Borana Weaves FY26: Strong Profit Growth, Fabric-Led Mix, and a June 2026 Renewable Power Push

Borana Weaves Limited, a Surat-based producer of unbleached synthetic greige fabric, closed FY26 with a sharp step-up in scale and profitability. For the year ended March 31, 2026, revenue from operations rose to 388.59 crore, up 34 percent from 290.31 crore in FY25. Operating profit also expanded, with EBITDA at 91.52 crore and an EBITDA margin of 23.55 percent, compared with 63.18 crore and 21.76 percent in FY25. The bottom line followed through. PAT increased to 64.61 crore, translating into a PAT margin of 16.63 percent versus 13.85 percent in FY25.

The presentation positions the company as a leading producer of unbleached synthetic greige fabric, a base material used for dyeing and printing across apparel, home textiles, industrial applications, and technical end uses. Borana operates four manufacturing units in Surat and runs a large water-jet weaving base, which the company highlights as a key enabler of precision, uniformity, and efficiency.

A fabric-first revenue mix with a smaller yarn stream

Borana’s business disclosure in the investor presentation is straightforward. It reports two primary segments.

Greige fabric remains the core engine. The company states that this segment contributed 92 percent of FY26 revenue, up from 87 percent in FY25. The second segment is PTY yarn, which contributed 8 percent of FY26 revenue, down from 12 percent in FY25. The direction is clear. Fabric has become an even larger driver of the company’s topline.

The product and application commentary points to a broad end-market footprint. Greige fabric is described as a versatile base for dyeing and printing and is presented as relevant across fashion and home decor, as well as industrial uses such as tents, waterproof fabrics, and technical textiles. PTY yarn is described as processed from POY and positioned as durable and cost-effective.

Financial summary (as presented)

The quarterly disclosure reinforces the profit trend into the year-end. In Q4 FY26, revenue from operations is shown at 100.73 crore versus 78.70 crore in Q4 FY25, a YoY increase of 28 percent. EBITDA for Q4 FY26 is shown at 25.61 crore with a margin of 25.43 percent. PAT for Q4 FY26 is shown at 17.21 crore, with a PAT margin of 17.08 percent.

Operations: four units, high utilisation, and water stewardship

The company’s operating footprint is concentrated in Surat, with four manufacturing units located in the Hojiwala Industrial Estate, which it describes as a key textile hub. Across the units, it highlights capabilities spanning texturizing, warping, water jet looms, and textile folding.

Capacity utilisation trends are disclosed at the unit level. For FY26, utilisation is reported at 82.50 percent for Unit 1, 85.70 percent for Unit 2, 82.94 percent for Unit 3, and 78.11 percent for Unit 4 (for an 8-month period). On an overall basis, the presentation mentions average capacity utilisation of 80.93 percent for FY26.

Sustainability is another recurring theme in the deck. Borana states it recycles about 1000 million liters of water annually and operates with zero liquid discharge, reusing 100 percent of wastewater. It also mentions a partnership with Hojwala Infra Ltd. for advanced water treatment. While this section is not framed in financial terms, it signals that operational continuity and compliance are being actively addressed in a water-intensive textile environment.

FY26 balance sheet signals: rising asset base and lower leverage

The balance sheet snapshot included in the presentation shows a sizeable expansion in the asset base as of March 2026. Property, plant and equipment rises to 146.49 crore from 66.36 crore as of March 2025, while capital work-in-progress is shown at 80.94 crore versus nil in the prior year, indicating ongoing project execution.

On leverage and liquidity ratios, the company reports a debt-equity ratio of 0.30 in FY26, improving from 0.78 in FY25. Current ratio increases to 4.33 in FY26 from 2.62 in FY25. These are supportive indicators for funding expansion without visible balance-sheet strain, although the presentation does not provide cash flow statements to cross-check cash conversion.

One trend worth noting is return ratios. The company reports ROE of 23.03 percent and ROCE of 19.18 percent for FY26, lower than FY25. Given the sharp increase in shareholders’ funds and the rise in assets and CWIP, this likely reflects a larger capital base during an expansion phase. The presentation does not provide additional commentary linking capex to targeted returns.

The key forward lever: a 19.79 MW solar-wind hybrid project by June 2026

The clearest forward-looking disclosure in the deck is around energy strategy. Borana outlines a hybrid renewable energy project comprising 9.89 MW solar and 9.90 MW wind, with commissioning stated as June 2026.

Management expectation, as stated in the presentation, is that around 70 to 80 percent of current power requirements are expected to be met through renewable energy sources. The company also states that capacity expansion and higher renewable energy usage are expected to improve operating margins.

Funding is described as partly debt-funded, and the company adds that even after the proposed borrowing, Total Outside Liabilities to Tangible Net Worth remains comfortable at around 0.6x. This is a useful disclosure because it connects the project to a leverage comfort metric, even though the deck does not provide interest rate assumptions or expected savings per unit of power.

What the company says is next: double production and move toward technical textiles

In its future outlook section, Borana outlines multiple priorities. The most measurable statement is its medium-term vision to double production capacity in the next 24 months. It also states that expansion will generate about 5 crore meters of annual capacity.

The product direction includes expansion into technical textiles to capture premium global demand and the introduction of RPU-coated fabrics for jackets and technical wear. These statements provide strategic intent, but the deck does not quantify the revenue opportunity, capex requirement, or the share of output that could shift to higher-value categories.

The company also mentions export expansion through a focus on high-value synthetic fabrics, but it does not disclose current export contribution. As a result, investors reading the presentation should treat export plans as directional rather than measurable at this stage.

Takeaways from the FY26 deck

Borana Weaves ends FY26 with strong growth in revenue and profits and an improving margin profile, as shown in its annual and quarterly numbers. The disclosed business mix remains heavily weighted toward greige fabric, with PTY yarn playing a smaller role.

What stands out in the way-ahead section is the defined June 2026 commissioning timeline for a 19.79 MW solar-wind hybrid project and the stated expectation that renewables could meet 70 to 80 percent of current power needs. Alongside this, the company articulates a medium-term goal to double production over the next 24 months and to add about 5 crore meters of annual capacity.

The presentation does not provide a detailed capex-to-returns bridge, export base data, or cash flow detail. Even so, it offers a clear picture of what management is prioritising: scale in synthetic greige fabric, energy-cost resilience through renewables, and a longer-term push into technical textile categories.