Madhur KnitIPO Review — Financials, Valuation & Peers
A data-only look at the Madhur Knit IPO: restated financials, valuation ratios, the RHP peer group and third-party analyst views. ipostation does not rate IPOs — nothing here is a recommendation.
Financials (₹ Cr)
| Period Ended | Revenue | PAT | EBITDA | Net Worth | Total Assets | Borrowings | EPS (₹) |
|---|---|---|---|---|---|---|---|
| FY 2024 | 108.41 | 1.7 | 8.04 | 16.24 | 90.6 | 57.79 | — |
| FY 2025 | 171.76 | 11.03 | 23.28 | 29.49 | 122.59 | 67.2 | — |
| Feb 2026 (interim) | 194.79 | 12.35 | 25.67 | 43.61 | 159.97 | 73.54 | 8.23 |
Restated figures from the offer document. Amounts in ₹ crore; EPS in ₹ per share. FY = the 12 months ended 31 March. Interim periods cover part of a year and are not comparable to the full-year rows.
KPIs & Valuation
- P/E (pre-issue)
- 12.15x
- P/E (post-issue)
- 13.91x
- RoNW
- 28.33%
- RoE
- 28.33%
- RoCE
- 31.11%
- Debt / Equity
- 1.69
- EPS (pre-issue)
- ₹8.23
- EPS (post-issue)
- ₹7.19
- EBITDA Margin
- 13.19%
- PAT Margin
- 6.34%
- P/BV
- 3.08x
- NAV / share
- ₹32.47
- Market Cap
- ₹187.37 Cr
As of 28 Feb 2026 (latest reported period in the offer document). Market cap is computed on a post-issue basis at the upper price band.
Peer Comparison
| Company | EPS (₹) | NAV (₹) | P/E | RoNW | P/BV | Statements |
|---|---|---|---|---|---|---|
| Madhur Knit | 8.51 | 22.31 | — | 37.42% | — | Restated |
| Kaytex Fabrics Limited | 12.79 | 79.27 | 4.69x | 14.96% | 0.76x | Consolidated |
Peer group as disclosed in the offer document, figures as of 31 Mar 2026. The issuer’s P/E is computed at the upper price band.
Promoters & Shareholding
Promoters: <p>Arun Gupta, Piyush Gupta, Chirag Gupta</p>
- Holding (pre-issue)
- 100%
- Holding (post-issue)
- 71.57%
- Dilution
- 28.43%
Analysis in brief
Anchor book
Before the issue opened to the public, Madhur Knit placed shares with 2 anchor investors, who together put in ₹3.02 crore. Anchor investors are institutions allotted shares at the issue price a day before bidding opens, in exchange for a mandatory post-listing lock-in — their names and cheque sizes are disclosed, which is why the anchor book is read as an institutional signal. The largest allocations went to SUNRISE INVESTMENT TRUST-SUNRISE INVESTMENT OPPORTUNITIES FUND (₹2 crore) and CRAFT EMERGING MARKET FUND PCC-CITADEL CAPITAL FUND (₹1.02 crore). Investor categories represented include Other. The lock-in on half the anchor shares ends on 27 Sept 2026, with the remainder locked until 26 Nov 2026.
Margin and return profile
Beyond the headline pricing, the disclosed operating profile stands on its own numbers. Madhur Knit operates at an EBITDA margin of 13.19% and a net (PAT) margin of 6.34% — the share of revenue retained at the operating and the net level respectively. Capital efficiency reads at a return on capital employed (RoCE) of 31.11% and a return on equity (RoE) of 28.33%. At the upper band, the post-issue market capitalisation works out to about ₹187.37 crore. These are offer-document figures for the latest reported period (as of 28 Feb 2026); they describe the business as disclosed, not how the stock will trade.
Objects of the issue
Per the offer document, the company intends to deploy the net proceeds primarily toward prepayment or repayment of a portion of certain outstanding borrowings availed by the company (₹20.85 crore), alongside working capital requirement of the company. (₹15.92 crore). In all, 4 objects are disclosed.
Financials
In FY2026, Madhur Knit reported revenue of ₹194.79 crore and a net profit of ₹12.35 crore. Revenue grew from ₹108.41 crore in FY2024 to ₹194.79 crore in FY2026 (+80.0%). Net worth stood at ₹43.61 crore at the end of FY2026. At the upper band, that puts the issue at roughly 12.2× FY2026 earnings (P/E), a figure worth comparing against listed peers in the sector.
Valuation
At the upper band, the issue is priced at 13.91× post-issue earnings and 3.08× book value, against a return on net worth of 28.33% and a debt-to-equity ratio of 1.69. These ratios come from the offer document and are for comparison, not a recommendation.
Promoters
The promoters of the company are <p>Arun Gupta, Piyush Gupta, Chirag Gupta</p>. Promoter holding stands at 100% before the issue and comes down to 71.57% after listing.
Frequently asked questions
- What is the reservation split in the Madhur Knit IPO?
- Of the total shares offered, retail investors get 45.01%, QIBs 4.01% (plus 5.98% anchor), non-institutional investors 45.01%.
- Who are the promoters of Madhur Knit and what is their holding?
- The promoters are <p>Arun Gupta, Piyush Gupta, Chirag Gupta</p>. Promoter holding is 100% before the issue and 71.57% after listing.
- What is the P/E ratio of the Madhur Knit IPO?
- At the upper price band, the Madhur Knit IPO is valued at 12.15× pre-issue earnings and 13.91× post-issue earnings, based on the financials disclosed in the offer document.
- What are the objects of the Madhur Knit IPO?
- The net proceeds go primarily toward prepayment or repayment of a portion of certain outstanding borrowings availed by the company, among 4 disclosed objects.