Borosil Renewables shares rise 3% as board approves revised Rs 1,100 crore expansion cost

Borosil Renewables Ltd shares rose 3% on Tuesday after the company's board approved a revised project cost of up to Rs 1,100 crore for its 600 tonnes per day (TPD) capacity expansion at Bharuch, Gujarat.

The company said the board, at its meeting held on September 22, took note of the Viksit Gujarat Industrial Policy 2026, under which it would be eligible to apply for financial incentives including interest subsidy, power tariff subsidy, capital subsidy and EPF reimbursement.

Borosil Renewables shares rose 3.34% to hit a high of Rs 489.35 apiece, compared with their previous close of Rs 473.55. The stock opened at Rs 477.40 and touched a low of Rs 462.00 during the session.

The capacity expansion involves setting up two furnaces, SG-4 and SG-5, each with a capacity of 300 TPD. The project was originally scheduled to be completed by December 2026, but the commissioning timeline has now been pushed to the end of March 2027.

According to the company's disclosure, its existing installed capacity stands at 1,000 TPD and is fully utilised. Once the two new furnaces become operational, the total capacity is expected to increase to 1,600 TPD. The company said the expansion is expected to result in higher production volumes and sales.

The revised estimated investment for the 600 TPD expansion is approximately Rs 1,100 crore, compared with the earlier estimate of Rs 950 crore. The company said the increase includes an additional cost outlay of Rs 150 crore, which will be entirely funded through internal funds without any increase in borrowings.

Borosil Renewables attributed the delay and higher project cost to the ongoing conflict in the Middle East, which it said has disrupted supply chains, caused exchange-rate fluctuations and increased commodity costs. The company also said the scope of the project has been expanded.

The filing said the project may be financed through a mix of equity, debt and/or internal accruals, as may be decided by the management.