Unitec Fibres SME IPO

Strengths · 7

• 01The company has a long record of about 20 years, having been started in February 2005.
• 02It holds Global Recycled Standard and OEKO-TEX certification along with ISO 9001:2015 and ISO 14001:2015, which buyers need in order to claim recycled content in their own products.
• 03Recycling waste PET into fibre suits both the cost pressure and the sustainability requirements that its automobile and textile customers face.
• 04The combined installed capacity of 27,984 tonnes a year across two Tarapur plants is substantial, and a third unit is being set up at Valsad.
• 05Its fibre goes into several different industries, from car interiors to carpets, sofas and curtains, so demand is not tied to one sector.
• 06Net worth has grown steadily, from Rs 49.18 crore in FY2024 to Rs 65.00 crore in FY2026.
• 07Rs 31 crore of the Rs 34.47 crore issue repays borrowings, which should cut the interest burden materially.

Risks · 10

• 01Profit is flat to falling. Profit after tax was Rs 7.42 crore in FY2024, Rs 8.22 crore in FY2025 and Rs 7.60 crore in FY2026, and total income actually fell in the last year from Rs 227.13 crore to Rs 224.86 crore.
• 02Borrowing has risen nearly five times in two years, from Rs 15.72 crore in FY2024 to Rs 36.64 crore in FY2025 and Rs 77.19 crore in FY2026, a debt to equity ratio of 1.19.
• 03Even after using Rs 31 crore of the issue to repay borrowings, a substantial loan will remain on the books.
• 04The profit margin is thin at 3.39% and return on capital employed is only 9.05%.
• 05Recycled polyester staple fibre is close to a commodity, where buyers switch on price and there is little to differentiate.
• 06The raw material is post-consumer PET waste, whose price and availability vary with collection rates and with competing demand from other recyclers.
• 07Both existing plants are at Tarapur, so there is single location risk until the Valsad unit is running.
• 08The third plant at Valsad is still being set up, so it brings execution risk and will take time to contribute.
• 09Promoter holding will come down from 94.2% to 68.61% after the issue.
• 10This is an SME issue. One lot is 1,600 shares, which is about Rs 1.41 lakh at the upper band of Rs 88, and SME shares usually trade in low volume after listing.

Unitec Fibres Limited was started in February 2005. It makes Recycled Polyester Staple Fibre, usually shortened to RPSF. This is polyester fibre made not from fresh petrochemicals but from recycled PET flakes, PET chips and other post-consumer polyester waste, so the raw material is essentially used plastic bottles and similar waste.

Its fibre goes to the automobile, home furnishing and textile industries. The end products include carpets, car roof liners, trunk linings, sofas, curtains and yarn for spinning.

It runs two manufacturing facilities at the MIDC Tarapur industrial area in Maharashtra, with a combined installed capacity of 27,984 tonnes a year, and is setting up a third unit at Valsad in Gujarat to add capacity. It holds ISO 9001:2015 and ISO 14001:2015 certification along with OEKO-TEX and Global Recycled Standard certification, the last of which matters to buyers who need to prove the recycled content of what they sell. As on 31 March 2026 it had 171 permanent employees.

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