Introduction
Kusumgar Limited, a long-established player in India’s advanced technical textiles and engineered fabrics sector, has filed its Draft Red Herring Prospectus (DRHP) with SEBI, marking a critical milestone in its IPO journey. As investors increasingly track upcoming unlisted shares in India, Kusumgar Limited’s SEBI filing provides deep insights into its operating strengths, financial performance, and long-term scalability.
With the unlisted market gaining traction among HNIs, retail investors, and family offices, the company’s DRHP serves as a valuable information source for assessing investment opportunities in unlisted companies. In this article, we break down Kusumgar Limited’s business model, financials, risks, and growth prospects based entirely on SEBI’s publicly available filing.
About the Company
Kusumgar Limited is an established manufacturer of engineered technical textiles with specialization in high-performance fabrics used in defence, aerospace, automotive, industrial, and lifestyle applications. The company has decades of domain expertise supported by a skilled workforce, process-driven operations, and strong R&D capabilities.
From woven fabrics and coated materials to high-strength composites and textile-based solutions, Kusumgar Limited services both government and private sector customers. Its end-use segments include:
- Aerospace and Defence Fabrics
- Aerospace and Defence Solutions
- Automotive and Industrial Fabrics
- Outdoor and Lifestyle Fabrics
Promoters
The promoters of Kusumgar Limited are:
- Yogesh Kantilal Kusumgar
- Siddharth Yogesh Kusumgar
- Sapna Siddharth Kusumgar
- Siddharth Yogesh Kusumgar HUF
As per the SEBI filing, the promoters collectively hold 90.47% of the company’s equity share capital.
Milestones & Corporate Strength
- Highly specialized manufacturing capabilities across weaving, dyeing, finishing, printing, and coating.
- Strong backward integration ensuring quality and cost control.
- Advanced machinery and technical-grade production lines.
- Established R&D framework powering innovation in high-performance fabrics.
- Long-term relationships with defence, government, and industrial clients.
Financial Overview
Kusumgar Limited’s financial performance has shown robust growth, driven by margin expansion, increased operational efficiency, and rising demand across technical textile categories. Below are the year-on-year numbers drawn directly from the SEBI filing.
Key Financials – YoY Performance (₹ Crore)
| Metric | FY2025 (₹ Cr) | FY2024 (₹ Cr) | FY2023 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 778.997 Cr | 467.908 Cr | 301.648 Cr |
| EBITDA | 188.389 Cr | 131.847 Cr | 67.861 Cr |
| EBITDA Margin (%) | 24.18% | 28.18% | 22.50% |
| PAT | 111.988 Cr | 84.396 Cr | 37.217 Cr |
| PAT Margin (%) | 14.17% | 17.78% | 12.25% |
| Net Debt | 205.314 Cr | -66.76 Cr | 36.252 Cr |
| ROE (%) | 56.26% | 86.13% | 100.61% |
| ROCE (%) | 42.89% | 55.87% | 64.81% |
| Working Capital Cycle (Days) | 14 | -10 | -44 |
| Fixed Asset Turnover (x) | 5.05 | 4.27 | 3.82 |
What the Numbers Indicate
- Revenue growth doubled from FY2023 to FY2025, indicating strong scaling momentum.
- EBITDA more than doubled over three years due to improved operational efficiency.
- PAT tripled, reflecting margin and profitability expansion.
- Working capital cycle improved significantly, turning from negative (efficient cycle) to stable positive.
- Return ratios (ROE and ROCE) remain among the strongest in the technical textile industry.
Peer Comparison (₹ Crore)
| Company | Revenue FY25 (₹ Cr) | EBITDA FY25 (₹ Cr) | PAT FY25 (₹ Cr) | EBITDA Margin (%) |
|---|---|---|---|---|
| Kusumgar Limited | 778.997 Cr | 188.389 Cr | 111.988 Cr | 24.18% |
| Garware Technical Fibres | 1,540.113 Cr | 318.766 Cr | 231.548 Cr | 20.70% |
| Arvind Limited | 8,328.810 Cr | 918.590 Cr | 367.380 Cr | 11.00% |
| SRF Limited | 14,693.070 Cr | 2,970.330 Cr | 1,250.780 Cr | 20.22% |
Kusumgar Limited stands out with one of the highest EBITDA margins among peers, reflecting its value-added product mix and strong operational discipline.
Market Position & Opportunities
Sector Outlook
The Indian engineered fabrics and technical textiles industry is expanding due to:
- Growing defence and aerospace requirements.
- Increasing automotive safety standards.
- Industrial automation and filtration demand.
- Shift from commodity to advanced-performance textiles.
Competitive Landscape
Kusumgar Limited competes with both Indian and global players across niche technical textile categories. However, the company enjoys advantages such as:
- High specialization in defence-grade and aerospace-grade fabrics.
- In-house R&D and product innovation enabling customer-specific solutions.
- Backward integration reducing dependency on external vendors.
- Strong client relationships, including government agencies and export markets.
Key Opportunities
- Increasing defence procurement programs in India.
- High-margin export opportunities in aerospace and industrial composites.
- Diversification into technical coating, laminates, and engineered solutions.
- Strengthening share in the global technical textiles market.
Risks & Challenges (as per SEBI Filing)
Regulatory Risks
- Strict compliance requirements under defence, aerospace, and industrial standards.
- Dependence on licenses, certifications, and quality audits.
Operational Risks
- High reliance on specialized machinery—often imported.
- Capacity utilization fluctuations (42% in FY25 vs 94% in FY24).
- Working capital sensitivity due to large institutional clients.
Financial Risks
- Net debt of ₹2,053 million in FY25.
- Exposure to related party transactions and promoter guarantees.
Market Risks
- Commodity price fluctuations impacting raw materials like polyester, nylon, polypropylene.
- Global supply chain disruptions affecting machinery and inputs.
Investment Insights
Why Investors Should Track Kusumgar Limited
- Rapidly rising revenue and profitability.
- Strong foothold in defence and aerospace segments.
- High EBITDA margins relative to peers.
- Strong ROE/ROCE indicating efficient capital use.
- Attractive candidate among upcoming unlisted shares in India.
Medium to Long-Term Opportunities
Kusumgar Limited offers strong long-term compounding potential due to its niche positioning in high-performance fabrics, expanding export footprint, and sustained demand from defence and industrial sectors.
Listing Gains vs Long-Term Play
Given the company’s strong fundamentals, the IPO may attract premium valuations. However, the larger value lies in long-term growth as the company scales capacity, expands technology capabilities, and enters new geographies.
Kusumgar Limited Unlisted Share Price & Market Trends
The SEBI DRHP does not disclose the Kusumgar Limited Unlisted Share Price. However, in the unlisted market, demand for technical textile companies has grown steadily due to rising government spending on defence and aerospace.
As investors explore investment opportunities in unlisted companies, Kusumgar Limited is emerging as a strong contender due to its financial growth trajectory and specialized product portfolio.
Conclusion
Kusumgar Limited’s SEBI filing reveals a financially strong, operationally efficient, and strategically positioned company within the technical textiles ecosystem. With robust revenue growth, expanding market applications, and superior profitability metrics, it is well-placed to attract investor interest as it moves toward its IPO.
For updates on the IPO timeline, valuations, and unlisted share availability, continue following Unlisted Radar.
FAQs
What is Kusumgar Limited’s unlisted share price today?
The SEBI filing does not mention the current unlisted share price. Prices vary across unlisted share platforms.
How to buy Kusumgar Limited unlisted shares?
You can buy shares through SEBI-registered brokers, unlisted share dealers, or pre-IPO platforms.
Is Kusumgar Limited a good investment before IPO?
Based on SEBI DRHP data, the company shows strong revenue growth, profitability, and margins—making it an attractive pre-IPO candidate. However, investors should evaluate risks and consult advisors.
When will Kusumgar Limited IPO launch?
The IPO date is not disclosed in the SEBI filing.
What are the risks of investing in Kusumgar Limited?
Key risks include raw material price volatility, regulatory compliance, working capital needs, and promoter-related financial exposures.
Which brokers deal in Kusumgar Limited unlisted shares?
Several reputed unlisted share platforms and intermediaries facilitate such trades. Always verify SEBI registration.
What is the IPO lot size?
The lot size is not provided in the SEBI filing.
How does Kusumgar Limited compare with competitors?
The company enjoys higher EBITDA margins than several listed peers, along with strong ROE/ROCE and a growing product portfolio.