Kusumgar IPO 2026: OFS issue, FY26 dip, 44.8x P/E

Company snapshot and what it makes

Kusumgar Limited, trading under the brand line “Unusual is usual”, is a specialised manufacturer of woven, coated and laminated synthetic engineered fabrics. The business is positioned in technical textiles, with products spanning parachute fabrics, ballistic fabrics, protective clothing and uniforms, rucksack fabrics, adhesive tape, belting fabrics, industrial fabrics, and outdoor and workwear fabrics. The company was originally formed as a private limited company on June 15, 1990 and is described as a Kusumgar family-promoted business. It operates across four segments: Aerospace and Defence Fabrics, Aerospace and Defence Solutions, Industrial and Automotive Fabrics, and Outdoor and Lifestyle Fabrics.

IPO opening dates and issue structure

Kusumgar IPO opens for subscription on Jul 8, 2026 and closes on Jul 10, 2026. The issue is described as aggregating up to ₹650 crore and is entirely an Offer for Sale (OFS) by selling shareholders, with no fresh issue component. That detail matters for investors assessing how the transaction changes the company’s balance sheet, because an OFS does not bring fresh proceeds into the business. Separately, one mention in the provided information also references Kusumgar “coming with IPO to raise ₹684.70 crore”, indicating different reported figures across sources. The core point repeated in the material is that the IPO is structured as an OFS, so it does not inject growth capital into the company.

Market-cap target and pricing references

At the upper end of the price band, the company is seeking a post-issue market capitalisation of approximately ₹4,399 crore, while another figure provided places the post-issue market-cap range at ₹4,179 crore to ₹4,399 crore. Based on the post-IPO EPS of ₹9.35, the IPO is priced at a P/E multiple of 44.8x, described as a premium valuation category. The material also cites a price band reference of ₹419.00. These figures set the context for how the market is being asked to value an engineered-fabrics player with recent growth followed by moderation.

Three-year revenue trend: rapid FY25 surge, FY26 cooling

Kusumgar’s revenue from operations rose from ₹301.65 crore in FY23 to ₹467.91 crore in FY24 and then to ₹779.00 crore in FY25. In FY26, revenue moderated to ₹692.00 crore. The provided material also quantifies that FY26 revenue fell 11.17% year-on-year after a 66.49% surge in FY25. Another data point included in the ratings note mentions FY25 scale of operations at ₹781.89 crore (with the prior year at ₹472.22 crore), which is directionally consistent with the same trend.

Profitability: EBITDA stability and margin improvement

Despite softer revenue in FY26, operating profitability is described as resilient. EBITDA is stated to have remained stable at around ₹188 crore in FY25 and FY26, with a specific FY25 EBITDA value of ₹188.389 crore in the provided key financials table. The same table shows EBITDA of ₹131.847 crore in FY24 and ₹67.861 crore in FY23, highlighting the operating scale-up into FY25. The material notes an improvement in EBITDA margin from 24.2% in FY25 to 27.2% in FY26, even as top-line growth cooled.

PAT and other metrics highlighted

Profit after tax stood at ₹98.2 crore in FY26, compared with ₹112.0 crore in FY25 and ₹84.4 crore in FY24. In the three-year financial table provided, PAT is shown as ₹37.217 crore in FY23, ₹84.396 crore in FY24 and ₹111.988 crore in FY25. The same set of metrics includes net debt of ₹205.314 crore in FY25, versus -₹66.76 crore in FY24 and ₹36.252 crore in FY23, alongside ROE figures of 56.26% (FY25), 86.13% (FY24) and 100.61% (FY23). These numbers indicate strong profitability in FY25, alongside notable movement in balance-sheet metrics across years.

Credit ratings, orderbook visibility, and capex commentary

Reaffirmation of ratings is linked to stable operating and financial performance in FY25 and 9MFY26, despite some moderation in revenue, and expectations of sustained performance supported by revenue visibility from a healthy orderbook, including special projects. The provided rating detail includes “CARE A; Stable / CARE A1” and also mentions an upgrade from “CARE A-; Positive / CARE A2+”. On capex, the material references a debt-funded capex of ₹130 crore planned to be completed by Sep 2025 for enhancing installed capacity. Liquidity is described as adequate, with projected gross cash accruals of ₹140-150 crore per annum against scheduled repayments of about ₹40 crore per annum, and maintenance capex cited at ₹10 crore per annum over the next 1-2 years in one place. Another reference in the provided information mentions ongoing or maintenance capex of ₹20-25 crore per annum for the next 1-2 years, highlighting that multiple capex estimates are present in the text.

Exports, concentration risks, and why the OFS structure matters

The investment case is framed as exposure to India’s engineered-fabrics and defence-textiles theme, supported by high entry barriers and a diversified four-segment model. The material also highlights improving export traction, stated as up to 39.99% of FY2026 contract revenue. At the same time, it flags customer and supplier concentration as meaningful, indicating dependence risks that investors typically track in niche manufacturing businesses. Because the ₹650 crore issue is entirely an OFS, the IPO itself does not provide the company additional funds for expansion, working capital, or debt reduction. That places greater focus on existing cash flows, capex execution, and orderbook conversion.

Grey market references and implied listing expectations

The provided information states the last GMP as ₹170. With the price band reference of ₹419.00, the same material cites an estimated listing price of ₹560 and an expected gain per share of 40.57%. These numbers are presented as market indicators rather than company guidance, but they provide context on sentiment around the issue. Investors generally treat such indicators cautiously, focusing more on disclosed financials, valuation, and business risks.

Key facts table

Promoters and corporate details mentioned

The promoters named in the material are Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, and Sapna Siddharth Kusumgar. The company is described as an unlisted public company incorporated on 15 June, 1990. Its authorised share capital is stated as ₹24.0 crore, while paid-up capital is stated in the provided information as ₹11.9 crore in one place and ₹10.1 crore to ₹10.15 crore in others. The registered address provided is 101, Manjushree, V.M. Road, Corner of N.S. Road No. 5, JVPD Scheme, Vile Parle (W), Mumbai, Maharashtra, India, 400056, and the CIN is U65990MH1990PLC056871.

What investors will likely track next

The core question for investors is how Kusumgar sustains performance after FY25’s rapid scaling, given FY26 revenue moderation alongside improved EBITDA margin. The IPO’s OFS structure keeps attention on execution and cash generation rather than immediate balance-sheet strengthening from fresh proceeds. In the near term, the market will also track any updates linked to the DRHP process and how the company’s orderbook and special projects translate into revenue. With subscription opening on Jul 8, 2026 and closing on Jul 10, 2026, the immediate milestones are tied to the IPO timetable and final pricing outcomes within the disclosed band references.