What the company does
The company manufactures men's, women's, children's and infant garments, with cutting, printing, stitching, finishing, design and merchandising at its Barasat facility. Children, infant and men's apparel generated 38.41%, 21.97% and 28.71% of FY26 revenue respectively.
Fascinate says it manufactures against confirmed orders. Yarn is sent to outside job workers for knitting and dyeing before downstream production is completed in-house, so the operating model combines owned finishing capacity with external process dependence.
Exports were only ₹3.81 crore, or 3.26% of FY26 revenue, entirely to Saudi Arabia and the UAE. The proposed facility is described as export-oriented, but the existing revenue base remains overwhelmingly domestic.
Promoters include Rishabh Nahar, Chirag Ahuja, Vishal Nahar, Vishal Nahar HUF and Narinder Kumar Ahuja. The company converted to public status in 2025, leaving a short public-governance track record.
The final RHP reports 106 employees and a further 148 contract workers at 31 March 2026. FY26 employee attrition was 7.55%, down from 8.86% in FY25, while the labour-intensive model still depends on contractors, job workers and timely statutory compliance.
Where the IPO money goes
Three-year financial snapshot
| Year | Revenue | EBITDA | PAT | Net worth | Borrowings | Assets |
|---|---|---|---|---|---|---|
| FY24 | ₹28.88 Cr | ₹1.68 Cr | ₹0.48 Cr | ₹4.45 Cr | ₹12.33 Cr | ₹25.45 Cr |
| FY25 | ₹60.25 Cr | ₹10.01 Cr | ₹5.81 Cr | ₹10.45 Cr | ₹18.21 Cr | ₹42.26 Cr |
| FY26 | ₹117.09 Cr | ₹24.15 Cr | ₹15.1 Cr | ₹31.44 Cr | ₹26.02 Cr | ₹92.75 Cr |
Restated financial information from IPO source materials; rounding may create small differences.
FY26 EBITDA margin
20.62%
EBITDA rose to ₹24.15 crore from ₹10.01 crore in FY25; the step-up needs testing across product and outsourcing mix.
FY26 PAT margin
12.89%
Final RHP restated PAT was ₹15.10 crore after ₹5.81 crore in FY25, correcting the earlier ₹8.08 crore figure.
FY26 operating cash flow
−₹10.87 crore
Profit did not convert to cash as inventory and receivables absorbed working capital.
FY26 debt/equity
0.83×
Borrowings rose to ₹26.02 crore, but retained profit and equity additions increased net worth to ₹31.44 crore.
Top-ten customer share
72.99%
Improved from 93.22% in FY25; the top five still generated 56.32% of FY26 revenue.
FY26 net working capital
₹51.08 crore
Inventory was ₹48.13 crore and receivables ₹35.28 crore; the RHP reports a 146-day cycle.
FY26 related-party sales
₹23.99 crore
20.5% of revenue: ₹20.35 crore to promoter-group entity Karnika Industries and ₹3.64 crore to Arihant Fashion, an entity influenced by key management or relatives.
FY26 receivables over six months
₹4.54 crore
12.9% of the ₹35.28 crore book was older than six months, yet the full receivable balance was classified as undisputed and considered good.
FY26 inventory composition
49.8% work-in-process
₹23.95 crore of ₹48.13 crore inventory was work-in-process; raw materials were ₹15.76 crore and finished goods ₹8.42 crore.
FY27 IPO-funded working capital
36.5% of gap
₹25.15 crore of the projected ₹68.95 crore requirement; ₹43.80 crore remains dependent on internal sources and bank borrowing.
Upper-band diluted P/E
≈14.22×
Based on ₹15.10 crore FY26 PAT, 1.3761 crore post-fresh-issue shares and the ₹156 cap.
Fresh issue / FY26 net worth
171.6%
The ₹53.94 crore cap-price fresh issue is 1.72× FY26 net worth of ₹31.44 crore, before the ₹13.04 crore promoter-group OFS.
Promoter + group holding after offer
≈68.40%
Derived from 1,02,48,070 promoter-and-group shares before the offer, less Neetu Nahar's 8,36,000-share OFS, divided by the final-RHP post-fresh share count of 1,37,60,893.
Three-year promoter lock-in
27,54,580 shares
Approximately 20.02% of the 1,37,60,893 post-fresh share count. The remaining promoter holding is split into 26,74,147 shares locked for two years and 26,74,143 for one year.
OFS seller stake sold
49.18%
Neetu Nahar is selling 8,36,000 of her 17,00,000 shares. She retains 8,64,000 shares, or approximately 6.28% of post-offer capital; the RHP reports nil weighted acquisition cost because the holding came through gift and bonus issuances.
Cap price / pre-issue NAV
5.11×
Derived from the ₹156 cap and the final RHP's FY26 pre-issue NAV of ₹30.52 per share.
Cap price / post-issue NAV
2.51×
Derived from ₹156 and the final RHP's ₹62.05 after-issue NAV at the cap; unlike many SME RHPs, Fascinate populates this dilution-adjusted book-value figure.
FY26 garment utilisation
106.70%
Garment output exceeded stated double-shift capacity, while knitted fabric, woven fabric and yarn utilisation were only 22.33%, 7.11% and 11.34%.
NSE post-window reconciliation snapshot
62,39,200 bids / 1.45×
Official feed retrieved at approximately 8:55 p.m. IST on 19 August against the 42,93,600-share displayed gross offer still labelled the issue Active. Because that denominator includes 2,15,200 market-maker shares, demand is approximately 1.53× the residual 40,78,400-share public pool by calculation. This is not a final category-wise figure.
NSE exchange-transition recheck
Still Active; absent from past issues
At approximately 8:55 p.m. IST, the current feed still showed the extended 19 August end date and NSE's official past-issues table did not yet contain Fascinate. Final category demand, issue price, allotment and the revised listing timetable still require controlling exchange notices.
New-facility cost deployed
0.4%
Only ₹5 lakh against a ₹12.50 crore estimate had been deployed at the RHP date, entirely for land; civil work and machinery deployment were nil.
FY26 export share
3.26%
₹3.81 crore of revenue came from Saudi Arabia and the UAE; the planned facility's export positioning is therefore still an execution case.
Facility timetable
March 2028
The formal implementation schedule targets commercial production in March 2028, conflicting with a separate RHP narrative reference to July 2027.
Longest corporate-filing delay
647 days
The FY24 ADT-1 was filed only on 22 July 2025; AOC-4 and PAS-3 forms also had shorter disclosed delays.
FY26 employee attrition
7.55%
Eight exits against 106 employees; the RHP also reports 148 contract workers at 31 March 2026.
High-cost NBFC debt
₹2.36 crore
Eight unsecured working-capital loans carried 15.0–18.5% rates at FY26; the ₹2.68 crore IPO repayment object is broadly sized to this expensive loan pool and related charges.
IPO debt-repayment share
10.3%
The ₹2.68 crore debt object equals only 10.3% of ₹26.02 crore FY26 borrowings; ₹21.08 crore of secured facilities and other unsecured funding remained at year end.
What stands out
- Final RHP restated revenue nearly doubled to ₹117.09 crore in FY26, while EBITDA reached ₹24.15 crore and PAT ₹15.10 crore.
- Customer concentration improved: the top-ten share fell to 72.99% in FY26 from 93.22% in FY25 and 99.35% in FY24, though it remains material.
- The stated issue objects address manufacturing capacity, working capital and a portion of borrowings.
- The final RHP states that auditors made no qualification-driven restatement adjustments, providing a clearer FY24–FY26 base than earlier draft-stage summaries.
Key concerns
- FY26 PAT rose 160% while revenue rose 94%, and the EBITDA margin reached 20.62%. The sustainability of this profitability should be tested against product mix, raw-material costs and outsourced processes.
- The top five customers generated 56.32% and the top ten 72.99% of FY26 revenue. Loss or delayed payment from a major buyer could still materially affect revenue and cash flow.
- Borrowings rose to ₹26.02 crore in FY26 from ₹18.21 crore in FY25. Only ₹2.68 crore of fresh proceeds is earmarked for repayment.
- The RHP breaks out ₹2.36 crore across eight unsecured NBFC working-capital loans priced at 15.0–18.5%, compared with 9% on the main IndusInd secured facilities. The ₹2.68 crore repayment object is capped at 10.3% of total FY26 debt and may also absorb prepayment charges, so it mainly refinances the costliest slice rather than materially deleveraging the company.
- Operating cash flow was negative ₹10.87 crore in FY26. Net working capital reached ₹51.08 crore, including ₹48.13 crore inventory and ₹35.28 crore receivables, despite ₹15.10 crore PAT.
- FY26 sales to Karnika Industries and Arihant Fashion totalled ₹23.99 crore, or 20.5% of revenue. Because these are related parties, arm's-length pricing, gross margin, credit terms and the durability of non-group demand require separate scrutiny even though most of Karnika's year-end balance had been collected.
- The full ₹35.28 crore FY26 receivable book was classified as considered good with no doubtful balance, although ₹4.54 crore was older than six months. Subsequent collections and any post-issue impairment are therefore more decision-useful than the classification alone.
- Inventory rose to ₹48.13 crore and was valued and certified by management under the lower-of-cost-and-NRV policy; ₹23.95 crore, or 49.8%, was work-in-process. With inventory growth materially ahead of revenue growth, ageing, order linkage and write-down history remain unavailable quality checks.
- Fabric, yarn, dyes and processing costs can move rapidly, while customer orders may have fixed prices and short delivery windows.
- The RHP projects the working-capital cycle easing only from 146 days in FY26 to 142 days in FY27 and 141 days in FY28. Inventory holding is still projected at 128 and 126 days, leaving planned growth structurally capital intensive even after the issue.
- The FY27 plan assumes trade payables fall from ₹27.29 crore to ₹16.78 crore while the working-capital requirement rises to ₹68.95 crore. The ₹25.15 crore IPO allocation funds only 36.5% of that requirement, leaving a material internal-accrual and bank-funding dependency.
- OFS seller Neetu Nahar, spouse of promoter Vishal Nahar, is selling 8.36 lakh of her 17.00 lakh shares—49.18% of her holding—for up to ₹13.04 crore at the cap. She retains 8.64 lakh shares, or about 6.28% of post-offer capital. Promoter-plus-group ownership remains approximately 68.40%, and the RHP reports a nil weighted acquisition cost because her shares came through gift and bonus issuances.
- Only ₹5 lakh, or 0.4%, of the ₹12.50 crore additional-facility estimate had been deployed at the RHP date, entirely against land under a December 2024 MoU with nine individual sellers. The company did not yet own the land, and no specific industrial-use approval had been obtained.
- The RHP contains conflicting commissioning language: one narrative paragraph refers to commercial operations by July 2027, while the formal implementation schedule places machinery orders in January 2028 and trial run and commercial production in March 2028. The later detailed schedule is the more decision-useful base until the issuer clarifies the date.
- All listed approvals for the new facility, including the building plan, consent to establish, consent to operate, trade licence and fire licence, were still to be applied for at the appropriate stage. Timely land title, permitting, construction and machinery delivery are therefore sequential dependencies.
- The RHP reports 106.70% garment-capacity utilisation in FY26 but only 22.33% knitted-fabric, 7.11% woven-fabric and 11.34% yarn utilisation. The relationship among in-house capacity, outsourced knitting and dyeing, peak-season labour and purchased inputs needs continued reconciliation.
- The top ten suppliers supplied 55.86% of FY26 purchases and the top five 42.73%. The company describes a broad supplier pool, but yarn, fabric and processing concentration still adds delivery and pricing risk.
- Corporate compliance history includes a 647-day delay in filing the FY24 auditor-appointment form, delays in an FY22 AOC-4 and FY25/FY26 PAS-3 filings, and two director-appointment forms whose 'Independent' classification the company says was not aligned. Rectification was initiated, but penalties remain possible.
- Historical statutory-payment delays reached 313 days for provident fund and 75 days for GST. The company says the dues were filed and paid with applicable interest or penalty and that controls were added; post-listing timeliness will test the remediation.
- Trademark applications remain pending, and the RHP states the company has neither copyrights over garment designs nor patents over manufacturing processes. This limits legal protection if designs or processes are copied.
- NSE Emerge shares can have limited liquidity, large tradable lots, market-maker dependence and wide bid-ask spreads.
What to monitor after listing
- NSE extension and allotment notices, plus any further addenda reconciling operating capacity, product classification and issue dates.
- Top-five and top-ten customers, order cancellations, repeat business and receivable ageing by major buyer.
- Related-party sales, pricing, margins, credit terms and closing receivables for Karnika Industries and Arihant Fashion, alongside the share of revenue generated from independent customers.
- Collections of the ₹4.54 crore receivable balance older than six months, plus inventory ageing, order linkage, work-in-process conversion and any NRV write-downs.
- Operating cash flow, the 146-day FY26 working-capital cycle, the projected 142/141-day FY27/FY28 cycles, debt and use of the ₹25.15 crore working-capital allocation.
- Lender-wise repayment of the eight 15.0–18.5% NBFC loans, prepayment charges, finance-cost savings and the remaining ₹21.08 crore secured debt and collateral after the offer.
- Actual in-house production versus job work or traded goods, by product category and revenue contribution.
- Conversion of the land MoU into ownership, industrial-use clearance, building and pollution approvals, civil and machinery orders, spend against the ₹12.50 crore budget, the July 2027 versus March 2028 commissioning conflict, installed capacity, utilisation and employee count.
- Related-party transactions, auditor observations, contingent liabilities and NSE Emerge liquidity.
- Closure of delayed corporate-filings and director-classification rectification, timely GST and provident-fund compliance, employee and contract-worker retention, and progress on trademark protection.
- Final depository lock-in schedule after allotment, including the 27,54,580-share three-year promoter block and the two excess-promoter blocks disclosed in the RHP.
Valuation context
At the ₹156 cap, the 1,37,60,893 post-fresh-issue shares imply an equity value of approximately ₹214.67 crore. Against FY26 PAT of ₹15.10 crore, the fully diluted trailing P/E is about 14.22×.
The simple ₹156 divided by the RHP's pre-offer FY26 EPS of ₹14.66 gives 10.64×, but that understates fresh-issue dilution; the post-offer share count is the more relevant denominator.
The cap is 5.11× the RHP's ₹30.52 FY26 pre-issue NAV and 2.51× its ₹62.05 after-issue NAV at the cap. The lower post-issue multiple reflects the ₹53.94 crore of new cash entering the company and should not be read as an operating improvement.
Listed garment exporters and manufacturers differ in customer diversification, exports, owned capacity, job work, working capital and compliance. Scale and cash conversion matter more than a headline sector P/E.
A normalized case should test materially lower margins, slower customer payments, higher fabric costs and under-utilisation at the proposed facility.
Fascinate Textiles IPO FAQs
What is the Fascinate Textiles IPO price band?
The stated price band is ₹148–₹156. Offer terms should be checked against the final prospectus and exchange notices.
When does the Fascinate Textiles IPO open and close?
The IPO is scheduled to open on 11 August 2026 and close on 19 August 2026. The stated listing date is Revised NSE Emerge listing timetable unavailable; final notice pending.
What is the Fascinate Textiles IPO issue size?
The stated total issue size is ₹66.98 Cr, comprising ₹53.94 Cr of fresh issue and ₹13.04 Cr of offer for sale.
What is the minimum lot for the Fascinate Textiles IPO?
The stated minimum lot is 1600 shares.
What do the latest Fascinate Textiles financials show?
For FY26, the offer documents report revenue of ₹117.09 Cr, EBITDA of ₹24.15 Cr and PAT of ₹15.1 Cr. Read these figures with the cash-flow, leverage and working-capital analysis on this page.
What is a key risk in the Fascinate Textiles IPO analysis?
FY26 PAT rose 160% while revenue rose 94%, and the EBITDA margin reached 20.62%. The sustainability of this profitability should be tested against product mix, raw-material costs and outsourced processes.
How is the Fascinate Textiles IPO valued?
At the ₹156 cap, the 1,37,60,893 post-fresh-issue shares imply an equity value of approximately ₹214.67 crore. Against FY26 PAT of ₹15.10 crore, the fully diluted trailing P/E is about 14.22×.