Highlights
| Issue Size –: 1,55,13,126 shares | Issue Open/Close – 8 July / 10 July, 2026 |
| Price Band (Rs.) 398 – 419 | Issue Size (Rs.) – 6500 mn |
| Face Value (Rs) 1 | Lot Size (shares) 35 |
Kusumgar Limited, incorporated in 1990, is engaged in the business of manufacturing engineered synthetic fabrics and providing technical textile solutions, establishing a prominent position in the specialized textile industry. The company is one of India’s leading manufacturers in the engineered fabrics segment, catering to industries that require specialized performance characteristics such as strength, durability, waterproofing, and abrasion resistance.
Their business is primarily classified as: (i) aerospace and defence fabrics & solutions; (ii) industrial and automotive fabrics; and (iii) outdoor and lifestyle fabrics. The company develops engineered fabric solutions using polyamide and polyester filaments combined with polyurethane chemistry, offering products designed to meet stringent customer requirements across various industrial applications.
Kusumgar manufactures and supplies a diverse portfolio of over 1,000 engineered fabric configurations, serving customers across domestic and international markets. Its products are used in applications such as military and defence equipment, aerospace systems, automotive components, industrial safety products, luggage, footwear, sports goods, outdoor gear, and performance apparels. Its vertically integrated operations and long-standing customer relationships have helped establish a strong position in India’s technical textiles industry.
They also offer specialized finished solutions for military and aerospace applications, with comprehensive capabilities that include the production of parachute systems, camouflage nets, deployable shelters, and rapid deployment systems, alongside maintenance and repair services.
Out of the total proceeds of Rs. 6500 mn, ~Rs. 6500 mn would be go towards existing promoter selling shareholders of the company as company expects that listing of the Equity Shares will enhance their visibility and brand image and provide liquidity.
Key Highlights
- The Indian technical textiles industry is expected to grow from ~USD 26–27 bn in 2024 to over USD 40 bn by 2030 (7–8 pct CAGR). Growth is expected to be driven by rising demand from defence, infrastructure, healthcare, agriculture, automotive, and industrial applications, supported by increasing adoption of high-performance textile solutions where Kusumgar has its presence.
- Kusumgar operates in the highly specialized engineered synthetic fabrics market. The company is strategically positioned to benefit from India’s push for self-reliance in defense and aerospace manufacturing. Kusumgar Limited stands to significantly benefit from the extension of the Production Linked Incentive (PLI) scheme for Technical Textiles through March 2026.
- Kusumgar relies on a highly robust domestic market, generating approximately 75 pct of its sales from India-driven largely by government, military, and domestic industrial contracts. However, the company still maintains a significant international footprint, with exports and international sales accounting for the remaining 25 pct, providing a balanced mix of domestic stability and global exposure.
- Kusumgar Limited expands into the commercial market by partnering with Aditya Birla’s Thai Acrylic Fibre Co. to manufacture premium, UV-resistant Durashine textiles. Additionally, the company acts as a critical fabric supplier within Decathlon’s global network, channeling its high-performance synthetics.
- Kusumgar’s key growth strategies include (i) To follow a build, retain, extend framework with respect to aerospace and defence business. (ii) To work closely with global brands to grow Outdoor and Lifestyle Fabrics business. (iii) Steadily grow Industrial and Automotive Fabrics business by increasing wallet share and providing customized solutions. (iv) Focus on manufacturing products and solutions with high gross margins and high entry barriers to continue to drive profitable growth. (v) Invest in capabilities and people to support growth, research and development, and efficiency improvement.
- The sales of the company have grown by 21.6 pct CAGR over FY24-26 and EBITDA/profit has grown 19.4 pct CAGR/7.9 pct CAGR over same year. In FY26 the company reported sales of Rs. 6,920 mn, which fell 11.2 pct YoY primarily due to a decrease in Aerospace & Defence Fabrics and Aerospace & Defence Solutions sales impacted by large order in FY25 was not re-ordered in FY26 and partial deferral of contract. EBITDA of the company declined 0.3 pct YoY to Rs. 1,878 mn. In FY26 the company posted profit of Rs. 982 mn, fell 11.7 pct YoY due to increased finance and depreciation expenses.
Key Risk
- The company relies heavily on petrochemical-based raw materials (such as PP/PE yarns, polymers, and technical textile inputs). Any shortfall in the supply of materials or significant increases in material prices could have an adverse effect on business.
- All manufacturing facilities are in Gujarat, exposing the Company to regional risks such as natural calamities or socioeconomic disruptions, which may affect operations.
- Their top customer and top 10 customers contributed 11.13 pct and and 59.52 pct of sales with customers in FY2026. As the Company does not have long-term supply agreements with these vendors, any disruption in supply or inability to replace key suppliers could materially and adversely affect its business.
Financial Performance
| Particulars | FY24 | FY25 | FY26 |
| Sales (Rs. mn) | 4,679 | 7,790 | 6,920 |
| EBITDA (Rs. mn) | 1,318 | 1,884 | 1,878 |
| EBITDA Margin (%) | 28.18% | 24.18% | 27.15% |
| Profit/Loss (Rs. mn) | 844 | 1112 | 982 |
| Profit/Loss Margin (%) | 17.78% | 14.17% | 13.80% |
| ROE (%) | 86.13% | 56.26% | 25.82% |
| ROCE (%) | 55.87 | 42.89 | 24.76 |
| Debt/Equity (X) | 0.55 | 0.96 | 0.44 |
Source: – RHP.
Peer Comparison
| Particulars | Kusumgar | Garware Technical Fibres Limited | Arvind Limited | SRF Limited |
| Sales (Rs. mn) | 6,920 | 15,288 | 93,032 | 1,57,865 |
| EBITDA (Rs. mn) | 1,878 | 2,836 | 10,610 | 36,200 |
| EBITDA Margin (%) | 27.15% | 18.55% | 10.68% | 22.93% |
| Profit/Loss (Rs. mn) | 982 | 1,985 | 4,270 | 18,352 |
| Profit/Loss Margin (%) | 13.80% | 12.60% | 4.58% | 11.55% |
| ROE (%) | 25.82% | 15.31 | 10.7 | 13.76 |
| ROCE (%) | 24.76 | 17.3 | 15.37 | 14.64 |
Valuation
Kusumgar Ltd is a specialised player in the engineered fabrics industry with expertise in customised and high-performance fabric solutions. The company manufactures woven, coated, and laminated synthetic fabrics using advanced technical processes that are difficult for competitors to replicate. At the upper end of the price band of Rs. 419, the issue is priced at a PE of 44.81x its FY26 post issue capital. The issue appears to be fully priced. One can subscribe this IPO for listing gains.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
