Borosil Renewables Ltd Management Discussions

Certain statements in this discussion may be forward- looking in nature. However, actual outcomes or outlooks may differ materially from those expressed, due to a range of factors, including changes in government regulations, tax regimes, economic conditions, currency exchange rates, interest rate fluctuations, competitive product dynamics and pricing, as well as demand-supply constraints in India and other markets where the Company operates.

?‚? ECONOMY OVERVIEW

Global Economy

In CY 2025, the global economy continues to demonstrate notable resilience, weathering persistent challenges with measured strength. According to the latest World Economic Outlook 2025 by the International Monetary Fund (IMF), global GDP growth is projected to ease to 2.8%. Although this reflects a deceleration from pre-pandemic norms, it still points to sustained forward momentum. The tempered pace is largely driven by rising trade frictions, lingering policy ambiguities, and muted consumer confidence, especially across developed markets.

Indian Economy

Indias economy is projected to expand by 6.5% in FY 2024?€“25, highlighting the enduring strength of countrys domestic economic architecture, which has remained stable despite global volatility. Indias ability to effectively mitigate external pressures - ranging from sustained trade tensions to tariff-related disruptions - demonstrates the efficacy of its strategic policy interventions. The momentum is largely anchored in resilient domestic consumption, with rural demand serving as a critical buffer against global headwinds. A strong agricultural performance, supported by targeted government schemes, has reinforced rural purchasing power and provided a steady foundation for economic expansion. Indias macroeconomic stability is further underpinned by ongoing structural reforms, accelerated digital adoption, and significant infrastructure investments. These factors collectively enhance the countrys long-term growth trajectory and economic resilience. That said, deeper reforms are essential to attract greater investment inflows and elevate the competitiveness of Indias manufacturing sector on the global stage.

(Source: economy-to-grow-by-6-5-in-2025/)

?‚? INDUSTRY STRUCTURE AND DEVELOPMENTS

Borosil Renewables Limited (referred to as Borosil Renewables or the Company) is engaged in the manufacture of low-iron textured solar glass, a critical component used in the manufacturing of solar photovoltaic modules within the power sector.

Indias solar energy sector has emerged as a critical pillar in the countrys broader strategy for sustainable development and energy security. Over the past decade, the industry has transitioned from an emerging market into one of the largest and most dynamic solar ecosystems globally. This growth has been underpinned by a combination of progressive government policies, rapid technological advancements, and increasing environmental awareness. The sector today reflects a balanced mix of large-scale solar parks and decentralized rooftop installations, catering to the diverse geographic and energy needs of the country. Policy interventions have played a central role in enabling investment, encouraging innovation, and expanding access to affordable solar energy across both urban and rural regions.

As solar power becomes further integrated into Indias national grid, it is contributing significantly to reducing dependence on conventional fossil fuels while also generating employment and supporting local economic development. Despite facing challenges such as global supply chain disruptions and the need to strengthen domestic manufacturing capabilities, the industry continues to exhibit resilience and adaptability. Indias solar sector is not only central to achieving national energy targets but also instrumental in shaping a more sustainable, inclusive, and self-reliant energy future.

As of March 31, 2025, total installed solar capacity in India stood at 105.6 GW. The FY 2024-25 witnessed a significant acceleration, with 23.8 GW of new installations, substantially higher than the 15 GW added in the previous year. The Government has set an ambitious target of achieving 280 GW of solar power capacity by 2030. Over the past two years, prices across the entire solar power value chain, including solar glass, have declined sharply. This trend has largely been driven by substantial price reductions in China, resulting from an oversupply in the market.

Over the past decade, China has come to dominate the global solar manufacturing value chain, while also leading the world in installed solar power generation capacity. Indian solar manufacturing has witnessed remarkable growth, driven by strong governmental support. Meanwhile, other key markets such as the European Union, USA and Turkiye have faced setbacks due to the dumping of low- cost solar modules from Southeast Asia, in the absence of comparable support for domestic manufacturing. Chinas domination stems from significant state subsidies to its manufacturing sector. Additionally, Chinese manufacturers have established wholly owned component manufacturing subsidiaries in countries like Malaysia and Vietnam. Together, these factors have enabled China to command nearly 96% of the global solar manufacturing market. It is widely believed that their overseas subsidiaries also facilitate the circumvention of anti-dumping duties imposed by various countries on Chinese imports.

The Company anticipates that the EU may take constructive measures to safeguard its domestic manufacturing sector, which could positively impact Borosil Renewables German operations. However, recovery in Turkey may take longer. In the United States, the Trump administration initiated a tariff war with several major economies, and the consequences of these actions are expected to unfold over the coming months. While these disruptions may significantly affect solar PV manufacturing and installation globally, India is likely to remain insulated and continue in its growth trajectory.

?‚? OPPORTUNITIES & THREATS

The Company is Indias largest producer of solar glass, with its products enjoying widespread acceptance across domestic and international markets. It also holds the distinction of being the worlds largest non-Chinese- owned solar glass producer. As an early mover in the field, the Company has made significant early investments in building expertise, which have yielded distinct operational advantages. Through this journey, and with recent capacity expansions, it has begun to realize the benefits of scale, further strengthening its competitive position.

Having successfully met stringent quality and testing requirements both as an individual component and at the photovoltaic (PV) module level, the Company maintains a clear edge over the new entrants. In the domestic market, its ability to offer shorter lead times and assured, reliable

supply from a local source provides a natural competitive advantage. This has enabled the Company to secure business more effectively. All the major customers have significantly expanded their capacity, which has made it easier for the Company to sell additional volumes. It has sufficient land and infrastructure to undertake further expansions at the existing location.

Global power demand has been consistently rising, and solar energy has remained the largest contributor to new power capacity additions worldwide for eight consecutive years. In India, this momentum has been significantly supported by government measures such as the Basic Customs Duty (BCD) on imported modules, along with schemes like the Production Linked Incentives (PLI) and the Approved List of Models and Manufacturers (ALMM). These initiatives have helped substantially scale up domestic module manufacturing, and the government is now extending ALMM to solar cells, further strengthening the local value chain. To ensure long-term resilience and reduce supply chain vulnerabilities, India must now pursue backward integration into the production of Polysilicon, ingots and wafers. At the same time, initiatives like Atmanirbhar Bharat are shifting market sentiment in favor of locally sourced materials and components. The evolving geopolitical landscape with China is prompting major countries to reduce their dependence on Chinese imports and diversify their supply chains for solar components, including glass.

Looking ahead, global solar installations are expected to grow significantly, as leading economies continue to prioritize renewables. This trend will, in turn, drive substantial demand across the solar value chain, particularly for solar glass.

Correspondingly, solar installations in 2024-25 reached

23.8 GW (module/glass requirement of 35 GW), marking a significant increase over the previous year and projections suggest this could rise to 45 GW (module/glass requirement of 60 GW) of installations in the next two years.

To further strengthen the solar value chain, particularly in solar cell availability, the Government has announced the extension of the ALMM framework to include solar cells, effective 1 st June, 2026. As a result, solar cell manufacturing capacity has already grown to 25 GW, and is expected to reach 60-70 GW within the next two years.

These developments signal strong future demand for solar glass. The current capacity of 15 GW (2300 TPD) is expected to rise to 30 GW by March 2026, and further to around 50 GW by March 2027, based on ongoing projects and market insights.

Indias Total Installed Power Generation Capacity Stood at 475 GW as of March 31, 2025

Capacity (GW)

(Source:https://cea.nic.in/installed-capacity-report/?lang=en)

Est. 2026

?‚? SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Companys business operations are focused within a single primary business segment, the manufacture of flat glass. Accordingly, there are no separate reportable segments in line with the disclosure requirements of Indian Accounting Standard (IND AS) 108.

The segment revenue from geographical segments, as considered for disclosure, is detailed below:

?‚? Revenue within India comprises sales to customers located in the Domestic Tariff Area, as well as sales to units located in Special Economic Zones (SEZs) and Export Oriented Units (EOUs).

?‚? Revenue outside India includes sales to customers located outside the geographical boundaries of India.

Sales	FY 2024- 25 ( In Lakhs)	FY 2023- 24 ( In Lakhs)
Within India	1,02,282.17	80,836.22
Outside India	8,711.46	18,191.90
TOTAL	1,10,993.63	99,028.12

?‚? OUTLOOK

The global outlook of Solar Photovoltaic (PV) installations remains highly positive, with India playing a pivotal role in this transformation. The Indian Governments ambitious target of achieving 280 GW of solar power installations by 2030, coupled with its focused initiatives to reduce dependence such as the introduction of BCD, the PLI scheme and preferential procurement of domestic solar modules under the ALMM has significantly accelerated the growth of domestic module manufacturing, thereby driving robust demand for solar glass in the country.

To meet the Governments ambitious targets, a corresponding increase in solar module availability is essential, either through imports or, preferably, through enhanced domestic production. The policy emphasis is clearly shifting towards self-reliance, with agencies like the Solar Energy Corporation of India Limited (SECI) providing strong demand visibility through well-planed, advance auctions. As a result of sustained government interventions, Indias solar module manufacturing capacity is expected to expand from the current ~ 90 GW to 150 GW in the coming years. This growth will ensure that an increasingly larger share of solar installations utilize domestically manufactured modules. Simultaneously, exports of solar modules are rising, presenting a strong opportunity for Indian manufacturers to cater to global markets.

Further, the global demand for glass-glass bifacial modules, which replace traditional polymer back sheets with dual glass layers, is growing rapidly. This shift in technology is expected to significantly boost solar glass consumption worldwide, with demand in India primed for exponential growth over the next five years.

Internationally, programs such as the European Unions Solar Accelerator Program and the Green Deal aim to reduce dependency on Chinese imports and support local manufacturing, which is expected to fuel demand for solar glass across European markets. However, some major economies like Germany are yet to implement the necessary incentives to fully revive their domestic solar sectors. Similarly, the Inflation Reduction Act (IRA) in the United States has triggered new capacity creation, but ongoing trade disruptions and tariffs could dampen this momentum. Turkey, while supportive of renewable energy expansion, continues to face economic challenges such as high inflation and elevated interest rates. In contrast, India emerges as a bright spot, well-positioned to not only grow its domestic demand but also increase solar glass exports, particularly to the United States, should trade tensions with China persist.

Solar energy, being clean, renewable, and non-polluting, holds the potential to reduce pressure on natural resources, curb environmental degradation, and lower the nations oil import bill, with minimal recurring operational costs. A substantial portion of future power installations is expected to come from renewables, led by solar. Parallel investments in cost-effective and efficient electricity storage are expected to make solar-plus-storage systems a viable and reliable energy solution. As Indias leading domestic manufacturer of solar glass, the Company is strongly positioned to capitalize on the sectors dynamic growth trajectory and play a significant role in supporting the nations and the worlds clean energy transition.

Evolution of Solar PV Market

?‚? RISK AND CONCERNS

Borosil Renewables operates in a dynamic environment and, like others in the industry, remains exposed to conventional risk factors like intensifying competition, economic cyclicality, and uncertainties in both international and domestic markets. Additionally, policy changes by the Government can have a material impact on sales volumes and profitability margins.

As the solar glass market evolves, some players are setting up production capacities for captive consumption. There is a possibility that these players may enter the commercial market, leading to an oversupply situation. If they choose to compete on price by selling at lower rates, this could result in margin compression for established producers.

On the solar installations front, realizing Indias ambitious solar energy targets requires a concerted focus on several critical enablers, namely timely land approvals, readiness of power distribution companies for power evacuation, and investments in grid balancing infrastructure. Moreover, the persistent pressure to quote lower electricity tariffs in Government tenders is pushing input and component suppliers to cut costs, thereby increasing the risk of substandard components entering the supply chain. This trend, if left unchecked, could undermine the long-term health of the solar manufacturing ecosystem.

Encouraging growth in domestic component manufacturing even with marginally higher costs is essential. Such measures are unlikely to raise power costs to unsustainable levels, but they would ensure a more resilient, self-reliant, and high-quality value chain, securing Indias strategic objectives in clean energy. The solar sector holds strategic importance for Indias economic and environmental goals, and the way the industry evolves in the near term will be crucial. The Governments strong push for self-reliance through various manufacturing incentives across the solar value chain is encouraging, but the development of a comprehensive, well-integrated ecosystem remains the key to ensuring sustained growth, supply chain reliability, and the realization of national renewable energy targets.

On the international front, particularly in Europe, governments, including Germany and the European Council, appear aligned with the vision of promoting domestic solar manufacturing. However, policy execution has lagged intentions. In the past year, most large solar module manufacturing facilities across Europe have ceased operations and reviving them may become increasingly difficult if decisive actions are further delayed.

It is imperative that European authorities act with urgency to implement targeted incentives and protective measures to safeguard domestic manufacturing of solar modules and solar glass. Prolonged inaction has already impacted several industries across the European Union. Any further delay in supporting the solar value chain could lead to irreversible damage and erode the regions ability to compete in the global solar landscape.

Additionally, emerging tactics such as inventory dumping through trans-shipment hubs in Southeast Asia are increasingly undermining the impact of anti-dumping duties. Coupled with evolving non-tariff barriers and opaque trade routes, these practices pose a significant threat to fair competition and pricing stability in the solar industry.

?‚? INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

To ensure our financial reporting remains reliable, we have put in place strong Internal Control Systems that match the scale and nature of our business. These controls are designed to guarantee the accuracy and integrity of our financial statements. Internal audits are continuously conducted by an in-house Internal Audit department, in tandem with an external audit firm. Our Audit Committee reviews these reports every quarter to maintain compliance and effectiveness.

?‚? DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Borosil Renewables performance until November was significantly impacted by a sharp decline in domestic selling prices, largely driven by dumping from Chinese exporters. A significant reduction in freight costs from China to India further lowered the landed cost of imports, compelling the Company to adjust its pricing downward to remain competitive in the market. However, with the implementation of Anti-Dumping Duty (ADD) effective from 4 th December, 2024, the domestic market witnessed a recovery in pricing. This led to a marked improvement in operational performance on a standalone basis during the later part of the year. Although input costs for certain raw materials increased, the Company actively mitigated the impact through process efficiencies and better yield management. As a result, the Earnings Before Interest, Depreciation, and Tax (EBITDA) margin improved, reflecting enhanced profitability.

The Companys overseas operations faced headwinds, primarily due to weak European demand as a result of dumped imports of solar modules from China and other South East Asian countries, which led to suspension of production operations at Companys German Subsidiary, impacting the consolidated financial performance of the Company.

?‚? MATERIAL DEVELOPMENT IN HUMAN RESOURCES, INDUSTRIAL RELATIONS AND NUMBER OF PEOPLE EMPLOYED

Our journey of sustained excellence is powered by the passion, resilience, and performance of our people. We recognize that human capital is our most valuable asset, and our achievements in the glass manufacturing industry are a direct outcome of their unwavering commitment. We are continuously nurturing a culture that is people-first, future-ready, and performance-driven.

We remain focused on creating a workplace that promotes collaboration, inclusivity, and empowerment. The key pillars of our HR philosophy include:

?‚? People-First Culture: We have a culture where every individual feels valued, included, and inspired to contribute their best.

?‚? Transparency and Trust: Open and honest communication is the bedrock of our employee relations, fostering mutual respect and alignment.

?‚? Leadership from Within: We are committed to nurturing internal talent by identifying high-potential individuals and investing in their growth through structured leadership development programs.

?‚? Empowered Workforce: We promote ownership and accountability by encouraging innovation and initiative at all levels.

?‚? Proactive and Approachable Leadership: Through our open-door philosophy, senior leaders remain accessible to employees, promoting agility in decision- making and responsiveness to feedback.

?‚? Commitment to Growth: We believe in long- term relationships with our employees and invest consistently in their learning, well-being, and career development.

?‚? Managerial Support & Capability Building: Our people managers are being equipped with tools and skills to support, coach, and lead high-performing teams.

?‚? Goal Alignment: We align individual aspirations with business goals through robust performance management and employee engagement frameworks.

Industrial relations remained stable and constructive, supported by consistent dialogue and mutual trust with our workforce. We continue to maintain a healthy, safe, and productive work environment in line with regulatory compliance and industry best practices.

We are refining our structure, assessing leadership capabilities, and identifying key talent and measures to attract, retain, and engage top performers. By offering new roles and growth opportunities, we aim to build an agile, resilient, and dynamic workforce.

At Borosil Renewables, we place strong emphasis on enhancing our employees functional as well as behavioural competencies . Learning opportunities were provided to all employees based on identified training needs and organizational requirements for upskilling. In addition to these, focused sessions were also conducted on Employee Health & Wellness, Safety, POSH, and Code of Conduct .

Our flagship programs during 2024-25 included:

?‚? Power BI Training ?€“ Employees were trained to leverage Power BI tools for data analysis and visualization, enabling them to create dynamic dashboards. This not only facilitated faster decision- making but also enhanced productivity and efficiency.

?‚? Statistical Process Control (SPC) Training ?€“ Employees gained expertise in monitoring processes and parameters using statistical tools. This training helped them take corrective actions based on accurate data, thereby standardizing processes and establishing tolerance limits for critical parameters.

?‚? Customer Centricity Program ?€“ With customers as the key stakeholders in our business, this training focused on deepening employees understanding of customer requirements, encouraging prompt responsiveness and fostering long-term customer relationships. The training strengthened customer sensitivity and reinforced our commitment to business

As of 31 st March, 2025, the Company had 740 permanent employees, including workmen, who continue to be the driving force behind our achievements and ambitions.

?‚? DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS

Ratios (Based on Standalone Financials)	FY 2024- 25	FY 2023- 24	Change (%)	Explanation (Where Change is More than 25%)
Debtors\u2019 Turnover Ratio	10.43	12.55	(16.85)	-
Inventory Turnover Ratio	6.95	6.14	13.09	-
Interest Coverage Ratio	5.99	3.53	69.55	Due to better profitability on account of increase in productivity, selling price and repayment of loans.
Current Ratio	1.54	1.52	1.02	-
Debt-Equity Ratio	0.23	0.41	(44.06)	Due to repayment of term loans and issue of equity shares and warrants.
Operating Profit Margin (%)	5.06	(1.73)	393.40	Due to better profitability on account of increase in productivity and selling price.
Net Profit Margin (%)	3.02	(1.68)	279.89	Due to better profitability on account of increase in productivity and selling price.
Return on Net Worth (%)	2.99	(1.86)	261.24	Due to better profitability on account of increase in productivity and selling price.

For and on behalf of the Board of Directors

Date: May 10, 2025 Pradeep Kumar Kheruka

Place: Mumbai Executive Chairman

DIN: 00016909