Madhur Knit Crafts Ltd. IPO

Madhur Knit Crafts Limited is a Ludhiana-based textile manufacturing company engaged in the manufacture of knitted and crocheted fabrics, blankets and other home-furnishing textile products. The company was originally incorporated as Madhur Knit Crafts Private Limited on 21 August 1997 and subsequently became a public limited company in 2025.

The company's product portfolio includes acrylic blankets, woollen blankets, printed and designer blankets, mink blankets, knitted fabrics and other textile products. It also manufactures technical textile products such as paint roller fabrics.

The company operates an integrated manufacturing facility in Ludhiana. Its manufacturing processes include knitting, dyeing, printing, stentering, brushing, raising, polishing, sueding and finishing. The facility uses textile machinery sourced from countries including Korea, Taiwan, China and other international markets.

Madhur Knit Crafts follows a vertically integrated manufacturing model that allows several stages of textile production to be undertaken within its manufacturing setup. The company has stated that its integrated operations help it maintain greater control over product quality, production processes and delivery schedules.

The company began commercial manufacturing operations with blankets and subsequently expanded its product portfolio. Over time, it moved towards a broader yarn-to-cloth manufacturing model and expanded into additional textile products.

The company serves the domestic market through dealer and distribution networks and also has exposure to export markets. It has focused on home-furnishing textiles while also seeking opportunities in technical textiles and fabric exports.

Madhur Knit Crafts has a manufacturing facility with a built-up area of more than 300,000 square feet, according to company-related disclosures. The facility contains machinery for multiple textile production processes and supports its integrated manufacturing model.

The company has also invested in modern textile machinery. Its capital investments have included equipment intended to improve manufacturing capacity, product quality and production capabilities.

The company is also pursuing technical textile opportunities. Technical textiles can serve industrial and specialised applications, and the company has identified sectors such as automotive, construction, home improvement and healthcare as potential end-use markets.

Madhur Knit Crafts has reported substantial growth in revenue over the reported financial periods. Revenue from operations increased from ₹89.33 Cr in FY2023 to ₹108.38 Cr in FY2024 and ₹171.64 Cr in FY2025.

For the eleven-month period ended 28 February 2026, revenue from operations stood at ₹194.69 Cr and PAT was ₹12.35 Cr. The interim period should not be directly compared with the full financial years because it covers eleven months rather than twelve months.

Profitability also improved materially. PAT increased from ₹1.70 Cr in FY2024 to ₹11.03 Cr in FY2025, while PAT for the eleven-month period ended 28 February 2026 stood at ₹12.35 Cr.

The company has a relatively high dependence on its manufacturing operations in Punjab. More than 90% of its revenue has been attributed to Punjab over the reported periods, creating geographical concentration risk.

The company's working-capital cycle is another important factor. As of 28 February 2026, trade receivable days were 85, inventory days were 147 and the cash conversion cycle was 153 days.

The company also had borrowings of ₹73.54 Cr as of 28 February 2026, compared with ₹67.20 Cr as of 31 March 2025 and ₹57.79 Cr as of 31 March 2024. The IPO therefore includes a substantial allocation towards repayment or prepayment of borrowings.

Madhur Knit Crafts operates in the textile manufacturing industry with a focus on knitted fabrics, blankets, home-furnishing products and selected technical textile products. Its vertically integrated manufacturing model provides control over several stages of production.

The company has expanded its product range over time and has invested in textile machinery and manufacturing capabilities. Its manufacturing setup covers knitting, dyeing, printing, stentering, brushing, raising, polishing, sueding and finishing.

Financial performance improved significantly in FY2025. Revenue from operations increased 58.36% from ₹108.38 Cr in FY2024 to ₹171.64 Cr in FY2025. PAT increased from ₹1.70 Cr to ₹11.03 Cr during the same period.

The eleven-month period ended 28 February 2026 also showed continued growth, with revenue from operations of ₹194.69 Cr and PAT of ₹12.35 Cr. EBITDA stood at ₹25.68 Cr during this period.

The improvement in profitability is an important positive factor, but investors should also consider the company's working-capital intensity and debt. Borrowings stood at ₹73.54 Cr as of 28 February 2026, while the cash conversion cycle was 153 days.

A significant portion of the IPO proceeds is intended for repayment or prepayment of borrowings. The disclosed allocation for this purpose is ₹20.85 Cr. Another ₹15.92 Cr is proposed for working-capital requirements.

The proposed solar-panel investment of ₹3.68 Cr is intended to support the company's manufacturing infrastructure and energy requirements. This may also complement the company's stated focus on sustainability.

The company has also identified technical textiles as an area of potential expansion. Technical textiles can provide access to specialised industrial applications, but expansion into such markets can require product development, customer qualification and additional investment.

The company has exposure to domestic and export markets, but its significant revenue concentration in Punjab is a risk that should be considered. Regional concentration can make the business more sensitive to local economic, regulatory, infrastructure or other disruptions.

At the upper issue price of ₹100, reported valuation data shows pre-IPO EPS of ₹8.23 and post-IPO EPS of ₹7.19, with pre-IPO P/E of 12.15x and post-IPO P/E of 13.91x. These calculations depend on the financial period and share-capital methodology used in the offer-document-based valuation.

The IPO was subscribed around 1.47 times overall, with QIB subscription of 1.01 times, NII subscription of 0.77 times and Retail Individual Investor subscription of 2.30 times according to final reported figures.

Overall, Madhur Knit Crafts combines an integrated textile manufacturing model with improving revenue and profitability. The company's expansion into technical textiles and planned investments in solar infrastructure provide potential growth avenues. However, investors should carefully consider its debt, working-capital cycle, geographical concentration, raw-material exposure and the competitive nature of the textile industry before making an investment decision.

Listing Performance

Madhur Knit Crafts was scheduled to list on NSE SME on 1 September 2026. As the listing is scheduled for the current date, an actual listing price should not be inserted unless confirmed by NSE or another official exchange filing.

Madhur Knit Crafts IPO applications were made through the ASBA process and supported UPI application mechanisms. The lot size was 1,200 shares and the minimum retail application was 2 lots, or 2,400 shares, at the upper price band of ₹100 per share.

Through UPI

1. Log in to your stockbroker app or website.
2. Go to the IPO section.
3. Select Madhur Knit Crafts IPO.
4. Enter the required number of lots.
5. Enter your valid UPI ID.
6. Submit the IPO application.
7. Approve the UPI mandate received in your UPI application.
8. Confirm the mandate using your UPI PIN.
9. The application amount remains blocked in your bank account until the allotment process.
10. After allotment, the required amount is debited and the remaining blocked amount is released according to the IPO process.