Company Overview
Kusumgar Limited is an engineered fabrics manufacturer operating in four primary market segments: Aerospace and Defence Fabrics, Aerospace and Defence Solutions, Industrial and Automotive Fabrics, and Outdoor and Lifestyle Fabrics. The company produces high-performance technical textiles for demanding applications across these sectors, with all six manufacturing facilities located in Gujarat, India. The company has subsidiaries including Engineered Coated Fabric Private Limited, Kusumgar Aerospace Private Limited, and Kusumgar Composites Private Limited.
Offer Details
The company proposes an Initial Public Offering (IPO) comprising an Offer for Sale of up to ₹6,500 million by promoter shareholders Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF. The offer includes a reservation of up to ₹35 million for eligible employees and follows the Book Building Process with Axis Capital, IIFL Capital, and Motilal Oswal as Book Running Lead Managers. The IPO utilizes SEBI's Phase III UPI payment mechanism, reducing the listing timeline to T+3 working days.
Financial Performance
Kusumgar Limited reported revenue of ₹6,748.14 million in Fiscal 2026, showing growth from ₹4,556.94 million in Fiscal 2024, though declining from ₹7,700.95 million in Fiscal 2025 due to specific large orders. Profit for the year stood at ₹982.00 million (Fiscal 2026), ₹1,119.88 million (Fiscal 2025), and ₹843.96 million (Fiscal 2024). EBITDA was ₹1,878.50 million in Fiscal 2026. The company has a complex capital structure history including preferential allotments of CCPS, bonus issues, and conversions to equity shares.
Risk Factors
Key risks include significant customer concentration with top 10 customers contributing 59.52% of Fiscal 2026 revenue and high dependence on aerospace and defence sectors (54.64% of revenue). The company experienced negative cash flows from operating activities in Fiscal 2025 (₹1,549.76 million) and faces regulatory compliance challenges across multiple jurisdictions. Other risks include pending legal proceedings, geographic concentration of manufacturing facilities in Gujarat, and exposure to foreign exchange fluctuations (export revenue accounted for 39.99% of Fiscal 2026 revenue).
Market & Industry Context
The global engineered fabrics industry has grown from US$41.6 billion in 2019 to US$67.8 billion in 2025 with a CAGR of 8.5% and is projected to reach US$112.2 billion in 2030. The Indian engineered fabrics industry is expected to grow at a CAGR of 13.5% during Fiscal 2026-2031, driven by government policies, R&D advancements, and supply chain diversification. The company benefits from favorable trade dynamics including "China + 1" sourcing strategy and increased global defence spending.
Regulatory Compliance & Legal Matters
The company has received in-principle listing approvals from BSE and NSE and SEBI observation letter. Ongoing legal proceedings include an insolvency petition filed by Collage Design Private Limited claiming ₹22.30 million and various tax cases. The company has a history of penalties for non-compliance with Companies Act provisions and has reported missing certain historical corporate records. Promoters have provided personal guarantees for certain loan facilities.
Capital Structure & Shareholding
Pre-Offer paid-up capital is ₹104,991,372 consisting of 104,991,372 Equity Shares, with promoters holding 90.48% of pre-Offer equity. The company has implemented an ESOP scheme with 2,187,782 options outstanding as of the prospectus date. Significant shareholders include Siddharth Yogesh Kusumgar (58.71%), Sapna Siddharth Kusumgar (28.05%), and institutional investors such as Motilal Oswal Finvest Limited and WhiteOak Capital India Opportunities Fund.