Mahalaxmi Rubtech Ltd. Share Price

Ashutosh Fibre 

• Ashutosh Fibre is coming out with an initial public offering (IPO) of 61,24,800 shares in a price band of Rs 87 - 92 per equity share.
• The issue will open for subscription on August 31, 2026 and will close on September 02, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 8.70 times of its face value on the lower side and 9.20 times on the higher side.
• Book running lead manager to the issue is Mefcom Capital Markets.
• Compliance officer for the issue is Sonal Bankim Bhansali.

Profile of the company

Ashutosh Fibre commenced operations in the trading of textile yarns and fabrics. In 1995, the ownership changed through transfer of shares to the current promoter group and manufacturing activities began in 2000. Until 2006-07, trading continued to contribute significantly to operations, after which manufacturing became the primary focus. In 2010, additional shareholders with relevant industry experience joined the company, supporting the expansion of manufacturing capabilities. It is presently engaged in the manufacture of various technical and synthetic yarns from its facility located at Petlad, Gujarat. Technical textiles are textile materials and products manufactured primarily to deliver specific technical performance and functional properties, rather than for aesthetic or decorative purposes. These products are engineered to meet defined performance requirements such as durability, tensile strength, flame resistance, thermal insulation, or moisture control, depending on the intended use. They are applied across various industrial, protective and specialised end uses, where functional attributes are more important than appearance.

It operates in four categories of technical textiles i) Indutech, ii) Protech, iii) Hometech and iv) Mobiltech. In the Indutech segment, its products cater to industrial applications such as filtration, geotextiles and process industry textiles. One of its key products in this segment is polypropylene spun yarn, manufactured from polypropylene fibres that are lightweight, chemically resistant, have low moisture absorption and provides good abrasion resistance. These properties make it suitable for use in filter cartridges, filter cloths, ropes, webbings and other industrial applications where chemical stability and dimensional integrity are required. In the Protech segment, it manufactures yarns and fabrics with inherent properties such as strength, flame retardancy and heat resistance, used in personal protective equipment, safety apparel and industrial thermal barriers. In the Hometech segment, its yarns are used in home furnishing textiles, carpets and home filtration media. In Mobiltech segment, it manufactures friction resistant yarns that are primarily used in the production of automotive friction materials such as brake pads, clutch facings and transmission components.

It operates on a business to business (B2B) business model. It supplies its yarns and fabrics to industrial manufacturers, processors and institutional buyers. Its products are used as raw material inputs across industries such as filtration and pollution control (gas and liquid filter media, filter cartridges, filter cloths), construction and infrastructure (geotextiles, ropes, webbings), automotive (friction materials, thermal insulation, seat fabrics), packaging (antistatic FIBC), safety and protective equipment (flame-retardant clothing, industrial protective wear, PPE kits) and home furnishing (carpets, upholstery, curtains and home filtration media). It customizes products based on client requirements and supply in accordance with technical specifications. Its business model emphasizes recurring supply to industrial clients rather than direct sales to retail consumers. Its product range includes specialised yarns such as para-aramid yarn (high strength and heat resistance), meta-aramid yarn (flame retardancy), modacrylic-blended yarns (thermal stability and flame resistance), peroxidised PAN yarn (heat insulation), antistatic polypropylene yarn (to reduce static build-up in sensitive environments), FR Viscose blends (protective fabrics) and DREF-spun yarns with glass filament cores or aramid sheaths (industrial and protective uses). These products are manufactured either as part of its own product range or on a job work basis, depending on client requirements.

Proceed is being used for:

• Funding capital expenditure requirements towards funding of new equipment and machinery.
• Repayment/pre-payment, in full or in part, of certain borrowings availed by the company.
• General corporate purposes.

Industry overview

Technical textiles refer to textile materials and products manufactured primarily for their functional performance and technical properties rather than for aesthetics or decorative characteristics. These products are specially designed to meet specific performance requirements across various industrial sectors such as agriculture, healthcare, construction, transportation, defence, Industrial, packaging, and environmental protection. Depending on their end use, technical textiles offer benefits such as high tensile strength, thermal resistance, flame retardancy, chemical stability, durability, and lightweight characteristics making them indispensable in both industrial and consumer applications. As industrial activity continues to grow, the demand for high-performance technical textiles particularly in transport, industrial and defence use cases has steadily increased. 

India's technical textile industry is expected to witness sustained growth in the coming years, not just due to industrial applications but also because of broader structural and policy-level shifts. One of the key drivers will be the integration of technical textiles into public infrastructure mandates, such as mandatory use of geotextiles in road construction, landfills, and water conservation projects. Several state governments are incorporating technical textile components into urban development and irrigation schemes, which is expected to generate stable, institutional demand. Additionally, the use of technical textiles in large-scale government programs like Jal Jeevan Mission, PM Gati Shakti, and Smart Cities will open new markets and ensure consistent utilization. 

India’s technical textile industry is expected to grow from $28.5 billion in FY 2025 to $50 billion by FY 2030, registering a strong CAGR of 11.9%. This growth reflects a transition from limited adoption to widespread industrial use, driven by rising demand for high-value segments like smart textiles, bio-based materials, and defence-grade fabrics. Regulatory measures such as Quality Control Orders (QCOs), increasing investment in domestic manufacturing, and state-level policy support are further strengthening the ecosystem. Additionally, India's cost advantage and improving compliance with global standards position it as a preferred sourcing destination in the post-COVID global supply chain realignment. As a result, export-oriented categories like Indutech, Meditech, and Packtech are expected to play a larger role in driving the sector’s expansion.

Pros and strengths

Recycling and sustainable fibre solutions: It has developed capabilities in recycling and re-engineering para-aramid fabrics, which are difficult to process due to their high tensile strength, thermal resistance and non-biodegradable nature. Para-aramid yarns, widely used in safety and protective applications such as bulletproof vests, are imported by it at the end of their usable life. It processes these expired materials through its proprietary recycling system and convert them into high-quality secondary raw materials.

Strong focus on quality control and product consistency: It maintains a strong emphasis on quality control across its manufacturing processes, which are aligned with stringent standards required for technical yarns. Its production facility is equipped with advanced testing and monitoring equipment, including the Mesdan Evenness Tester for real-time measurement of yarn uniformity, tensile strength and other performance parameters. It also employs the Pinter Hard Core attachment system, which enhances core yarn strength and enables the production of specialty and high-torque yarns. Its focus on quality control enables it to deliver yarns with consistent technical performance, reducing wastage and ensuring compliance with customer specifications. This capability is particularly important in industries such as filtration, automotive friction materials and protective textiles, where reliability and safety are critical.

Positioning in polypropylene spun yarns: It is engaged in the manufacture of polypropylene (PP) spun yarns, which form a key part of its product portfolio and are used in both household and industrial applications. Polypropylene fibres are valued for their properties of light weight, high strength-to-weight ratio, resistance to chemicals and low moisture absorption, making them well-suited for filtration media, geotextiles, insulation products and protective technical textiles. Its polypropylene yarns are manufactured using advanced spinning technologies that enable it to offer a wide range of counts and plies in both single and multiple-end formats. This flexibility allows it to cater to varied customer specifications across industries that demand durability, consistency and technical performance. It has developed a presence in the polypropylene yarn segment in India, supported by its production capabilities and customer relationships. The polypropylene yarn segment contributes materially to its revenues, particularly from customers in the filtration and technical textile sectors. For the Financial Years ended March 31, 2026, 2025 and 2024, sales of polypropylene yarns accounted for around 22.95%, 22.64% and 21.27% of its revenue from operations, respectively.

Risks and concerns

Dependent on third-party suppliers for procurement of raw materials: The company is dependent on third-party suppliers for the procurement of key raw materials, including polypropylene fibre, high-tenacity polyester, modacrylic fibre, para-aramid fibre, flame retardant (FR) viscose fibre and specialised blends such as melamine and peroxidised PAN. These are the primary inputs used in the manufacture of its technical yarns across the Indutech, Protech, Mobiltech and Hometech products. It sources majority of its raw materials from its top 10 suppliers. For the Fiscals 2026, 2025 and 2024, its top ten suppliers accounted for 64.73%, 70.31% and 78.10% of its total raw material purchases, respectively. A significant portion of its raw materials is procured from a limited number of key suppliers and any disruption in the supply of raw materials from such suppliers could adversely impact its operations if it is unable to replace them or have alternative in a timely and cost-effective manner. 

Significant dependence on exports: It derives a portion of its revenue from exports. During the Fiscal 2026, Fiscal 2025 and Fiscal 2024, export sales accounted for 38.99%, 38.05% and 43.59% of its revenue from operations, respectively. During the same periods, its revenue from China amounted to Rs 2,558.93 lakhs (i.e. 21.80%), Rs 2,252.65 lakhs (i.e. 19.75%) and Rs 2,804.77 lakhs (i.e. 25.53%), respectively. It also exports to other countries including Germany, Hungary, Brazil, Russia and Italy. Its dependence on export markets exposes it to risks associated with international trade and cross-border business, including foreign exchange rate fluctuations, variations in demand, import and export regulations, customs and documentation processes, international logistics and freight availability.

Significant portion of revenue comes from key customers: It relies on a limited number of high-volume customers for a substantial portion of its revenues. For the Fiscals 2026, 2025 and 2024, its top ten customers contributed around 68.85%, 67.40% and 72.11% of its revenue from operations, respectively. This dependence on a few key customers exposes it to several risks, including the potential reduction, delay, or cancellation of orders, as well as challenges in negotiating favourable terms. Any loss of these customers or failure to renew orders on similar terms could materially affect its business, financial condition, cash flows and future prospects.

Outlook

Ashutosh Fibre is engaged in the business of manufacturing and trading of techincal textile yarns. Its polypropylene yarns are manufactured using advanced spinning technologies that enable it to offer a wide range of counts and plies in both single and multiple-end formats. This flexibility allows it to cater to varied customer specifications across industries that demand durability, consistency and technical performance. It has developed a presence in the polypropylene yarn segment in India, supported by its production capabilities and customer relationships. On the concern side, its revenues are entirely derived from the spinning of technical textile yarns, including para-aramid based yarns, polypropylene yarns, meta-aramid/viscose blends and other specialty fibres. Unlike companies with diversified operations across multiple business segments, it does not have alternate lines of business to mitigate the impact of downturns in this segment. Any reduction in demand for technical textile yarn, adverse changes in industry trends, increasing competition, regulatory developments, changes in customer preference, or pricing pressures could directly impact its revenues and profitability.

The company is coming out with a maiden IPO of 61,24,800 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 87 - 92 per equity share. The aggregate size of the offer is around Rs 53.29 crore to Rs 56.35 crore based on lower and upper price band respectively. On performance front, revenue from operations increased 2.93% from Rs 11,403.40 lakh in Fiscal 2025 to Rs 11,737.14 lakh in Fiscal 2026. Net profit after tax increased 88.53% from Rs 850.92 lakh in Fiscal 2025 to Rs 1,604.23 lakh in Fiscal 2026.

Meanwhile, the company aims to scale up its production capacity by expanding operations within its existing facility in Petlad, Gujarat. As a manufacturer of technical yarns in India, it currently caters to diverse end-use industries such as defence, filtration, protective clothing, automotive and composites. To meet growing demand, especially in the technical and high-performance yarn segments, it plans to deploy additional compact spinning systems and high-value yarn attachments such as the Pinter Hard Core system, which will allow for the manufacture of core-spun and specialty yarns. Going forward, to further improve efficiency and competitiveness, it intends to expand the adoption of automation and digital tools across manufacturing and administrative processes. It aims to incorporate solutions such as integrated planning systems, automated inventory management and data-driven monitoring and analytics to optimise production visibility and operational control.