Kusumgar Limited files DRHP for ₹650 Cr Offer for Sale
Kusumgar Limited filed a DRHP for a ₹650 Crore Offer for Sale, opening July 8, 2026. The engineered fabrics manufacturer reported FY2026 revenue of ₹692 Crore and PAT of ₹98.20 Crore. The IPO is a pure OFS with no proceeds going to the company.
*this image is generated using AI for illustrative purposes only.
Kusumgar Limited has filed a Draft Red Herring Prospectus (DRHP) with market regulators to launch an initial public offering (IPO) comprising a ₹650.00 Crore Offer for Sale (OFS) by promoter selling shareholders. The IPO is scheduled to open on July 8, 2026, and close on July 10, 2026. As a pure OFS, the company will not receive any proceeds from the issue, with the entire amount going to the selling shareholders. The listing aims to enhance visibility and provide liquidity to existing shareholders.
The Mumbai-headquartered company specializes in engineered fabrics, including woven, coated, and laminated synthetic fabrics, catering to high-performance requirements in aerospace & defence, industrial & automotive, and outdoor & lifestyle segments. Kusumgar Limited has developed over 1,000 unique fabric configurations (SKUs) as of March 31, 2026, and operates six manufacturing facilities located in Gujarat. The company has expanded into finished products for aerospace and military applications, such as parachute systems and stealth solutions.
Financial performance for the standalone entity shows revenue from operations reached ₹692.00 Crore in FY2026, a decline from ₹779.00 Crore in FY2025. The company reported a Profit After Tax (PAT) of ₹98.20 Crore in FY2026, compared to ₹111.99 Crore in the previous fiscal year. Total assets grew to ₹905.07 Crore in FY2026, while total equity increased significantly to ₹502.95 Crore. The debt-to-equity ratio improved to 0.80x in FY2026 from 3.17x in FY2024.
Financial Performance
| Metric (₹ Crore) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations | 467.91 | 779.00 | 692.00 |
| Total Revenue | 474.55 | 790.21 | 711.78 |
| Total Expenses | 359.48 | 639.43 | 576.82 |
| Profit Before Tax | 115.07 | 150.78 | 134.96 |
| Profit After Tax | 84.40 | 111.99 | 98.20 |
| Total Assets | 584.74 | 632.40 | 905.07 |
| Total Equity | 140.36 | 257.75 | 502.95 |
Segment Revenue Mix (FY2026)
| Segment | Revenue Share |
|---|---|
| Aerospace and Defence Fabrics | 31.67% |
| Industrial and Automotive Fabrics | 24.43% |
| Aerospace and Defence Solutions | 22.97% |
| Outdoor and Lifestyle Fabrics | 18.57% |
The DRHP highlights several risk factors, including negative cash flows from operating activities of ₹154.98 Crore in FY2025, though this recovered to a positive ₹28.26 Crore in FY2026. The company also faces customer concentration risks, with the top 10 customers contributing 59.52% of revenue in FY2026, and geographic concentration risks with all manufacturing facilities located in Gujarat. Additionally, the document notes audit trail non-compliance for FY2025 and FY2024.
How will the recent decline in revenue and profit impact the IPO valuation and investor appetite?
What strategies will management employ to mitigate the risks associated with high customer concentration?
Will the company use the improved debt-to-equity ratio to secure further growth capital post-listing?
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