Qualiance International IPO

India is the world’s second-largest producer of textiles and garments and the sixth-largest exporter. The sector contributes around 2.3% to India’s GDP, 13% of industrial production and 12% of total exports, while accounting for around 11% of manufacturing employment.  

India’s domestic textile and apparel market was valued at around US$157 billion in FY2025-26. The industry is expected to benefit from rising domestic consumption, export demand, and increasing adoption of value-added textile products.  

Global brands are diversifying sourcing beyond China, creating opportunities for Indian textile and apparel manufacturers. Indian apparel exporters are expected to record 9-11% revenue growth in FY2025-26, supported by higher volumes and improving export demand.  

India's textile and apparel exports reached US$32.63 billion during April-February FY2025-26. Ready-made garments accounted for around 45%, or US$14.53 billion, of exports. RMG exports are expected to cross US$30 billion by 2027.  

The government allocated ₹5,279.01 crore to the Ministry of Textiles under the Union Budget 2026-27. Key allocations include ₹1,500 crore for the Integrated Textile Programme, ₹405 crore for the PLI Scheme, ₹300 crore for PM MITRA Parks and ₹256 crore for the National Technical Textiles Mission.  

The PM MITRA Parks scheme aims to develop seven integrated textile parks with a total outlay of ₹4,445 crore. These parks are intended to create integrated manufacturing ecosystems and attract private investment across the textile value chain.  

The ₹10,683-crore PLI scheme supports manufacturing of man-made fibre apparel, fabrics and technical textiles. India’s technical textiles market is also expanding, with demand supported by sectors such as automotive, healthcare, infrastructure and industrial applications.  

Trade agreements such as the India-UK FTA are expected to improve market access for Indian textile exporters by reducing tariff disadvantages against competing sourcing destinations.  

Global buyers and regulators are increasing their focus on sustainable sourcing, recycling, and lower-carbon manufacturing. This is encouraging textile companies to adopt renewable energy, recycled materials, organic cotton, and circular production practices.  

Growing demand for technical textiles, specialised fabrics and sustainable materials is creating opportunities beyond traditional apparel manufacturing. These trends could support companies operating in specialised and higher-value textile segments. 

Specialised Technical Garment Manufacturing: QIL has in-house capabilities for seam sealing, bonded assembly, laser cutting, ultrasonic welding, reflective fusing, quilting and down filling, allowing it to manufacture technically complex garments.  

Long-Term Institutional Track Record: The company has supplied uniforms and operational outerwear to the Government of Switzerland for around 20 years. The Swiss Government department contributed 79.24% of FY2026 revenue, amounting to ₹60.45 crore.  

Strong Export Focus: Exports accounted for 98.82% of revenue from operations in FY2026, with Switzerland contributing 80.67% of export revenue, followed by the US at 16.60%.  

Capacity Expansion: The existing facility operated at 88% capacity utilisation in FY2026. The proposed new facility in Tiruppur is expected to add 10.80 lakh pieces of annual capacity, supporting larger orders.  

Focus on Premium Global Brands: Additional capacity could enable QIL to pursue more business from premium outdoor, activewear and workwear brands across Europe and North America.  

Technology-Led Production Management: The company is developing an in-house production tracking system to provide real-time visibility into orders and production stages, which could support operational efficiency as capacity expands. 

Growing Technical Apparel Demand: Rising demand for specialised workwear, protective clothing, outdoor apparel and performance garments provides an opportunity for QIL to expand beyond its existing customer base.  

Diversification Opportunity: The company can reduce its dependence on Switzerland and a limited number of customers by expanding into other international markets and building relationships with additional global brands. 

High Customer Concentration: QIL depends heavily on a small group of customers. In FY2026, its top customer contributed 56.93% of product sales, while the top 5 and top 10 customers accounted for 97.12% and 99.65%, respectively.  

Dependence on Purchase Orders: The company does not have long-term binding contracts with customers. Any reduction, cancellation or non-renewal of orders from key customers could affect revenue and cash flows.  

High Geographic Concentration: Exports contributed 98.82% of revenue from operations in FY2026, with Switzerland accounting for 80.67% of total product sales, exposing the company to risks in a key market.  

Reliance on Government Tenders: The Swiss Government department contributed 79.24% of FY2026 turnover. Changes in procurement policies, tender conditions or failure to win future contracts could affect business continuity.  

Raw Material and Supplier Risks: Imported raw materials accounted for 60.31% of total raw material purchases in FY2026. The top 10 suppliers contributed 62.99% of purchases, creating exposure to supply disruptions and cost fluctuations.  

Project Execution Risks: The company plans to invest ₹38.00 crore in a new manufacturing facility. Delays in land conversion, approvals, construction or machinery procurement could affect the planned commercial operations timeline.  

Working Capital Pressure: Trade receivables increased from ₹2.07 crore in FY2025 to ₹15.99 crore in FY2026, increasing the company's exposure to collection delays and liquidity pressure.  

Margin Sustainability: PAT margin increased from 7.63% in FY2024 to 15.44% in FY2026. There is no assurance that the company will maintain these margins as its business and product mix evolve.  

Legal and Regulatory Matters: QIL has outstanding tax disputes, including a ₹1.17 crore GST dispute, along with certain historical filing and compliance matters.  

Promoter Group Concerns: A promoter group company, Silvertraq International Private Limited, has not filed mandatory annual returns with the RoC since 2018 and reported negative net worth in FY2025, which may pose additional group-level concerns. 

Qualiance International IPO DRHP 

Qualiance International IPO RHP 

Hem Securities Limited 

Contact Number: 022-49186000 

Email Address: qualiance.smeipo@in.mpms.mufg.com