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Borana Weaves Ltd
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NSE: BORANA BSE: 544404 INE16SF01016 Consumer Discretionary Consumer 🔎 Screen
₹720 Cr
Market Cap
10.4
P/E
0.17
PEG
32.5%
ROCE
34.5%
ROE
0.25
D/E
24.5%
OPM
-34.9%
% from 52W High
74
α RS
🔍 BORANA is showing a multi-screen setup because it matches 14 of 37 tracked screener presets, RS Rating is 74, and an ECS of 51.6 last quarter. The main caution: the Momentum Movers preset's Backtest win rate is only 49.6%. Net: Mixed signal stack, not a recommendation. ? Conviction RS Rating ECS Backtest
Sources
Conviction 14/37 · RS Rating 74 · ECS 51.6 · Backtest win rate 49.6%
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📈 Price History
Ratio Health
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About

Incorporated in 2020, Borana Weaves Limited is a manufacturer of unbleached synthetic grey fabric based in Surat, Gujarat.

✓ Strengths 2
  • Company is expected to give good quarter
  • Company has a good return on equity (ROE) track record: 3 Years ROE 44.5%
! Concerns 3
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company might be capitalizing the interest cost
  • Working capital days have increased from 57.0 days to 86.5 days
Key Ratios Snapshot
📊 Peer Medians
📈 Growth Pattern
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Strong beat: Revenue grew 28% YoY and PAT surged 58% YoY, driven by margin expansion and robust demand for greige fabric. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹100.73 Cr
+28% YoY (₹78.70 Cr)
EBITDA Margin
25.43%
+369 bps YoY (21.74%)
PAT
₹17.21 Cr
+58% YoY (₹10.90 Cr)
Debt Equity Ratio
0.30x
Down from 0.78x in FY25
What Went Right
  • Revenue growth of 28% YoY in Q4 FY26 to ₹100.73 Cr, with full-year revenue up 34% to ₹388.59 Cr.
  • PAT grew 58% YoY in Q4, with full-year PAT up 61% to ₹64.61 Cr, driven by higher margins.
  • EBITDA margin expanded ~369 bps to 25.43% in Q4, aided by cost control and operating leverage.
  • Average capacity utilization for FY26 stood at 80.93%, with all units running above 78%.
  • Balance sheet strengthened: Debt-equity ratio improved from 0.78x to 0.30x, and current ratio rose to 4.33x.
What to Watch
  • No export revenue was disclosed, meaning the company remains 100% reliant on the domestic market, capping growth optionality.
  • Capacity utilization of 80.93% still leaves headroom, indicating demand is not yet fully absorbing the installed base.
  • Raw material price volatility in polyester yarn is a recurring risk that could compress margins if unhedged.
  • The hybrid renewable project (19.79 MW) is partly debt-funded, and while leverage is comfortable (~0.6x TOL/TNW), it adds fixed obligations.
  • No explicit working capital improvement was highlighted; inventory and receivables remain elevated (₹47.33 Cr and ₹23.64 Cr respectively).
Management Guidance
  • Medium-term vision to double production capacity in the next 24 months.
  • Expansion will generate ~5 crore meters of annual capacity.
  • 19.79 MW solar-wind hybrid power project commissioning in June 2026, expected to meet 70-80% of current power requirements.
  • Post-hybrid project borrowing, Total Outside Liabilities to Tangible Net Worth remains comfortable at ~0.6x.
Investor Lens
Thesis remains intact: Borana Weaves is executing well on capacity expansion, margin improvement, and deleveraging. Q4 FY26 PAT growth of 58% YoY and a 369 bps EBITDA margin expansion confirm operational momentum. However, the complete lack of export penetration is a strategic gap that limits long-term scalability. The upcoming 19.79 MW renewable project could structurally lower power costs and lift margins further if commissioned on time. Next quarter, watch: (1) utilization ramp-up at Unit 4 and proposed expansions, (2) progress on doubling capacity within 24 months, (3) any export order wins, and (4) raw material price trends – polyester yarn volatility could reverse margin gains.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q1FY27 PAT up 33.3% to ₹16 Cr; OPM expands to 26%
Revenue
Revenue grew 24.7% YoY to ₹101.0 Cr, but was flat sequentially (0.0% QoQ). This indicates strong year-on-year demand while quarterly momentum paused.
Profitability
Net profit rose 33.3% YoY to ₹16.0 Cr, with EPS improving to ₹6.18 from ₹4.58. PBT stood at ₹20 Cr after depreciation of ₹6 Cr, and tax rate was 17%.
Margins
Operating profit margin improved to 26% from 21% YoY and 25% QoQ, aided by operating leverage. Operating profit jumped 52.9% YoY to ₹26 Cr, outpacing revenue growth.
Cash Flow
Cash flow data is not provided; profitability growth is strong, but cash conversion cannot be assessed from the available information.
Balance Sheet
Debt-to-equity is low at 0.25, indicating conservative leverage. ROCE of 32.7% and ROE of 35% reflect strong capital efficiency.
Key Risks
Revenue was flat sequentially, suggesting possible demand stagnation. Margin expansion may face pressure from input costs. Also, no cash flow details raise uncertainty about earnings quality.
Outlook
Strong YoY profitability and margin expansion indicate healthy operational performance. Sustaining momentum will depend on regaining sequential revenue growth and maintaining margin levels.
Generated by AI · Jun 2026 results · Not investment advice
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