Fascinate Textiles Ltd. IPO

Fascinate Textiles

• Fascinate Textiles is coming out with an initial public offering (IPO) of 42,93,600 shares in a price band of Rs 148 - 156 per equity share.
• The issue will open for subscription on August 11, 2026 and will close on August 13, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 14.80 times of its face value on the lower side and 15.60 times on the higher side.
• Book running lead manager to the issue is Affinity Global Capital Market.
• Compliance officer for the issue is Ritika Sharma.

Profile of the company

Fascinate Textiles is engaged in the manufacturing of readymade garments, with operations based in West Bengal. Its product range spans menswear, womenswear, and childrenswear, with a significant portion of its output focused on garments for children. Its offerings include t-shirts, joggers, vests, leggings, shorts, and infant wear, among others, catering to a variety of end-use segments and age groups. It is an ISO 9001:2015 certified company. This certification reflects the presence of defined quality management systems and standardised operational procedures across its processes. It reinforces its ability to meet buyer specifications consistently, supports compliance with international trade norms, and contributes to the facilitation of cross-border operations, including import and export.

It develops samples both in response to themes and mood boards provided by buyers, as well as through its own in-house design initiatives. Once a sample receives approval, it undertakes production at its manufacturing facility. Its garments are supplied to large-format retailers and wholesalers in the local market. It procures yarn, which is then sent for knitting and dyeing through external job workers. Once the processed fabric is received, all subsequent manufacturing operations are carried out within its facility. A significant portion of its production infrastructure is automated, including the use of automatic printing and sequencing machines. This integration of technology enables it to maintains consistency, enhance efficiency, and uphold quality across its product offerings.

Proceed is being used for:

• Funding the working capital requirements
• Prepayment and repayment of all or a portion of certain secured and unsecured loan
• Funding capital expenditure requirement towards setting up additional manufacturing facility
• General corporate purpose
• Meeting the offer expenses 

Industry overview

The Indian textile and apparel market size was valued at $248.70 Billion in 2025 and is projected to reach $656.31 billion by 2034, growing at a compound annual growth rate of 11.38% from 2026-2034. India's textile and apparel sector represents a cornerstone of economic development, weaving together traditional craftsmanship with modern manufacturing capabilities while serving domestic consumption needs and international export demands across diverse product categories and regional manufacturing hubs. The market's significance extends beyond economic metrics, encompassing social dimensions through rural employment generation, women's workforce participation in garment manufacturing, and preservation of regional textile traditions that contribute to India's cultural identity while meeting evolving preferences, thereby expanding the Indian textile and apparel market share.

The India Kids Apparel Market was valued at $24.56 billion in 2024 and is projected to reach $29.35 billion by 2030, rising at a CAGR of 3.01%. This growth is fueled by rising disposable incomes, increasing urbanization, and greater awareness of children's fashion preferences. Indian parents now prioritize comfort, quality, and style, boosting demand for branded and sustainable clothing options. Ecommerce platforms have expanded reach and convenience, offering broad selections and influencing purchasing behavior. Trends such as character-themed apparel, seasonal collections, and social media influence are reshaping consumer expectations. With a growing child population and aspirational middle-class families across urban and semi-urban areas, both domestic and global brands are actively investing in this expanding segment.

The India Clothing market is expected to show significant growth driven by increased consumer spending, digital transformation, and enhanced market penetration. The adoption of technology in fashion retail is transforming the Indian clothing market. In 2024, advancements in AI, big data analytics, and augmented reality (AR) are revolutionizing how brands interact with consumers. AI-driven personalization tools offer customized shopping experiences, while AR enables virtual try-ons, enhancing customer engagement and satisfaction. The rise of direct-to-consumer (DTC) brands is a notable trend in the Indian clothing market. DTC brands bypass traditional retail channels, selling directly to consumers through online platforms.

Pros and strengths

Integrated manufacturing capability: The company follows an integrated approach to garment manufacturing, where most key operations are carried out in-house. Only knitting and dyeing are undertaken through external job work, and stitching for general purposes is outsourced, while stitching for specialised purpose remains in-house. This setup allows it to maintain control over quality and timelines, enabling a smoother flow of production and a more coordinated response to client requirements. Having dedicated merchandisers for each buyer ensures close monitoring of every stage from tracking fabric availability and aligning with seasonal trends to final execution making the process more efficient and structured.

Versatile product range with customisation capabilities: It produces a wide range of garments including t-shirts, joggers, co-ords, kids wear, and casualwear. These are made using different types of fabrics and finishes, which helps it caters to a variety of customer preferences and seasonal needs. Its production setup is designed to handle different kinds of designs and details such as prints, embroidery, special washes, and custom trims. This makes it easier for it to work with specific requests from buyers without major changes to its process. Because of this flexibility, it can support both bulk and small-batch orders, respond to design trends, and develop collections across different age groups and product types. It also allows it to keep its production lines active throughout the year, supporting steady utilisation and timely delivery.

Order-driven production model: It operates on an order-driven production model, with the majority of its sales generated through B2B transactions and a smaller proportion is derived from B2C sales. Manufacturing commences only upon prior approval of product samples from buyers and receipt of a confirmed purchase order. This process ensures that each production batch is customised to client specifications, thereby enhancing customer satisfaction and minimizing production errors. By aligning manufacturing closely with actual demand, the risk of overproduction and unsold inventory reduces, raw material procurement is optimised, and plant capacity is utilized efficiently. This approach also enables better working capital management and supports consistent on-time delivery, as production schedules are planned in advance based on confirmed requirements.

Risks and concerns

Reliance on key suppliers for uninterrupted raw material supply: The company is dependent on its suppliers for uninterrupted supply of Raw-Materials. The company’s top 10 suppliers accounted for 55.86%, 47.15%, and 55.81% of total purchases of raw materials for the financial years ended March 31, 2026, March 31, 2025, and March 31, 2024, respectively. Any shortfall in the supply of its raw materials, or an increase in its raw material costs and other input costs, may adversely affect the pricing and supply of its products with subsequently having an adverse effect on the business, results of operations and financial conditions of the company.

High dependence on top ten customers: The company derives, a substantial portion of its revenue is derived from a limited number of key customers. Its top ten customers have contributed 72.99 %, 93.22% and 99.35% of its total sales for the financial years ended on March 31, 2026, March 31, 2025 and March 31, 2024 on Restated Basis. The customers are concentrated that could expose it to the risk that the loss of, or a significant reduction in orders from, any of these key customers could result in a decline in sales, disrupt cash flow, and hinder its ability to sustain operations effectively. Such a loss may further compound the risk that could arise from factors like changes in customer preferences, price sensitivity, competition or even economic downturns that affect customer budgets. The inability to replace lost business in a timely manner remains uncertain could severely impact the company’s profitability, operational stability and long-term growth prospects.

High geographic concentration of revenue in West Bengal and Karnataka: Significant portion of its revenue is concentrated in West Bengal and Karnataka. Its revenue from operations from West Bengal contributed 69.27%, 50.26% and 26.78% of its total revenue from operations for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively. Revenue from operations from Karnataka contributed 21.96%, 38.24% and 55.79% of its total revenue from operations for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, respectively. Any factors relating to political and geographical changes, growing competition and any change in the demand for its service by customers of these states may adversely affect its ability to retain them. It cannot assure that it shall generate the same quantum of business, or any business at all, from these states, and loss of business from one or more of them may adversely affect its revenues and profitability.

Outlook

Fascinate Textiles is a manufacturer of textiles in India, known for strong presence in the B2B market and also involve B2C and specialises in the production and sale of wide range of T-shirts, jeggings, bottom wear and shorts. It is listed as manufacturer, exporter and supplier of kids garments in India. On the concern side, its operations are both manpower and machine intensive, requiring a sizable workforce for activities such as stitching, sampling, packaging, and production. Some employees are on payroll, while a significant portion of labor needs especially during peak seasons is met through third-party contractual workers. This reliance on both direct and contractual labor exposes it to the risks including strikes, absenteeism, labor shortages, and disputes over wages or working conditions. It has maintained cordial relationships with employees and labor contractors and have not experienced any major disruptions.

The company is coming out with a maiden IPO of 42,93,600 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 148-156 per equity share. The aggregate size of the offer is around Rs 63.55 crore to Rs 66.98 crore based on lower and upper price band respectively. On performance front, total Income for the FY2026 stood at Rs 11,722.80 lakh compared to Rs 6,027.68 lakh in FY 2025. The company reported net profit after tax of Rs 1,509.70 lakh in FY2026 compared to Rs 581.11 lakh in FY2025 which marks an increase of 159.80% over FY2025.

Meanwhile, the company intends to introduce and scale new apparel segments, including but not limited to Women’s Dresses and Frocks (Western and Fusion), Men’s Casual Pants and Bottoms and Shirts, and Extended Premium Knitwear Range. These products are synergistic with current manufacturing capabilities (knitted & woven garments) and utilise similar supply chain and processing infrastructure, ensuring efficient capital deployment. Further, it aims to build lasting relationships by offering products that are tailored to each client’s specific needs.

The revenue zoomed 7.75% to Rs. 11307.79 millions for the quarter ended September 2026 as compared to Rs. 10494.46 millions during the corresponding quarter last year.Net profit stood at Rs. 2746.10  millions  compared to Rs. 2514.28 millions in the corresponding previous quarter,high by 9.22%.OP of the company witnessed a marginal growth to 10444.58 millions from 9741.15 millions in the same quarter last year.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202609	202509	% Var	202609	202509	% Var	202603	202503	% Var
Sales	11307.79	10494.46	7.75	22269.27	20697.76	7.59	42162.65	38786.41	8.70
Other Income	4.05	0.08	4962.50	5.82	0.82	609.76	19.76	9.77	102.25
PBIDT	10444.58	9741.15	7.22	20452.75	19035.27	7.45	38834.82	35784.97	8.52
Interest	6901.64	6385.78	8.08	13496.29	12868.88	4.88	25632.29	24881.57	3.02
PBDT	3542.94	3355.37	5.59	6956.46	6166.39	12.81	13202.53	10903.40	21.09
Depreciation	70.70	39.60	78.54	99.13	74.25	33.51	166.88	128.68	29.69
PBT	3472.24	3315.77	4.72	6857.33	6092.14	12.56	13035.65	10774.72	20.98
TAX	726.14	801.49	-9.40	1433.02	1339.13	7.01	2178.13	2203.05	-1.13
Deferred Tax	-63.82	76.80	-183.10	-139.36	-20.66	574.54	-542.53	-33.63	1513.23
PAT	2746.10	2514.28	9.22	5424.31	4753.01	14.12	10857.52	8571.67	26.67
Equity	266.33	266.33	0.00	266.33	266.33	0.00	266.33	266.33	0.00
PBIDTM(%)	92.37	92.82	-0.49	91.84	91.97	-0.14	92.11	92.26	-0.17

The revenue for the September 2026 quarter is pegged at Rs. 0.74 millions against Rs. 0.00 millions recorded during the year-ago period.The Net Loss for the quarter ended September 2026 is Rs. -0.28 millions as compared to Net Loss of Rs. -0.96 millions of corresponding quarter ended September 2025 Operating profit Margin for the quarter ended September 2026 improved to -0.28% as compared to -0.95% of corresponding quarter ended September 2025

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202609	202509	% Var	202609	202509	% Var	202603	202503	% Var
Sales	0.74	0.00	0.00	0.99	1.08	-8.33	1.08	4.33	-75.06
Other Income	0.16	0.02	700.00	0.33	0.02	1550.00	0.42	3.66	-88.52
PBIDT	-0.28	-0.95	-70.53	-0.90	-0.72	25.00	-2.14	4.22	-150.71
Interest	0.00	0.01	0.00	0.00	0.01	0.00	0.00	0.00	0.00
PBDT	-0.28	-0.96	-70.83	-0.90	-0.73	23.29	-2.14	4.22	-150.71
Depreciation	0.00	0.00	0.00	0.00	0.00	0.00	0.01	0.01	0.00
PBT	-0.28	-0.96	-70.83	-0.90	-0.73	23.29	-2.15	4.21	-151.07
TAX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	9.28	0.00
Deferred Tax	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
PAT	-0.28	-0.96	-70.83	-0.90	-0.73	23.29	-2.15	-5.07	-57.59
Equity	100.00	100.00	0.00	100.00	100.00	0.00	100.00	100.00	0.00
PBIDTM(%)	-37.84	0.00	0.00	-90.91	-66.67	36.36	-198.15	97.46	-303.31

The Turnover for the quarter ended September 2026 of Rs. 26245.00 millions increase by 70.17% from Rs. 15423.00 millions.The company almost doubled its revenue to Rs. 3748.50 millions  from Rs. 742.00 millions in the quarter ended September 2026.Operating profit surged to 15712.50 millions from the corresponding previous quarter of 7591.70 millions.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202609	202509	% Var	202609	202509	% Var	202603	202503	% Var
Sales	26245.00	15423.00	70.17	49547.20	28562.70	73.47	67901.80	41897.60	62.07
Other Income	3.40	4.70	-27.66	70.40	5.10	1280.39	54.70	330.80	-83.46
PBIDT	15712.50	7591.70	106.97	29345.60	14107.40	108.02	35844.20	14447.90	148.09
Interest	10354.50	6378.10	62.34	19571.00	11839.00	65.31	27666.70	15150.90	82.61
PBDT	5358.00	1213.60	341.50	9774.60	2268.40	330.90	8177.50	-703.00	-1263.23
Depreciation	345.00	224.70	53.54	649.00	445.10	45.81	941.40	651.00	44.61
PBT	5013.00	988.90	406.93	9125.60	1823.30	400.50	7236.10	-1354.00	-634.42
TAX	1264.50	246.90	412.15	2300.00	455.30	405.16	1818.00	-370.60	-590.56
Deferred Tax	-133.60	89.60	-249.11	-243.30	165.20	-247.28	1244.70	-373.20	-433.52
PAT	3748.50	742.00	405.19	6825.60	1368.00	398.95	5418.10	-983.40	-650.96
Equity	1761.20	1614.90	9.06	1761.20	1614.90	9.06	1615.90	1545.80	4.53
PBIDTM(%)	59.87	49.22	21.63	59.23	49.39	19.92	52.79	34.48	53.08

A decrease of about -59.34% in the sales to Rs. 1.72 millions was observed for the quarter ended September 2026. The sales stood at Rs. 4.23 millions during the similar quarter previous year.A big decline of -63.61% was reported for the quarter ended September 2026 to Rs. 1.43  millions from Rs. 3.93 millions of corresponding previous quarter.A decline of 1.51 millions was observed in the OP in the quarter ended September 2026 from 4.02 millions on QoQ basis.

(Rs. in Million)

	Quarter ended			Year to Date			Year ended
	202609	202509	% Var	202609	202509	% Var	202603	202503	% Var
Sales	1.72	4.23	-59.34	1.72	9.28	-81.47	21.51	19.10	12.62
Other Income	0.00	0.00	0.00	0.00	0.00	0.00	3.30	0.67	392.54
PBIDT	1.51	4.02	-62.44	0.31	8.59	-96.39	21.47	17.74	21.03
Interest	0.00	0.00	0.00	0.00	0.03	0.00	0.00	0.00	0.00
PBDT	1.51	4.02	-62.44	0.31	8.56	-96.38	21.47	17.74	21.03
Depreciation	0.08	0.10	-20.00	0.16	0.20	-20.00	0.41	0.11	272.73
PBT	1.43	3.92	-63.52	0.15	8.36	-98.21	21.06	17.63	19.46
TAX	0.00	-0.01	-100.00	0.00	-0.02	-100.00	5.56	4.89	13.70
Deferred Tax	0.00	-0.01	-100.00	0.00	-0.02	-100.00	-0.02	0.02	-200.00
PAT	1.43	3.93	-63.61	0.15	8.38	-98.21	15.50	12.74	21.66
Equity	38.88	33.61	15.68	38.88	33.61	15.68	38.88	33.61	15.68
PBIDTM(%)	87.79	95.04	-7.62	18.02	92.56	-80.53	99.81	92.88	7.47