Borana Weaves Q1 FY27 Results (NSE: BORANA)
Signal: Steady quarter
The read
The key inflection is operating profit growth ahead of revenue: Q1FY27 revenue rose 24.5% YoY to ₹100.84 Cr, EBITDA rose 46.6% to ₹26.7 Cr and EBITDA margin was 26.5%; however, with no disclosed raw-material, volume, mix or cost-line detail, the durability of the margin improvement cannot yet be established. Unit 4 expansion adds 192 water-jet looms and 3 texturizing machines, targeted for commercial production by December 2026.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹100.84 Cr | 24.5% | N/A |
| EBIT | ₹20.71 Cr | 34.2% | |
| Net profit | ₹16.48 Cr | 35.9% | |
| EPS | ₹6.18 | 35.8% | |
| EBIT margin | 26.5% |
P&L walk
Standalone revenue rose to ₹100.84 Cr, up 24.5% YoY, while EBITDA grew 46.6% to ₹26.7 Cr and EBIT increased 34.2% to ₹20.71 Cr; PAT rose 35.9% to ₹16.48 Cr, with the reason for EBITDA margin expansion not disclosed.
Key positives
- Revenue reached ₹100.84 Cr, up 24.5% YoY, maintaining positive topline momentum.
- EBITDA increased 46.6% YoY to ₹26.7 Cr against 24.5% revenue growth, with EBITDA margin reported at 26.5%.
- PAT rose 35.9% YoY to ₹16.48 Cr and EPS rose 35.8% to ₹6.18, indicating no material PAT-to-EPS divergence.
- Unit 4 expansion comprises 192 water-jet looms and 3 texturizing machines, with commercial production targeted by December 2026 and funding planned through internal accruals.
- The company received approval to participate in the Textiles PLI Scheme Round 3 during the recent period.
Key concerns
- The filing does not disclose volumes, realisations, product mix, raw-material costs or employee costs, limiting assessment of the 26.5% EBITDA margin and its sustainability.
- The Unit 4 expansion is funded through internal accruals, but the filing provides no capex amount or cash-flow disclosure against the December 2026 production target.
- The board proposed increasing monthly remuneration to ₹1,50,000 each for the Chairman and Managing Director, Executive Director and CFO, and Executive Director and CEO, subject to shareholder approval.
Research and educational content only. Not investment advice.