Kusumgar IPO Review: Gaganyaan Credentials Meet a Financial Year That Went Backward

Quick Answer

Kusumgar IPO is currently open, closing tomorrow, and it presents a genuinely two-sided picture. The Mumbai based engineered synthetic fabrics manufacturer, whose work includes supplying parachute systems for the Gaganyaan re-entry module, India's first manned space mission, has drawn strong and rising demand, subscription climbed from 1.74 times on Day 1 to 12.35 times by Day 2, driven heavily by non-institutional investors bidding over 33 times their allocation. But this is entirely a 100% offer for sale, so the company gets none of the Rs 650 crore raised, and revenue and profit both declined in FY26, the year immediately before this listing, a pattern one reviewer explicitly described as inconsistent and called the pricing greedy against that backdrop.

Kusumgar IPO Key Details at a Glance

What Does Kusumgar Ltd Do?

Kusumgar, incorporated in 1990 and headquartered in Mumbai, manufactures engineered synthetic fabrics, woven, coated and laminated materials built primarily from polyamide and polyester filaments using polyurethane chemistry. The company has developed over 1,000 unique fabric configurations, or SKUs, serving applications where tensile strength, tear resistance, waterproofing and durability are critical requirements.

A genuine defence and space credential. Beyond raw fabrics, Kusumgar produces finished aerospace and military products, parachute systems, stealth materials, rapid deployment shelters, camouflage solutions and decoys. The company is an authorised partner supplying fabrics and parachute systems for the re-entry module of the Gaganyaan project, India's first manned space mission, a genuinely prestigious and technically demanding credential that few Indian manufacturers can claim. You can follow its live price and post listing updates on the IPO GMP Live homepage.

The revenue mix and manufacturing base. Aerospace and defence work, combining both fabrics and finished solutions, contributes roughly 55% of revenue, a notably higher concentration than the broader Indian engineered fabrics industry, where defence and aerospace makes up only about 5.9% of overall industry demand. Industrial and automotive fabrics contribute about 24%, and outdoor and lifestyle fabrics around 19%. The company runs six manufacturing facilities in Gujarat plus one fabrication unit in Uttar Pradesh, vertically integrated across weaving, dyeing, printing, finishing, coating, lamination and fabrication, with export sales making up around 40% of revenue and a workforce of 2,077 as of March 2026.

Why Did Revenue and Profit Decline in the Year Before This IPO?

This is the opposite pattern from most SME reviews we cover. Revenue grew sharply from roughly Rs 475 crore in FY24 to Rs 790.21 crore in FY25, up 66.4%, a strong year. But in FY26, the year immediately preceding this listing, revenue fell to Rs 711.78 crore, a decline of about 9.9%. Profit followed the same arc: up 32.7% to Rs 111.99 crore in FY25, then down 12.3% to Rs 98.20 crore in FY26.

This is worth taking seriously precisely because it runs counter to the usual concern. Where we typically flag a suspicious profit spike right before an IPO, here the company is going public in a year when its own numbers went backward, which at minimum suggests the business did not manufacture a flattering final year, though it does mean the company is asking investors to pay a mainboard valuation on a declining recent trend. One detailed reviewer covering the listing stated plainly that the company posted inconsistency in its top and bottom lines tied to a shift in its order book and ongoing capex for expansion plans, and concluded the issue appears greedily priced based on its recent inconsistent financial data, unusually blunt language for a mainboard issue of this size.

Debt adds a further concern. The same review flagged total debt of over Rs 223 crore as of March 2026 as a point of concern, a meaningful leverage position for a business whose most recent year showed declining, not growing, profit.

A plausible explanation exists, but it needs the company's own confirmation. Defence and aerospace contract revenue is often lumpy, large orders can land in one year and not the next, and a company simultaneously investing in capacity expansion can see near-term costs rise before new capacity contributes revenue. If that is genuinely what happened here, the FY26 dip could be a temporary function of timing rather than a deteriorating business. But this explanation has not been independently confirmed with specific order or contract detail in available coverage, and investors should look for that clarity directly in the RHP's management discussion rather than assume it.

Why Is Demand So Strong Despite the Financial Concerns?

Several factors likely explain the strong and rising subscription:

• The Gaganyaan and defence credential carries real weight with investors. A tangible link to India's first manned space mission, alongside genuine aerospace and defence manufacturing capability, is the kind of story that draws attention regardless of a single soft year, particularly given India's structural push toward defence self-reliance and space programme investment.
• Non-institutional investors have driven most of the demand so far. An NII subscription above 33 times, against a QIB figure of just 1.8 times, shows the current enthusiasm is concentrated among individual high-net-worth applicants rather than broad institutional conviction, worth noting as the QIB figure often strengthens later in a book-built mainboard issue.
• A large, credible anchor book provided an early confidence signal. Rs 193.95 crore from anchor investors ahead of the issue gave the offering institutional backing before public bidding even began, which likely supported the GMP building steadily through the first week of July.
• The vertically integrated, export-oriented business model has genuine appeal. A company controlling its process from weaving through fabrication, with roughly 40% export revenue and 1,000-plus product configurations, presents as a mature, technically capable manufacturer rather than a speculative newcomer, separate from the question of how this specific year's numbers should be priced.

Should You Apply for the Kusumgar IPO?

The issue closes tomorrow, 10 July, with a still-strong but cooling GMP. The honest read by investor type:

• Conservative investors: The FY26 revenue and profit decline, the debt load flagged at over Rs 223 crore, and an explicit greedy pricing assessment from at least one reviewer together argue for real caution, regardless of the genuinely impressive Gaganyaan and defence credentials. This looks more suited to well-informed, patient capital than a straightforward safe application.
• Moderate investors: The order-book timing explanation for the FY26 dip is plausible given the lumpy nature of defence contracts, but it deserves verification in the RHP before treating it as settled. Watching the final QIB subscription figure before the 10 July close, since institutional demand has lagged so far, is a sensible additional check.
• Aggressive investors: The rising GMP and heavy NII demand suggest the market is currently willing to look past the FY26 numbers in favour of the long-term defence and aerospace story, and as a 100% OFS mainboard issue with a large anchor book, the near-term listing dynamics could still favour allottees. But the underlying business questions raised by at least one reviewer remain unresolved by strong demand alone.

Honest take. Kusumgar is a genuinely credible manufacturer with a rare, tangible connection to India's Gaganyaan space programme and a differentiated position in defence and aerospace fabrics that few peers can match. But this is entirely a promoter exit, the company itself receives none of the Rs 650 crore raised, and it arrives in a year when both revenue and profit declined, with meaningful debt on the balance sheet and at least one reviewer calling the pricing greedy against that backdrop. The strong subscription reflects real enthusiasm for the story; whether that story is fairly priced given the most recent year's numbers is the harder question this review cannot fully settle without more clarity from the company itself on what drove the FY26 dip.

Where Is the IPO Money Going?

Since this is a 100% offer for sale, none of the Rs 650 crore raised goes to Kusumgar itself. All proceeds go to the selling promoter shareholders, Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar and the Siddharth Yogesh Kusumgar HUF, who are monetising a portion of their holding. This structure means the listing itself does not directly fund the capacity expansion or capex that one reviewer noted the company has undertaken, that spending, and its associated near-term cost impact on FY26 results, has already occurred or is being funded through the company's existing resources rather than through this IPO.

Contact Details

• Company: Kusumgar Ltd.
• Location: Corner of N.S. Road No. 5, JVPD Scheme, Mumbai, Maharashtra; six manufacturing facilities in Gujarat plus one fabrication unit in Uttar Pradesh
• Business: Engineered synthetic fabrics and finished aerospace/defence products, parachute systems, stealth materials, camouflage and decoys, alongside industrial, automotive and outdoor/lifestyle fabrics; authorised partner for Gaganyaan re-entry module parachute systems
• Promoters: Yogesh Kantilal Kusumgar, Siddharth Yogesh Kusumgar, Sapna Siddharth Kusumgar, Siddharth Yogesh Kusumgar (HUF)
• Registrar: Bigshare Services Pvt. Ltd.
• Lead Managers: Axis Capital Ltd., IIFL Capital Services Ltd., Motilal Oswal Investment Advisors Ltd.
• Listing: BSE and NSE (Mainboard)

This page is not investment advice. GMP is indicative only and unofficial. Please consult a SEBI registered financial advisor before investing.