Kian-M Export IPO

Strengths · 7

• 01Revenue from operations grew from Rs 244.78 crore in FY2024 to Rs 383.01 crore in FY2026.
• 02EBITDA margin rose from 8.55% in FY2024 to 14.56% in FY2026, and profit for the year rose from Rs 8.81 crore to Rs 42.19 crore.
• 03Domestic sales grew from Rs 62.04 crore in FY2024 to Rs 178.06 crore in FY2026, so exports fell from 73.74% to 52.43% of revenue from contracts with customers.
• 04Top 5 customers gave 26.83% of revenue from contracts with customers in FY2026, down from 44.77% in FY2024.
• 05Net debt to EBITDA improved from 4.60 times in FY2024 to 2.47 times in FY2026.
• 06Operating cash flow was positive in all three years: Rs 13.65 crore in FY2024, Rs 38.93 crore in FY2025 and Rs 21.41 crore in FY2026.
• 07The working capital cycle was negative 16 days in FY2026, against 10 days in FY2024.

Risks · 10

• 01African print fabrics gave 51.24% of revenue from operations in FY2026 and modern apparel fabrics gave 29.60%, so two product lines carry most of the business.
• 02Top 10 customers gave 42.46% of revenue from contracts with customers in FY2026, and the company has no long-term sale agreements.
• 03Exports were 52.43% of revenue in FY2026, with Nigeria alone at 21.88%, so trade policy and tariff changes can hurt sales.
• 04Top 10 suppliers gave 63.11% of raw material purchases in FY2026, with no long-term supply agreements.
• 05Total borrowing was Rs 143.46 crore at 31 March 2026, against a net worth of Rs 53.31 crore.
• 06Of the net proceeds, Rs 155.40 crore is for buying a 35.29% stake in Ultra Denim Limited and Rs 150.00 crore is for working capital, while the general corporate purposes amount is not yet stated.
• 07Both manufacturing facilities are in Rajkot and both are leased, so a shutdown at one location would hit operations.
• 08Net worth fell from Rs 44.74 crore at 31 March 2024 to Rs 20.94 crore at 31 March 2025 before rising to Rs 53.31 crore in 2026.
• 09Cases against the promoters include 13 tax proceedings and 2 material litigations, with an aggregate amount of Rs 12.78 crore to the extent quantifiable.
• 10Promoter Parth Rajeshbhai Malaviya has around 5 months of experience in textiles, and Chairman Rajeshbhai Malaviya has no formal education, as the document discloses.

Kian-M Export Limited is a textile processor based in Rajkot, Gujarat. It takes raw, unfinished grey fabric and puts it through preparation, dyeing or printing, and finishing. The company also does this work on a jobwork basis, using fabric supplied by customers.

Its products fall in a few groups. These are sarees (sold on a white label basis and under its brand Revelo) and fabrics for three styles of apparel: kitenge and kanga known as African print, modern apparel such as shirts and pants, and South Asian ethnic dress fabrics, including salwar kameez fabrics. It also makes women's salwar kameez and occasion wear under its premium brand Orcoss, and a range of Middle Eastern style fabrics.

The company sells to wholesalers, to garment makers directly, and to brands. Wholesalers gave 65.58% of revenue from contracts with customers in FY2026, against 80.70% in FY2024. Exports gave 52.43% of this revenue in FY2026 (Rs 196.27 crore), and domestic sales gave 47.57% (Rs 178.06 crore). The largest export markets in FY2026 were Nigeria at 21.88%, Guinea at 13.91% and Tanzania at 8.13%.

Manufacturing happens at two facilities in Rajkot. One is leased by the company, and the other is leased by its wholly owned subsidiary Usha Cotton Limited. The company operates in a single reportable segment. Its promoters are Rajeshbhai Parshotam Malaviya, Ushaben Rajeshbhai Malaviya, Darsh Rajeshbhai Malaviya and Parth Rajeshbhai Malaviya. Rajeshbhai Malaviya is the Chairman and Managing Director and has over 24 years of experience in textile processing and exports.

The company plans to add production capacity, including more digital printing machines, to move into garment manufacturing. It also plans to buy a 35.29% stake in Ultra Denim Limited from the issue proceeds.

The industry

The Indian domestic textile and apparel market grew from Rs 6.25 trillion in FY2020 to Rs 13.24 trillion in FY2026, a CAGR of 13.3%, according to the 1Lattice report. It is projected to reach Rs 20.55 trillion by FY2031 at a CAGR of 9.2%. The Indian fabric processing industry, which covers dyeing and printing and other processes, was Rs 1.34 trillion in FY2020 and Rs 1.90 trillion in FY2026, a CAGR of 6.1%. It is projected to reach Rs 2.75 trillion by FY2031 at a CAGR of 7.7%. The African fabric market was US$ 24.25 billion in 2025 and is projected to reach US$ 33.45 billion by 2030, a CAGR of 6.6%.

Customer concentration: Top 5 customers gave 26.83% of FY2026 revenue from contracts with customers (42.98% in FY2025 and 44.77% in FY2024). Top 10 customers gave 42.46% in FY2026.