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Kusumgar IPO Review 2026: Check IPO dates, price band, financials, strengths, risks, valuation and whether this ₹650 crore defence textile IPO is worth subscribing to.
Reviewed and Rewrite by
Rudransh Sangwan
Kusumgar Limited is set to launch its ₹650 crore Initial Public Offering (IPO), offering investors an opportunity to invest in one of India's leading engineered fabrics manufacturers. Unlike traditional textile companies, Kusumgar focuses on high-performance fabrics used in defence, aerospace, industrial, automotive and outdoor applications.
The IPO is entirely an Offer for Sale (OFS), meaning the company will not receive any fresh capital from the issue. While Kusumgar has built a strong niche business with industry-leading margins and long-term customer relationships, investors should also consider its premium valuation, customer concentration and working capital challenges before subscribing.
| Particular | Details |
|---|---|
| IPO Dates | July 8 – July 10, 2026 |
| Price Band | ₹398 – ₹419 per share |
| Lot Size | 35 Shares |
| Minimum Investment | ₹14,665 |
| Issue Size | ₹650 Crore |
| Fresh Issue | Nil |
| Offer for Sale | 100% |
| Grey Market Premium (GMP)* | ₹166 (Around 40%) |
*GMP is unofficial and should not be considered an indicator of listing gains.
Founded over five decades ago, Kusumgar Limited manufactures specialised engineered fabrics used across critical industries where durability, safety and performance are essential.
The company serves sectors including:
Its products include fabrics used for military parachutes, camouflage nets, ballistic protection equipment, automotive applications, outdoor gear and other technical textile solutions.
With six manufacturing facilities in Gujarat and one assembly unit in Uttar Pradesh, Kusumgar generated ₹692 crore in revenue during FY26.
India's engineered fabrics and technical textiles industry is witnessing rapid growth due to increasing defence spending, infrastructure development and manufacturing expansion.
The market has grown from nearly ₹55,880 crore in FY20 to around ₹99,000 crore in FY26 and is expected to reach almost ₹1.86 lakh crore by FY31.
Major growth drivers include:
These structural trends create long-term growth opportunities for specialised manufacturers like Kusumgar.
Kusumgar operates in a niche segment where customer approvals, especially in defence, can take between two and ten years. Once approved, customers rarely change suppliers, creating long-term relationships and stable business opportunities.
The company reported an EBITDA margin of 27.15% in FY26, one of the highest among listed peers, reflecting strong pricing power and operational efficiency.
Exports contributed nearly 40% of contract revenue in FY26, compared with around 23% a year earlier. This diversification reduces dependence on domestic demand while benefiting from global sourcing shifts.
Kusumgar manufactures over 1,000 engineered fabric configurations and is expanding into newer applications including:
Nearly 60% of FY26 revenue came from the top ten customers, making the business vulnerable if large contracts are delayed or lost.
The company's working capital cycle increased significantly to 90 days in FY26, mainly due to higher receivables, which could impact cash flows if customer payments remain slow.
Most production facilities are located in Gujarat. Any operational disruption in the state could impact manufacturing across multiple plants.
At the upper price band of ₹419, Kusumgar is valued at a market capitalisation of approximately ₹4,399 crore.
| Metric | Value |
|---|---|
| Market Capitalisation | ₹4,399 Crore |
| P/E Ratio | 44.8x |
| EV/EBITDA | 24.35x |
| EBITDA Margin | 27.15% |
| Return on Equity (RoE) | 25.82% |
Although the IPO is priced at a premium compared to several listed peers, the higher valuation reflects the company's specialised business model, superior margins and strong return ratios.
However, investors should remember that premium valuations leave limited room for execution errors.
Kusumgar stands apart from conventional textile companies by operating in a specialised technical textile segment with high entry barriers, strong customer stickiness and growing demand from defence and industrial sectors.
Its robust profitability, expanding export business and leadership in engineered fabrics make it an attractive long-term business. However, the IPO is not cheap, and investors should carefully weigh the premium valuation against risks such as customer concentration, rising working capital requirements and dependence on large defence contracts.
For investors with a long-term investment horizon, Kusumgar offers exposure to India's rapidly growing technical textiles and defence manufacturing ecosystem. Those seeking short-term listing gains should evaluate prevailing market conditions and valuation before making a decision.
Kusumgar manufactures engineered fabrics used in defence, aerospace, industrial, automotive and outdoor applications.
No. The IPO is entirely an Offer for Sale (OFS), so the company will not receive any fresh capital.
The price band is ₹398 to ₹419 per equity share.
Unlike apparel manufacturers, Kusumgar focuses on specialised technical fabrics with high entry barriers, long approval cycles and premium margins.
The company has strong long-term growth prospects due to its niche business and industry tailwinds. However, investors should assess the premium valuation and business risks before investing.
