Borosil shares up 4% in 2 days; ICICI Securities cuts stock price target; key details
ICICI Securities has revised Borosil's target price to Rs 365, down from Rs 440, citing weak consumer demand and lower earnings projections for FY26–27. The brokerage maintains an 'ADD' rating on the stock, based on a discounted cash flow model.
- Aug 19, 2025,
- Updated Aug 19, 2025 3:09 PM IST
Shares of Borosil Ltd continued their upward momentum on Tuesday, extending gains for the second straight session. The stock has risen nearly 4 per cent over the past two days. The company has reported a modest revenue growth of 7.3 per cent year-on-year (YoY) in the first quarter of fiscal year 2026 (Q1FY26), amidst challenging market conditions.
In their latest analysis, ICICI Securities has revised Borosil's target price to Rs 365, down from Rs 440, citing weak consumer demand and lower earnings projections for FY26–27. The brokerage maintained an 'ADD' rating on the stock, based on a discounted cash flow model.
Borosil's first quarter results showed an impressive EBITDA growth of 28.9 per cent and a PAT increase of 88.7 per cent YoY. The expansion in EBITDA and PAT margins by 268 basis points (bps) and 320 bps, respectively, is attributed to cost-saving measures including reduced marketing spend and solar power utilisation. However, a contraction in gross margin by 157 bps was noted due to an unfavourable product mix.
The company has announced plans to commission a new manufacturing facility for vacuum-insulated stainless steel products by Q4FY26, with an initial investment of Rs 40 crore. This facility is expected to generate around Rs 120 crore in its first phase, targeting the growing Rs 2,000 crore hydration segment.
ICICI Securities said that Borosil is also focusing on expanding its retail footprint, targeting an increase from the current 24,000 outlets to between 40,000 and 45,000 in the next 3-4 years. This expansion is part of its strategy to enhance product penetration and diversify its portfolio, potentially boosting its market share.
While the glassware and opalware segments showed stagnant growth due to regulatory and demand challenges, Borosil's non-glassware segment reported a robust 10.8 per cent revenue increase YoY. The company aims to improve capacity utilisation rates, targeting near-full capacity in opalware and higher efficiency in glassware production, ICICI Securities said.
Renewable energy initiatives are a significant focus, with plans to increase solar capacity in Bikaner, Rajasthan, which will cover 65 per cent of power needs by FY26. Borosil's long-term goal is to achieve 100 per cent renewable energy usage in the next few years, reflecting its commitment to sustainable practices. The company is also expanding its solar capacity by setting up a 20MW plant with a capex of Rs 75 crore in FY26.
Overall, Borosil's strategic investments in manufacturing capacity expansion and renewable energy, alongside efforts to optimise its distribution network, highlight the company's proactive approach to overcoming market challenges and sustaining growth momentum.
Additionally, the company is exploring new product categories such as gas stoves and porcelain products, which could further enhance its market position. However, the revised earnings estimates and target price by ICICI Securities indicate cautious optimism amidst current market uncertainties. Furthermore, the company's efforts to expand its omni-channel presence in general trade, modern trade, and exports have been pivotal in achieving deeper market penetration.
Shares of Borosil Ltd continued their upward momentum on Tuesday, extending gains for the second straight session. The stock has risen nearly 4 per cent over the past two days. The company has reported a modest revenue growth of 7.3 per cent year-on-year (YoY) in the first quarter of fiscal year 2026 (Q1FY26), amidst challenging market conditions.
In their latest analysis, ICICI Securities has revised Borosil's target price to Rs 365, down from Rs 440, citing weak consumer demand and lower earnings projections for FY26–27. The brokerage maintained an 'ADD' rating on the stock, based on a discounted cash flow model.
Borosil's first quarter results showed an impressive EBITDA growth of 28.9 per cent and a PAT increase of 88.7 per cent YoY. The expansion in EBITDA and PAT margins by 268 basis points (bps) and 320 bps, respectively, is attributed to cost-saving measures including reduced marketing spend and solar power utilisation. However, a contraction in gross margin by 157 bps was noted due to an unfavourable product mix.
The company has announced plans to commission a new manufacturing facility for vacuum-insulated stainless steel products by Q4FY26, with an initial investment of Rs 40 crore. This facility is expected to generate around Rs 120 crore in its first phase, targeting the growing Rs 2,000 crore hydration segment.
ICICI Securities said that Borosil is also focusing on expanding its retail footprint, targeting an increase from the current 24,000 outlets to between 40,000 and 45,000 in the next 3-4 years. This expansion is part of its strategy to enhance product penetration and diversify its portfolio, potentially boosting its market share.
While the glassware and opalware segments showed stagnant growth due to regulatory and demand challenges, Borosil's non-glassware segment reported a robust 10.8 per cent revenue increase YoY. The company aims to improve capacity utilisation rates, targeting near-full capacity in opalware and higher efficiency in glassware production, ICICI Securities said.
Renewable energy initiatives are a significant focus, with plans to increase solar capacity in Bikaner, Rajasthan, which will cover 65 per cent of power needs by FY26. Borosil's long-term goal is to achieve 100 per cent renewable energy usage in the next few years, reflecting its commitment to sustainable practices. The company is also expanding its solar capacity by setting up a 20MW plant with a capex of Rs 75 crore in FY26.
Overall, Borosil's strategic investments in manufacturing capacity expansion and renewable energy, alongside efforts to optimise its distribution network, highlight the company's proactive approach to overcoming market challenges and sustaining growth momentum.
Additionally, the company is exploring new product categories such as gas stoves and porcelain products, which could further enhance its market position. However, the revised earnings estimates and target price by ICICI Securities indicate cautious optimism amidst current market uncertainties. Furthermore, the company's efforts to expand its omni-channel presence in general trade, modern trade, and exports have been pivotal in achieving deeper market penetration.