Borana Weaves first-half profit rises to Rs 32.64 crore

Borana Weaves Limited reported profit of Rs 32.64 crore for the half year ended September 30, 2026, up from Rs 23.87 crore a year earlier, as revenue from operations rose to Rs 239.04 crore from Rs 176.50 crore. Receivables, inventories and other current assets also increased, while cash and cash equivalents became negative.

What did Borana Weaves report for the first half?

Borana Weaves reported a 36.7% year-on-year increase in first-half profit to Rs 32.64 crore for the period ended September 30, 2026, compared with Rs 23.87 crore in the corresponding six months of 2025. Revenue from operations increased 35.4% to Rs 239.04 crore from Rs 176.50 crore, while profit rose faster than revenue.

Total income, including other income, was Rs 241.00 crore in the first half of 2026, against Rs 181.48 crore a year earlier. Profit before tax rose to Rs 39.67 crore from Rs 34.95 crore, while total tax expense was Rs 7.02 crore versus Rs 6.07 crore. Borana Weaves reported no exceptional items in either half-year period.

Basic and diluted earnings per share were Rs 12.25 for the six months ended September 30, 2026, compared with Rs 10.84 in the year-earlier period. The company stated that earnings per share for interim periods are not annualised. The results were reviewed by the audit committee and approved by the board on November 2, 2026.

How did Borana Weaves perform in the September quarter?

Borana Weaves earned Rs 16.16 crore in the quarter ended September 30, 2026, compared with Rs 16.48 crore in the June 2026 quarter and Rs 16.68 crore in the September 2025 quarter. Revenue from operations was Rs 138.20 crore, higher than Rs 100.84 crore in the preceding quarter and Rs 95.50 crore a year earlier.

The quarter-on-quarter revenue increase of Rs 37.36 crore did not translate into higher net profit, which declined by Rs 32 lakh from the June quarter. Profit before tax was Rs 19.70 crore in the September quarter, versus Rs 19.97 crore in June, while tax expense was Rs 3.54 crore compared with Rs 3.49 crore. These comparisons use the two unaudited quarterly periods disclosed in the results.

Cost of materials consumed increased to Rs 88.58 crore in the September quarter from Rs 56.23 crore in June. Employee-benefit expense rose to Rs 10.62 crore from Rs 8.35 crore, whereas finance costs declined to Rs 67.81 lakh from Rs 74.12 lakh. Changes in inventories of finished goods and work in progress represented a Rs 51.88 lakh reduction in expense in September, against an Rs 8.50 lakh expense in June.

Borana Weaves has one reportable operating segment, textile, under Indian Accounting Standard 108, or Ind AS 108. The filing therefore does not provide sales, profit or asset splits by fabric category, customer type or geography. Its reported half-year comparison is consequently at the overall textile-business level.

What changed in Borana Weaves' working capital and cash flow?

Borana Weaves generated net cash from operating activities of Rs 10.56 crore in the six months ended September 30, 2026, reversing an outflow of Rs 56.37 crore in the corresponding period of 2025. Operating cash generation remained below profit before tax of Rs 39.67 crore because working-capital movements and tax payments used cash.

Trade receivables increased by Rs 11.39 crore during the latest half year, inventories increased by Rs 5.95 crore and other current assets increased by Rs 19.16 crore. Together, those three movements used Rs 36.50 crore of cash. A Rs 3.60 crore increase in trade payables partly offset that movement, while net income-tax payments were Rs 5.99 crore.

Cash and cash equivalents were negative Rs 31.30 lakh at September 30, 2026, compared with Rs 1.68 crore at March 31, 2026 and Rs 5.23 crore at September 30, 2025. The cash-flow statement records purchases of property, plant and equipment, including capital work-in-progress, of Rs 20.05 crore in the latest half year, compared with Rs 56.02 crore in the prior-year half.

How is Borana Weaves funding capacity expansion?

Borana Weaves plans to add 384 Water Jet looms at Unit 4 in two phases, requiring approximately Rs 49.92 crore and funded through internal accruals and debt. Phase 1 covers 192 looms scheduled by December 2026, while a further 192 looms are targeted for commercial production by March 2027.

The board approved the additional 192 looms on November 2, 2026, taking the total planned Unit 4 addition to 384 looms, including an earlier approved 192-loom expansion. Existing capacity across all units is 1,212 Water Jet looms, with approximate annual greige-fabric production capacity of 349.05 million metres and utilisation of about 85%.

On completion of both phases, Borana Weaves plans total installed capacity of 1,596 looms and annual greige-fabric capacity of approximately 459.64 million metres. Management said the expansion is expected to broaden the product portfolio, support higher-value buyers and new order volumes, improve cost efficiency and optimise capacity utilisation. These are management's stated objectives rather than reported first-half outcomes.

Capital work-in-progress stood at Rs 95.88 crore at September 30, 2026, up from Rs 80.94 crore at March 31, 2026, while property, plant and equipment declined to Rs 139.55 crore from Rs 146.49 crore. Current borrowings rose by Rs 9.01 crore to Rs 22.86 crore, whereas non-current borrowings were nearly unchanged at Rs 55.55 crore from Rs 55.66 crore.

Conclusion

Borana Weaves delivered higher first-half revenue and profit, with revenue reaching Rs 239.04 crore and profit reaching Rs 32.64 crore for the six months ended September 30, 2026. The financial statements also show substantial increases in receivables, inventories and other current assets, leaving operating cash flow at Rs 10.56 crore despite profit before tax of Rs 39.67 crore.

The next disclosed milestones are the first 192 Unit 4 looms by December 2026 and the second 192 looms by March 2027. The filing identifies approximately Rs 49.92 crore of investment, to be financed through internal accruals and debt, as the plan that will determine the associated funding requirements.