Borana Weaves doubles Unit 4 plan to 384 looms by March 2027

Borana Weaves Limited has increased its Unit 4 expansion to 384 Water Jet looms, targeting 459.64 million metres of annual greige-fabric capacity by March 2027 from 349.05 million metres currently. The two-phase project requires approximately Rs 49.92 crore and would add 110.60 million metres of annual capacity.

What has Borana Weaves approved for Unit 4?

Borana Weaves has approved an additional 192 Water Jet looms at Unit 4, doubling the total planned addition there to 384 looms. The board approved the latest 192-loom phase on November 2, 2026, alongside the unaudited financial results for the quarter and six months ended September 30, 2026.

The 384 looms comprise 192 looms covered by an earlier approved plan and the additional 192 looms cleared at the November 2 meeting. The latest approval includes necessary ancillary machinery and targets commercial production by March 2027 for the newly approved phase.

Before the expansion, Borana Weaves reported 1,212 Water Jet looms across all units. Completion of both phases would take the installed base to 1,596 looms, an increase of 384 looms, or about 32% of the present equipment count.

How much greige-fabric capacity will Borana Weaves add?

Borana Weaves expects the 384-loom programme to add approximately 110.60 million metres of annual greige-fabric capacity. This would increase annual capacity to approximately 459.64 million metres from 349.05 million metres across all units after both phases are completed.

The disclosed addition represents approximately 32% of the current 349.05 million-metre annual capacity. The company did not provide individual annual production-capacity figures for the first 192 looms and the second 192 looms, only the aggregate capacity addition for the full 384-loom project.

Borana Weaves disclosed existing capacity utilisation of approximately 85% for its 1,212-loom base. The filing does not state a utilisation target after the equipment count reaches 1,596 looms, nor does it disclose committed orders associated with the 110.60 million-metre increment.

The capacity disclosure identifies greige fabric as the output of the planned looms. In its financial-results notes for the half year ended September 30, 2026, Borana Weaves said Textile was its sole reportable operating segment under Indian Accounting Standard 108, so it did not provide separate Unit 4 revenue or profit data.

When will Borana Weaves complete the two phases?

Borana Weaves plans to add the first 192 Water Jet looms by December 2026 and the additional 192 looms by March 2027. The company has therefore divided the 384-loom programme into two equal phases, each representing half of the total equipment addition.

The November 2, 2026 board announcement specifically describes commercial production from the additional 192 looms as targeted by March 2027. The more detailed capacity annexure gives December 2026 as the timeframe for Phase 1 and March 2027 as the timeframe for Phase 2.

The filing does not give a specific installation date within December 2026, a commissioning date for Phase 1, or a monthly deployment schedule. It also does not state whether any part of the 110.60 million metres of annual capacity will be available before the second phase is added in March 2027.

The proposed schedule follows a disclosed 85% capacity-utilisation level at the existing plants. That operating figure relates to the capacity in place at the time of the announcement, rather than a forecast for the two additional 192-loom phases.

How will Borana Weaves fund the Rs 49.92 crore project?

Borana Weaves estimates the total investment at approximately Rs 49.92 crore, including the 384 Water Jet looms and ancillary machinery. Phase 1, comprising 192 looms, is estimated at approximately Rs 24.96 crore, and Phase 2 carries the same approximately Rs 24.96 crore estimate.

The company says the project will be funded through internal accruals and debt. Its filing does not specify how much of the Rs 49.92 crore will come from either funding source, identify lenders, state borrowing rates or repayment terms, or provide a debt drawdown timetable.

As at September 30, 2026, Borana Weaves reported non-current borrowings of Rs 55.5503 crore, compared with Rs 55.656 crore at March 31, 2026. Current borrowings were Rs 22.8628 crore at September 30, 2026, versus Rs 13.8485 crore at the March 31, 2026 year-end.

That comparison shows current borrowings rose by Rs 9.0143 crore over the six months ended September 30, 2026, while non-current borrowings declined by Rs 0.1057 crore. The filing does not attribute these balance-sheet movements to the new Unit 4 phase or quantify the future borrowing component of the project.

What benefits does Borana Weaves expect from the expansion?

Borana Weaves says the 384-loom capacity addition is expected to broaden its product portfolio and strengthen its ability to attract high-value buyers and secure new order volumes. The company also says the project is intended to support long-term relationships with premium international brands after capacity reaches 459.64 million metres annually.

Management further expects the project to improve cost efficiency and optimise capacity utilisation. These are stated objectives rather than quantified forecasts: the announcement does not disclose an expected reduction in costs, a margin target, a post-expansion utilisation level, or the revenue expected from the 110.60 million metres of added annual capacity.

For the six months ended September 30, 2026, Borana Weaves reported profit after tax of Rs 32.6395 crore, compared with Rs 23.8738 crore for the six months ended September 30, 2025. Profit before tax rose to Rs 39.6701 crore from Rs 34.9475 crore over the same periods.

Borana Weaves also reported capital work-in-progress of Rs 95.8777 crore at September 30, 2026, against Rs 80.9362 crore at March 31, 2026. Purchases of property, plant and equipment, including capital work-in-progress, were Rs 20.0496 crore during the six months ended September 30, 2026, while the new Unit 4 project is estimated separately at Rs 49.92 crore.

Conclusion

Borana Weaves has expanded its Unit 4 plan from 192 to 384 Water Jet looms, with the full programme expected to lift annual greige-fabric capacity by 110.60 million metres to 459.64 million metres. The project pairs two equal Rs 24.96 crore phases with management's stated aims of expanding the product portfolio, serving higher-value buyers and improving operating efficiency.

The next disclosed milestones are Phase 1 by December 2026 and Phase 2 by March 2027, when commercial production from the latest approved addition is targeted. Investors should watch for commissioning updates, any disclosure of the internal-accruals and debt allocation, and evidence of utilisation or order-volume progress after the additional capacity is installed.