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India Ratings & Research Private Limited (India Ratings) has revised the outlook on Borosil Renewables Limited's (BRL) bank loan facilities to Positive from Negative, while affirming the rating at 'IND A'. The agency also assigned 'IND A1' ratings. The affirmation and outlook revision are supported by a significant increase in consolidated EBITDA margins during 1HFY26, driven by improved realisations due to anti-dumping duties on solar glass imports, cost-saving measures, and the de-consolidation of a loss-making German subsidiary. India Ratings expects continued margin improvement in 2HFY26 and FY27, supported by favourable industry sentiments and stable demand.

The company's key credit metrics have strengthened due to improved EBITDA margins and a ₹3,710 million preferential issue of equity shares in October 2025. Further strengthening is expected from the remaining proceeds from warrants issued in January 2025, amounting to approximately ₹2,800 million, which are anticipated by August 2026. BRL's consolidated revenue stood at ₹7,255 million in 1HFY26, with India Ratings projecting FY26 revenue between ₹15,200 million - ₹15,500 million. The company is also expanding its capacity by 600 tonnes per day (TPD) by the end of FY27. India Ratings notes that BRL's operations remain working capital-intensive, with inventory days around 90-100 days, but this is supported by creditor credit, bank lines, and internal accruals. The agency also highlighted the company's established market position in India's solar glass manufacturing sector and its capacity to cater to the growing domestic solar module manufacturing demand, bolstered by government initiatives.

The liquidity position is considered adequate, with cash and equivalents at ₹731 million as of FYE25. The average utilization of fund-based and non-fund-based limits was around 25% and 38%, respectively, over the 12 months ended October 2025. Cash flow from operations increased to ₹620 million in FY25, and free cash flows improved significantly to negative ₹471 million in FY25 from negative ₹1,796 million in FY24. India Ratings expects free cash flows to turn positive in FY26. The company has scheduled debt repayments of ₹765 million for FY26 and ₹685 million for FY27, which are expected to be met with sufficient liquidity.