Borana Weaves Ltd H1 FY26: Surat’s Loom Powerhouse Weaves 97% Profit Growth, 41% ROCE, and a ₹752 Cr Fabric Empire That Doesn’t Pay Dividends Yet

1. At a Glance

From the land of shiny sarees and sleepless looms, Borana Weaves Ltd has emerged as Surat’s newest textile rocket — and it’s firing on all spindles. Listed in May 2025, this company has turned polyester threads into pure profit magic. The stock, currently lounging at ₹282, boasts a market cap of ₹752 crore, P/E of 14.7, and an ROE of 60.3% that could make seasoned industrialists blush.

In the September 2025 quarter, sales jumped 34.9% YoY to ₹95.5 crore, while PAT soared 97.7% YoY to ₹16.6 crore — numbers that scream, “Who said fabric can’t make fortunes?” Operating profit margins remained a spicy 23%, with an enviable ROCE of 41.2%.

But before you crown them the king of yarns, note this: they’ve never paid a dividend. Yes, 60% ROE, zero payout — the accountants’ equivalent of “ghosting after a great date.”

Still, for a company born in 2020, Borana Weaves has already stitched itself into the Indian textile elite with surgical precision — and a sprinkle of Gujarati hustle.

2. Introduction

If Surat is India’s textile Las Vegas, Borana Weaves is the casino where the polyester dice keep rolling sixes. Founded just five years ago, this young gun has defied the usual startup mortality rate. While most textile players complain about rising costs and “global headwinds,” Borana is busy adding looms, launching hybrid renewable projects, and whispering sweet nothings to investors through a glittery IPO worth ₹145 crore.

In a city where every other street hosts a loom, Borana decided to out-weave them all — 3 manufacturing units, 15 texturizing machines, 700 water jet looms, and now a shiny new Unit 4 that just added 11.28 crore meters of capacity. Because, why dream small when you can sell unbleached fabric by the kilometer?

Their customer base? Predominantly from Gujarat — 98% of sales, no less. That’s right: they don’t just “Make in Surat”; they “Sell in Surat.” But while that concentration looks risky, it’s also deeply entrenched — like your mom’s favourite tailor who never moves shop.

Now with an IPO-fueled war chest, solar panels on the roof, and hybrid projects humming in the background, Borana Weaves seems ready to transform from a regional player to a national fabric warrior.

3. Business Model – WTF Do They Even Do?

In short: They make the stuff other people make prettier.

Borana Weaves manufactures unbleached synthetic grey fabric — the plain, raw canvas used by dye houses, printers, and fashion brands to create everything from sarees to curtains to industrial textiles. Think of them as the “anonymous supplier” behind your shiny drapes and that expensive kurta you think is handwoven. Spoiler: it probably started here.

They also produce polyester textured yarn, which they mostly use internally, keeping costs tight and quality consistent — classic vertical integration, Surat-style. Their operations are high-volume, machine-intensive, and ruthlessly efficient.

Let’s decode the mix:

• Grey Fabric: 79% of total revenue — the bread, butter, and entire thali.
• Polyester Yarn: 20%, mostly consumed in-house.
• Waste Sales: A modest 1%, because even scraps have value when your machines run 24/7.

So, they basically run an asset-light-meets-asset-heavy hybrid model: heavy on machinery, light on marketing. No retail stores, no designer collaborations — just pure B2B power.

And with capacity utilisation at 80.5%, it’s clear they’re sweating those looms like an Ahmedabad cricket crowd in May.

4. Financials Overview

Figures in ₹ crore

Annualised EPS = 6.25 × 4 = ₹25.0 per share
That’s higher than its TTM EPS of ₹22, meaning momentum is still accelerating.

💬 Commentary: This isn’t just growth; it’s textile steroids. A 98%