Alpine Texworld (ATL) is a textile manufacturer and traders of grey fabric and yarn. The company operates in the weaving and spinning segments and also provides yarn sizing services. The company generates revenue primarily from the sale of grey fabric and yarn to customers in the textile value chain. Its operations are supported by two manufacturing units located adjacent to each other in Ahmedabad, Gujarat.

ATL operates with an installed capacity of 112 shuttle less air jet looms with capacity of 180 lakh meters per annum of grey fabric, sizing capacity of 6650metric tons per annum and spinning capacity of 6000 metric tons per annum.Further, the company plans to increase its weaving capacity by 77.50 lakh meters by installing 48 looms at proposed manufacturing unit 3(Ahmadabad,Gujarat).

The company also runs 820 KW and 475 KW rooftop solar plants installed in January 2024 and November 2025 respectively. Additionally, the company has 5.4 MW ground-mounted solar plants added in March 2025 which helps in partially meeting its energy requirements.

ATL acquired 97% share in partnership in Alpine Cottweave in October 2024 and thereby making Alpine Cottweave its subsidiary. Alpine Cottweave has a weaving plant, with 72 high speed Picanol NV airjet looms, adding an installed capacity of 96 lakh meters per annum.For FY2026, Alpine Cottweave, contributed Rs 123.0 crore to the consolidated revenue from operations and Rs 8.4 crore to the consolidated Pat.

Object of the offer

The IPO is entirely a fresh issue of shares worth Rs 126.25 crore at upper price band of Rs 105. There is no OFS component. At the upper end of the price band, the company is expected to be valued at Rs 401.5 crore post listing.

The funds raised to the tune of Rs 30.71 crore will be used towards setting up a new weaving unit at proposed manufacturing unit 3 to expand its production capabilities to produce grey fabric, Rs 52.2 crore will be utilised towards repaying certain borrowings and the balance towards general corporate purposes.

Strengths

Backward integration has reduced dependence on externally sourced yarn. The company commenced its spinning unit by installation of 4 open end rotor spinning machines in March 2025. Further, acquisition of Alpine Cottweave has helped the company increase its scale of operations.

Solar power installations help offset a part of the company’s energy requirements. The company has installed 820 KW and 475 KW rooftop solar plant and a 5.4 MW ground-mounted solar plant which reduce the company‘s dependence on grid power and lower energy costs.

Incorporated in 2016 by Sumit Agrawal and Sandeep Agrawal, who have experience of more than two decades in the textile industry. The promoters aresupported by qualified and experienced functional teams, which aids in smooth day-to-day operations.

Weaknesses

The company was subject to regulatory scrutiny for delays in obtaining consolidated consent and authorization for manufacturing unit 2 and any future lapses, whether due to operational, administrative, or technical reasons, could have a material adverse effect on the company’s business.

The Indian textile industry is highly fragmented and competitive marked by presence of large number of organized and unorganized players. This restricts the pricing flexibility and bargaining power with its customers.

The operating margins fluctuate due to the volatility in pricing of raw materials.

Customer concentration risk as it derives around 70% of the revenues from top 10 customers. Also, supplier’s concentration risk as it procures more than 60% 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 and elongated receivable days.

Contingent liabilities and commitments as on March 31,2026,stood at Rs 187.88 crore.

Valuation

Consolidated sales were up by 44.4%to Rs 342.71 crore in FY2026.OPM expanded from 11.38% to 13.84%, leading to a 75.7% increase in OP to Rs 47.45crore. OIinclined by 2121.7% to Rs 7.47 crore. Interest cost inclined 68.8% to Rs 15.33 crore and depreciationcost inclined by 97.6% to Rs 12.69 crore. PBT stood at Rs 26.89 crore, up 127.2%.Patstood at Rs 21.72 crore as against Rs 8.62 crore in FY25,up 151.8%.

At the higher price band of Rs 105, the offer is made at a P/E of 18.5 times FY26EPS (of Rs 5.7).

As of March 31, 2026, total consolidated borrowings of the company stood at Rs 170.6. The company proposes to pay off Rs 52.2 crore of the borrowings from the net proceeds from fresh issue. Repayment of the borrowings will reduce the interest cost. The EPS for FY26 works out to Rs 6.6 if its interest cost is reduced, keeping all other items, including tax rate, same. The re-worked P/E at the upper price band moderates to 15.8 times of its FY26 EPS.

Listed industry peers are United Polyfab Gujarat, Borana Weaves, VTM, and Ken Enterprises. United Polyfab Gujarat trades at 29.2 times its P/ FY2026 EPS, Borana Weaves trades at 12.5 times its P/FY26EPS, VTM trades at 51 times its P/FY26EPS and Ken Enterprises trades at 5.5 times its P/FY26 EPS.