Madhur Knit Crafts

Established in August 1997, Madhur Knit Crafts Limited has evolved into a comprehensive player in the textile sector. While the company was founded in the late 90s, it commenced its commercial production journey in 2013, initially focusing on the blankets segment before diversifying its product portfolio.

The company's business model is built on an integrated yarn-to-cloth manufacturing process. This vertical integration includes critical stages such as knitting, dyeing, printing, brushing, polishing, sueding, stentering, bonding, and finishing, allowing for tight quality control over the final textile products.

Strategically located in Ludhiana, Punjab, the company leverages its presence in one of India's premier textile hubs. This location provides Madhur Knit Crafts with a competitive advantage through seamless access to high-quality raw materials, a robust network of suppliers, and efficient logistics and distribution channels.

The company serves a diverse client base spanning consumer, industrial, and institutional segments. By producing a wide range of winter wear and fabrics, it has positioned itself to capture demand across different market tiers within the textile industry.

The promoters of the company are Arun Gupta, Piyush Gupta, and Chirag Gupta, who have led the organization from its initial commercial setup to its current scale of operations.

Madhur Knit Crafts is launching a book-build issue to raise approximately ₹27.00 Crores, consisting entirely of a fresh issue of equity shares. The IPO price band is set between ₹95 and ₹100 per share, with a minimum lot size of 2400 shares requiring an application amount of ₹2,40,000. The issue is scheduled to open on August 24, 2026, and close on August 27, 2026, with listing on the NSE SME platform on September 1, 2026.

The proceeds from the fresh issue are earmarked for strategic growth and liability management. Specifically, ₹4.00 Crores will be used for capital expenditure to purchase solar panels, ₹14.10 Crores for working capital requirements, ₹17.40 Crores for the prepayment or repayment of outstanding borrowings, and ₹35.50 Crores for general corporate purposes.

Financial performance shows a strong growth trajectory. Revenue increased from ₹108.41 Crores in 2024 to ₹171.76 Crores in 2025. More impressively, the Profit After Tax (PAT) saw a massive jump from ₹1.70 Crores in 2024 to ₹11.03 Crores in 2025, indicating significant operational leverage and margin improvement.

From a valuation perspective, the company reports a strong ROE of 37.42% and ROCE of 33.49%. While a formal P/E ratio is not provided relative to peers, the EPS for FY2025 stands at ₹8.35. A notable concern is the debt-to-equity ratio of 2.28, which is relatively high for the sector.

Investment strengths include the integrated manufacturing process and the sharp increase in profitability over the last two fiscal years. However, the high debt levels and the absence of listed comparable peers for valuation benchmarking present risks to potential investors.

Overall, the IPO presents a growth-oriented opportunity in the textile space. Investors should weigh the impressive profitability and fresh capital infusion against the balance sheet leverage before committing funds.