Borana Weaves Ltd. – Investor Presentation Summary

Key Operational Highlights

  • Total installed production capacity of 39,21,12,000 meters.
  • Operates 1,208 high-speed water jet looms, 20 texturizing machines, 7 warping machines, and 10 folding machines across four manufacturing units in Surat.
  • Achieved an average capacity utilization of 80.93% for FY26.
  • Key drivers include advanced water jet loom technology ensuring precision and sustainable production, and backward integration for greater margin control.

Segment-wise Performance

  • The company operates two primary segments: Manufacturing of Unbleached Synthetic Greige fabric and PTY Yarn.
  • Products serve the apparel (shirts, trousers, dresses), home textiles (bed linen, upholstery), and industrial (tents, waterproof fabrics, technical textiles) end-markets.

Financial Highlights

Q4 FY26 (Quarter ended March 31, 2026):

  • Revenue: ₹100.73 crore
  • EBITDA: ₹25.61 crore
  • PAT: ₹17.21 crore
  • EPS: ₹6.45
  • Margins: Gross Profit Margin 44.82%, EBITDA Margin 25.43%, PAT Margin 17.08%

YoY comparison (Q4 FY26 vs Q4 FY25):

  • Revenue increased 28% from ₹78.70 crore.
  • PAT increased 58% from ₹10.90 crore.
  • EPS increased 19% from ₹5.44.

H2 FY26 Performance:

  • Revenue: ₹212.09 crore
  • EBITDA: ₹52.70 crore
  • PAT: ₹35.76 crore

Full Year FY26 Performance:

  • Revenue: ₹386.16 crore
  • EBITDA: ₹92.57 crore
  • PAT: ₹62.27 crore
  • EPS: ₹23.32

Drivers of financial performance: Higher revenue growth and improved margins.

Key Risks: Disclosed risks include volatile raw material prices, intense competition, regulatory challenges, and economic slowdown.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot (as of March 31, 2026)

  • Total Assets: ₹366.37 crore (vs. ₹155.95 crore in FY25)
  • Inventories: ₹47.33 crore
  • Trade Receivables: ₹23.64 crore
  • Cash & Cash Equivalents: ₹1.68 crore
  • Other Current Assets: ₹49.25 crore
  • Financial Health Insights: Not Specified

Capex & Cash Flow Health

  • Capital Expenditure: Not Specified
  • Future Outlook includes a plan to integrate solar and wind energy systems by June 2026.
  • Investment Rationale: Renewable energy integration is expected to meet 70-80% of power requirements and improve operating margins.

Strategic & R&D Initiatives

  • Investments in Innovation: Focus on advanced water jet loom technology and sustainable production.
  • Strategic Rationale: Expanding renewable energy usage and maintaining backward integration for margin control.

Industry Trends & Business Environment

  • Macro/Industry Trends: India's polyester filament yarn market is expected to grow from ~2.53 million tonnes in 2024 to ~3.06 million tonnes by 2030 (CAGR ~3.2%). Growth is driven by demand for athleisure, performance textiles, and sustainable (rPET/recycled) products. Government incentives like the Production Linked Incentive (PLI) scheme are key drivers.
  • Impact on Company: The company is positioned to benefit from domestic market growth and export potential, though it faces challenges from rising imports and raw material cost pressures.

Management Commentary & Growth Outlook

  • Strategic Outlook: Focus on renewable energy integration and capacity expansion.
  • FY Guidance: No specific quantitative guidance provided.
  • Risks and Opportunities: Management highlights opportunities in sustainable textiles and international expansion, alongside threats from competition and input cost volatility.

ESG Updates

  • Sustainability: Recycles ~1000 million liters of water annually and operates a Zero Liquid Discharge (ZLD) system for 100% wastewater reuse.
  • Partnership with Hojiwala Infra Ltd. for advanced water treatment.