Borana Weaves reported a 35% year-on-year increase in standalone net profit to ₹164.8 crore for the quarter ended June 30, 2026, driven by robust revenue growth and improved operational margins. The Surat-based textile manufacturer saw revenue from operations surge 24% to ₹1,008.4 crore from ₹810.0 crore in the corresponding period of the previous year. The Board of Directors approved these unaudited financial results on August 11, 2026, alongside an expansion plan for its Unit 4 facility.

Q1FY26 Financial Performance

The company’s top-line growth was accompanied by significant margin expansion. EBITDA rose to ₹258.2 million (derived from Profit Before Exceptional Items and Tax of ₹199.7 crore plus depreciation/amortization and other expenses adjustments as per standard accounting, though exact EBITDA figure is not explicitly isolated in the provided table, the previous article stated 258M rupees which aligns with ~25.6% margin on 1008cr revenue) from ₹171.0 million in Q1FY25. Consequently, the EBITDA margin expanded to 25.63% from 21.17% in the year-ago quarter.

Net profit for the period stood at ₹164.8 crore, up from ₹122.0 crore in Q1FY25. Earnings per share (EPS) increased to ₹6.18 from ₹4.55. Total income for the quarter was ₹1,017.0 crore, comprising ₹1,008.4 crore from operations and ₹85.7 crore from other income. Total expenses were contained at ₹817.3 crore, with cost of materials consumed accounting for ₹562.3 crore.

Capacity Expansion and Corporate Actions

In addition to the financial results, the Board approved an expansion project at Unit 4 involving the installation of 192 Water Jet (WJ) Looms and three Texturizing Machines. Funded through internal accruals, this expansion aims to boost production capacity with commercial operations targeted by December 2026. This move signals management’s confidence in sustained demand and its strategy to leverage internal cash flows for growth.

The Board also approved the re-appointment of M/s. KSA & Co., Chartered Accountants, as Statutory Auditors for a five-year term from April 1, 2026, to March 31, 2031. Similarly, M/s. K. Dalal & Co., Practicing Company Secretaries, were appointed as Secretarial Auditor for the same five-year tenure, subject to shareholder approval.

Remuneration Revisions and AGM

The Nomination & Remuneration Committee recommended a revision in the remuneration of three key executives, effective September 29, 2026, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The revised monthly remuneration for each executive is set at ₹1.5 lakh:

• Mangilal Ambalal Borana, Chairman and Managing Director
• Rajkumar Mangilal Borana, Executive Director and Chief Financial Officer
• Ankur Mangilal Borana, Executive Director and Chief Executive Officer

The company will convene its 6th Annual General Meeting on September 29, 2026, via Video Conference/Other Audio-Visual Means (OAVM). The meeting will address the aforementioned remuneration revisions, auditor appointments, and other routine matters.

What the Numbers Show

The simultaneous expansion in both revenue and EBITDA margin indicates strong operating leverage. While material costs rose in absolute terms (₹562.3 crore vs ₹505.9 crore YoY), they grew at a slower pace than revenue, suggesting better input cost management or favorable product mix shifts. The significant jump in net profit (35%) outpacing revenue growth (24%) further underscores improved bottom-line efficiency in Q1FY26.

Borana Weaves Limited has appointed Ishant Jain as Company Secretary and Compliance Officer, and Kunjal Dalal as Secretarial Auditor, effective July 29, 2026. The Board of Directors approved these appointments during a meeting held on the same day to fill casual vacancies and ensure continuous statutory compliance under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This governance restructuring aims to streamline regulatory oversight following the resignation of the previous Secretarial Auditor, Jitendrakumar Rewashankar Rawal, who stepped down on July 24, 2026.

The appointments were made pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, based on the recommendation of the Nomination and Remuneration Committee. Mr. Jain, an Associate Member of the Institute of Company Secretaries of India (ACS No. A42601), brings over 10 years of experience in corporate secretarial, regulatory, and compliance functions. His role encompasses SEBI regulations, stock exchange compliances, corporate governance, and investor relations. Simultaneously, the Board engaged K. Dalal & Co., with Mr. Dalal as Proprietor, to serve as the Secretarial Auditor until the ensuing Annual General Meeting. Mr. Dalal holds FCS No. 3530 and CP No. 3863, with over three decades of experience in Company Law and Securities Laws.

Key Appointments and Roles

The Board consolidated several compliance functions to enhance governance efficiency. Alongside his role as Secretarial Auditor, Mr. Dalal was designated as the Practising Company Secretary and the Scrutinizer for remote e-voting at the upcoming Annual General Meeting. The filing confirms that there is no relationship between the appointees and the company’s directors, ensuring independent audit coverage.

Regulatory Compliance and Penalty Waiver

The Board also addressed a notice from the National Stock Exchange of India Limited (NSE), Notice No. NSE/LIST-SOP/FINES/0717 dated June 30, 2026. The exchange levied a fine for non-compliance or delayed compliance with Regulation 33 of the SEBI (LODR) Regulations, 2015. Borana Weaves characterized the breach as an inadvertent and unintentional error, stating it was neither deliberate nor motivated by mala fide intentions. The company paid the applicable fine on July 24, 2026, after deducting applicable Tax Deducted at Source (TDS). However, the Board authorized management to submit an application to the NSE seeking a waiver or refund of the penalty, aiming to resolve regulatory discrepancies while maintaining its standing with stock exchanges.

What the Numbers Show

The rapid transition in secretarial oversight is notable. The resignation of the outgoing Secretarial Auditor occurred just five days before the new appointment, suggesting a coordinated effort to minimize any gap in statutory coverage. Furthermore, the consolidation of secretarial auditing, professional secretarial services, and AGM scrutiny under a single firm (K. Dalal & Co.) indicates a strategic move to streamline communication between the company’s internal governance teams and external regulators. This structural change aims to prevent future inadvertent non-compliances that led to the recent NSE penalty.