T.C. Terrytex IPO

India’s home textile market increased from USD 9.7 billion in FY2022-23 to USD 11.5 billion in FY2024-25 and is projected to reach USD 16 billion by FY2030-31.  

Higher disposable incomes, urbanisation and growth in residential real estate are supporting demand for home furnishing products.  

Growing organised retail and e-commerce penetration is improving access to home textile products across Tier-1 and Tier-2 cities.  

India’s home textile exports under HSN 6302 increased to USD 2,128.64 million in FY2024-25 from USD 1,858.84 million in FY2023-24.  

Indian terry towel production reached a record 105,450.30 tonnes in FY2024-25, supported by domestic and export demand.  

The US, UK and Australia remain important markets, with trade agreements supporting India’s export opportunities.  

Schemes such as RoSCTL, Duty Drawback, Tex-RAMPS and PM MITRA aim to improve the sector’s competitiveness and infrastructure.  

Rising demand for organic cotton, recycled fibres and environmentally friendly production is creating opportunities for certified textile manufacturers.  

The industry remains exposed to global competition, cotton and yarn price fluctuations, labour shortages and rising environmental compliance costs. 

Established Export Presence: Exports contributed 75.17% of product sales in FY2025, with Australia, the US and the UK being key markets. The company is also a Three-Star Export House.  

Marquee Customer Relationships: T.C. Terrytex supplies customised products to global retailers and has a long-standing relationship with K Mart, which recognised it as Supplier of the Year in 2021.  

Flexible Manufacturing: In-house sampling capabilities and the ability to handle small customised orders allow the company to cater to varied requirements from global retailers.  

Integrated Operations: Its Mohali facility covers yarn dyeing, warping, weaving, processing, finishing and packaging, providing control over the production process. 

Export Incentives: RoSCTL and Duty Drawback benefits support the company’s export competitiveness and help reduce its operating cost base.  

Debt Reduction: The company plans to use ₹120 crore of IPO proceeds to repay or prepay borrowings, which could reduce its finance costs.  

Higher In-house Capacity: The addition of 34 looms has increased terry towel capacity and is expected to reduce dependence on third-party weaving.  

Domestic Brand Opportunity: Its Feather & Spun brand provides an opportunity to expand into the domestic retail and e-commerce market.  

Sustainable Product Demand: Certifications such as OEKO-TEX®, GOTS, Global Recycled Standard and Organic Content Standard support its focus on sustainable textile products.  

China+1 Opportunity: Increasing supply-chain diversification away from China and growth in India’s home textile market could provide opportunities for export-oriented manufacturers such as T.C. Terrytex. 

Customer Concentration: A single international client contributes around 26–29% of revenue, while the top 10 customers accounted for 62.11% of revenue in FY2025. The company generally operates through short-term purchase orders rather than long-term contracts.  

Export Dependence: Exports contributed 75.17% of product sales in FY2025, with Australia and the US accounting for over 80% of export revenue. Changes in tariffs, trade policies or shipping disruptions could affect sales and margins.  

Raw Material Price Risk: The company depends on third-party suppliers for cotton and yarn and has no long-term pricing agreements. Higher input costs may put pressure on margins.  

Supplier Concentration: The top 10 suppliers accounted for 95.86% of total purchases during the six months ended September 30, 2025, creating dependency on a limited supplier base.  

High Employee Attrition: Employee attrition stood at 66.71% in FY2025, 59.02% in FY2024 and 57.23% in FY2023, which could affect production efficiency and timelines.  

Single Manufacturing Facility: All manufacturing and processing activities are carried out at one facility in Sarsini, Mohali, Punjab. Any prolonged disruption could affect the company’s entire production.  

Debt and Interest Rate Risk: Total borrowings stood at ₹159.45 crore as of September 30, 2025. A rise in floating interest rates could increase finance costs and affect profitability.  

Promoter Group Default History: A promoter group entity has previously defaulted on certain loan obligations, which may affect the company’s reputation and access to credit if similar issues arise.  

Product Concentration: Terry towels accounted for 75.79% of product sales in FY2025, exposing the company to changes in demand for its key product segment.  

Intense Competition: T.C. Terrytex faces competition from domestic manufacturers and low-cost textile exporters such as Bangladesh, Vietnam and Pakistan, which may put pressure on pricing and margins. 

T.C. Terrytex IPO DRHP

Sobhagya Capital Options Private Limited 

Contact Number: 011-26812682 

Email : ipo@skylinerta.com