000 tpd capacity. We wanted to understand line if you’ve lowered it down to 600 tpd. And on the commissioning front as you’ve mentioned, on December 26th is where these two furnaces will commission. But what is the time it will take to stabilize the pulley?
Shreevar Kheruka
So initially the project was approved for 1100 tons I think long back. But after the anti dumping duty was discontinued in August 22nd we had to scale it down because the cash generation had reduced by the time. And we then brought it to 500 ton project. Now once we scouted for the equipment and we started inquiring the various suppliers and then we figured out that even 600 can be achieved in the similar equipment and similar furnace. Then we gone ahead and increased the size to 600 ton per day because the market is available. And when we did the revised estimate the figure came to 950 crore which included certain items of expenses which we had not budgeted earlier.
So now it is 600 ton project at 950 crores. In terms of the commissioning we have targeted December 26th which is what we want to maintain. If we can do it better then we’ll see.
Akshay Malhotra
Okay. We just wanted to understand when we can fully stabilize the. Or do you think December 26th is the full stabilized time point?
Shreevar Kheruka
So December is commissioning stabilizing may take another one or two months. So that’s how we may say by at least March we should have the stable production. Commercial production.
Akshay Malhotra
Okay, great. Very clear sir. Thank you so much and good luck.
Shreevar Kheruka
Thank you.
operator
Thank you. The next question comes from the line of Nikhil Gara from Abacus amc. Please go ahead.
Nikhil Gara
Yeah. Hi sir. Thanks for the opportunity. So my first question is with regards to our volumes. So I understand that we are more or less maxing out our plan. What kind of volume growth do we envision at least for FY26 and maybe first of FY27.
Shreevar Kheruka
So in the current quarter we had about 6% volume growth compared to the corresponding quarter last year and I think for the year as a whole we should be able to maintain 6 to 8% growth compared to last completed financial year. 6 to 8% is something what is possible in the current financial. Although we are trying for higher number, but this much realistically we can take.
Nikhil Gara
And safe to say that was that first of FY27 we should see a flattish sort of volume.
Shreevar Kheruka
Sorry, can you repeat your question sampling.
Nikhil Gara
Then post that first half FY27 we should expect volume to be slackish because we will not have enough capacity.
Shreevar Kheruka
Well, we will keep on optimizing the process yields and certain equipment adjustments. But there will not be any material opportunity to increase the volume by a significant number. Maybe 2, 3, 4% at the most.
Nikhil Gara
Understood, sir. Secondly, how is the current import scenario? Are we still seeing a decent amount of inputs of solar glass or. We have seen a very sharp correction.
Shreevar Kheruka
Now. Imports are quite high as we mentioned in the call initially the imports are close to 70% of the domestic demand as of now. And since the domestic production is limited, ultimately the demand has to be made by somebody else. So it is the imports who are right now being offered in the market. But as the domestic percent grows, there should not be any difficulty in substituting with domestic production this import Also the market itself is growing so there is a continuous increase in the demand as such.
Nikhil Gara
And just one last question just on the depreciation front, you sort of explained why the cost was lower. But should we expect this run rate to continue for the coming quarters or depreciation?
Shreevar Kheruka
Yes, of course that should continue because that effect of one plant having been fully depreciated is already set in and next impact will only come after a few years. So this is a very pretty much you can expect.
Nikhil Gara
And just have one last question. Is there any export mix that we have in mind considering that we are seeing better prices than European market?
Shreevar Kheruka
See, there is more opportunistic play as of now, although strategically we want to be there in the export market to some extent. So 10, 15% is something what we would always like to do. And currently we should expect between this range only 10 to 15% only because the domestic demand is so strong that we have to face the customers every day that they are after us for the material. And we can’t just keep on, you know, diverting for exports and refusing the orders here.
Nikhil Gara
And the working capital cycle is similar to what we see in domestic market.
Shreevar Kheruka
Well, it’s about 60 days credit is there generally. So in domestic you may get a little earlier maybe 35, 40 days. But domestic people are flush with funds you may say because of the very high profitability in the module business right now. So many of them may make advance payments or they may put I guess cash discount like that which is not the case in export markets.
Nikhil Gara
Very clear, sir. Thank you so much for answering all my questions and all the best.
Shreevar Kheruka
Thank you.
operator
Thank you. The next question comes from the line of Arvind Kothari from Navishai. Please go ahead.
Arvind Kothari
Thanks for the opportunity, sir. My only question was sir, that the scale down that we did of the capex, given the situation that we are saying that all the module players are flush with funds and they are all increasing capacity, wouldn’t it warrant that now we go ahead for one CapEx at least of 5, 600 tons or you would take maybe 2, 3/4 to figure that out.
Shreevar Kheruka
Yeah, I think we’ll figure that out way of evaluating it. Maybe in the next one or two quarters we have an answer for you.
Arvind Kothari
Okay. But the evaluation would be based on the internal accruals that we are currently maybe. Or there’ll be debt equity mix that you have.
Shreevar Kheruka
I think there’ll be some debts but I don’t think there is any for the equity rates. Yeah, better internal rules.
Arvind Kothari
Got it. And sorry I missed the first half of the. Why Was there a 6% decline in the volumes this quarter?
Shreevar Kheruka
Although there is an increase by 6% I said not decline.
Arvind Kothari
Okay, okay. This quarter but it was not at optimum capacity. Right.
Shreevar Kheruka
This quarter increases to the corresponding quarter but from the trailing quarter the volume has declined slightly. That is because we have gone to produce some value added products which are specific requirement in the European market like greenhouse glasses and some very specific demand of the BIPV sector and all where yield is low although we can run the furnaces to the full, the net production is low but that is more than offset by the higher prices. So as you will see that the average prices have gone up substantially although the volume slightly declined. So all in all we have got higher EBITDA compared to even the last quarter.
Also suggest that the lower volumes were not very much responsible in terms of any decline in the profitability or something like that. Volumes were low because of choice, not because of any other reason from the market like decline or any other demand problem or anything there Perfect.
Arvind Kothari
Got it sir. And sir, in case if we go for another capex are the numbers going to be similar or we we will be having some advantages in terms of the maybe the CAPEX being slightly lower this time for the furniture because of the equipment that will be at sky capacity or no, we don’t foresee any.
Shreevar Kheruka
Further advantage in terms of the Capex now because the entire downfield advantage is broadly covered now except for the location part of it and the administrative part of it which will still be some economics of scale because of the location if you decide to do it on the same location. Otherwise from the capex point of view there will not be.
Arvind Kothari
Perfect. Thank you so much and all the best.
Shreevar Kheruka
Thank you.
operator
Thank you. The next question comes from the line of Kaushal Sharma from Equinox Capital Venture Private limited. Please go ahead. Yes.
Kaushal Sharma
Can you please tell me that we are currently having 1,000 TPD as of now. So what kind of capacity trend? And the second question. Yeah.
Shreevar Kheruka
We, we operate close to 95% of the furnace capacity and in some quarters it could be slightly here and there but on average 95% is there.
Kaushal Sharma
Okay. And as you said that we, you can, we can see the bottom margin going forward. So can we assume clear enough to assume that we’ll get around 30 to 32% on sustainable the next two years because of the current development that is going on like regulatory benefits in there?
Shreevar Kheruka
I think we have given enough indication. So you may you know, assess how much it should be but couple of percentage, if you had to 28, it would come to 30 only.
Kaushal Sharma
Okay, so 28 to 30% is the sustainable margin, right?
Shreevar Kheruka
Yeah. Yeah.
Kaushal Sharma
Okay. Thank you sir. Thank you for answering this question. Okay, thank you.
operator
Thank you. The next question comes from the line of Manik Bansal from Master Capital Services Ltd. Please go ahead.
Manik Bansal
Hello. Hi sir. So congratulations for a good set of numbers. So my question is how much capacity can be attributed to say 3mm or 2mm glass based on the current capacity of 1000 ton per day or its incremental CAPEX of 600 ton per day if you can number that.
Shreevar Kheruka
So the market has been moving very swiftly to 2 millimeter glass in India also. Now major consumption is 2 millimeter glass. So of course the production of 2 millimeter glass has to go up eventually. As of now we are close to 55% in 2 millimeter glass and 45% 3.2 millimeter loss. But on in the longer term I think we should be about 80% in 2 millimeter and 20% in 3.2 millimeters. As the demand will move, we will keep adjusting our ratio because the equipment are capable of producing alternatively 3.2 or 2 millimeter. So based on the demand market requirement we’ll have to Keep changing the our production thicknesses.
Manik Bansal
Okay, so incremental capex of 600 is coming at 2 mm, right?
Shreevar Kheruka
Yeah. This 950 crore which is being spent will be completely for capable of converting entire glass into 2 millimeter. Right. With the full capacity available for grid printing back glass and drilling of the back glass. So this for 2 millimeter.
Manik Bansal
Okay, so as you said correspondingly can be used for 3mm and 2mm the production line. Right. So how it is possible and what is the CAPEX required and whether the same is sizing incremental capex that we have announced and within what time it will be converted?
Shreevar Kheruka
See, if you have to produce only 3.2 millimeter glass and you don’t have to have the equipment which are additionally required, the CAPEX should be lower to that extent say for this in this project course you might say almost 75 crores might be included because of 2 millimeter requirement. So barring that there will not be much difference.
Manik Bansal
Okay, so the existing capacity of 1000 tonnes per day can be fully converted to 2 millimeter on 75cr of capex. Right? This is what you made it? Yes.
Shreevar Kheruka
Of course. The the entire design, entire capacity is planned to give a product like 2 millimeter. All the furnace parameters, everything is to be achieved basis that and then the additional processing lines will be on the about this grinding line and all.
Manik Bansal
Okay, okay, so my last question is. Yeah, okay, so my last question is on quality. So I, I did some research. Like the XYZ solar glass quality is currently the highest audience is a benchmark. So what are the specific steps Borosil is taking to match or exceed that product quality?
Shreevar Kheruka
So product quality is roughly about the same only for all the large companies including Borosil. And customers are happy to use any products alternatively. In fact, the availability of glass from domestic source is a major advantage for the local consumers. Because if the quality is same and the glass is available locally, it becomes all the more reason for them to source it locally. So we have an advantage in terms of offering the glass to our customers in India. And even the grid printing or 2 millimeter glass or other any value addition which are required are also available from Borosil.
So it’s a absolutely matching the quality.
Manik Bansal
Okay, okay. So just to follow up on this, like do worry source glass from you from Borosil.
Shreevar Kheruka
Worry is a very big company now and their requirement is quite huge and we have a limited capacity and we need to cater to almost 7580 customers. So to provide reasonable decent quantity of glass to worry Is difficult now. In the past we have been supplying significant volume to them. They were one of the top three buyers for us for many years. But now we are occasionally and supplying very marginal quantities to them. Because it’s always difficult to keep changing the BOM item on one single running line. If you have to get highest efficiency from the model production line you have to maintain the same parameter, same bom which becomes easy for the operators and plant people to get better efficiency.
Because now modern business is on very very thin vestiges and very tight control on the operating expenses. So they don’t want to lose on the changes and other things. So it is difficult for us to provide a significant volume to worry. That’s why our supply is very limited to them.
Manik Bansal
Thank you.
operator
Thank you. The next question comes from the line of Jag Mohan, an investor. Please go ahead.
Unidentified Participant
Hi sir. First of all thanks for providing the opportunity. My first question is what is the current capacity utilization on tennis basis and is there any scope of growth on the current capacity or do we need to wait for the upcoming capex for volume growth?
Shreevar Kheruka
Yeah, this question has been answered earlier also. This is we are operating at 95% and this financial year we are expecting 6 to 8% increase in the numbers quantity and the next set of increase will come after the capex after the expansion.
Unidentified Participant
Okay, got it. And sir, what is the current Kias manufacturing capacity in India on PPD basis and what is the expected capacity to come on and by what tanks?
Shreevar Kheruka
So 23 ton is the current capacity of domestic players. Currently another 2000 tons should be operational in next eight months time or say by March, April 26 and thereafter about 1800 ton will come by December 26. So this is the current visibility of the capacities. In addition other players like Avada and many also announced their plan to set up glass manufacturing but their exact details are not available right now. These plants might come up in 2027.
Unidentified Participant
Okay sir, thanks for answering the question. That’s all from them.
operator
Thank you. The next question comes from the line of Deepak from Swan Investment. Please go ahead.
Unidentified Participant
Yeah. Hi, Good evening sir and congratulation for good setup numbers. Thank you. Yeah sir, my question is related to the realization. Just trying to get the sense if. I’m looking into the solar industry as a whole on the module and cell trend there is also there is a differentiation between DCR and non BCR market where the realization are completely different for the market. So.
Shreevar Kheruka
In terms of the solar glass market, how we are placed in terms of the local and whether the pricing for the domestic manufacturer for the DCR DCR market for the glass also are the same or is there any difference between DCR and non DCR market? And is there any further probe beyond 148 square meter kind of realization which we are looking at? So for glass there is no such market like DCR related market or non DCR related market unlike solar phase for solar modules. So that is one question in terms of the realization we already have given you the indication that imported landed cost is about 145 rupees and we are close to that number only.
So this is what we should. We should take into consideration for our understanding and projections and in terms of the broader demand and supply situation which is looking like. I mean it looks like broadly the supply is little concerned than the demand we have. So would it be further possible that realization to improve from here beyond the what we used to see earlier, the Chinese flood used to dump? Or what is the reference price which. Has been set now?
Unidentified Participant
Is there the further scope to improve from there?
Shreevar Kheruka
I think we already said many times this regarding the pricing. So we will like to maintain our pricing close to the lended cost of imports because that is what customer is willing to pay. And based on the situation we might have some, some higher, some higher price from some customers. But on an average the landed cost should be the criteria for you to take into account what realization company can get or any domestic glass producer can get.
Unidentified Participant
Sure. Thank you. Thank you and wish you all the best. Thank you.
operator
Thank you. The next question comes from the line of Ashish from InvestQ PMS. Please go ahead.
Aashish Upganlawar
Yes, most of the questions have been answered sir. The only one thing I wanted to understand is given the situation on the tightness of demand supply, is there a possibility for us to squeeze the working capital further given customers are ready to give advantages and all that you said so do you see that happening?
Shreevar Kheruka
Yeah, so we are attempting to do that already in terms of the working capital cycle and trying to tighten on the debtors as well as on the other current assets. And also in the. In terms of the credit also we are trying to expand the our say credit period so we will squeeze the average credit number of days as we go along in this financial year.
Aashish Upganlawar
Okay. And regarding the previous question on the realizations. So will it be safe to assume that maybe 5, 7% of increase in realization is still possible from what we reported in this quarter? I think 138 you mentioned. So for FY26 is it a fair assumption to take that way or it’s not worth taking a bite there.
Shreevar Kheruka
I think this question is getting to that. I think we’ve already answered this question so we obviously want to improve our realization but not to wait. You said 145 is the import landed on our use. So that is. That is a landed price when when. We, when we are seeing 138 price that is expected price. And to that we have to add average freight. So delivered price for us is about 144, 145 only. Which is. Which is same as the landed cost of Chinese glass.
Aashish Upganlawar
Okay, sure. Thank you so much.
operator
The next question comes from the line of Rickin from the boring amc. Please go ahead.
Unidentified Participant
Hi sir. Congratulations on a good set of numbers. So I just wanted to check in terms of GMB and the insolvency proceeding, is there any scope of recovering anything? Because it’s taken the write off for exposure. But can we recover anything?
Shreevar Kheruka
So we have conducted a valuation report. First of all we did internal assessment. We also got it checked with the GMB management who are people in the driving seat over there. And then we also had appointed a valuer who, who is doing this exercise over there in for many customers. So he has also submitted his report as per him the the value of sales value of the assets which GMB possesses is slightly lower than what liabilities it is it may be required to meet in terms of say insolvency proceedings. So there is a current indications are that nothing is recoverable from the perspective of borosil.
Now in case something better happens like the sale of business or any significant amount they receive because somebody is willing to pay and the amount is exceeding the liabilities in that event we will stand to receive something. But that chance is quite minimal as far as we can see right now. Which is the reason why we have provided for the entire amount. Should there be any receipt, we will account for the receipt and report it back to the shareholders. All right sir.
Unidentified Participant
And so we’ve had Mr. In a very short period of time. So are we looking to hire until that position? Good thing.
Shreevar Kheruka
Yeah. So we. It was unfortunate that he had to leave in a short time but we will be having some person in that position.
Unidentified Participant
All right, that’s it from my end. Thank you sir.
Shreevar Kheruka
Thank you.
operator
Thank you ladies and gentlemen. We’ll take this as the last question for today. I would now like to hand the conference over to the management for closing comments.
Shreevar Kheruka
Thank you for a very involved audience with lots of questions. Really appreciate it. I hope we’ve been able to represent company and current situation as accurately as possible. And we. We look forward to you in the next quarter. Thank you.
operator
Thank you. On behalf of Axis Capital Limited. That concludes this conference. Thank you all for joining us. And you may now disconnect your lines.