Timex Group India, GE Vernova T&D India, and Borosil Renewables have improved on all three parameters over the past three years. But the similarities end with the headline numbers.
Timex has benefited from strong revenue growth and operating leverage. GE Vernova T&D has improved its working-capital position through a change in customer mix and a growing order book. Meanwhile, Borosil Renewables has recovered from a weak business cycle.
For investors, the key question is whether these improvements reflect lasting changes in the business or whether they are temporary.
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1. Timex Group India: Growth and operating leverage driving returns
Timex Group India reported its highest-ever quarterly total income in Q2FY27, with total income rising 47% y-o-y to ₹359 crore. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew faster, increasing 52.3% to ₹65.5 crore, taking the EBITDA margin to 18.2% from 17.6% a year earlier. This follows a strong FY26, when total income reached ₹800.6 crore, and EBITDA more than doubled to ₹116 crore from ₹49.7 crore in FY25.
Asset-light model drives high capital efficiency
Timex Group’s Return on Capital Employed (ROCE) has increased to 76% at the end of FY26, compared to 39% in FY25 and 38% in FY24. The high ROCE is supported by its asset-light franchise retail model and its Baddi manufacturing facility running at full capacity. This allows the company to grow revenue without a proportionate increase in its capital base. The operating leverage is visible in Q2FY27 numbers.
The company plans to invest $1.2 million to double the annual production capacity of Baddi to 12 million units to meet the rising demand. If the expansion is carried out as planned, it may support further growth with little increase in the capital employed.
Improving working capital efficiency
Efficiency in working-capital management has also boosted profitability. Working-capital days have fallen 23% as receivables are collected faster. The company gives standard credit terms of 30-90 days to retailers; however, the days sales outstanding (DSO) fell to a record low of 19 days. This has helped the company turn sales into cash quicker and release capital tied up in receivables.
The balance sheet has also strengthened, while keeping higher inventory to support growth. Internally generated cash funded the gross inventory of ₹358 crore in Q2FY27. The improvement is also seen as a consequence of a broader capital restructuring that has occurred in FY26. Timex Group’s net debt-to-equity ratio has reduced by 32.5% y-o-y from 0.40 times to 0.27 times in FY26.
For investors, the key monitorable will be whether the additional inventory translates into sales without weakening cash conversion or reversing the improvement in working-capital efficiency.
2. GE Vernova T&D India: Quality order backlog and healthy cash conversion
GE Vernova T&D India has substantially improved its working-capital efficiency, thus strengthening its balance sheet. The company ended FY2026 with no debt and a cash surplus of about ₹2,500 crore. As of the end of Q2FY27, its order book stood at ₹21,440 crore, providing more than three years of revenue visibility.
Revenue for the period grew 32% y-o-y to ₹2,027 crore with an EBITDA margin at 27.1%. Cash generation has remained strong, with cash generated at ₹1,010 crore in the first half of FY27, taking the available cash balance to ₹3,250 crore.
Change in customer mix
A major contributor to this improvement is the shift in customer mix. GE Vernova T&D has now reduced its exposure to state utilities to less than 2%, with private customers, central utilities and public sector undertakings accounting for about 98% of its backlog. The shift has improved the company’s collection cycle. Trade receivables turnover ratio improved by nearly 20% y-o-y to 3.4 times in FY26.
The company also had a better order mix with a higher-value export order mix. Exports accounted for nearly 31% of revenue in H1FY27.
Better cash conversion driving returns
GE Vernova T&D India’s ROCE improved from 27% in FY24 to 66% in FY26, while ROE increased from 15% to 46%. The improvement reflects higher business volumes, a favourable product mix, better project execution, tighter control over fixed costs, and better cash conversion.
3. Borosil Renewables: Structural Margin Improvement and a De-risked Expansion
Borosil Renewables has reported a strong first half in FY27 with standalone revenue up 12.8% y-o-y at ₹801.8 crore and EBITDA up 18.5% at ₹258.3 crore. EBITDA margin was 31.2% for the half-year. However, margins declined to 28.6% in Q2FY27 due to routine furnace maintenance and fluctuations in fuel surcharges.
Despite the quarterly moderation in margin, profitability remains significantly higher than historical levels. Compared to a loss of ₹226.5 crore in H1FY26, the company reported a profit of ₹157.8 crore in H1FY27.
Domestic supply gaps and policy tailwinds
Favorable industry dynamics are also playing their part. Indian solar glass demand has reached around 10,400 tonnes per day (TPD), against domestic manufacturing capacity of just 2,900 TPD. Crucially, the imposition of a 5-year anti-dumping duty on Chinese and Vietnamese imports in December 2024 provided a massive policy tailwind. This allowed BRL to secure higher average ex-factory selling prices, thus improving profitability.
Better capital efficiency
The ROCE of Borosil Renewables has improved meaningfully from 5.30% in FY25 to 23.93% in FY26. The improvement in ROCE was supported by an increase in the inventory turnover ratio from 6.95 times to 10.48 times in FY26. Trade receivables turnover ratio improved from 10.43 times to 13.18 times, which indicates faster cash collections. Net capital turnover increased to 12.90 times. These changes imply the company is getting more revenue per capital tied up in its core operations.
Equity funding reduces balance sheet risk for expansion
Borosil Renewables is establishing 600 TPD capacity at an investment of around ₹1,100 crore to take advantage of the supply-demand gap, which is expected to be commissioned by early 2027. The expansion is being fully funded by issuing preferential equity and warrants, reducing the need for borrowings and helping protect the balance sheet.
But the additional capital will still increase the capital employed. For investors, the important thing to watch is the speed at which the new capacity feeds through to revenue and profits and whether utilization and realizations remain high enough to sustain ROCE.
In FY26, the debt-to-equity ratio was 0.11 times, compared to 0.23 times in FY25. The decline was primarily due to repayment of term loans, issue of fresh equity, and better profitability.
Despite improving operational performance and return ratios, Borosil Renewables’ stock fell from its 52-week high of ₹721 to a low of ₹369. The decline was largely driven by a ₹359.78 crore exceptional write-off in FY26, arising from loans, advances and investments linked to its overseas subsidiaries.
The Durability of Returns
The improvement in all three companies’ capital-efficiency ratios looks similar on paper, but the underlying economics are quite different.
Timex’s high ROCE is supported by an asset-light model and faster cash conversion, making incremental growth less capital-intensive. GE Vernova’s returns depend on converting a large order book into revenue and cash without allowing execution cycles to stretch working capital. Borosil’s recovery is more exposed to pricing, capacity utilisation and the returns generated on its expanded capital base.
Lower debt and higher ROCE alone do not guarantee lasting value creation. What matters is whether new investments generate enough returns and whether the cash coming into the business keeps pace with reported profits. Add these stocks to your watchlist and monitor how they execute their growth plans
Report by Deepan Datta
Source: Financial Express
Disclaimer: The views and investment tips expressed by investment experts are their own and not those of us. We advise traders to check with certified experts before taking any investment decisions.
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