Vinod Texworld

Vinod Texworld Limited, originally incorporated as Shree Shiv Shakti Cot-Fab Private Limited on July 19, 2012, in Ahmedabad, Gujarat, is a textile processing enterprise specializing in the manufacturing and processing of dyed and printed fabrics. Over the years, the company underwent strategic name changes to align with its branding evolution, becoming Vinod Fabtex Private Limited in FY 2017-18 and Vinod Texworld Private Limited in FY 2018-19, before converting into a public limited company under its current name on December 18, 2024. The company’s core value proposition is to produce premium fabrics for the fast-fashion segment. VTL manages the entire value-addition chain from raw greige fabric to finished dyed and printed fabrics, utilizing modern fabric-processing technologies, creative designs, and traditional craftsmanship to adapt quickly to rapidly evolving consumer fashion trends.

The underlying business model of the company operates across both manufacturing and trading segments of the textile sector. Its processing division is engaged in dyeing, printing, and finishing grey fabrics based on precise customer specifications, which ensures strict quality control and swift turnaround times. This is complemented by a trading division that procures finished textile products from third-party suppliers to offer a broader range of designs and meet diverse client requirements. Over the last three fiscal years, the company has strategically shifted its business model by phasing out low-margin job work (which dropped from Rs 5.10 Crore in FY24 to just Rs 2.33 Lakhs in FY26) to focus purely on high-margin, in-house manufacturing and trading activities.

VTL serves a diverse customer base comprising apparel manufacturers, garment makers, wholesalers, and large-scale fabric traders who utilize processed fabrics as raw materials for their downstream operations. The company's operations are predominantly focused on the domestic Indian market, which accounts for approximately 99% of its total operational revenue. VTL maintains an extensive domestic distribution network, serving clients across several key states including Gujarat, Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, and West Bengal. In addition to its dominant domestic presence, the company has started expanding into international territories, recording export sales to Nepal in Fiscal 2026.

The company’s manufacturing operations are centralized at its strategically located processing facility at Survey No. 185/2, Saijpur, Gopalpur, Opp. Shanti Process, Piplaj Pirana Road, Ahmedabad, Gujarat, 382405. VTL acquired the factory land in FY 2018-19 and has since built a comprehensive manufacturing infrastructure equipped with advanced textile machinery, including jigger machines, continuous pad (C.P.) dyeing lines, drying ranges, and advanced wash-liquor systems. This Ahmedabad facility is strategically positioned within India’s primary textile hub, providing proximity to key greige fabric suppliers—such as sister concern and related party Vinod Cotfab Private Limited, which supplies 44.64% of VTL's raw materials and efficient logistics networks.

As of July 29, 2026, the company’s processing plant operates with an existing installed capacity of 2,25,00,000 meters per annum. VTL has achieved progressive expansion in actual production and capacity utilization over the audited historical periods. In Fiscal 2024, on an installed capacity of 1,90,00,000 meters, actual production stood at 1,62,57,755 meters, representing a capacity utilization rate of 85.57%. In Fiscal 2025, installed capacity was expanded to 2,25,00,000 meters, with production rising to 1,98,40,507 meters, indicating a capacity utilization of 88.18%. For the latest fiscal year ended March 31, 2026, on the same installed base of 2,25,00,000 meters, production reached 2,02,50,320 meters, resulting in an optimal capacity utilization rate of 90.00%. VTL is currently deploying IPO proceeds to fund a CAPEX expansion of 39,00,000 meters per annum to bring its proposed capacity to 2,64,00,000 meters per annum.

In addition to scaling production capacity, the company focuses on technology upgrades, cost-efficiency, and sustainability initiatives. VTL took a major step toward sustainability and energy cost-reduction in FY 2021-22 by installing a rooftop solar power plant, which was expanded in FY 2024-25 and FY 2025-26 with an additional 1,500 kWp solar facility. This green energy shift has significantly reduced VTL's power costs and carbon footprint. Although the company does not operate a formal, independent R&D laboratory, its operational highlights focus on continuous process engineering improvements, waste-water compliance, and custom fabric design development to retain its competitive edge in the fast-fashion textile processing sector.

As per financial performance, Vinod Texworld Limited has posted total income / net profits of Rs 27.17 Cr / Rs 5.49 Cr (FY24), Rs 33.57 Cr / Rs 9.23 Cr (FY25) and Rs 34.30 Cr / Rs 10.41 Cr (FY26). So as per previous financials data, the company has shown consistent top-line and bottom-line growth, with total income rising at a 12.34% CAGR and restated PAT expanding at a 37.73% CAGR, though total outstanding debt has increased from Rs 47.01 Cr to Rs 70.48 Cr. Company has an average EPS of Rs 7.94 and average RoNW of 25.60% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 2.55 as per NAV of Rs 36.90 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.77. 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 27.68, 16.45, and 14.59 respectively. As per RHP, a comparison between listed peers shows that Vinod Texworld Limited's Return on Net Worth (RoNW) of 24.31% is superior to Jakharia Fabric Limited (RoNW of 13.10%) and comparable to Borana Weaves Limited (RoNW of 22.94%), while its post-issue P/E of 14.59x is priced at a steep discount to the textile product industry average P/E of 41.50x.

On BRLM's front, Novus Capital Advisors Private Limited is associated with this IPO, and has handled 21 IPOs in the past. From last 10 IPOs, two 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 10 IPOs, six are trading below the issue price and the remaining four are trading above the issue price or at par. (as on 05.09.26)

• 1 Mr. Harsh Vinod Mittal
• 2 Mr. Yash Vinod Mittal
• 3 Mrs. Sweta Yash Mittal