Yajur Fibres Limited IPO: ₹95.93 Crore Issue for Sustainable Textile Fibre Expansion
Yajur Fibres Limited, a premium cottonised bast fibre manufacturer, is launching a ₹95.93 crore IPO from January 7-9, 2026, for capacity expansion and forward integration. The company serves over 250 customers across five countries with sustainable textile solutions, but faces significant risks including ongoing CBI investigation and negative operating cash flows.
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Yajur Fibres Limited, a specialized manufacturer of premium cottonised bast fibres, is set to launch its initial public offering of ₹95.93 crores, opening for subscription from January 7-9, 2026. The Howrah-based company operates in the niche segment of converting natural fibres like flax, jute, and hemp into cotton-like short staple fibres for the textile industry.
Company Overview and Market Position
Founded in 1980, Yajur Fibres is part of The Kankaria Group, which brings over 80 years of experience in the jute industry. The company has established itself as a prominent player in the premium cottonised bast fibre segment, with its 'Yajur' brand recognized for softness, cleanliness, and consistency. The company's products can blend up to 55% with cotton and man-made fibres in existing cotton spinning systems, making them valuable for textile manufacturers seeking sustainable alternatives.
Operating from West Bengal's jute hub, the company maintains manufacturing capacity exceeding 300 MT per month and serves over 250 Indian and multinational customers across five countries including India, Turkey, Indonesia, Nepal, and Bangladesh. The company holds quality certifications including ISO9001, ISO14001, ISO45001, OEKOTEX 100, and EUROPEAN FLAX certification.
Financial Performance Analysis
The company's financial performance shows significant volatility over recent years. Revenue from operations declined sharply by 56.46% from ₹140.81 crores in FY2023 to ₹61.68 crores in FY2024, before recovering 37.27% to ₹84.32 crores in FY2025.
| Financial Metric | FY2023 | FY2024 | FY2025 | Q2 FY2026 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 140.81 | 61.68 | 84.32 | 69.41 |
| Total Revenue (₹ Cr) | 141.99 | 61.84 | 84.85 | 69.99 |
| PAT (₹ Cr) | 11.68 | 3.55 | 4.27 | 7.12 |
| PAT Margin (%) | 8.23 | 5.74 | 5.03 | 10.17 |
The company's balance sheet as of November 2025 shows total assets of ₹140.73 crores and total equity of ₹49.20 crores. However, operating cash flows turned negative at ₹282.28 lakhs for the period ended November 2025, compared to positive ₹10.74 crores in FY2025.
IPO Structure and Fund Utilization
The ₹95.93 crore fresh issue will be utilized across four key areas. The company plans to invest ₹11.93 crores in capacity expansion, including setting up a 50,000 sq.ft. shed and additional production capacity of up to 4 tons per day. The largest allocation of ₹48.00 crores will go toward investment in subsidiary Yashodha Linen Yarn Limited for establishing a greenfield unit for 100% wet spun linen yarn production.
| Fund Utilization | Amount (₹ Cr) | Purpose |
|---|---|---|
| Capacity Expansion | 11.93 | 50,000 sq.ft. shed, 4 tons/day capacity |
| Subsidiary Investment | 48.00 | Yashodha Linen Yarn Limited greenfield unit |
| Working Capital | 36.00 | Incremental working capital requirements |
| General Corporate Purposes | - | Strategic initiatives and brand building |
Key Strengths and Growth Drivers
The company's competitive advantages include its strategic location in West Bengal's jute hub, strong brand recognition through the 'Yajur' brand, and focus on 100% sustainable, natural, and biodegradable fibres. Customer loyalty remains strong with 159 repeat customers out of 260+ customers over the past five years. The company's export presence across multiple countries and quality certifications provide additional competitive moats.
Growth drivers include increasing demand for sustainable textile solutions, planned capacity expansion through IPO proceeds, and forward integration through subsidiary investment. The company's ability to blend up to 55% with existing cotton spinning systems positions it well for the growing sustainable textile market.
Risk Factors and Concerns
Several significant risk factors warrant investor attention. The company faces a CBI investigation with a charge sheet filed for alleged wrongful subsidy disbursement of ₹102.45 lakhs. Revenue concentration poses another concern, with Cottonised Flax sales contributing 77.81% of revenue as of November 2025, while the top 10 customers account for 65.28% of total revenue.
| Risk Category | Details |
|---|---|
| Legal Issues | CBI investigation for ₹102.45 lakh subsidy matter |
| Revenue Concentration | 77.81% from Cottonised Flax, top 10 customers 65.28% |
| Cash Flow | Negative operating cash flow of ₹282.28 lakhs (Nov 2025) |
| Supplier Dependency | Top 5 suppliers account for 85.51% of purchases |
| Seasonal Variations | Business tied to European flax harvesting seasons |
Additional concerns include inconsistent capacity utilization, which dropped from 80.25% in FY2023 to 53.17% in FY2024, before recovering to 59.05% in FY2025. The company also faces contingent liabilities including bank guarantees of ₹529.24 lakhs and outstanding tax matters worth ₹67.03 lakhs.
Investment Outlook
Yajur Fibres operates in a niche sustainable textile segment with growth potential, supported by increasing demand for eco-friendly textile solutions. The company's established brand recognition, customer relationships, and strategic expansion plans provide positive investment themes. However, significant concerns around the ongoing CBI investigation, negative operating cash flows, high customer and supplier concentration, and seasonal business variations require careful evaluation. The investment appears suitable for investors with higher risk tolerance seeking exposure to sustainable textile solutions, while those preferring stable cash-generating businesses may want to monitor the resolution of legal matters and improvement in operational cash generation before investing.
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