Kusumgar Limited ₹650 Crore IPO 2026 | Should You Apply?

Most textile companies make fabrics for clothing or home furnishings. Kusumgar makes engineered fabrics instead. These are high performance synthetic fabrics designed for specific use cases like parachutes, camouflage nets, military shelters, industrial applications, automotive components and outdoor products, where strength, durability and waterproofing matter more than appearance.
 

The company has built over 1,000 fabric configurations and manufactures most of the process in house, from weaving and coating to lamination and fabrication. Now it is making its debut on the Indian bourses with ₹650 crore IPO.
 

With that context, the next question is whether ₹419 a share is a fair price to pay, especially with FY26 numbers moving in the wrong direction and none of the IPO proceeds going into the business. 

Kusumgar was incorporated in 1990, although its expertise in technical fabrics goes back to 1970. Since then, the company says it has developed more than 1,000 engineered fabric configurations for industries where performance matters more than appearance.
 

Kusumgar earns revenue from four businesses (i) aerospace & defence fabrics (ii) aerospace & defence solutions (iii) industrial & automotive fabrics, (iv) outdoor & lifestyle fabrics. These are sectors with strict qualification standards, making it difficult for new players to enter.
 

The company operates six manufacturing facilities in Gujarat and one fabrication unit in Uttar Pradesh. It handles almost the entire production process in house, from weaving and dyeing to coating, lamination and fabrication, giving it greater control over quality, timelines and costs.
 

Customer relationships also tend to be sticky. As of March 2026, its largest customers had been associated with the company for two to nine years. The top six customers contributed nearly 49% of FY26 revenue, while global retailer Decathlon is among its customers through a fabricator network.
 

Kusumgar has also partnered with companies in the United States, Italy, Japan, Switzerland and Taiwan for technology, manufacturing and product development. These partnerships span areas such as parachute systems, camouflage fabrics, ballistic materials, shelter systems and specialty yarns.
 

Its product portfolio includes parachutes, extreme cold weather clothing, infrared reflective materials and multi spectral camouflage systems. The company also specialises in lightweight Nylon 6 and Nylon 66 fabrics along with coated and laminated textiles.
 

The business is led by promoters Yogesh Kantilal Kusumgar and Siddharth Yogesh Kusumgar, both of whom have more than 25 years of experience in technical textiles. Joint Managing Director Sapna Siddharth Kusumgar brings over 20 years of industry experience.
 

Kusumgar Limited is a 100% OFS, aka Offer for Sale, which means all the money raised through the IPO will go into existing shareholders pockets: Siddharth Yogesh Kusumgar (up to ₹420 crore), Sapna Siddharth Kusumgar (up to ₹200 crore), and Siddharth Yogesh Kusumgar HUF (up to ₹30 crore). Promoters currently hold 90.48% of the company, and that stake will fall after listing.

• Segment concentration: Aerospace and Defence Fabrics, Industrial and Automotive Fabrics, and Aerospace and Defence Solutions together made up the large majority of FY26 revenue. Any slowdown in demand across these segments, particularly anything tied to government defence procurement cycles, would flow directly through to results.
   
• Customer concentration: Kusumgar's top customer made up 11.13% of FY26 revenue, and its top ten customers made up 59.52%, with most left unnamed in the RHP. 
   
• Geographic concentration: All six manufacturing facilities are located in Gujarat, so a regional disruption of any kind, whether natural, political, or infrastructure related, has no geographic hedge to fall back on.
   
• FY26 Performance: Revenue and PAT both fell in FY26 compared to FY25, and return ratios such as return on equity and return on capital employed have been trending downward for three straight years. That is the opposite of the direction investors generally want to see heading into a premium priced IPO.
   
• 100% Offer for Sale: None of the ₹650 crore raised goes into the company. This is purely an exit event for three promoter shareholders, and there is no capital being deployed into growth, debt reduction, or working capital as part of this listing.
   

Kusumgar is well positioned to benefit from favourable industry trends, supported by increasing defence modernization, government focus on domestic manufacturing, export opportunities and global supply chain diversification. The company's strong technical capabilities, diversified product portfolio, integrated manufacturing platform and expansion into higher value-added defence solutions provide multiple growth levers. 
 

While execution of new projects and export demand will remain key monitorables, the company appears well placed to deliver sustainable long-term growth. 
 

At the upper band of INR 419, the issue is valued at a P/E ratio of 43.29x, based on FY26 EPS of INR 9.68. We are recommending a “Subscribe”rating for this issue.

What are the IPO dates for Kusumgar Limited IPO? 
The IPO opens on July 8, 2026 and closes on July 10, 2026. Listing on BSE and NSE is scheduled for July 15, 2026.
 

What is Kusumgar Limited IPO GMP? 
GMP is unofficial, unregulated, and volatile, and it should not drive your application decision either way. Check here for the current number, but treat it purely as sentiment data rather than a forecast.
 

What is the lot size for retail investors? 
The lot size is 35 shares. Minimum investment at the upper band comes to ₹14,665. Retail investors can apply for up to 13 lots, which is 455 shares totalling ₹1,90,645.
 

Is Kusumgar Limited IPO a fresh issue or an OFS? 
It is entirely an Offer for Sale of up to ₹650 crore across three promoter selling shareholders. No fresh capital goes to the company.
 

Where will the IPO proceeds be used? 
The proceeds go directly to the selling shareholders, who are Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, and Siddharth Yogesh Kusumgar HUF. The company does not receive any of the issue proceeds, and the stated objects of the offer are the share sale itself along with the benefits of listing.
 

Should I invest in the Kusumgar Limited IPO? 
That depends on your risk appetite. The business is niche and credible, but FY26 performance declined, the issue is a full promoter exit, and the valuation is rich without peer support. Growth investors convinced by the thesis may apply. Conservative investors may prefer to wait for a quarter or two of post listing numbers.