Swara Baby Products IPO

Strengths · 7

• 01Revenue from operations rose from Rs 749.96 crore in FY2024 to Rs 942.98 crore in FY2025 and Rs 1,163.90 crore in FY2026.
• 02The TKC Report puts the company at 37% of the baby diaper contract manufacturing market by value in FY2025, with 21.90% growth in the segment from FY2025 to FY2026.
• 03Manufacturing lines went from 12 in FY2024 to 20 in FY2026, and units produced from 1,236.71 million to 2,032.69 million.
• 04EBITDA was Rs 192.77 crore in FY2026 against Rs 153.59 crore in FY2024, at a margin of 16.56% in FY2026.
• 05Net working capital days fell from 86 in FY2025 to 69 in FY2026.
• 06In adult diapers, the company holds an estimated 36% market share by value, and the segment grew 24.9% from FY2025 to FY2026 per the TKC Report.
• 07The auditor has no qualifications that were left unadjusted in the restated financials.

Risks · 10

• 01The top 5 customers gave 65.77% of FY2026 revenue and the top 10 gave 80.31%, so losing one large buyer would hit sales.
• 02Brainbees Solutions, a promoter and a selling shareholder, is the top customer at 22.64% of FY2026 revenue, which makes this a related party dependence.
• 03Customers are not obliged to place orders, so volumes can fall or purchase orders can end at short notice.
• 04All four plants are in Madhya Pradesh, which exposes the company to regional disruption.
• 05Baby diapers were 78.34% of FY2026 revenue, so demand or pricing changes in one product matter a lot.
• 06Operating cash flow was only Rs 18.48 crore in FY2026 against profit of Rs 95.59 crore, down from Rs 61.36 crore in FY2025.
• 07Total borrowings rose from Rs 260.08 crore in FY2024 to Rs 443.06 crore in FY2026.
• 08Profit was nearly flat, Rs 93.97 crore in FY2024 and Rs 95.59 crore in FY2026, while EBITDA margin dropped from 20.48% to 16.56%; gross margin was 30.66% in FY2026 against 34.23% in FY2025.
• 09Half the offer, Rs 500 crore, is an offer for sale by promoters Brainbees Solutions and Anadya Bon Merchari LLP, and that money does not go to the company.
• 10Promoters face 1 criminal case, 12 tax matters and 2 regulatory actions with Rs 16.71 crore involved, and the top 10 suppliers are 69.43% of FY2026 purchases.

Swara Baby Products Limited makes disposable consumer hygiene products in three categories: baby care, adult incontinence and feminine hygiene. It contract manufactures baby and adult pant and tape style diapers, sanitary napkins and panty liners for other companies, who sell them to end consumers under their own brands. It also makes and sells its own home brand baby and adult diapers, mainly through online commerce and direct to consumer sales.

The company says it is the largest contract manufacturer of baby diapers in India by revenue for FY2025, with a 37% market share by value, and the largest adult diaper manufacturer with an estimated 36% share. Both claims are sourced to the TKC industry report in the offer document.

It runs four manufacturing facilities with 20 manufacturing lines in Pithampur and Indore, Madhya Pradesh, as of 31 March 2026. The lines grew from 12 in FY2024 to 15 in FY2025 and 20 in FY2026. Units produced rose from 1,236.71 million in FY2024 to 2,032.69 million in FY2026, and the company had 775 employees at the end of FY2026.

Brainbees Solutions Limited, which runs the Babyhug retail brand, is both a promoter and the top customer. It gave Rs 263.46 crore, or 22.64% of revenue from operations, in FY2026. The company bought Solis Hygiene Private Limited on 30 December 2025 and K.A. Enterprises (Hygiene) Private Limited on 25 December 2025. The financials treat Solis as if it was part of the group from 1 April 2023, while K.A. Enterprises adds profit only from the acquisition date.

Domestic sales were 98.50% of FY2026 revenue from operations. Exports to the Middle East and Africa were Rs 17.46 crore, or 1.50%.

The industry

The TKC Report says the Indian hygiene market is projected to grow at a CAGR of 12.7% across all categories to reach INR 438.4 Bn. In FY2025, baby diapers were 52.1% of this market and feminine hygiene 40.1%, with adult incontinence at 6.3% and wet wipes at 1.5%. The Indian diaper market was INR 138.2 Bn in FY2025 and is projected to reach INR 251.6 Bn by FY2030. The report links this to rising disposable incomes, urban nuclear households and better access through general trade, e-commerce and modern retail.

Customer concentration: Top 5 customers gave 65.77% of FY2026 revenue (67.58% in FY2025 and 64.50% in FY2024). Brainbees Solutions alone gave 22.64% in FY2026.