Kusumgar makes woven, coated and laminated synthetic fabrics, known as engineered fabrics. It offers engineered fabrics and solutions focused on polyamides, polyester filaments and polyurethane chemistry to serve the high-performance requirements of customers.

Kusumgar holds expertise in producing fabrics where critical performance parameters include tear strength, abrasion resistance, tensile strength, comfort, waterproofing and air permeability, among others.

As of March 31, 2026, Kusumgar developed over 1,000 unique fabric types (SKUs), building a strong position in the synthetic functional and performance fabric space. It primarily caters to four market segments including aerospace and defense fabrics, aerospace and defense solutions, industrial and automotive fabrics, and outdoor and lifestyle fabrics.

The company’s vertically integrated manufacturing operations, including preparatory, weaving, dyeing, printing, finishing, coating, lamination, and fabrication, are supported by modern infrastructure, advanced technology and research and development (R&D) capabilities. It has six manufacturing facilities, in Gujarat, and one fabrication unit in Uttar Pradesh. Its integrated set up allows it greater control over quality and delivery.

In FY2026, government organizations contributing around 15% and private organizations contributed around 85% of the total revenues. Also, domestic revenues contributed around 60% while exports contributed around 40% of the total revenues in FY2026.

Object of the offer

The company plans to raise Rs 650 crore through the IPO, which consists entirely of an offer for sale of 1,55,13,126 shares at upper price band of Rs 419. The entire proceeds from the sale will go to promoter shareholders Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF.

Employees will receive a discount of Rs 39 per share on the final issue price. Kusumgar has reserved shares worth Rs 3.5 crore for eligible employees.

Strengths

Market entry barriers for the products are high and includetechnical knowledge, long product approval cycles, customized solutions, partnerships with leading brands and manufacturers and customer loyalty for life-preserving features.

Sales reflect a healthy diversity based on end-use application with industrial textiles anddefence each contributing 30-40% of revenue in the last three years followed by 10-15% each from outdoor/work wear andspeciality textile.

Invested in its technical ability stack by investing in research and development to enhance its product offerings.

Long-standing relationship with customers which help the company to increase its wallet share.

Experienced promoters in technical textile. Incorporated in 1990 by Yogesh Kusumgar, who has over four decades of experience in the technical textile industry and is currently managed by his son, Siddharth Kusumgar (Managing Director). The promoters aresupported by qualified and experienced functional teams, which aids in smooth day-to-day operations.

Weaknesses

The inputs for the products are petrochemical based inputs, which are very vulnerable to the vagaries of crude oil prices.

Foreign currency fluctuation risk as it derives around 40% of its revenues from exports.

Operates in an industry in which the customer preferences and specifications change at short-notice and the company needs to be constantly adaptable to such changes. That raises cost pressure.

Intense competition from established players.

Customer concentration risk as it derives around 60% of the revenues from top 10 customers. Also, supplier’s concentration risk as it procures more than 50% of the materials consumed from top 10 suppliers.

Manufacturing facilities are concentrated in Gujarat, making operationsvulnerable to regional disruptions or facility shutdowns.

The operations are working capital intensive, with high inventory holding period.

Negative cash flows in the past.

Contingent liabilities and commitments as on March 31,2026,stood at Rs 114.8 crore.

Valuation

Consolidated sales were down by 11.2%to Rs 692.0 crore in FY2026. Decline in revenues in FY2026 was on account of lower contribution from aerospace and defence fabrics and aerospace and defence solutions. OPM expanded from 24.18% to 27.15%, leading to a 0.3% decline in OP to Rs 187.85 crore. OIinclined 76.3% to Rs 19.78 crore. Interest cost inclined 77.6% to Rs 25.98 crore and depreciationcost inclined by36.6% to Rs 46.69crore. PBT stood at Rs 134.96 crore,down 10.5%.Patstood at Rs 98.2 crore as against Rs 111.99 crore in FY2025, down 12.3%.

In September 2025, the company has issued 3501372 equity shares to various investors including WhiteOak Capital Equity Fund, Ashoka India Equity Investment Trust and others at a prices of Rs 365 per equity share.

At the higher price band of Rs 419, the offer is made at a P/E of 45 times FY2026EPS (of Rs 9.4).

The engineered fabrics segment in which Kusumgar operates has high entry barriers due to its specialized nature and strong relationships in the industry as such the company is expected to do well going forward. Also, increasing budget towards defence by countries provide ample growth opportunities for the company. The global market for engineered fabric for aerospace and defence grew from US$3.4 billion in 2019 to US$5.4 billion in 2025, reflecting a CAGR of 8.0%. It is further projected to reach US$8.7 billion in 2030, growing at a CAGR of 10.0% between 2025-2030, while the Indian market for aerospace and defence-related engineered fabrics grew from Rs 22.8 billion in Fiscal 2020 to Rs 50.0 billion in Fiscal 2025, reflecting a CAGR of 17.0%, and is projected to further grow to Rs 124.4 billion in Fiscal 2030, reflecting a CAGR of 20.0%. Further, the company has enough room to scale up its operations without much CAPEX in the near term as it operated around 50% capacity utilization in FY2026.

Listed industry peers are SRF, Garware Technical Fibres and Century Enka.SRF trades at 43.5 times its P/ FY2026 EPS, Garware Technical Fibres trades at 34.7 times its P/FY2026EPS and Century Enka trades at 11.3 times its P/FY2026 EPS.