Borana Weaves Q1 FY27: ₹100.84 Cr of Grey Fabric, 1,212 Looms, and a ₹80.94 Cr Capital Work-in-Progress Line

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1. At a Glance

Revenue for the quarter ended June 2026 came in at ₹100.84 crore, up 24.5% over the ₹81.00 crore of the same quarter last year. Operating profit was ₹25.84 crore against ₹17.15 crore, and PAT ₹16.48 crore against ₹12.20 crore. EPS: ₹6.18.

The company makes unbleached synthetic grey fabric in Surat — a product whose entire job is to be dyed and printed by somebody else later, which makes it the only textile business in India actively marketing beige. It has 1,212 high-speed water-jet looms, up from 144 in FY22, which is the sort of eight-year run that makes a factory floor plan look like it was drawn by someone who kept finding more land.

Depreciation for the quarter was ₹5.99 crore against ₹2.78 crore a year ago — a 115.3% increase disclosed in the company’s own presentation, sitting next to a finance cost that fell from ₹1.00 crore to ₹0.74 crore. FY26 full-year revenue was ₹388.59 crore with PAT of ₹64.61 crore.

The balance sheet at March 2026 carried ₹80.94 crore of capital work-in-progress against ₹0.04 crore a year earlier, and total assets more than doubled to ₹366.37 crore. On 11 August 2026 the board approved another expansion at Unit 4 — 192 more looms and three texturizing machines.

2. Introduction

Borana Weaves Limited was incorporated in October 2020, which by Indian textile standards makes it roughly a toddler. The company’s own investor presentation traces the family line back considerably further: a small textile trading business in Surat in the 1975–85 period, manufacturing beginning in 1983 with 24 conventional looms, and a water-jet transition between 2005 and 2012 that reached 202 looms. Twenty-four conventional looms to 1,212 water-jet looms is a journey that took four decades and, judging by the milestone slide, exactly six bullet points.

The company completed its greenfield capex in July 2021 at Surat, per CARE Ratings, and raised ₹145 crore through an IPO, listing on the NSE and BSE on 27 May 2025. The fresh issue proceeds were earmarked for a new manufacturing facility, working capital, and general corporate purposes — the third of which is corporate India’s way of saying “and other things.”

Since listing, the announcement flow has been almost entirely machinery. In September 2025 the company reported commissioning 108 looms with Unit 4 capex of ₹71.35 crore. In October 2025, another 48 looms took the count to 348 at that unit. In January 2026, 64 more started on 20 January. In March 2026 the company announced that 160 water-jet looms at Unit 4B were fully operational and a 3.545 MW rooftop solar plant had been commissioned. That is five separate press releases in six months about looms arriving, which is either admirable disclosure discipline or a company that genuinely cannot contain itself.

The Borana Group, of which the company is part, has presence across the textile value chain. Related-party transactions have ranged between 26% and 80% of total revenue over past years. The board approved material related-party transactions for FY2026-27 at its August meeting, subject to approvals.

3. Business Model: WTF Do They Even Do?

They weave polyester into fabric that is deliberately not finished, and then sell it to people who finish it.

Greige fabric — the unbleached, undyed, unprinted base cloth — was 92% of FY26 revenue. Polyester textured yarn was the other 8%, and management described that yarn business on the February 2026 call as ancillary, kept running mainly so a machine breakdown doesn’t force them to buy yarn from outside. It is a spare tyre that happens to generate roughly a twelfth of the top line.

The manufacturing flow, per the company’s presentation, is four steps: texturizing (POY becomes PTY yarn), warping (yarn gets aligned), water-jet weaving (the fabric happens), and inspection and folding. The equipment count as of Q1 FY27: 1,212 high-speed water-jet looms, 24 texturizing machines, 20 folding machines, 9 warping machines. Somewhere in Surat, nine machines exist whose entire purpose in life is to line yarn up in a queue.

Where the fabric ends up is where the business gets its range. Per the company’s product disclosures: apparel (shirts, trousers, dresses), home textiles (bed linen, upholstery), and industrial applications including tents, waterproof fabrics and RPU-coated materials. Management was careful on the February call about what “technical textiles” means here — the company does not do the coating or finishing itself. Buyers coat the fabric and turn it into the technical product. The stated words were that Borana is not directly doing technical textiles; its buyers do the coating and use it as such. So the hospital linen and the tent and the shirt all begin as the same beige roll, and the interesting chemistry happens after somebody else has paid the invoice.

Named customers include Ganga Tex Trends Ltd, Oswal International, Nirankari Textiles, Sudarshan Silks Mills, Ambaji Fabrics, Varun Textile and Shri Hari Tex.

Total installed capacity for FY26 was 39.21 crore metres, with average capacity utilisation of 80.93%. Unit-level: Unit 1 at 82.5%, Unit 2 at 85.7%, Unit 3 at 83%, Unit 4 at 78%. Management noted on the call that meter-based utilisation can read lower when a wide loom runs single-width, and characterised blended utilisation as roughly 82–83% with up to 90% achievable. The company also does not export directly — its buyers do.

4. Financials Overview

Figures are standalone, in ₹ crore.

Revenue grew 24.5% year-on-year and operating profit 50.7%, per the company’s presentation, taking EBITDA margin to 25.63% from