J B Ecotex Limited IPO

01At a glance

What the company does: recycles post-consumer PET bottles and other PET waste at two adjacent plants in Dhamdod, Surat, into recycled polyester staple fibre (RPSF), food-grade recycled PET resin, recycled PET flakes and chemically recycled resin; RPSF was 55.12% of FY26 revenue (DRHP p.225, DRHP p.228).

Who pays it: over 700 customers in India and 25 other countries in textiles, packaging and other industries; the document names Varun Beverages Limited and Moon Beverages Limited as key customers but gives no customer concentration figures (DRHP p.228, DRHP p.231).

Why it is raising money: ₹320.0 crore of the fresh issue goes to repaying or prepaying borrowings of the company and its subsidiary JB rPET Industries Private Limited, the rest to general corporate purposes capped at 25% of gross proceeds (DRHP p.115). The offer for sale money goes to the nine selling promoters, not the company (DRHP p.114).

How fast it has grown: revenue from ₹527.4 crore in FY24 to ₹827.6 crore in FY26, about 25.3% a year, while profit after tax went from ₹21.1 crore to ₹22.5 crore, about 3.2% a year (our arithmetic, DRHP p.77).

The one thing to understand: revenue grew much faster than profit. EBITDA rose about 29.9% a year, but finance costs went from ₹11.3 crore to ₹27.8 crore and depreciation from ₹14.5 crore to ₹31.3 crore after a capacity build-out funded mostly with debt, so FY26 finance costs equalled about 90% of profit before tax (our arithmetic, DRHP p.77, DRHP p.127). The fresh issue is mostly for repaying that debt (DRHP p.115).

02The business, in plain words

What J B Ecotex does

J B Ecotex sources used plastic bottles and other PET waste, cleans and shreds them, and turns them back into raw material: fibre for spinning mills, clean flakes, resin that can go back into food and drink bottles, and a chemically rebuilt resin for yarns, films and packaging (DRHP p.226, DRHP p.238, DRHP p.239). The company says it is India's second largest PET recycler by installed capacity of 180,360 tonnes a year as of August 31, 2026, according to the industry report it commissioned (DRHP p.225).

A textile, packaging or bottling customer needs recycled PET → the company sources bottles and waste from 522 suppliers, washes and flakes them, then spins fibre, extrudes food-grade pellets or chemically depolymerises the flakes into new resin → it ships the product from Surat, mostly by road → it is paid per tonne on purchase orders, with no long-term contracts (DRHP p.247, DRHP p.241, DRHP p.28).

The business began as J B Ecotex LLP, which started making RPSF in October 2015 with 25,000 tonnes a year of capacity, and became a public limited company in September 2021 (DRHP p.227, DRHP p.263). Flakes followed in November 2020, chemically recycled resin in January 2024 through the subsidiary JB rPET Industries Private Limited, and food-grade resin in August 2024 (DRHP p.230). The subsidiary was bought from the promoters and others in March 2025 for 25,000,000 shares at ₹10 each (DRHP p.265).

Food-grade resin is made on EREMA extrusion and Polymetrix solid state polycondensation equipment, and the company says it was the first in India to install the relevant EREMA equipment (DRHP p.40). It holds FSSAI and USFDA registrations for food-grade resin (DRHP p.229). The chemical recycling process is the company's own, and a patent application on it has drawn an objection (DRHP p.35). The company is part of the Jay Bharat Group, founded in 1985 by Jitendrakumar Fulchand Arya (DRHP p.229).

Earnings equation: Revenue = tonnes sold of each product × realisation per tonne. FY26 sales volume was 101,505 tonnes and revenue from operations ₹827.6 crore, about ₹81,500 a tonne overall (our arithmetic, DRHP p.127). The document gives tonnes sold by product, so realisation per product can be worked out (section 04).

03Where the money comes from

Source: DRHP p.228, converted from ₹ million. RPSF fell from 86.42% of revenue in FY24 to 55.12% in FY26 as the newer products came in (DRHP p.228). Exports were ₹76.5 crore in FY24 and ₹167.9 crore in FY26, 20.29% of FY26 revenue (DRHP p.236). "Others" includes recycling certification income of ₹8.1 crore, foreign exchange gains of ₹4.4 crore and export incentives of ₹3.7 crore in FY26 (DRHP p.343). The company reports a single business segment, PET recycled products (AP p.5).

J B Ecotex customers: how concentrated the revenue is

The offer document does not give revenue from its largest, top five or top ten customers in any year. It says it served 476 customers in FY24 and 728 in FY26 (DRHP p.127), that it does not depend significantly on any single supplier (DRHP p.383), and that customers place purchase orders with no obligation to keep ordering (DRHP p.28). Whether revenue depends on a few customers therefore cannot be answered from the filing.

04The growth record

J B Ecotex financials: revenue, profit and margins

Source: DRHP p.77, DRHP p.78, DRHP p.127, AP p.11, AP p.12, converted from ₹ million. Revenue went from ₹527.4 crore in FY24 to ₹827.6 crore in FY26, and PAT from ₹21.1 crore to ₹22.5 crore (DRHP p.77).

Our arithmetic over FY24 to FY26: revenue grew about 25.3% a year (our arithmetic, DRHP p.77), EBITDA about 29.9% a year (our arithmetic, DRHP p.127) and profit after tax about 3.2% a year (our arithmetic, DRHP p.77). EBITDA margin moved from 10.1% to 10.9%, up 76 basis points, and PAT margin from 4.00% to 2.71%, down 129 basis points (DRHP p.127). The company's own revenue and EBITDA growth rates are 25.27% and 29.87% (DRHP p.234).

Year by year, revenue rose 35.8% in FY25 and 15.6% in FY26, while profit fell 2.7% in FY25 and rose 9.3% in FY26 (our arithmetic, DRHP p.77). FY26 profit is after a ₹1.07 crore exceptional loss from a fire at the plant on December 4, 2025 (DRHP p.77, DRHP p.376). Operating cash flow was ₹82.1 crore in FY26 (DRHP p.78), helped by a ₹54.1 crore fall in inventories (DRHP p.78). Other income of ₹1.08 crore was 3.5% of FY26 profit before tax of ₹30.8 crore (our arithmetic, DRHP p.77).

Net worth is the SEBI definition used in the KPIs; total equity on the balance sheet was ₹186.2 crore, ₹201.6 crore and ₹273.8 crore, and the document does not reconcile the two in one place (DRHP p.76, AP p.11). Net debt to EBITDA was 3.40 times in FY26, about 3.4×, and debt to equity 1.14 times, about 1.1× (DRHP p.127). Return on capital employed was 10.3% in FY26 (DRHP p.127).

The FY24 figures include JB rPET Industries Private Limited, which was acquired in March 2025 and accounted for as a common control combination from April 1, 2023 (DRHP p.130, DRHP p.306). The year end is March 31 throughout and the document says accounting policies did not change (DRHP p.24, DRHP p.384).

05What the growth is made of

Revenue rose from ₹527.4 crore in FY24 to ₹827.6 crore in FY26 (DRHP p.228). Sales volume rose from 66,321 tonnes to 101,505 tonnes, about 23.7% a year (our arithmetic, DRHP p.127), so most of the increase is volume rather than price: revenue per tonne was about ₹79,500 in FY24 and ₹81,500 in FY26 (our arithmetic, DRHP p.127).

The new volume came almost entirely from new products and new capacity. RPSF tonnes sold were flat at 60,953, 60,285 and 59,528 (DRHP p.233), because the 60,000 tonne line was already running at or above its rated capacity (DRHP p.246). Food-grade resin went from nothing to 11,632 tonnes after production started in August 2024, flakes from 4,191 to 15,277 tonnes, and chemically recycled resin from 1,177 to 15,068 tonnes after that plant started in January 2024 (DRHP p.233, DRHP p.230).

Realisation per tonne, from revenue and tonnes by product, moved differently across products (our arithmetic, DRHP p.228, DRHP p.233):

The company attributes the FY26 fall in chemically recycled resin revenue, despite higher tonnes, to product mix and lower realisations, and the RPSF fall to mix and lower average realisations (DRHP p.375). There were no acquisitions of outside businesses in the period; the subsidiary purchase was from the promoters' own group (DRHP p.265).

06Earnings quality

The day counts are the company's own figures as reproduced in the commissioned industry report (DRHP p.209). Profit and cash line up over three years, with cash ahead of profit because depreciation of ₹31.3 crore in FY26 is a non-cash charge (DRHP p.77).

The item that needs explaining is the gap between sales and returns. Gross revenue of ₹846.2 crore in FY26 was reduced by ₹10.2 crore of discounts and ₹8.3 crore of sales returns, against returns of ₹2.3 crore in FY25 and ₹0.39 crore in FY24 (DRHP p.343). Disputed trade receivables were ₹4.6 crore at March 2026 and the expected credit loss allowance rose to ₹2.7 crore from ₹0.65 crore (our arithmetic, DRHP p.334). Bad debts written off were ₹0.29 crore, ₹0.50 crore and ₹0.25 crore (DRHP p.36). The subsidiary that holds all chemical recycling lost ₹1.69 crore, ₹3.34 crore and ₹1.67 crore in FY24, FY25 and FY26 (DRHP p.27).

07The balance sheet

At March 31, 2026 total assets were ₹694.8 crore: property, plant and equipment ₹457.5 crore, capital work in progress ₹17.2 crore, inventories ₹68.8 crore, trade receivables ₹87.4 crore, cash ₹0.24 crore and other bank balances ₹6.3 crore held as lien against bank guarantees (DRHP p.76, DRHP p.334). Borrowings were ₹311.9 crore, of which ₹191.2 crore non-current and ₹120.7 crore current (DRHP p.380). Lease liabilities were ₹4.2 crore (our arithmetic, DRHP p.76). Current liabilities exceeded current assets by ₹6.9 crore (DRHP p.380).

Borrowings by type at March 31, 2026: the company had ₹154.3 crore of secured term loans, ₹25.0 crore working capital term loan, ₹34.0 crore of cash credit and ₹9.4 crore unsecured; the subsidiary ₹55.0 crore of term loans, ₹23.2 crore of cash credit and ₹10.1 crore unsecured (DRHP p.386). Unsecured loans from promoters, directors and their relatives were ₹16.5 crore (DRHP p.40). Promoters have personally guaranteed most bank facilities (DRHP p.265). Capital commitments were ₹10.4 crore, with letters of credit of ₹43.3 crore and an EPCG export obligation of ₹10.3 crore (DRHP p.380).

Contingent liabilities at March 31, 2026 were bank guarantees of ₹10.3 crore, corporate guarantees of ₹115.5 crore and disputed tax demands, net of deposits, of about ₹7.6 crore (DRHP p.79, our arithmetic). A risk factor puts the corporate guarantees for the subsidiary's loans at ₹105.5 crore, so the document gives two figures (DRHP p.36).

Source: DRHP p.116, DRHP p.115, our arithmetic. The September 2026 totals include non-fund based facilities such as letters of credit, so the after-issue figure is only arithmetic on the stated numbers (DRHP p.116). The specific loans listed for repayment had ₹349.4 crore outstanding (DRHP p.118). Net worth after the issue cannot be stated because the price and expenses are blank (DRHP p.385).

08What the money is for

J B Ecotex IPO objects: what the money is for

Source: DRHP p.115, DRHP p.121; the percentage is our arithmetic on the ₹400.0 crore gross fresh issue. All of the ₹320.0 crore is scheduled for FY27 (DRHP p.115). The loans listed are term loans and cash credit from HDFC Bank, Axis Bank, Bajaj Finance and Tata Capital, at interest rates from 7.01% to 10.50% (DRHP p.117). Part of the money will go to the subsidiary as equity or debt, in a form not yet decided (DRHP p.120). The objects have not been appraised by any bank (DRHP p.123).

The company may place up to ₹80.0 crore of shares before the red herring prospectus, capped at 20% of the fresh issue, which would reduce the fresh issue by that amount (DRHP p.93).

Into the business up to ₹400.0 crore, the fresh issue, before expenses (DRHP p.73). To selling shareholders 12,950,000 shares, 7.53% of the present share count; the rupee amount depends on the price, which is not set (DRHP p.73, our arithmetic).

09Who is selling

J B Ecotex IPO offer for sale: who is selling

Source: DRHP p.73, DRHP p.100; the last column is our arithmetic. The total offered is 12,950,000 shares (DRHP p.73). Samarth Arya and Gupta Family Private Trust, also promoters, are not selling (DRHP p.73).

10Promoters

There are eleven promoters: Ayodhyaprasad Jugalkishore Singhal, Hemant Vimalkumar Dhandharia, Himanshu Surendra Jariwala, Jitendrakumar Fulchand Arya, Monika Rajesh Gupta, Rajesh Ramniwas Gupta, Ramdas Laxminarayan Jindal, Sajjan Kumar Kejriwal, Samarth Arya, Vishal Kejriwal and Gupta Family Private Trust (DRHP p.292). Seven are the original promoters; Rajesh Ramniwas Gupta, Vishal Kejriwal, Samarth Arya and the trust were identified as promoters by a board resolution of August 11, 2026 (DRHP p.297).

Jitendrakumar Fulchand Arya, 69, is the Chairman and a non-executive director, with over 40 years in textiles, and a director or promoter of several Jay Bharat Group companies (DRHP p.275). Ayodhyaprasad Jugalkishore Singhal, 46, a chartered accountant, is the Managing Director and has been with the business since 2014 (DRHP p.275). Vishal Kejriwal and Rajesh Ramniwas Gupta are non-executive directors (DRHP p.275). The other individual promoters hold no position in the company except Monika Rajesh Gupta, who is Digital Marketing Head of the company and its subsidiary, and Samarth Arya, an executive director of the subsidiary (DRHP p.295, DRHP p.296).

Family relationships, as the document states them: Samarth Arya is the son of Jitendrakumar Fulchand Arya; Vishal Kejriwal is the son of Sajjan Kumar Kejriwal; Monika Rajesh Gupta and Rajesh Ramniwas Gupta are spouses; and Sajjan Kumar Kejriwal is the brother of Jitendrakumar Fulchand Arya's spouse (DRHP p.299, DRHP p.300). Gupta Family Private Trust was formed on May 1, 2026, with Rajesh Ramniwas Gupta and Monika Rajesh Gupta as initial trustees (DRHP p.296).

What the company pays them: in FY26 the Managing Director received ₹0.60 crore and the Chairman ₹1.20 crore (DRHP p.277); Samarth Arya received ₹0.60 crore as a director of the subsidiary (DRHP p.84). Promoter remuneration rose from ₹1.5 crore in FY24 to ₹2.4 crore in FY26 (our arithmetic, DRHP p.82, DRHP p.84). Promoters and their relatives lend to the company: unsecured loans outstanding from promoters, directors and relatives were ₹16.5 crore at March 2026 (DRHP p.40).

Guarantees and pledges: the promoters have personally guaranteed the company's and subsidiary's loans from Axis Bank, HDFC Bank, Bajaj Finance and Tata Capital, without fee, and several have guaranteed loans of other group businesses such as JB Craft Paper LLP and J.Korin Spinning Private Limited (DRHP p.265, DRHP p.266). None of the promoters' shares is pledged (DRHP p.104).

Regulatory record: the document states no SEBI or exchange action against the promoters in the last five years, and none is a wilful defaulter or fugitive economic offender (DRHP p.298).

Promoter economics: the promoters' shares came from the conversion of the LLP's capital in September 2021 at ₹10 a share, the conversion of their loans in March 2022 at ₹76 a share, transfers among themselves at ₹132 in March and April 2025, gifts, and the April 2026 bonus (DRHP p.94, DRHP p.100).

The weighted average cost per present ₹5 share ranges from nil for Rajesh Ramniwas Gupta, Samarth Arya, Vishal Kejriwal and the trust, whose shares came by gift, to ₹6.50 for Monika Rajesh Gupta and Sajjan Kumar Kejriwal; Jitendrakumar Fulchand Arya's is ₹4.49 (DRHP p.111). Outside investors paid ₹132 a share of ₹10 face value in March 2025 and ₹901 a share of ₹10 face value in September and October 2025 (DRHP p.94, DRHP p.95).

After the 4:1 bonus and the split, ₹901 works out to ₹90.10 a present share (our arithmetic, DRHP p.95).

11Who already owns it

J B Ecotex promoter holding before and after the IPO

Source: DRHP p.100, DRHP p.107. The promoters hold 89.0% before the issue (DRHP p.100). The post-issue holding is left blank until the price is set (DRHP p.100); the 12,950,000 shares offered alone would take the promoters to 140,050,000 shares before any new shares are counted (our arithmetic, DRHP p.73).

The largest holders are Jitendrakumar Fulchand Arya with 21.56%, Himanshu Surendra Jariwala and Ramdas Laxminarayan Jindal with 11.63% each, and Ayodhyaprasad Jugalkishore Singhal with 7.53% (DRHP p.108). Outside the promoter group, the holders of 1% or more are three company executives, Amit Mahavirprasad Jain, Manish Kumar Singhal and Punit Kumar Singhal, with 1.82% each; Carnelian Asset Management LLP with 1.60%; and Amitkumar Satyaprakash Agarwal and Hardikkumar A Agrawal with 1.14% each (DRHP p.108).

Carnelian Asset Management LLP came in through the September 25, 2025 allotment at ₹901 a share of ₹10 face value (DRHP p.94). The executives came in through the March 28, 2025 allotment at ₹132 (DRHP p.94). The company has 55 shareholders and no employee stock option scheme (DRHP p.108, DRHP p.99).

12What changed just before the IPO

• Subsidiary acquired: JB rPET Industries Private Limited, which holds all chemical recycling, was bought from its shareholders, most of them promoters, in March 2025 at ₹10 a share for 25,000,000 shares (DRHP p.265). The company converted ₹25.0 crore of its loans to the subsidiary into equity in FY26 (DRHP p.80).
• Share allotments: 1,343,846 shares at ₹132 in March 2025, 543,900 shares at ₹901 on September 25, 2025 and 11,100 shares at ₹901 on October 8, 2025, all of ₹10 face value (DRHP p.94, DRHP p.95).
• Bonus and split: a 4:1 bonus was allotted on April 28, 2026, and each ₹10 share was split into two ₹5 shares under an April 24, 2026 resolution (DRHP p.95, DRHP p.97).
• Auditor change: DSI & Co. resigned on December 12, 2024, citing other professional commitments, and Singhi & Co. was appointed on March 20, 2025 to fill the vacancy, then re-appointed on September 30, 2025 (DRHP p.90).
• Promoter group widened: four promoters were added on August 11, 2026, the family trust was formed in May 2026, and 1,000,000 shares moved from Rajesh Ramniwas Gupta to Ramniwas Loonkarandas Gupta and then to the trust by gift in September 2026 (DRHP p.297, DRHP p.103, DRHP p.104).
• Board: two independent directors were appointed in August and September 2026, and Vishal Kejriwal and Rajesh Ramniwas Gupta were redesignated non-executive with no remuneration (DRHP p.276, DRHP p.277).
• Capacity: food-grade resin capacity went from 21,600 to 56,160 tonnes in August 2026 and chemically recycled resin from 28,800 to 33,600 tonnes in June 2026 (DRHP p.230).
• Remuneration: promoter remuneration rose from ₹1.5 crore in FY24 to ₹2.4 crore in FY26 (our arithmetic, DRHP p.82, DRHP p.84).
• Related parties: purchases of solar panels and installation from Climate Detox Renewables Private Limited were ₹20.2 crore in FY25 and coal purchases from Jay Bharat Dyeing And Printing Private Limited ₹4.5 crore in FY24; neither recurred as a purchase in FY26 (DRHP p.81).
• Registered office moved from the factory to Surat city in July 2025 (DRHP p.263).

13Capacity and expansion

Source: DRHP p.246, DRHP p.230, certified by an independent chartered engineer, Dr. P. J. Gandhi (DRHP p.246). Total capacity was 141,000 tonnes at March 2026 and 180,360 tonnes at August 31, 2026 (DRHP p.230). The JB Ecotex plant ran at 79.73% overall in FY26 and the JB rPET plant at 51.83% (DRHP p.246). RPSF ran above its rated capacity in FY24 and FY25, at 101.14% and 103.12% (DRHP p.246). A 12,000 tonne line for recycled PP and PE flakes and granules was installed on June 30, 2025 (DRHP p.237).

The issue funds no new capacity: the objects are debt repayment and general purposes (DRHP p.115). The chain is capacity → utilisation → volume → revenue, and the food-grade line already had spare capacity in FY26 before the August 2026 addition (DRHP p.246).

14Market size and industry structure

J B Ecotex industry: market size and growth

As claimed: the industry chapter is drawn from "Recycled resins market", a report by Lattice Technologies Private Limited dated September 25, 2026, commissioned and paid for by the company (the 1Lattice Report) (DRHP p.143). It says India's recycled PET (rPET) market was US$ 2.3B in FY26, up from US$ 0.7B in FY19, and 1.8MT in volume (DRHP p.173, DRHP p.174). It puts the global rPET market at US$ 23.2B in CY25 (DRHP p.172). Its first pages cover the world and Indian economies and size nothing in recycling (DRHP p.143 to DRHP p.147).

The part that is addressable: the company supplies four Indian sub-markets the report sizes. India's recycled polyester staple fibre market was US$ 0.8B and 0.76MT in FY26 (DRHP p.185, DRHP p.186); food-grade rPET resin US$ 378.4M and 300.0KT (DRHP p.191, DRHP p.192); and chemically recycled PET resin US$ 108.4M and 70.1KT (DRHP p.199, DRHP p.200). Exports, 20.29% of FY26 revenue, go to the global markets (DRHP p.236).

What the company is today: FY26 sales of 59,528 tonnes of RPSF, 11,632 tonnes of food-grade resin and 15,068 tonnes of chemically recycled resin (DRHP p.233). Against the report's volumes, that is about 7.8% of India's RPSF volume, 3.9% of food-grade rPET resin and 21.5% of chemically recycled resin, though the company's tonnes include exports (our arithmetic, DRHP p.186, DRHP p.192, DRHP p.200, DRHP p.233). The company says it is the second largest PET recycler in India by capacity (DRHP p.225).

Size over time: India's rPET market grew at 18.9% a year from FY19 to FY26, and the 1Lattice Report projects US$ 5.7B and 4.0MT by FY31 (DRHP p.173, DRHP p.174). It says the RPSF market grew 14.3% a year in value from FY19 to FY26 and projects US$ 1.8B by FY31 (DRHP p.185). For food-grade rPET resin it reports 67.3% a year growth from FY19 to FY26 and projects US$ 2,866.6M by FY31, about 49.9% a year (DRHP p.191). For chemically recycled PET resin it projects US$ 283.0M by FY31 (DRHP p.199).

Segments: the report splits recycled PET by product (fibre, food-grade resin, chemically recycled resin, flakes) and by end use. In India's RPSF market, traditional textiles were 77.2% of value in FY26 and technical textiles 19.0% (DRHP p.187). Textiles took 80.0% of the Indian chemically recycled resin market in FY26 (DRHP p.200). The western region led RPSF demand with 42.9% of value (DRHP p.186). RPSF was 55.12% of the company's FY26 revenue (DRHP p.228).

What drives demand: the chapter names extended producer responsibility rules requiring rigid plastic packaging to contain 30% recycled content in FY26, rising to 60% from FY29 (DRHP p.175); FSSAI's March 2025 permission to use recycled PET in food contact packaging (DRHP p.31); the EU rule that beverage bottles contain at least 30% recycled plastic by CY30 (DRHP p.153); and brand commitments such as Coca-Cola's to use 30% to 35% recycled PET by CY35 (DRHP p.163).

Structure: the chapter describes the Indian recycling industry as moving away from unorganised manufacturing (DRHP p.173). As of March 2026 FSSAI had authorised 17 food-grade rPET plants with about 300KT a year of approved capacity (DRHP p.195). The report's peer set is Ganesha Ecosphere Ltd, Srichakra Polyplast, Dodhia Group, Dalmia Polypro, Alliance Fibres, Pashupati Polytex, BLS Ecotech, Revalyu Recycling and Badri Cotsyn Limited (DRHP p.206). It names Ganesha Ecosphere's 64,500 TPA of food-grade capacity (DRHP p.193) and Revalyu Resources' chemical recycling plant at Nashik with 58,400 TPA operating (DRHP p.202). Barriers it lists include FSSAI approval taking about two to three months and strict testing (DRHP p.195).

Inputs and trade: the raw material is used PET bottles and waste, collected by an informal chain of waste pickers, scrap dealers, traders, balers and aggregators (DRHP p.221, DRHP p.222). The chapter says India's imports of PET bottle scrap fell to nil in FY25 and FY26 (DRHP p.223). The company's own imports of raw material were 11.02% of FY26 cost of goods sold (DRHP p.249).

Rules: plastic waste management rules, the EPR portal and its penalties of up to ₹0.15 crore plus daily fines (DRHP p.176), FSSAI authorisation and migration and challenge tests for food-grade resin (DRHP p.195), and Gujarat Pollution Control Board consents and a plastic recycling registration for the plant (DRHP p.395).

What the chapter says can go wrong: for RPSF, raw material inconsistency, competition from virgin fibre and collection gaps (DRHP p.189, DRHP p.190); for food-grade resin, supply chain limits and scarce high-quality feedstock (DRHP p.194); for chemical recycling, high costs, energy use and limited infrastructure (DRHP p.203). The company adds that any dilution or delay of the EPR targets could cut demand, as a 2026 change already let food-contact obligations be carried forward for up to three years (DRHP p.30, DRHP p.31).

15Competitive position

J B Ecotex competitors

Source: DRHP p.207, DRHP p.208, DRHP p.209, from the commissioned report; the table gives net debt, not total borrowings. Ganesha Ecosphere's PAT margin and RoCE are on a standalone basis (DRHP p.210). Most other peers have no FY26 figures in the report (DRHP p.207).

Why customers choose this company, as the document puts it: scale at one site, the combination of mechanical and chemical recycling, food-grade approvals from FSSAI and USFDA, and plant approval by two of the largest global beverage makers (DRHP p.225, DRHP p.229). It also notes it is not the exclusive supplier to most customers, who may move orders for price or credit terms (DRHP p.28). The patent on the chemical process is not granted and faces an objection, and one company logo is owned by a group entity and licensed for ₹100 for five years (DRHP p.35, DRHP p.43).

16Peers the company named

Peers named in the offer document: Ganesha Ecosphere Limited (DRHP p.126).

Ganesha Ecosphere Limited is the only listed peer. Its FY26 revenue was ₹1,481.7 crore, about 1.8 times J B Ecotex's ₹827.6 crore, and its profit ₹38.2 crore (DRHP p.126). It traded at 68.90 times earnings on September 18, 2026 (DRHP p.126). Its FY26 sales volume was 158,177 tonnes against the company's 101,505 (DRHP p.129). Its debt to equity was 0.09 against the company's 1.14 (DRHP p.129). The business overlaps in recycled fibre and food-grade resin (DRHP p.193); the report says J B Ecotex is the only company in India with both mechanical and chemical PET recycling (DRHP p.202).

17Risks, in plain words

J B Ecotex IPO risks

Business: RPSF was 55.12% of FY26 revenue (DRHP p.228) → a fall in textile demand for recycled fibre would hit more than half of sales → the line already runs near its rated 60,000 tonnes, so growth must come from newer products (DRHP p.246).

Subsidiary losses: all chemical recycling sits in JB rPET Industries Private Limited (DRHP p.27) → it lost money in each of the last three years, ₹1.67 crore in FY26 (DRHP p.27) → the company has guaranteed its loans, ₹115.5 crore of corporate guarantees at March 2026 (DRHP p.79).

Customers: sales are on purchase orders with no long-term contracts (DRHP p.28) → orders can stop or move to a competitor → the document does not disclose concentration, so the exposure cannot be sized (DRHP p.28).

Suppliers and inputs: raw materials were 70.22% of FY26 total expenses (DRHP p.27) → there are no long-term supply contracts and feedstock is contaminated and uneven (DRHP p.25) → price swings in PET waste and virgin PET change margins (DRHP p.28).

Financial: borrowings of ₹311.9 crore at March 2026 (DRHP p.380) → finance costs were ₹27.8 crore, about 90% of FY26 profit before tax (our arithmetic, DRHP p.77) → ₹320.0 crore of the fresh issue is meant for repayment (DRHP p.115).

Regulation: demand for food-grade resin depends on EPR recycled content targets (DRHP p.30) → a relaxation, such as the 2026 carry-forward of obligations, can cut demand (DRHP p.31) → food-grade resin was 13.61% of FY26 revenue (DRHP p.228).

One site: both plants are adjacent at Dhamdod, Surat, reached by a single road on leased land (DRHP p.26, DRHP p.54) → a fire on December 4, 2025 cost ₹1.07 crore and a March 2024 accident killed a contract worker (DRHP p.31, DRHP p.32) → about 21.8% of assets were uninsured at March 2026 (our arithmetic, DRHP p.33).

Issue-specific: the promoters will keep control (DRHP p.55) → they hold 89.0% before the issue (DRHP p.100) → the promoters' weighted average cost is between nil and ₹6.50 a share (DRHP p.111).

18Litigation and regulatory matters

Cases against J B Ecotex and its promoters

Source: DRHP p.39, DRHP p.390, DRHP p.392. There are no criminal cases against the company, subsidiary, promoters or directors, no regulatory actions and no material civil cases (DRHP p.390, DRHP p.391). The amounts above are the claims involved as the document states them, not liabilities.

Three tax matters are described individually. An income tax reassessment for AY 2016-17 led to a ₹1.3 crore demand; an appeal was partly allowed and the department has appealed (DRHP p.392). A GST order for April 2018 to March 2019 raised ₹2.3 crore, which the company has appealed (DRHP p.392, DRHP p.393).

In a third GST case the first appeal deleted a ₹5.4 crore demand, but the department appealed on June 16, 2026 to restore it with interest and the personal penalties levied on the Managing Director and another (DRHP p.393). The subsidiary and directors have no tax cases (DRHP p.392). The group companies have no litigation the document considers material (DRHP p.400).

19Related-party transactions

Aggregate related-party transactions were ₹33.9 crore in FY24, ₹31.1 crore in FY25 and ₹3.4 crore in FY26, or 6.43%, 4.34% and 0.41% of revenue (DRHP p.33).

Source: DRHP p.80, DRHP p.81, DRHP p.82. Directors, promoters and relatives lend to the company and are repaid each year; for example Rajesh Ramniwas Gupta lent ₹6.0 crore in FY24 and was repaid ₹5.4 crore in FY26 (DRHP p.82). J.Korin Spinning Private Limited also lent ₹3.0 crore in FY26 at interest (DRHP p.80).

Appeared or disappeared in the last two years: the subsidiary moved inside the group in March 2025, so its trades with the company (₹47.8 crore of sales to it in FY26) are now intra-group (DRHP p.80, DRHP p.265). The solar purchase in FY25 and the coal purchase in FY24 did not recur (DRHP p.81). The loan to Dhamdod Industrial Association, an associate limited by guarantee, was converted to a security deposit in FY26 (DRHP p.80, DRHP p.271). The company's logo is used under a licence from a group entity for a token ₹100 royalty (DRHP p.43). The company says these transactions were at arm's length (DRHP p.33).

20What the offer document does not say

Revenue from the largest customer, top five or top ten customers is not disclosed for any year, nor is supplier concentration beyond the statement that there is no significant dependence (DRHP p.383). Margins by product are not given, and the company reports a single segment (AP p.5). The order book is not disclosed; the company says it does not keep a significant one (DRHP p.35).

Prices or terms with Varun Beverages Limited and Moon Beverages Limited are not given. Borrowing costs capitalised are not stated in the sections read. The general corporate purposes amount, offer expenses, price band and post-issue holdings are blank (DRHP p.115, DRHP p.100). The reason the SEBI net worth of ₹212.3 crore differs from balance sheet equity of ₹273.8 crore is not explained in one place (DRHP p.385, DRHP p.76).

Some inconsistencies are recorded as document matters, not business ones: corporate guarantees for the subsidiary are ₹105.5 crore in a risk factor and ₹115.5 crore in contingent liabilities (DRHP p.36, DRHP p.79); the Managing Director's experience is given as over 16 years in one place and over 10 years in another (DRHP p.275, DRHP p.229); Vishal Kejriwal's age is 53 in the management chapter and 52 in the promoters chapter (DRHP p.275, DRHP p.293); and the industry chapter says the report will be on a website at kanohar.com, a different domain from the company's (DRHP p.143).

21Five questions for management

1. What share of FY26 revenue came from the largest customer and from the top ten, and how much of food-grade resin volume went to Varun Beverages Limited and Moon Beverages Limited?
2. Why did chemically recycled resin realisation fall from about ₹79,900 a tonne in FY25 to about ₹58,900 in FY26, and what does the subsidiary need in volume or price to stop making losses?
3. Why did sales returns rise to ₹8.3 crore in FY26 from ₹2.3 crore in FY25, and which products were returned?
4. With food-grade resin at 52.47% utilisation in FY26, how much of the 34,560 tonnes added in August 2026 is already contracted?
5. Which loans will the ₹320.0 crore repay, how much will go to the subsidiary, and what annual interest saving does the company calculate?

2Sources and cited facts

This study was read from 2 documents the company filed. The 182 figures it cites are listed under the document each came from, with the page and the sentence as printed.