Alpine Texworld IPO (14-16 July) Analysis

IPO Analysis  |  NSE and BSE Main Board  |  100% Book Built Fresh Issue  |  Regulation 6(1)

Based on Red Herring Prospectus dated July 8, 2026  |  Grey Fabric and Yarn Manufacturing  |  Paldi Kankaj, Ahmedabad, Gujarat

STATUS: RHP FILED  |  Fresh Issue: up to 1,20,24,000 Shares  |  No OFS  |  Regulation 6(1)  |  NSE and BSE Main Board  |  Opens July 14, Closes July 16, 2026  |  Price Band: [TBD]

 Alpine Texworld Limited (formerly known as Alpine Spinweave Limited) is a vertically integrated manufacturer of Grey Fabric and Yarn, based in Paldi Kankaj, Ahmedabad, Gujarat. Incorporated in February 2016, the company commenced production in April 2017 from its weaving unit.

Its registered office and manufacturing operations are at Block No. 614-1105, Village Paldi, Pirana Miroli Road, Paldi Kankaj, Ahmedabad, Dascroi, Gujarat 382425. Its website is www.alpinetexworld.com. Its CIN is U17120GJ2016PLC086259. The three promoters are Sumit Champalal Agarwal, Sandeep Santkumar Agrawal, and Sachinkumar Santkumar Agrawal.

Business model: Alpine Texworld operates as a vertically integrated textile manufacturer combining spinning and weaving capabilities. The company procures processed cotton, subjects it to open-end rotor spinning to produce yarns of varying thicknesses (at Manufacturing Unit 2), and then weaves those yarns into grey fabric using air jet looms (at Manufacturing Unit 1). Grey fabric is a primary input material used downstream in the textile value chain for dyeing, printing, and finishing into finished textiles. The company also offers yarn sizing services as a secondary service line.

Manufacturing infrastructure (as at the RHP date):

(1) Manufacturing Unit 1 (weaving, owned) at Paldi Kankaj: 112 high-speed Toyota shuttleless air jet looms with an aggregate annual installed capacity of 180 lakh metres of grey fabric, plus one Karl Mayer multi-cylinder sizing machine with 6,650 MT per annum sizing capacity;

(2) Manufacturing Unit 2 (spinning, leasehold from related party Alpine Weaving Private Limited) at an adjacent plot: four Saurer Intelligent Technology open-end rotor spinning machines with 6,000 MT per annum yarn spinning capacity, commenced March 2025;

(3) Proposed Manufacturing Unit 3 (under construction): new weaving unit at Ahmedabad, planned to add 48 Picanol NV air jet looms with 77.50 lakh metres per annum capacity, to be funded from IPO proceeds.

Solar energy strategy: the company has installed 820 KW rooftop solar at Manufacturing Unit 1 (January 2024), 475 KW at Manufacturing Unit 2 (November 2025), and 9 MW ground-mounted solar at Makhanu village, Banaskantha (5.4 MW in March 2025, 3.6 MW added in April 2026). Generated electricity offsets power consumption, with excess adjusted against energy bills from Uttar Gujarat Vij Company Limited, reducing dependency on grid power and improving cost efficiency.

Subsidiary: the company has a subsidiary which contributed Rs.83.78 million to consolidated PAT (38.58% of total consolidated PAT excluding NCI) in FY2026. The subsidiary's performance makes the consolidated financial picture meaningfully different from standalone, and is an important element of the overall investment proposition.

Key Basics

This is a 100% Fresh Issue with no Offer for Sale component, listing on both NSE and BSE main boards under Regulation 6(1) of SEBI ICDR Regulations, the standard profitability-based main board eligibility route. The RHP is dated July 8, 2026 with the Issue open and active. Price Band has not yet been disclosed in this RHP and will be announced before Anchor Investor Bidding.

Document Type	Red Herring Prospectus (RHP) dated July 8, 2026. Price Band to be announced before Anchor Investor Bidding. Issue opens July 14.
Issue Type	100% Book Built Fresh Issue of up to 1,20,24,000 Equity Shares of face value Rs.10 each. No OFS. Company receives full net proceeds after issue expenses.
Face Value	Rs.10 per Equity Share
Promoters	Sumit Champalal Agarwal, Sandeep Santkumar Agrawal, and Sachinkumar Santkumar Agrawal. Post-issue promoters will continue to hold majority of outstanding shares.
Eligibility	Regulation 6(1) of SEBI ICDR Regulations, the standard main board profitability-based eligibility route.
Listing Exchanges	NSE and BSE. In-principle approvals received December 2, 2025 from both NSE and BSE. Designated Stock Exchange: NSE.
BRLM	D and A Financial Services Private Limited. Contact: Mr. Priyaranjan. Email: alpine.ipo@dnafinserv.com
Registrar	KFin Technologies Limited. Contact: Mr. M Murli Krishna. Email: alpine.ipo@kfintech.com
Issue Opens	Tuesday, July 14, 2026.
Issue Closes	Thursday, July 16, 2026.
Listed Industry Peers	United Polyfab Gujarat Limited, Ken Enterprises Limited, and Pashupati Cotspin Limited. All three explicitly noted as not strictly comparable given differences in nature and size, but included for broad comparison.
Industry P/E Range	Highest: 145.21x (Pashupati Cotspin), Lowest: 5.27x (Ken Enterprises), Average: 60.69x. Based on NSE/BSE closing prices on May 29, 2026 versus FY2026 Basic EPS.

 The use of Net Proceeds is focused on two identified objects: capacity expansion through Manufacturing Unit 3 and debt repayment. An additional amount will go toward General Corporate Purposes, capped at 25% of Gross Proceeds.

Object	Amount (Rs. Mn)	Details
Setting up New Weaving Unit at Proposed Manufacturing Unit 3 (Grey Fabric)	307.11	Construction, electrification, and equipping of a new weaving facility at Ahmedabad, Gujarat. The new unit will have 48 Picanol NV (Belgian OEM) air jet looms with an annual installed capacity of 77.50 lakh metres of grey fabric, bringing total company group capacity from 276 lakh metres to 353.50 lakh metres. Purchase order placed for looms via irrevocable Letter of Credit from Saraswat Bank in favour of Picanol NV. All other orders for civil works, electrification, and ancillary machinery are based on quotations only as of this RHP.
Prepayment or Repayment of Certain Outstanding Borrowings	522.00	Partial reduction of existing borrowings. The company's total non-current and current borrowings were Rs.1,775.95 million as at March 31, 2026 (consolidated). The Rs.522 million repayment will modestly delever the balance sheet and reduce future finance costs.
General Corporate Purposes	[TBD]	Capped at 25% of Gross Proceeds. Residual from Net Proceeds after the two quantified objects, to be finalised on Issue Price determination.
TOTAL IDENTIFIED OBJECTS	829.11	100% Fresh Issue. No OFS. None of the Objects have been appraised by any bank or financial institution. All deployment planned in FY2027.

The use of proceeds has a clear operational logic. The Rs.307.11 million for Manufacturing Unit 3 directly addresses the company's growth bottleneck: with the existing 276 lakh metre weaving capacity heavily utilised, adding 77.50 lakh metres (a 28% increase) enables revenue growth. The Rs.522 million debt repayment will reduce the finance cost burden, which consumed Rs.153.25 million in FY2026 and which, at an elevated level, constrains PAT margin. Together the two objects represent a balanced allocation between growth capex and financial health improvement.

Financial Performance

Note: All figures in Rs. millions unless stated. Financial years: FY2026 (year ended March 31, 2026, Restated Consolidated), FY2025 (year ended March 31, 2025, Restated Consolidated), FY2024 (year ended March 31, 2024, Restated Standalone, as the company had no subsidiary in that year). The presentation therefore has a structural discontinuity between FY2024 (standalone) and FY2025/FY2026 (consolidated), and year-on-year comparisons should be made with this in mind. Statutory Auditors: M/s. Suresh Chandra and Associates, Chartered Accountants (FY2026 and FY2025) and M/s. Sunil Poddar and Co. (FY2024).

Revenue, EBITDA, and Profitability

Metric	FY2026 (Rs. Mn)	FY2025 (Rs. Mn)	FY2024 (Rs. Mn)
Basis	Consolidated	Consolidated	Standalone
Revenue from Operations	3,427.13	2,373.24	1,836.03
Revenue Growth % YoY	+44.40%	+29.26%	N/A
Other Income	74.65	3.36	8.33
Total Income	3,501.79	2,376.61	1,844.36
Cost of Materials Consumed	2,547.10	1,720.25	1,404.37
Employee Benefit Expenses	144.77	88.70	70.87
Finance Costs	153.25	90.78	85.07
Depreciation and Amortisation	126.93	64.22	55.59
Other Expenses	312.98	220.12	181.92
Total Expenses	3,232.83	2,258.24	1,777.63
Profit Before Tax	268.95	118.36	66.73
Tax Expense (Net)	51.79	32.10	17.92
Profit After Tax (consolidated PAT)	217.16	86.26	48.81
PAT attributable to owners (EPS basis)	214.57 (ex-NCI)	85.82	48.81
PAT Growth % YoY	+151.88%	+75.83%	N/A
EBITDA (Rs. Mn)	474.48	270.00	199.06
EBITDA Margin %	13.85%	11.38%	10.84%
PAT Margin % (of Revenue from Ops.)	6.34%	3.63%	2.66%
Return on Net Worth (RoNW) %	29.44%	16.78%	11.47%
Basic and Diluted EPS (Rs., face value Rs.10)	8.18	3.27	1.86
Weighted Average EPS (Rs.)	5.49 (3-yr weighted)	N/A	N/A
NAV per Share (Rs., as at March 31, 2026)	27.79	N/A	N/A

The financial trajectory is strongly improving across all key metrics. Revenue grew 29.26% in FY2025 and accelerated to 44.40% in FY2026 (consolidated over consolidated). EBITDA margin expanded from 10.84% (FY2024, standalone) to 13.85% (FY2026, consolidated), reflecting operating leverage as the business scaled. PAT grew 75.83% in FY2025 and a further 151.88% in FY2026, driven by revenue growth plus margin expansion plus the subsidiary's contribution. RoNW has improved dramatically from 11.47% to 29.44% over the three-year period.

An important observation: the FY2026 revenue growth appears substantially higher partly because FY2026 consolidated includes the subsidiary (which generated Rs.83.78 million PAT, equivalent to 38.58% of consolidated PAT excluding NCI). The standalone Alpine Texworld business growth rate would be lower than the 44.40% consolidated growth rate. Investors should note this consolidation effect when extrapolating growth rates forward, as the subsidiary is already included and will not produce the same year-on-year consolidation uplift in future periods.

Balance Sheet and Cash Flow

Item	FY2026 (Rs. Mn)	FY2025 (Rs. Mn)	FY2024 (Rs. Mn)
Equity Share Capital	262.23	262.23	262.23
Other Equity	466.61	249.08	163.28
Total Equity attributable to owners	728.84	511.31	425.51
Non-Controlling Interest (NCI)	25.29	17.64	N/A (no sub)
Non-Current Borrowings	1,064.69	992.82	273.86
Current Borrowings	711.26	668.08	490.80
Total Borrowings	1,775.95	1,660.90	764.66
Debt to Equity Ratio (Total Borrowings / Total Equity incl. NCI)	2.35x	3.14x	1.80x
Trade Payables	383.46 (est.)	677.42 (est.)	269.09
Total Assets	3,053.06	2,948.58	1,498.15
Property, Plant and Equipment (Net)	1,334.84	1,316.74	426.63
Capital Work-in-Progress	156.76	12.65	Nil
Trade Receivables	632.40	968.96	741.16
Inventories	720.91	477.09	184.73
Cash and Cash Equivalents	0.60	15.26	6.76
Net Cash from Operating Activities	339.90	130.08	315.19
Net Cash from Investing Activities	(323.70)	(945.03)	(75.06)
Net Cash from Financing Activities	(30.87)	823.46	(227.83)

The balance sheet reveals a significantly leveraged business: total borrowings grew from Rs.764.66 million (FY2024) to Rs.1,775.95 million (FY2026) as the company funded the expansion of Manufacturing Unit 2 (spinning unit, Rs.928.88 million investing outflow in FY2025) and the initial capex for Manufacturing Unit 3 (Rs.156.76 million CWIP at March 2026).

Debt-to-equity has improved from 3.14x (FY2025) to 2.35x (FY2026) as retained earnings have grown, but remains materially elevated relative to most textile manufacturing peers. The planned Rs.522 million debt repayment from IPO proceeds will bring this ratio to approximately 1.65x (estimated), a meaningful improvement.

Cash and cash equivalents of just Rs.0.60 million as at March 31, 2026 reflect that the business operates with minimal liquidity buffer, relying on working capital credit facilities for day-to-day needs. Operating cash flow was positive and strong at Rs.339.90 million in FY2026 (and Rs.315.19 million in FY2024), providing genuine cash backing to reported earnings. Trade receivables declined from Rs.968.96 million (FY2025) to Rs.632.40 million (FY2026), contributing positively to the operating cash flow in FY2026.

How Does It Compare to Peers?

The RHP names three listed industry peers: United Polyfab Gujarat Limited, Ken Enterprises Limited, and Pashupati Cotspin Limited. All three are explicitly noted as not strictly comparable given differences in nature and size of business, but included for broad comparison purposes. P/E ratios are based on May 29, 2026 NSE/BSE closing prices versus FY2026 Basic EPS.

Metric (FY2026)	Alpine Texworld	United Polyfab	Ken Enterprises	Pashupati Cotspin
Revenue from Ops (Rs. Mn)	3,427.13	6,820.35	6,318.20	6,878.12
PAT (Rs. Mn)	217.16	242.90	154.07	104.19
EPS Basic (Rs.)	8.18	1.07 (FV Rs.1)	6.27	0.66 (FV Rs.1)
RoNW %	29.44%	18.48%	12.14%	6.33%
NAV per Share (Rs.)	27.79	5.78	51.68	10.40
P/E Ratio (CMP May 29, 2026)	TBD	31.60x	5.27x	145.21x
Face Value	Rs.10	Rs.1	Rs.10	Rs.1

Alpine Texworld's RoNW of 29.44% is the highest of all four companies (including itself), comfortably exceeding United Polyfab (18.48%), Ken Enterprises (12.14%), and Pashupati Cotspin (6.33%), indicating superior capital efficiency despite being smaller than all three peers by revenue. The peer group's P/E range is extremely wide (5.27x to 145.21x, average 60.69x), making benchmarking difficult.

The 145.21x P/E for Pashupati Cotspin likely reflects a premium for anticipated future earnings growth or structural business differentiation rather than current period earnings quality. Ken Enterprises at 5.27x is the most conservatively valued peer. Alpine Texworld's eventual Issue Price, once the Price Band is announced, should be evaluated against Ken Enterprises' valuation as the most grounded peer comparison, while noting RoNW differences.

Key Risks

l  High financial leverage at 2.35x debt-to-equity with total borrowings of Rs.1,775.95 million against equity of Rs.754.13 million: the company has taken on significant debt to fund its expansion from a pure weaving business to an integrated spinning and weaving operation. Finance costs of Rs.153.25 million in FY2026 consumed approximately 70% of the Profit Before Tax of Rs.268.95 million. While the planned Rs.522 million debt repayment from IPO proceeds will meaningfully reduce this burden, the current leverage level represents elevated financial risk, particularly in a commodity-price-sensitive business.

l  All three manufacturing units (existing and proposed) are concentrated in the same industrial cluster at Paldi Kankaj, Ahmedabad: Manufacturing Units 1 and 2 are located adjacent to each other at Paldi Kankaj, and Proposed Manufacturing Unit 3 will also be at Ahmedabad. The RHP explicitly notes that any disruption affecting the industrial cluster or multiple sites simultaneously would impair the company's entire production capability. A natural disaster, regulatory action, or cluster-level infrastructure failure would have no geographic diversification buffer.

l  Manufacturing Unit 2 (spinning) is on leasehold land from a related party (Alpine Weaving Private Limited, a group company): the land for the spinning unit is not owned by Alpine Texworld, but obtained from a related party under a leasehold arrangement. Any dispute, non-renewal, or adverse change in this arrangement could disrupt operations at Manufacturing Unit 2 and the supply of in-house yarn to Manufacturing Unit 1.

l  Concentration in top 10 customers at 70.33% of FY2026 revenue (Rs.2,410.22 million): the top single customer contributed 16.09% (Rs.551.33 million) of FY2026 revenue, with top 5 at 46.37%. The RHP discloses that a significant portion of top customers operate within the same textile hub and end-market, creating clustered exposure rather than true diversification. There are no long-term supply agreements with these customers.

l  Proposed Manufacturing Unit 3 capex is substantially unordered: apart from the Picanol NV loom order (secured via irrevocable Letter of Credit), no purchase orders have been placed for civil and structural works, electrification, humidification plants, or other machinery for Unit 3. All other cost estimates are based on quotations that may change or expire, creating cost and timeline uncertainty.

l  Untraceable historical secretarial record (Form DPT-3 for April 2014 to March 2019): the company has been unable to trace this regulatory filing, and while a practicing company secretary certificate has been obtained and intimation sent to RoC, the company cannot assure investors that the filing was made in a timely manner or at all. Though no regulatory action is currently pending, the risk of future penalties from regulatory authorities cannot be excluded.

l  Raw material price volatility in cotton: cotton prices are globally traded commodities subject to significant volatility based on international supply-demand dynamics, weather conditions, and Indian agricultural policy. The company's cost of materials consumed was Rs.2,547.10 million in FY2026 (74.32% of revenue), making material cost the overwhelmingly dominant expense item and margin the most sensitive to cotton price movements.

l  Technology lock-in risk from reliance on proprietary imported OEM machinery: air jet looms (Toyota, Picanol) require OEM-approved spare parts, software, and technical support. Any disruption in supply of imported spares or technical services from foreign OEMs could result in production downtime and increased maintenance costs.

l  Promoters have provided personal guarantees on certain company borrowings: two promoters who also serve as Directors have extended personal guarantees on specific loan facilities. Default on these facilities could trigger personal liability for the promoters, potentially impairing their capacity to effectively manage the company.

l  The subsidiary contributed 38.58% of consolidated PAT in FY2026, creating dependency on non-standalone earnings: a significant portion of the improved consolidated financial metrics is attributable to the subsidiary. Any underperformance, disruption, or margin pressure at the subsidiary level would directly impair consolidated PAT and returns to shareholders.

Positives to Note

l  Strong and accelerating revenue and profitability trajectory across all three years: revenue grew 29.26% in FY2025 and 44.40% in FY2026. EBITDA grew from Rs.199.06 million to Rs.474.48 million (a 138% increase over two years), and PAT grew approximately 4.5 times from Rs.48.81 million (FY2024) to Rs.217.16 million (FY2026). EPS grew from Rs.1.86 to Rs.8.18 over the same span.

l  RoNW of 29.44% (FY2026) is the highest among all three named listed peers and reflects a genuine improvement from 11.47% in FY2024: the three-year progression in capital efficiency from 11.47% to 29.44% demonstrates that the business has been generating progressively better returns on shareholder equity as scale has improved, a positive signal for the post-IPO trajectory.

l  Vertical integration from spinning to weaving reduces input cost dependency and improves margin quality: the addition of Manufacturing Unit 2 (spinning, 6,000 MT per annum) in March 2025 means the company can now produce yarn in-house rather than entirely procuring it externally, providing a measure of protection against yarn price volatility and enabling potential cost advantage over peers who remain dependent on third-party yarn procurement.

l  Substantial rooftop and ground-mounted solar capacity (9.295 MW total) structurally reduces power costs: the combination of 1.295 MW rooftop solar and 9 MW ground-mounted solar represents a meaningful energy cost reduction initiative in an industry where electricity is a material operating expense. The net metering arrangement with Uttar Gujarat Vij Company ensures generated units are credited against consumption.

l  Positive operating cash flow in all three reported years: Rs.315.19 million (FY2024), Rs.130.08 million (FY2025), and Rs.339.90 million (FY2026) confirm that the business consistently converts reported profit into real cash, a quality signal that distinguishes Alpine Texworld from many SME and main board issuers in recent periods where OCF was negative despite positive PAT.

l  Regulation 6(1) main board eligibility on both NSE and BSE confirms multi-year profitable track record: listing on both national exchanges under the standard profitability-based main board route reflects a demonstrated earnings history that satisfies SEBI's stringent listing criteria, providing investor-accessible liquidity from two national exchanges from the day of listing.

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