BORANA - Borana Weaves

📊 NSE: BORANA 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company achieved a 46% YoY growth in operational revenue, reaching INR 290.31 Cr in FY25 compared to INR 199.06 Cr in FY24. For H1FY26, revenue grew 33% YoY to INR 176.50 Cr, driven by high capacity utilization in Unit 1 and Unit 3.

Geographic Revenue Split

Not disclosed in available documents, though the company operates primarily from Surat, Gujarat, and serves both domestic and international markets.

Profitability Margins

Gross Profit Margin improved from 38.5% in FY24 to 38.8% in FY25, and further to 39.5% in H1FY26. PAT Margin increased from 11.85% in FY24 to 13.85% in FY25 (a 200 bps expansion) and reached 16.35% in H1FY26 due to better cost control and vertical integration.

EBITDA Margin

EBITDA Margin stood at 21.76% in FY25, up 108 bps from 20.68% in FY24. Core profitability is supported by backward integration which allows for greater control over yarn-to-fabric margins.

Capital Expenditure

Planned setup of a new manufacturing facility (Unit 4) in Surat with a fund allocation of INR 71.35 Cr from IPO proceeds to increase production of unbleached synthetic grey fabric.

Credit Rating & Borrowing

Overall gearing improved significantly from 1.48x in FY24 to 0.69x in FY25, and further to 0.18x in H1FY26. Interest coverage ratio increased from 9.81x in FY24 to 23.30x in H1FY26, indicating a substantial reduction in borrowing risk.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Partially Oriented Yarn (POY), cotton, and synthetic fibers. COGS represented 61.2% of total revenue in FY25 (INR 177.74 Cr).

Import Sources

Sourced primarily from the Surat textile cluster; specific international import countries are not disclosed.

Key Suppliers

Specific suppliers include R & B Denims Ltd (POY purchase) and RB Industries (POY purchase), both of which are related parties.

Capacity Expansion

Currently operates 3 units in Surat with 700+ high-tech water jet looms. Unit 4 is planned to expand capacity specifically for technical fabrics and unbleached synthetic grey fabric.

Raw Material Costs

Raw material costs (COGS) were INR 177.74 Cr in FY25, up from INR 122.48 Cr in FY24. The company uses backward integration into yarn texturizing to mitigate price volatility.

Manufacturing Efficiency

Reported high capacity utilization in Unit 1 and Unit 3, with room for optimization in Unit 2. Zero stock-in-trade purchases reflect 100% in-house manufacturing strength.

📈 Strategic Growth

Expected Growth Rate

33%

Growth Strategy

Growth will be achieved through the commissioning of Unit 4 (INR 71.35 Cr investment) for technical fabrics, increasing spinning capacity to meet yarn demand, and expanding weaving capabilities with automated air-jet and water-jet looms.

Products & Services

Texturized yarn, polyester grey fabric, unbleached synthetic grey fabric, and technical fabrics.

Brand Portfolio

Borana, Borana Filaments, and associated group entity R&B Denims.

New Products/Services

Entry into technical fabrics via Unit 4 and air-jet weaving for cotton and viscose fabrics (commenced 2024-25).

Market Expansion

Exploring international export markets with a focus on quality and timely delivery to fashion and industrial segments.

Strategic Alliances

Maintains strong related-party synergies with R & B Denims Ltd and Borana Industries LLP for job work and raw material sourcing.

🌍 External Factors

Industry Trends

The Indian textile industry is valued at USD 170 billion as of FY25, with a shift toward technical fabrics and sustainable, water-efficient production processes.

Competitive Landscape

Competes with traditional textile belts in India; differentiation is achieved through automation and in-house manufacturing (zero stock-in-trade).

Competitive Moat

Moat is built on vertical integration (backward integration into yarn) and a large-scale installation of 700+ high-tech water jet looms, which provides a cost leadership advantage over traditional weavers.

Macro Economic Sensitivity

The textile industry contributes 2.3% to India's GDP and 13% to industrial production, making the company sensitive to national industrial growth trends.

Consumer Behavior

Increasing demand for sustainable textiles and high-quality woven fabrics for fashion and home decor.

Geopolitical Risks

Geopolitical uncertainties and trade barriers in key export markets are identified as significant threats to the 2030 export target of USD 100 billion.