Sonaselection India

Founded in February 2022, Sonaselection India has rapidly established itself as a significant player in the fabric manufacturing and processing industry. The company focuses on producing high-quality textiles, including 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends, and polyester blends such as polyester-viscose (P/V) and polyester fabrics.

The company's business model integrates both internal manufacturing and strategic external job-work services. This hybrid approach allows them to manage the entire textile life cycle, encompassing processes from bleaching, dyeing, and finishing to final quality checking, grading, packing, and delivery.

Operationally, the company is headquartered in Bhilwara, Rajasthan, where it operates a modern manufacturing facility spread across approximately 49,540 square metres. This facility is equipped with advanced textile processing machinery designed to meet the stringent quality requirements of the fashion and apparel markets.

Sonaselection serves a diverse range of end-use applications across the apparel industry, positioning itself as a versatile supplier of both natural and synthetic blend fabrics. The operational scale has seen significant expansion in a short period, as evidenced by the rapid growth in their annual revenue.

The company is led by a promoter group consisting of Harshil Nuwal, Subhash Chandra Nuwal, Uma Nuwal, Deepank Bhandari, and Sona Polyspin Private Limited, who provide the strategic direction and industry expertise necessary to navigate the competitive textile landscape.

Sonaselection India is launching a Mainboard IPO to raise approximately ₹142 crore, consisting entirely of a fresh issue of equity shares with no Offer for Sale (OFS) component. The IPO is priced with a price band of ₹94 to ₹99 per share, with a minimum retail lot size of 150 shares requiring an application amount of ₹14,850. The issue opens on September 17, 2026, and closes on September 21, 2026, with listing scheduled for September 24, 2026, on both the BSE and NSE.

The proceeds from the fresh issue are earmarked for critical growth and liability management. Specifically, ₹80.00 crore will be utilized for the repayment or pre-payment of certain borrowings, and ₹50.61 crore will be directed towards capital expenditure for the purchase of new plant and machinery, indicating a focus on expanding capacity and reducing debt overhead.

Financial performance has shown an aggressive upward trajectory. Revenue grew from ₹121.31 crore in FY2024 to ₹316.47 crore in FY2025, and further to ₹517.60 crore in FY2026. Similarly, the Profit After Tax (PAT) increased from ₹13.10 crore in FY2024 to ₹34.02 crore in FY2026, demonstrating strong scalability and operational efficiency.

From a valuation perspective, the company reports a Basic EPS of ₹8.09 and a high Return on Net Worth (RoNW) of 39.05%. While a specific P/E ratio was not provided in the valuation table, the company is compared against peers like Vishal Fabrics and Nitin Spinners. The strong ROE and ROCE (19.69%) serve as key investment strengths.

However, potential investors should be cautious of the company's leverage. The debt-to-equity ratio stands at 2.48, which is considerably high and may pose a financial risk if interest rates rise or demand fluctuates. Additionally, the low QIB subscription velocity suggests a lack of strong institutional conviction.

Overall, Sonaselection presents a growth-oriented profile with impressive revenue jumps and a pure fresh-issue structure. While the fundamentals show strong profitability, the high debt levels and lukewarm institutional response suggest a balanced approach to investment.