Borana Weaves FY26 Results: Net profit up 61% to ₹646.1 crore
- Net profit after tax rose 60.7% YoY to ₹646.1 crore in FY26
- Revenue from operations grew 33.9% to ₹3,885.9 crore
- No dividend proposed; resources retained for capacity expansion
- Unit 4 expansion adds 192 looms, targeting December 2026 launch
- Remuneration for three executive directors set to increase
*this image is generated using AI for illustrative purposes only.
Borana Weaves has scheduled its 6th Annual General Meeting (AGM) for September 29, 2026, to present its financial performance for FY26. The textile manufacturer reported a 60.7% year-on-year increase in net profit, reaching ₹646.1 crore, against a backdrop of robust revenue growth and operational efficiency.
The company recorded revenue from operations of ₹3,885.9 crore in FY26, up from ₹2,903.1 crore in the previous fiscal year. This represents a 33.9% growth, reflecting strong demand for its microfilament woven fabrics. The Board of Directors decided not to declare any dividend for the financial year ended March 31, 2026, opting instead to preserve resources for future expansion.
Financial Highlights
The audited standalone financial statements reveal significant improvements in profitability metrics alongside top-line growth.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹3,885.9 crore | ₹2,903.1 crore | +33.9% |
| Total Revenue | ₹3,968.1 crore | ₹2,951.0 crore | +34.5% |
| Profit Before Tax | ₹784.0 crore | ₹491.2 crore | +59.6% |
| Net Profit After Tax | ₹646.1 crore | ₹402.0 crore | +60.7% |
Other income stood at ₹82.1 crore, contributing to the total revenue figure. The company’s return on net worth was reported at 23.03%, while the debt-equity ratio remained conservative at 0.25x. The current ratio improved to 4.33x, indicating strong liquidity position.
Capacity Expansion and Strategy
Borana Weaves continues to invest in its manufacturing capabilities. The company is expanding its Unit 4 facility with an addition of 192 looms and 3 texturisers, targeting commercial production by December 2026. This expansion aims to enhance its annual fabric production capability, which currently stands at 398 million metres.
The integrated manufacturing platform spans from POY-to-PTY texturising to weaving, supported by 1,212 high-speed water-jet looms across four manufacturing units. The company highlighted a 98% repeat order rate, underscoring enduring customer confidence in its quality and execution.
What the Numbers Show
A notable divergence exists between the growth rates of revenue and net profit. While revenue grew by 33.9%, net profit surged by 60.7%. This disproportionate rise in profitability suggests significant operating leverage or cost efficiencies realized during the period. Additionally, finance costs decreased from ₹50.5 crore in FY25 to ₹34.9 crore in FY26, despite an increase in total borrowings, likely due to lower interest rates or optimized debt mix. This reduction in interest expense directly contributed to the expanded profit margins.
Governance and Appointments
The AGM will also address several governance matters. Shareholders will vote on the re-appointment of M/s. KSA & Co. as Statutory Auditors for a second term of five years. The company has appointed M/s. K. Dalal & Co. as Secretarial Auditors for five consecutive financial years commencing from FY27.
Remuneration revisions for key management personnel are also on the agenda. The monthly remuneration for Chairman & Managing Director Mangilal Ambalal Borana will increase from ₹1 lakh to ₹1.5 lakh. Similarly, Executive Directors Rajkumar Mangilal Borana and Ankur Mangilal Borana will see their monthly remuneration revised from ₹50,000 to ₹1.5 lakh each, effective August 1, 2026.
Historical Stock Returns for Borana Weaves
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.91% | +0.18% | -4.27% | -21.03% | +43.79% | 0.0% |
How will the addition of 192 looms and 3 texturisers in Unit 4 impact Borana Weaves' market share in the microfilament woven fabric segment by FY28?
Given the decision to forgo dividends to fund expansion, what is the projected timeline for the company to return capital to shareholders through dividends or buybacks?
Will the significant operating leverage driving the 60.7% profit growth be sustainable as raw material costs fluctuate, or are there risks of margin compression in future quarters?
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