Shares of Borosil declined more than 2% in Wednesday’s trade after the company’s March quarter earnings failed to meet investor expectations, with margin pressure emerging as the key concern despite modest revenue growth.

The stock was trading near ₹229.59, down around 2% intraday, as the market reacted to weaker profitability trends and management commentary around operational disruptions.

The company reported a 5% decline in quarterly net profit even as revenue increased by over 5% year-on-year. While topline growth indicated stable demand conditions, investors appeared more focused on the deterioration in margins, particularly because the glass manufacturing business remains heavily dependent on energy availability and fuel economics.

Speaking to CNBC-TV18, Vice Chairman and Managing Director Shreevar Kheruka said margins were impacted due to the unavailability of gas during the March quarter. The statement reinforced concerns that operational disruptions, especially those linked to fuel supply, are beginning to affect manufacturing efficiency and cost structures more materially than anticipated.

The issue is significant because energy expenses form a major component of production costs for glass and laboratory equipment manufacturers. Any disruption in gas supply can immediately affect furnace operations, output consistency, and overall manufacturing economics. For companies like Borosil, which operate in a competitive consumer and scientific glassware market, sustained cost pressure can compress profitability even when demand remains stable.

The development also comes against a broader backdrop of volatility in global energy supply chains. Earlier this year, concerns around LPG supply disruptions and geopolitical tensions affecting fuel movement had already triggered market anxiety around energy-intensive industrial businesses.

Apart from the quarterly performance, Borosil’s board also approved plans to raise up to ₹250 crore through multiple fundraising routes. While the company has not disclosed the exact timing or structure of the capital raise, the move suggests management may be preparing for expansion initiatives, working capital requirements, or balance sheet strengthening amid a challenging operating environment.