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Madhur Knit Crafts coming with IPO to raise up to Rs 53.27 crore
Aug-21-2026

Madhur Knit Crafts

  • Madhur Knit Crafts is coming out with an initial public offering (IPO) of 53,26,800 shares in a price band of Rs 95 - 100 per equity share.
  • The issue will open for subscription on August 24, 2026 and will close on August 27, 2026.
  • The shares will be listed on SME Platform of NSE.
  • The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 10.00 times on the higher side.
  • Book running lead manager to the issue is SKI Capital Services.
  • Compliance officer for the issue is Nikita Tayal.

Profile of the company

Madhur Knit Crafts is a Ludhiana-based textile manufacturing company engaged in the production of fabrics and garments, with a primary focus on consumer textile products such as blankets. The company commenced its commercial operations in 2013 and has since evolved into a diversified textile manufacturer with integrated operations across the value chain. 

The company operates a fully integrated yarn-to-cloth manufacturing model, enabling end-to-end value addition from yarn processing to finished products. Its manufacturing facility is equipped with advanced machinery supporting processes such as knitting, dyeing, printing, brushing, and finishing, ensuring consistent product quality and operational efficiency. The infrastructure includes modern systems designed to enhance production capacity while reducing reliance on manual processes. 

Strategically located in Ludhiana, a key textile hub, the company benefits from proximity to raw material suppliers, skilled labor, and established logistics networks, facilitating efficient procurement and distribution. While the company has ventured into technical textiles, including specialized fabric applications, its core revenue continues to be driven by traditional textile products. The company also emphasizes sustainability through initiatives such as an in-house effluent treatment plant for wastewater management, reflecting its commitment to environmentally responsible manufacturing practices.

Proceed is being used for:

  • Funding capital expenditure for the purchase of Solar panel. 
  • Working capital requirement of the company. 
  • Prepayment or repayment of a portion of certain outstanding borrowings availed by the company. 
  • General corporate purposes. 
  • Issue related expenses.

Industry overview

India’s textile industry is one of the oldest and most diverse sectors of the economy, with a strong presence across the entire value chain, from natural fibres such as cotton, silk, wool, and jute to man-made fibres like polyester and viscose. The industry spans both traditional handloom segments and modern, capital-intensive manufacturing units, with the decentralized power loom and knitting sectors forming a significant portion. Its close linkage to agriculture and rural employment makes it a critical contributor to inclusive economic growth. 

The sector contributes around 2.3% to India’s GDP, 13% to industrial production, and 12% to exports, while directly employing over 45 million people. India is among the leading global textile exporters, with exports of around $34-36 billion annually, and is positioned to expand further with growing demand in both domestic and international markets. The industry is largely MSME-driven, with nearly 80% of capacity spread across small and medium enterprises. 

Growth in the sector is supported by rising disposable incomes, increasing demand for affordable and fashionable apparel, and expanding end-use industries such as housing, healthcare, and hospitality. The domestic textile and apparel market is projected to grow at a CAGR of around 10%, reaching $350 billion by 2030, while global opportunities remain strong. Government initiatives such as 100% FDI under the automatic route, Production Linked Incentive (PLI) schemes, PM MITRA parks, and the National Technical Textiles Mission are driving modernization, investment, and export competitiveness. The technical textiles segment, in particular, is emerging as a key growth area, supported by innovation, policy support, and increasing application across industries. 

Pros and strengths

Vertically integrated manufacturing operations: The company operates a fully integrated manufacturing facility that brings together all major textile processing stages, knitting, dyeing, printing, stentering, brushing, raising, and finishing, within a single production hub. This integrated setup allows the company to manage the manufacturing process in-house, reducing dependency on external vendors, supporting production timelines, and enabling customization for made-to-order and technical textile products. 

Robust supplier and distribution network: It has cultivated a strong supplier base within Ludhiana and other textile-producing states, enabling consistent access to high-quality yarn and greige fabric. On the distribution side, the company maintains a broad B2B network of dealers, wholesalers, and institutional. A limited retail footprint for finished products like blankets further enhances market coverage. This dual-channel structure ensures wide geographical reach and revenue diversification.

Order-based and demand-driven production model: It follows a made-to-order production strategy, wherein manufacturing is initiated only upon receipt of confirmed customer orders. This approach minimizes overproduction and avoids excess inventory, leading to efficient use of raw materials and optimized working capital deployment. The alignment of procurement and production with actual market demand ensures high resource utilization and better financial control, particularly during peak or seasonal cycles.

Risks and concerns

Majority of revenue derives from few customers: A significant portion of its revenue is concentrated among a few customers, with the top 10 customers together contributing 34.14% of total revenue in February 28, 2026, 34.15% in Fiscal 2025, 41.45% in Fiscal 2024, and 48.50% in Fiscal 2023. This customer concentration underscores the importance of maintaining strong relationships with its key clients. Any loss or reduction in business from these customers, or changes in their purchasing patterns, could materially impact its revenue, profitability, and overall financial performance.

Geographical concentration of raw material procurement in Punjab: The company sources a significant portion of its raw materials from the state of Punjab, accounting for 99.26% of total procurement in February 28, 2026, 52.37% in Fiscal 2025, 52.21% in Fiscal 2024, and 64.13% in Fiscal 2023. This high geographical concentration exposes it to risks arising from regional economic, political, or environmental developments. Any adverse events in Punjab, such as supply disruptions, natural disasters, regulatory changes, or logistical challenges, could materially impact the company’s operations, production schedules, and financial performance. The company’s reliance on a single region for a major portion of its raw material requirements increases its vulnerability to such regional risks. 

Geopolitical conflicts and supply chain disruptions: Ongoing geopolitical conflicts and related tensions may adversely affect its business, results of operations and financial condition. Any escalation of such conflicts may lead to an increase in raw material prices, freight costs, insurance costs, fuel costs, power costs and other operating expenses. If input costs increase, it may not be able to pass on such increases to its customers fully or in a timely manner due to competitive pressure, fixed-price orders or weak demand. This may adversely affect its margins and profitability. Further, any disruption in logistics or supply chains may delay procurement of raw materials or delivery of finished products, which could impact its production schedules, customer relationships, working capital requirements, cash flows and overall financial condition.

Outlook

Madhur Knit Crafts is engaged in the business of manufacturing of Blankets, Ready Made Garments and Knitted Cloth. It has strategically invested in state-of-the-art, high-speed textile machinery imported from technologically advanced countries such as Germany, Japan, South Korea, Taiwan, and China. These include circular knitting machines, high-pressure dyeing units, flatbed and rotary printers, stenter machines, and chemical coating units. This equipment supports mass production and the manufacture of textile products for specific performance requirements. On the concern side, it derives the majority of its revenue from the state of Punjab, contributing more than 90% of total revenue over the past three fiscal years. This significant geographical concentration exposes it to risks arising from regional economic conditions, regulatory developments, political events, natural calamities, and other localised disruptions. Any adverse developments in Punjab may materially affect its business, financial condition and operational performance.

The company is coming out with a maiden IPO of 53,26,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 95-100 per equity share. The aggregate size of the offer is around Rs 50.60 crore to Rs 53.27 crore based on lower and upper price band respectively. On performance front, revenue from operations increased by 58.36% from Rs 10,838.45 lakh in Fiscal 2024 to Rs 17,163.50 lakh in Fiscal 2025. Profit after tax increased over 6-fold or 547.33% from Rs 170.43 lakh in Fiscal 2024 to Rs 1,103.25 lakh in Fiscal 2025.

Meanwhile, it is pursuing expansion into the technical textiles segment, which caters to industrial applications and offers higher margin potential compared to traditional textile products. It aims to serve end-use sectors such as automotive, construction, home improvement, and healthcare, where demand for advanced performance fabrics is growing. Going forward, recognizing the opportunity in global textile demand, the company is strategically focused on reviving and expanding its fabric export operations. It plans to allocate resources toward brand repositioning, export-specific marketing campaigns, and compliance readiness for international buyers.
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