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Kusumgar Ltd IPO
Kusumgar Ltd
₹13,930 /35 sharesMinimum investment
IPO details
Minimum investment
₹13,930
Price range
₹398 - ₹419
Lot size
35
Issue size
650 Cr
Face value
1
IPO document
Subscription rate
Data will be available soon
Schedule
8 Jul 2026
IPO open date
10 Jul 2026
IPO close date
13 Jul 2026
Allotment date
13 Jul 2026
Funds unblock or debit
15 Jul 2026
Tentative listing date
About
Founded in
1990
MD/CEO
Mr Siddharth Kusumgar
Parent organisation
Kusumgar Ltd
Kusumgar Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
The company has developed a large portfolio of engineered fabrics over several decades. Since 1970, it claims to have developed and manufactured more than 1,000 unique engineered fabric configurations. The company primarily caters to sectors such as aerospace and defence, industrial and automotive, and outdoor and lifestyle, where product qualification and technical requirements create relatively high entry barriers.
The company claims to have vertically integrated manufacturing capabilities. It manages multiple stages of production, including yarn selection, weaving, dyeing, coating, lamination, finishing, and fabrication. According to the company, this integrated setup provides better control over product quality, traceability, delivery timelines, and manufacturing efficiencies.
The company has established long-term relationships with several customers. As of March 31, 2026, its top customers had business relationships ranging from two to nine years. In FY26, the top six customers together contributed approximately 49.35% of the company’s revenue from contracts with customers, and the customer base includes Decathlon through its fabricator network.
The company claims to have technology and market access through international partnerships. It has entered into technical, manufacturing, licensing, sales, and co-development partnerships with companies based in the United States, Italy, Japan, Switzerland, and Taiwan. These partnerships relate to areas such as parachute systems, camouflage fabrics, outdoor fabrics, ballistic materials, shelter systems, and custom yarn development.
The company focuses on specialised applications requiring technical expertise. It claims to have capabilities in manufacturing lightweight fine denier fabrics, handling Nylon 6 and Nylon 66, developing complex engineered fabrics, and producing coated and laminated textiles. Its product portfolio includes fabrics for parachutes, extreme cold weather clothing, infrared reflective applications, and multi-spectral camouflage systems.
The company is led by promoters and senior management with experience in technical textiles. The promoters, Yogesh Kantilal Kusumgar and Siddharth Yogesh Kusumgar, each have over 25 years of experience in the technical textiles industry, while Joint Managing Director Sapna Siddharth Kusumgar has over 20 years of experience. The senior management team also includes professionals with experience in operations, product development, technology, and consulting.
The company’s revenue is largely dependent on three business segments. Aerospace and defence fabrics contributed Rs 213.70 crore (31.67%), Industrial and automotive fabrics contributed Rs 164.86 crore (24.43%), and aerospace and defence solutions contributed Rs 155.02 crore (22.97%) of revenue from contracts with customers in FY26. Any decline in demand for these segments, pricing pressure, delays in order execution, or reduced customer spending can adversely affect the company’s business, financial condition, and cash flows.
The company derives a significant portion of its revenue from a limited number of customers. The top customer contributed Rs 75.13 crore (11.13%) of revenue from contracts with customers in FY26, while the top 10 customers contributed Rs 401.68 crore (59.52%), Rs 652.20 crore (84.69%), and Rs 365.37 crore (80.18%) in FY26, FY25, and FY24, respectively. Any failure to retain these key customers or any reduction in business from them can adversely affect the company’s business, financial condition, and cash flows.
The company’s manufacturing operations are geographically concentrated in Gujarat. All six of its manufacturing facilities are located in the state, exposing its operations to regional risks. Any adverse social, political, economic, climatic, or natural events in Gujarat could disrupt manufacturing activities and adversely affect the company’s business, financial condition, and cash flows.
The company, its promoters, and directors are involved in certain legal and regulatory proceedings. As of the date of the red herring prospectus, the company had one criminal case initiated by it, three tax proceedings against it, one material litigation, and litigation-related contingent liabilities of Rs 1.01 crore as of March 31, 2026. Any adverse outcome in these proceedings could hurt its business, financial condition, cash flows, and reputation.
The company has reported negative cash flows from operating activities in the past. It recorded negative operating cash flows of Rs 154.98 crore in FY25, primarily due to changes in working capital, including higher loans and other financial assets, an increase in trade receivables and other assets, a decline in other financial liabilities and other liabilities, and income tax payments. The company also reported negative investing cash flows of Rs 102.66 crore in FY26 and Rs 199.58 crore in FY24. If cash outflows continue to exceed inflows, the company may face liquidity constraints and may need to raise additional debt or equity, which could adversely affect its financial condition.
The company depends on a limited number of suppliers for its raw materials. The top 10 suppliers accounted for Rs 158.47 crore (51.42%), Rs 132.64 crore (35.72%), and Rs 132.50 crore (66.16%) of the total cost of materials consumed in FY26, FY25 and FY24, respectively. The company also does not have long-term agreements with these suppliers. Disruption in supplies or inability to source raw materials from alternate suppliers on similar terms can hurt the company’s manufacturing operations, business, and financial condition.
The company has significant contingent liabilities that have not been provided for in its financial statements. As of March 31, 2026, its total contingent liabilities stood at Rs 108.97 crore, comprising bank guarantees, letters of credit, and income tax demands, representing 21.67% of its net worth. If these contingent liabilities materialise, they can adversely affect the company’s financial condition, results of operations, and cash flows.
As of May 31, 2026, the company had total outstanding borrowings of Rs 384.89 crore. These include Rs 285.82 crore of secured fund-based borrowings and Rs 99.07 crore of secured non-fund-based facilities, primarily comprising bank guarantees and letters of credit. Any failure to service or repay these borrowings, or comply with the associated financing terms, can adversely affect the company’s business, financial condition, and cash flows.
Application details
For Kusumgar IPO, eligible investors can apply as Regular.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹398 - ₹419 | Upto ₹2 Lakhs | 35 |
| High Networth Individual | ₹398 - ₹419 | ₹2 - ₹5 Lakhs | 35 |