Qualiance International Limited, a Tiruppur-based manufacturer of performance garments, has filed its Draft Red Herring Prospectus (DRHP) for a ₹38 crore fresh issue. The company specialises in military uniforms, tactical outerwear, and protective workwear, with exports constituting 98.82% of its FY2026 revenues.

About the Company

Incorporated in 2006 after beginning operations as a partnership firm in 1994, Qualiance International operates from a single ISO-certified manufacturing facility in Tiruppur, Tamil Nadu. The company designs, engineers, and exports technical apparel for institutional and government clients globally. Its product portfolio includes military uniforms, police and border patrol gear, high-visibility workwear, and performance activewear. The facility spans over 45,000 sq. ft. with an installed capacity of 4,50,000 garment pieces per annum. Key in-house capabilities include seam sealing, bonded construction, laser cutting, ultrasonic welding, reflective fusing, quilting, and down filling.

Financial Performance

The company has demonstrated robust growth in recent years. Revenue from operations rose from ₹37.23 crore in FY2024 to ₹76.89 crore in FY2026, reflecting a two-year CAGR of approximately 43.72%. Profitability improved significantly, with PAT growing from ₹2.84 crore in FY2024 to ₹11.87 crore in FY2026. PAT margins expanded from 7.44% in FY2024 to 14.67% in FY2026.

Export revenues accounted for 98.82% of total revenues in FY2026. Switzerland alone contributed 80.67% of total revenues, while woven garments constituted 71.55% of the product mix. Operating cash flow recovered to ₹7.84 crore in FY2026 after recording negative cash flow of ₹4.45 crore in FY2025.

Why the Company Is Raising Funds

The entire ₹38 crore proceeds from the fresh issue will be utilised for capital expenditure to set up a new manufacturing facility at Survey No. 55/1, Pongupalayam Village, Avinashi, Tiruppur District, Tamil Nadu. The new multi-storey RCC building will cover approximately 1,43,370 sq. ft. across four floors, scaling annual production capacity from 4,50,000 to 10,80,000 pieces. The balance proceeds will be used for general corporate purposes, including meeting operating expenses and strengthening business development capabilities.

Business Strengths

Qualiance International leverages over 20 years of relationships with the Government of Switzerland for uniforms and outerwear. Its ISO 9001:2015, 14001:2015, and 45001:2018 certified facility ensures stringent quality control through washing fastness, rubbing fastness, shrinkage, and seam leakage testing. The company’s integrated expertise in high-performance technical garments creates high switching costs for clients, supported by end-to-end in-house manufacturing capabilities that reduce third-party dependency.

Key Risks

The business faces significant concentration risks. The top customer accounted for 56.93% of FY2026 sales, while the top 10 customers contributed 99.65%. Geographically, Switzerland represented 80.67% of revenues, exposing the company to international trade risks and foreign exchange fluctuations. Additionally, 60.31% of raw materials are imported, creating supply chain vulnerabilities. Outstanding indebtedness stood at ₹2,849.63 lakhs as of March 31, 2026, and the company has faced regulatory non-compliance issues regarding delayed filings.

Important IPO Dates

• Issue Open Date: 04-Sep-2026
• Issue Close Date: 08-Sep-2026
• Allotment Date: 09-Sep-2026
• Listing Date: 11-Sep-2026

Offer Details

The issue is structured as a 100% fresh issue with no Offer for Sale component. Price band, face value, and lot size details are not yet available as the filing is at the DRHP stage. All proceeds will flow directly into the company’s balance sheet to fund the capacity expansion project.