Madhur Knit Crafts Limited (originally incorporated as Madhur Knit Crafts Private Limited in August 1997 and converted into a public limited company in January 2025) is a Ludhiana-based textile manufacturing company. The company's core value proposition lies in its transition from a limited processing model to a fully integrated, yarn-to-cloth manufacturing operation that controls the complete value addition cycle under a single production hub. This integrated business model encompasses critical processing stages, including knitting, dyeing, printing, stentering, brushing, raising, and finishing. This end-to-end integration enables the company to offer high product quality, maintain tighter manufacturing controls, shorten lead times, and capture higher operating margins compared to semi-processed textile traders.
The company caters to a highly diversified B2B customer base, including apparel manufacturers, home textile brands, and industrial enterprises requiring customized textile solutions. Its customer acquisition model relies heavily on repeat institutional and wholesale orders, with retained customers contributing 66.55% of total revenue in the eleven-month period ended February 28, 2026, and 77.21% in Fiscal 2025. Geographically, the company has an extreme regional concentration in the state of Punjab, which contributed 98.18% (Rs 19,115.34 lakhs) of total operating revenue in the eleven-month period ended February 28, 2026, and 94.04% (Rs 16,140.48 lakhs) in Fiscal 2025. Export sales have historically remained minimal, representing 0.00% of revenues in Fiscal 2024 and 2025.
The company's sole integrated manufacturing facility is strategically located at Village Seera, Sattowal Road, Rahon Road, Eros Bajra Road, Ludhiana, Punjab—a prominent domestic textile hub that provides seamless access to raw material suppliers, skilled labor, and established logistics networks. The facility is built upon owned lands as well as certain operational premises held under short-term 11-month rental agreements with related parties. The plant is equipped with advanced high-throughput machineries, including circular knitting machines (9 units), high-pressure dyeing units, brushing, embossing/3D punching, bonding, shearing, and printing systems. Additionally, the factory operates with a licensed power load and an Effluent Treatment Plant (ETP) that recycles wastewater to reduce freshwater consumption.
The annual installed capacity and actual capacity utilization of the manufacturing facility have scaled significantly due to a structured capital expenditure program executed since 2022:
Fiscal 2022–23: Annual Installed Capacity of 24,00,000 KGs, with actual utilized capacity of 18,94,542 KGs, representing 78.90% utilization.
Fiscal 2023–24: Annual Installed Capacity scaled to 37,50,000 KGs, with actual utilized capacity of 30,07,564 KGs, representing 80.20% utilization.
Fiscal 2024–25: Annual Installed Capacity doubled to 75,00,000 KGs, with actual utilized capacity of 48,38,190 KGs, representing a moderated 64.50% utilization as new capacities were being ramped up.
Eleven Months Ended Feb 28, 2026: Annual Installed Capacity of 75,00,000 KGs, with actual utilized capacity of 52,31,250 KGs (not annualized), representing 69.75% utilization.
Madhur Knit Crafts Limited does not undertake any proprietary research and development, meaning its technical advancements are entirely driven by equipment upgrades, process optimization, and the onboarding of modern, automated manufacturing machinery. Key operational strengths include its order-based, demand-driven production model—initiating manufacturing only upon receipt of confirmed customer orders—which minimizes inventory write-down risks and optimizes working capital. Operationally, the company leverages its strategic location in Ludhiana to secure raw materials like polyester, spun, and acrylic yarns, and employs a workforce of 177 permanent and contractual personnel as of February 28, 2026.
As per financial performance, Madhur Knit Crafts Limited has posted total income / net profits of Rs 108.41 Cr / Rs 1.70 Cr (FY24), Rs 171.76 Cr / Rs 11.03 Cr (FY25) and Rs 194.79 Cr / Rs 12.35 Cr (FY26). So as per previous financials data, the company has shown stellar top-line and bottom-line growth, with total income expanding from Rs 108.41 Cr in FY24 to Rs 194.79 Cr in the 11-month period of FY26, and net profits compounding from Rs 1.70 Cr to Rs 12.35 Cr over the same period, while its total outstanding debt increased from Rs 57.79 Cr in FY24 to Rs 73.54 Cr in FY26 to finance its aggressive capacity expansions. Company has an average EPS of Rs 4.86 and average RoNW of 23.24% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 3.08 as per NAV of Rs 32.47 as on 28.02.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.96 (or 1.95 factoring in the revised fresh issue cap of up to Rs 53.71 Cr). If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue (~1.90 Cr shares), then the asking price is at a Post-Issue P/E of around 111.54x, 17.23x, and 15.39x respectively. As per RHP comparison between listed peers is shown in above table.
On BRLM's front, SKI Capital Services Limited is associated with this IPO, and has handled 5 IPOs in the past. From last 5 IPOs, one opened below issue price and remaining all opened above issue price or at par, on the day of listing. As of now, from the last 5 IPOs, three are trading below the issue price and the remaining two are trading above the issue price or at par. (As On 20.08.26)
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