Synopsis: This newly listed engineered fabrics company is targeting over Rs 2,000 crore in revenue by FY30, supported by expansion across aerospace, defence, industrial, automotive, and lifestyle segments while maintaining stable margins.
The article outlines the growth outlook of this newly listed textile company, which is a manufacturer of woven, coated, and laminated synthetic fabrics known as engineered fabrics.
With a market capitalization of Rs 6,382 crore, Kusumgar Ltd’s share currently trades at Rs 608 per share, up by 0.56 percent from its previous close, with a giving listing gain of 50.6 percent from its listing price of Rs 419 per share on 15th July. The company commands a ROCE of 18.8 percent and ROE of 18.6 percent, with low debt-to-equity of 0.49, making it fundamentally strong.
Management Guidance
Subsidies and Financial Position
The management said the company is eligible for subsidies from the Gujarat government, which is expected to support its expansion plans. It added that the cost of its term loans remains low at around 4 to 5 percent, while asset turnover is expected to improve to 4x to 5x over the medium term.
Growth Target
Kusumgar is targeting revenue of more than Rs 2,000 crore by FY30, compared to Rs 676 crore in FY26, implying expected growth of around 196 percent. The company said this growth will be supported by expanding into new geographies and diversifying across multiple business lines.
Capex and Margins
The company does not expect any major capital expenditure over the next four to five years apart from routine maintenance capex. The management also expects operating margins to remain broadly in line with current levels as it focuses on improving efficiency and executing its growth strategy.
FY27 Outlook
The management expects growth to normalise in FY27 as tariff-related headwinds begin to fade. It believes demand conditions will improve over time and expects the business to continue expanding, supported by its diversified product portfolio and planned geographical expansion.
About the Company
Incorporated in 1990, Kusumgar Ltd is a manufacturer of woven, coated, and laminated synthetic fabrics known as engineered fabrics. Its products are based mainly on polyamide and polyester filaments, using polyurethane chemistry.
As of March 31, 2026, it has developed over 1,000 unique fabric types (SKUs), building a strong position in the synthetic functional and performance fabric space. Its products serve a wide range of industries, including aerospace and defence, industrial and automotive, and outdoor and lifestyle segments.
Business Segments
Kusumgar operates across four business segments: Aerospace and Defence Fabrics, Aerospace and Defence Solutions, Industrial and Automotive Fabrics, and Outdoor and Lifestyle Fabrics.
Its products are used in parachutes, tactical gear, camouflage nets, deployable shelters, automotive applications, industrial products, activewear, rainwear, backpacks, luggage, tents, and sleeping bags. As of March 31, 2026, the company had a workforce of 2,077 employees.
Financial Highlights: Revenue from operations of Rs 676 crore, down 16.13 percent YoY from Rs 806 crore in FY25. Despite the decline in revenue, the operating margin improved to 25 percent from 23 percent a year ago. Net profit stood at Rs 88 crore, compared to Rs 109 crore in FY25, a decline of 19.27 percent YoY, while EPS fell to Rs 11.07 from Rs 13.68 per share, down 19.08 percent YoY.
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