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IPO Index
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Sanjay Bambhaniya · Jul 2, 2026

Kusumgar IPO Review | APPLY or AVOID?

Mainboard Book Build Listed
Textiles - Fabrics
BSE, NSE
Price Band
₹398-₹419
Issue Size
₹650.00 Cr.
Lot Size
35
Min. Investment
₹13,930
Live GMP ₹161
38.42% Est. Listing: ₹559
SIP CalcCompare
IPO Timeline
DRHP FILED September 27, 2025
OPEN July 8, 2026
CLOSE July 10, 2026
ALLOTMENT July 13, 2026
LISTING July 15, 2026
IPO DETAILS REVIEW GMP SUBSCRIPTION ALLOTMENT STATUS

Kusumgar IPO Review

Kusumgar Ltd. started in 1990. It operates in the Textiles – Fabrics industry and provides engineered fabrics to its customers across global and domestic markets. This business is based in Mumbai. This IPO review covers the main facts of the offer. It helps you decide if the issue fits your portfolio. Kusumgar Limited shows steady growth but the financial inconsistency remains a key point for investors to consider. Management spent heavily on new machinery recently.

Strengths & Risks

Strengths

11
Company makes specialized 1,000 highly engineered, specialized textile SKUs.
Industry has high entry barriers.
Serves booming high-tech sectors like aerospace, defense, and automotive.
They have huge SKU variety.
Defense sector gives stable orders.
Global partnerships bring advanced technology.
Promoters hold rich textile experience.
International exports drive future growth.
Integrated manufacturing setup ensures quality.
Healthy, resilient EBITDA margins compared to listed peers.
11 Strengths Competitive Edge

Weaknesses

11
Relies heavily on a small pool of high-value defense contracts.
Top clients control maximum sales.
Revenue depends on three segments.
Supplier concentration poses operational risk.
Total revenue declined recently.
Profit margins show downward trend.
High debt raises big concern.
Contingent liabilities create financial risk.
Entire production stays in Gujarat.
The 100% OFS structure provides zero direct funds to the company.
Priced at an expensive ~44.8x FY26 Price-to-Earnings (P/E) multiple.
11 Weaknesses Monitor Closely

Financial Update

The company released its restated financial statements for the year ending March 31, 2026. Total revenue was ₹711.78 crore decreased from ₹790.21 in previous year. The net profit for the same period was ₹98.20 crore decreased from ₹111.99 in previous year. Assets increased by 43.11% compared to the previous year.

The company financial statements for the year ending March 31, 2025 shows that the total revenue was 790.21 crore increased from 474.55 crore in previous year. The net profit for the same period was ₹111.99 crore increased from ₹84.40 crore in previous year. Assets increased by 8.15% compared to the previous year. The company bought new machines. This step changed the performance. Revenue dropped in the next year and the margins also went down slightly. This trend should be carefully studied prior to any investment.

IPO Valuation

The upper price band is ₹419. This price leads to a Price-to-Earnings (P/E) ratio of 44.81. The average P/E for the industry is -. The asking price looks high as public peers trade at lower multiples. Investors must check these valuations. High pricing reduces listing gains.

IPO Objective

Company will use Offer proceeds to meet stated objectives:

  • The issue provides exit route.
  • Selling stakeholders receive all money.

Promoters & Lead Manager

  • Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar are the promoters of the company.
  • Promoters have 25 years experience.
  • Axis Capital handled multiple issues.
  • IIFL Capital manages public offerings.
  • Motilal Oswal guides financial strategy.

Peer Comparison

Below is the comparison of the company with its listed peers using data from June 2026. The document lists three main peers. These companies work in different lines, so a direct comparison looks difficult here. Investors should evaluate carefully.

Company NameEPS (Basic)EPS (Diluted)NAV (₹ per share)P/E (x)RoNW (%)P/BV Ratio
Kusumgar Ltd.9.689.315025.82
Garware Technical Fibres Ltd20.0120.01136.4439.815.295.85
Arvind Ltd15.815.79154.4732.7210.913.35
Srf Ltd61.9161.91473.7443.7713.765.73

IPO Review & Analyst Rating

The company manufactures engineered fabrics for specialized sectors. The financial performance shows some recent fluctuations. As per the experts, the valuation appears expensive on the upper price band.

Analyst NameRecommendation
OverallMixed Reviews
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Disclaimer: The information on the site is informational only. The contents of this blog are not financial advice. You should not invest in any stock market instrument without consulting your Financial advisor.

Sanjay Bambhaniya
Sanjay Bambhaniya
Sanjay has 8+ years of experience in data-driven IPO insights. His expertise in digital marketing and web development complements his financial knowledge and helps him to develop effective fintech solutions. He is an entrepreneur and director who helps investors understand complex primary market trends in easy-to-understand IPO reports, news, and updates.
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