Sonaselection India Limited

Sonaselection India Limited (incorporated in February 2022) is an integrated fabric manufacturing and processing enterprise engaged in the production of value-added textile products. The company commenced operations through the strategic acquisition of a running fabric processing facility in Bhilwara, Rajasthan, from Sona Processors (India) Limited on a slump-sale basis under a Business Transfer Agreement dated June 17, 2022. Initially operating strictly as a job-work processing unit, the company executed a strategic transition toward a manufacturing-led business model by establishing a dedicated cotton fabric processing plant that became fully operational in July 2024. Its core product portfolio spans 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends, polyester blends, and specialized fabric processing for 100% cotton, polyester-viscose (P/V), and polyester compositions. By combining in-house fabric manufacturing with job-work services, the company offers customized, made-to-order textile solutions with reliable, cost-efficient, and faster delivery timelines while optimizing overall capacity utilization. In FY26, operational revenue was driven by Manufacturing (₹4,212.94 million / 81.50%), Job Work (₹894.41 million / 17.30%), and Readymade Garments (₹62.14 million / 1.20%).

The company caters primarily to domestic garment brands, wholesalers, apparel manufacturers, and institutional buyers across the menswear and fashion segments. Geographically, sales remain anchored in the domestic market, though the company initiated international exports in FY26 by shipping ₹8.50 million (0.16% of operational revenue) worth of goods to Nepal. Domestically, revenue is distributed across 13 Indian states, led by Rajasthan (₹1,928.80 million / 37.31%), Delhi (₹1,449.09 million / 28.03%), Maharashtra (₹839.52 million / 16.24%), Karnataka (₹484.24 million / 9.37%), Gujarat (₹149.06 million / 2.88%), and West Bengal (₹91.10 million / 1.76%). Client retention remains robust, with 132 ongoing customers associated with the company for at least three reporting periods, generating ₹1,041.33 million (20.14%) of FY26 operational revenue. Concentration risk is well-distributed, with the Top 1 customer accounting for 4.65% (₹240.24 million), Top 5 customers contributing 17.75% (₹917.51 million), and Top 10 customers representing 29.44% (₹1,522.42 million) of total FY26 operational revenue.

All core manufacturing and processing operations are centralized at a single integrated facility located at 18th K.M. Stone, Chittorgarh Road, Hamirgarh, Bhilwara – 311025, Rajasthan, situated in the prominent textile hub known as the "Manchester City of Rajasthan". The facility covers a freehold land area of approximately 49,540 square meters and houses warehousing capacity of nearly 5.00 million meters for raw materials and finished fabrics. The plant's installed processing capacity stands at 82.44 million meters per annum (MMPA), following a capacity expansion from 54.00 MMPA under a Consent to Operate granted in April 2024. In terms of operational utilization, actual production reached 48.33 MMPA in FY24 (89.50% utilization on 54.00 MMPA capacity), 58.94 MMPA in FY25 (78.24% annualized utilization on 82.44 MMPA capacity), and 68.19 MMPA in FY26, representing an overall capacity utilization rate of 82.71%. Production is supported by advanced machinery including stenters, mercerisers, washing ranges, sanforisers, singeing units, microsand suiding machines, KD jaguar presses, pad dry/steam ranges, and jet dyeing machines.
Operational and quality assurance capabilities are anchored by an in-house quality testing laboratory equipped with specialized testing instruments sourced from China, Switzerland, and the United Kingdom. Key laboratory equipment includes the Titans Universal Strength Tester, Elmatear 1555 Intelligent Digital Tear Tester, and Auto Colour Dispencer units. The quality team executes systematic testing across multiple production stages, verifying yarn count, fabric construction (EPI × PPI), GSM/GLM, weave type, pH levels, shade matching, Colour Strength Value (CSV), tear and tensile strength, dimensional stability, crocking fastness, and functional water-repellency ratings. Reflecting its compliance with global environmental and social standards, the company holds several international accreditations, including OEKO-TEX Standard 100, Global Organic Textile Standard (GOTS v7.0), Organic Content Standard (OCS v3.0), Global Recycled Standard (GRS v4.0), Recycled Claim Standard (RCS v2.0), Regenagri Chain of Custody, and completed HIGG FEM (2024) and HIGG FSLM (2025) verifications.

The company emphasizes environmental sustainability and energy self-reliance across its processing footprint. Its manufacturing facility integrates a 0.26 MW rooftop solar power unit coupled with a back-pressure steam turbine, alongside a newly commissioned 0.94 MW captive rooftop solar installation to reduce reliance on grid electricity. Water conservation and trade effluent management are handled via in-house underground water sources, Effluent Treatment Plants (ETP), and Reverse Osmosis (RO) recycling systems operating under a certified Zero Liquid Discharge (ZLD) framework. Operational workflows are controlled via an enterprise resource planning (ERP) system powered by SAP, enabling real-time inventory tracking, procurement scheduling, vendor payments, and customer receivables management. Additionally, to capture downstream value addition, the company expanded into readymade garment manufacturing by incorporating its wholly-owned subsidiary, Sionnah Enterprises Private Limited, on July 1, 2025, establishing an integrated value chain from fabric processing to finished garment production.

As per financial performance, Sonaselection India Limited has posted total income / net profits of Rs 121.31 Cr / Rs 13.10 Cr (FY24), Rs 316.47 Cr / Rs 18.56 Cr (FY25) and Rs 517.60 Cr / Rs 34.02 Cr (FY26). So as per previous financials data, the company has shown substantial top-line and bottom-line expansion with a 3-year revenue CAGR of 106.71% and PAT CAGR of 61.19%, while total debt increased from Rs 144.60 Cr in FY24 to Rs 258.24 Cr in FY26 (with Rs 80.00 Cr earmarked from fresh issue proceeds for debt prepayment). Company has an average EPS of Rs 6.11 and average RoNW of 37.63% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 4.00 as per NAV of Rs 24.78 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.29. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 42.96, 30.31, and 16.54 respectively. As per RHP, a comparison between listed peers shows that peers like Sangam (India) Limited and Nitin Spinners Limited trade at P/Es of 37.29x and 18.22x respectively, placing the company's valuation at an attractive discount relative to industry peers despite delivering superior return on net worth.

On BRLM's front, Choice Capital Advisors Private Limited is associated with this IPO, and Choice Capital Advisors Private Limited has handled 10 IPOs in the last three fiscal years. (as on 10.04.26)

• 1 Mr. Harshil Nuwal
• 2 Mr. Subhash Chandra Nuwal
• 3 Mrs. Uma Nuwal
• 4 Mr. Deepank Bhandari
• 5 Sona Polyspin Private Limited