Unitec Fibres Limited IPO

01At a glance

What the company does: makes recycled polyester staple fibre (RPSF), a short cut fibre spun from PET flakes, PET chips and polyester waste, at two leased plants in the MIDC Tarapur industrial area in Palghar, Maharashtra, with an installed capacity of 27,984 tonnes a year (RHP p.155).

Who pays it: manufacturers of home furnishings (46.47% of FY26 revenue), automobile parts such as carpets and roof liners (36.14%), non-woven fabrics (10.25%) and textiles (5.04%) (RHP p.162). The top ten customers took 45.94% of FY26 revenue, and the prospectus does not name the customers (RHP p.170, RHP p.171).

Why it is raising money: ₹3,100.00 lakh of the proceeds is to repay borrowings from Kotak Mahindra Bank, and the rest, left blank in the prospectus, is for general corporate purposes (RHP p.116, RHP p.119). At ₹88 the 39,16,800 new shares raise ₹3,446.78 lakh before expenses, by our arithmetic (RHP p.75).

How fast it has grown: revenue went from ₹20,413.97 lakh in FY24 to ₹22,424.48 lakh in FY26, about 4.8% a year, and profit after tax from ₹741.95 lakh to ₹759.67 lakh, about 1.2% a year, by our arithmetic (RHP p.79). Both were lower in FY26 than in FY25 (RHP p.290).

The one thing to understand: the two plants already ran at 90.85% of capacity in FY26, and the company is building a third unit in Valsad, Gujarat, on borrowed money: borrowings went from ₹1,572.12 lakh in March 2024 to ₹7,719.22 lakh in March 2026 (RHP p.169, RHP p.77). The issue repays debt; it does not fund the new unit, whose capacity, cost and start date the prospectus does not state (RHP p.116, RHP p.318).

02The business, in plain words

Unitec purchases PET flakes (cleaned, shredded plastic bottles), polyester waste from textile makers and virgin PET chips, melts them, pushes the melt through spinnerets into continuous fibre, then stretches, crimps and cuts it into staple fibre of chosen length, thickness (denier) and colour (RHP p.166). The fibre goes into pillows, mattresses, car carpets, roof liners, non-woven fabric and spinning mills (RHP p.155, RHP p.157).

A furnishing, car-parts or non-woven maker needs fibre → places a purchase order → Unitec melts and spins recycled PET into fibre at Tarapur → Unitec is paid per consignment, on credit, ex-works in India and free on board for exports.

The chain above rests on the company's own description of logistics and purchase-order based sales (RHP p.173, RHP p.33). The company was incorporated in 2005 and became a public company in June 2024 (RHP p.200). It had 171 permanent employees and 116 contract workers at March 2026 (RHP p.174, RHP p.175).

It also earns Extended Producer Responsibility (EPR) credits, certificates that plastic producers purchase to meet a recycling duty under the Plastic Waste Management Rules, and export incentives (RHP p.173, RHP p.264). Sales are made directly and through commission agents; commission cost ₹203.16 lakh in FY26 (RHP p.169).

PET chips, which the company says are mainly virgin material used for stronger fibre, were ₹2,828.32 lakh of the ₹14,905.78 lakh of raw material purchased in FY26 (RHP p.165, RHP p.265).

Earnings equation: Profit ≈ tonnes of fibre sold × (price per tonne − raw material per tonne) − power and fuel − labour − freight − interest. In FY26 materials consumed were ₹14,689.91 lakh, electricity ₹1,566.98 lakh, fuel ₹705.19 lakh and freight ₹801.37 lakh against revenue of ₹22,424.48 lakh (RHP p.79, RHP p.266). The plants produced 25,422.34 tonnes that year (RHP p.169).

03Where the money comes from

Source: RHP p.162, RHP p.163. Fibre sales were 98.04% of FY26 revenue; the rest was EPR credits, export incentives and scrap (RHP p.162). In India, Gujarat, Maharashtra, Tamil Nadu and Haryana together took 59.52% of FY26 revenue (RHP p.31). Bangladesh was the largest export market, ₹854.62 lakh in FY26 after ₹1,613.06 lakh in FY25 (RHP p.163).

Source: RHP p.170, RHP p.161. No single customer is more than about an eighth of revenue, and the top ten are a little under half. The customer count fell by 42 over two years, and repeat customers gave 91.31% of FY26 revenue (RHP p.161).

04The growth record

Source: RHP p.126, RHP p.81, RHP p.77; borrowings are long-term plus short-term borrowings, our arithmetic. Our arithmetic from FY24 to FY26: revenue grew about 4.8% a year, EBITDA fell about 3.1% a year, profit grew about 1.2% a year, and the EBITDA margin fell 119 basis points (RHP p.126). Revenue rose 10.91% in FY25 and fell 0.96% in FY26 (RHP p.290, RHP p.293).

Other income of ₹61.09 lakh was 5.5% of the ₹1,102.35 lakh profit before tax in FY26 (our arithmetic, RHP p.79, RHP p.81). The trade receivable turnover ratio of 12.82 in FY24 and 14.47 in FY26 works out to 28 and 25 days of receivables (our arithmetic, RHP p.273).

Restatement changed the reported profits: FY25 profit was ₹732.91 lakh in the audited accounts and ₹821.84 lakh restated, mainly because gratuity, until then booked on a cash basis, was recomputed on an actuarial basis (RHP p.249). The company moved to actuarial gratuity accounting in FY25 (RHP p.246).

05What the growth is made of

Fibre sales rose from ₹19,726.97 lakh in FY24 to ₹21,984.72 lakh in FY26, about 11.4% over two years by our arithmetic (RHP p.264). Production rose from 23,546.25 tonnes to 25,422.34 tonnes, about 8.0% (RHP p.169). The prospectus gives tonnes produced, not tonnes sold, so by our arithmetic fibre revenue per tonne produced went from about ₹83,780 to about ₹86,478; at the FY24 figure, FY26 production would have brought in about ₹21,299 lakh, and the remaining ₹686 lakh or so is price, product mix and any gap between production and sales (RHP p.169, RHP p.264).

Other operating revenue fell from ₹687.00 lakh to ₹439.76 lakh, mostly because EPR credit income fell from ₹299.92 lakh to ₹120.23 lakh (RHP p.264). The company attributes FY25 growth to higher exports and new markets including Bangladesh, France, the United Kingdom and Germany (RHP p.294). Exports then fell from ₹3,583.77 lakh in FY25 to ₹2,054.77 lakh in FY26, while automobile sales rose from ₹5,991.88 lakh to ₹8,105.03 lakh and home furnishing fell from ₹12,036.75 lakh to ₹10,420.27 lakh (RHP p.163, RHP p.162). There were no acquisitions in the last ten years (RHP p.202). Unit 2's installed capacity rose from 13,286.12 tonnes in FY24 to 15,785.66 tonnes in FY25 (RHP p.169).

06Earnings quality

The item that needs explaining is FY26 cash. Operating profit before working capital changes was ₹1,798.73 lakh, but short-term loans and advances rose ₹721.85 lakh, fixed deposits rose ₹278.91 lakh and income tax paid was ₹466.64 lakh, leaving ₹400.24 lakh (RHP p.81). Within those advances, the balance with revenue authorities went from ₹163.48 lakh to ₹1,034.09 lakh (RHP p.263). The company has also claimed a GST refund of ₹152.17 lakh for January and February 2026 on accumulated input credit, which a tax officer has proposed to reject (RHP p.304).

Two other points sit in the notes. Finance cost fell from ₹250.70 lakh to ₹186.14 lakh in FY26 while borrowings doubled, and the prospectus does not say how much interest was capitalised into the new unit (RHP p.79, RHP p.244). Discounts and write-offs were ₹167.55 lakh in FY26 against ₹94.07 lakh in FY25 (RHP p.266). The statements of stock, receivables and payables given to the bank differed from the books: at March 2026, payables by ₹707.91 lakh and inventory by ₹193.15 lakh (RHP p.41).

07The balance sheet

At March 2026 secured borrowings were ₹6,317.92 lakh, mostly a Kotak Mahindra Bank term loan of ₹4,456.60 lakh and cash credit of ₹1,672.42 lakh (RHP p.254). Unsecured loans, all repayable on demand, were ₹1,401.30 lakh: ₹450.50 lakh from Uni Eco Beacon Private Limited, ₹450.00 lakh from Unitec Inc (a proprietorship of Virander Behl), ₹357.50 lakh from Bhartia Yarns Pvt Ltd, ₹100.00 lakh from Roha at 8.50%, and ₹43.30 lakh from Vijay Omjagdish Behl (RHP p.280). The risk factor describes these loans as from promoters, promoter group entities and directors, but Bhartia Yarns Pvt Ltd is not in the promoter group list (RHP p.55, RHP p.227).

Cash and bank balances were ₹298.06 lakh, of which ₹287.58 lakh was fixed deposits and ₹10.48 lakh cash and current accounts (RHP p.263). Contingent liabilities were ₹386.97 lakh by our arithmetic: tax deducted at source ₹21.98 lakh, income tax ₹47.03 lakh, GST ₹268.28 lakh and customs ₹49.68 lakh (RHP p.83). Capital commitments for imported machines and a factory building were ₹352.75 lakh, of which ₹20.83 lakh remained at June 29, 2026 (RHP p.83, RHP p.45). No guarantees were given for others (RHP p.83). The term loan rose to ₹5,142.00 lakh by August 31, 2026 (RHP p.119).

Our arithmetic (RHP p.77, RHP p.116): the ₹3,100.00 lakh repayment is taken off March 2026 borrowings, and the gross proceeds of ₹3,446.78 lakh are added to net worth before issue expenses, which the prospectus leaves blank.

08What the money is for

Source: RHP p.116, RHP p.120; percentages are our arithmetic. The loans named for repayment were outstanding at ₹5,590.96 lakh on August 31, 2026: a Kotak Mahindra Bank term loan of ₹5,142.00 lakh taken to finance plant and machinery, construction and capacity expansion, cash credit of ₹360.57 lakh and an emergency credit line of ₹88.39 lakh (RHP p.118, RHP p.119). The prospectus does not say which of them the ₹3,100.00 lakh will go to.

It is to be spent in FY27 (RHP p.117). General corporate purposes are capped at 15% of the amount raised or ₹1,000 lakh, whichever is less (RHP p.116). At ₹88 the gross proceeds exceed the repayment by ₹346.78 lakh, and at ₹83 by ₹150.94 lakh, which must cover issue expenses and general corporate purposes, by our arithmetic (RHP p.75).

Read from the filing: the proceeds refinance part of the bank borrowing that has paid for the capacity build-out so far, rather than fund new capacity directly.

Into the business the whole issue: up to 39,16,800 new shares, ₹3,446.78 lakh at ₹88 by our arithmetic (RHP p.75). To selling shareholders nothing: there is no offer for sale (RHP p.1).

09Who is selling

No one. The entire issue is new shares (RHP p.1). The promoters and promoter group will not bid in the issue (RHP p.115).

10Promoters

The promoters are Vijay Omjagdish Behl, Virander Behl, Devina Virander Behl, Rajiv Behl, Mihir Suvanam and Magic Films Private Limited (RHP p.1). Vijay Omjagdish Behl, 66, is chairman and whole-time director, a director since 2016 with about 10 years in the fibre business; Virander Behl, 62, is managing director, a director since incorporation in 2005, and runs sales (RHP p.204, RHP p.206).

Devina Virander Behl, 60, is a non-executive director; Rajiv Behl, 70, became chief executive in May 2025; Mihir Suvanam, 38, became chief financial officer in May 2025 (RHP p.204, RHP p.217). Magic Films Private Limited is a film and media company owned 85% by Devina Virander Behl and 15% by Virander Behl (RHP p.222, RHP p.223).

The prospectus states that Virander Behl and Devina Virander Behl are spouses and that Virander Behl, Vijay Omjagdish Behl and Rajiv Behl are brothers (RHP p.207). Its promoter group table lists Vibhuti Behl as the spouse of Mihir Suvanam and as a daughter of Vijay Omjagdish Behl (RHP p.225, RHP p.226).

FY26 pay was ₹48.00 lakh for Vijay Omjagdish Behl, ₹21.00 lakh for Virander Behl and ₹15.00 lakh for Devina Virander Behl (RHP p.208), ₹45.00 lakh for Mihir Suvanam and ₹12.00 lakh for Rajiv Behl (RHP p.217). Pay to the five individual promoters totalled ₹100.00 lakh in FY24 and ₹141.00 lakh in FY26 (our arithmetic, RHP p.268).

Vijay Omjagdish Behl, Virander Behl, Rajiv Behl and Devina Virander Behl have personally guaranteed the Kotak term loan and cash credit (RHP p.281). No promoter shares are pledged (RHP p.105). Group companies Deenanath Fibres Private Limited and Uni Eco Beacon Private Limited are in a similar line of business, and signed three-year non-compete agreements with the company on May 9, 2026 (RHP p.225).

There are no criminal cases or regulatory actions against the promoters; eight income tax demands against Devina Virander Behl, Vijay Omjagdish Behl and Virander Behl total ₹16.62 lakh (RHP p.306, RHP p.37).

Promoter economics: no shares have been issued since a rights issue at ₹42 on February 1, 2021; earlier issues were at ₹53 in 2018, ₹10 in 2017 and ₹10 in 2015, the last by converting company debt into shares (RHP p.101, RHP p.104). On January 17, 2022 Virander Behl gifted 28,55,000 shares to Vijay Omjagdish Behl and 21,87,872 to Rajiv Behl (RHP p.108).

Vijay Omjagdish Behl purchased 2,65,000 shares at ₹10 from three shareholders on April 5, 2023 (RHP p.109, RHP p.110). On August 20, 2025 Vijay Omjagdish Behl gifted 6,65,000 shares, 6.33% of the company, to Mihir Suvanam (RHP p.110). The prospectus puts the cost of acquisition of all secondary transfers in the last three years at nil, because they were gifts (RHP p.129).

11Who already owns it

Source: RHP p.110, RHP p.105. The company has 11 shareholders (RHP p.110). The largest outside holder, Angela Johanna Staudinger with 4.04%, took 4,24,398 shares in the February 2021 rights issue at ₹42 (RHP p.106, RHP p.103). If the whole issue is allotted, the promoters would hold about 67.1% of 1,44,18,578 shares, by our arithmetic (RHP p.75, RHP p.110). Shares equal to 20% of the enlarged capital are locked in for three years, and the rest of the promoters' shares for one or two years (RHP p.112, RHP p.113).

12What changed just before the IPO

• The company became a public company, with a fresh certificate of incorporation on June 13, 2024 (RHP p.200).
• Two independent directors joined and the managing director and chairman were designated in July 2024 (RHP p.204, RHP p.205).
• The statutory auditor, Parekh Shah & Lodha, resigned on September 12, 2024 on the expiry of its peer review certificate; GMCS & Co was appointed on September 30, 2024 (RHP p.95).
• Land at Anklas, Valsad, was purchased in August and October 2024 for ₹2,152.26 lakh (RHP p.179, RHP p.180), and capital work in progress reached ₹4,492.54 lakh by March 2026 (RHP p.77).
• Borrowings rose from ₹1,572.12 lakh to ₹7,719.22 lakh in two years, and unsecured loans from ₹47.30 lakh to ₹1,401.30 lakh in FY26 (RHP p.77, RHP p.255).
• Rajiv Behl became chief executive and Mihir Suvanam chief financial officer on May 17, 2025 (RHP p.219); Mihir Suvanam received 6.33% of the shares by gift in August 2025 (RHP p.110).
• Non-compete agreements with two group companies were signed on May 9, 2026 (RHP p.225).
• Share allotment filings for 2015 were made in March 2026, about 4,000 days late, and MSME returns back to 2022 in May 2026 (RHP p.49, RHP p.50, RHP p.51).
• Two GST demand intimations for FY23, of ₹178.10 lakh and ₹56.78 lakh, arrived on August 14, 2026 (RHP p.305).

13Capacity and expansion

Source: RHP p.168, RHP p.169, RHP p.318. MTPA is metric tonnes per annum. Combined utilisation was 92.32% in FY24 and 90.98% in FY25 (RHP p.169). The capacity figures come from an independent chartered engineer's certificate and, the prospectus says, rest on assumptions and estimates (RHP p.52).

Unit 3 is to process used PET bottles and textile waste into the same fibre (RHP p.161). It has a consent to establish from the Gujarat Pollution Control Board dated March 15, 2025, but has not started operating, and the factory licence, fire clearance and consent to operate have not been applied for (RHP p.314, RHP p.318). A consent to establish an expansion at Unit 2 was issued on September 16, 2026 (RHP p.314). The issue funds no capacity (RHP p.116).

14Market size and industry structure

As claimed: the industry overview contains no figure for the size of the recycled polyester fibre market. It reproduces global and Indian economic data from public websites, and the company did not commission an industry report (RHP p.137, RHP p.66).

The part that is addressable: fibre sold to furnishing, automobile, non-woven and textile makers in India and abroad. The prospectus does not size it.

What the company is today: ₹21,984.72 lakh of fibre sales and 25,422.34 tonnes of production in FY26 (RHP p.162, RHP p.169). With no market figure, a share cannot be worked out.

On structure, the company describes the industry as competitive and fragmented, with local scrap collectors, unorganised recyclers and large organised companies (RHP p.61). It says raw material is easy to find but the plant is costly to set up (RHP p.175). Plastic waste rules that make producers responsible for recycling create the EPR credits it earns (RHP p.162, RHP p.181).

15Competitive position

Source: RHP p.127, RHP p.175. The company says customers choose on quality, demand for recycled products, regulation and preference (RHP p.175). It holds ISO 9001, ISO 14001, Global Recycled Standard and Oeko-Tex certificates; the Oeko-Tex certificate ran to August 31, 2026 and its renewal was awaiting an invoice (RHP p.53). The company logo and the mark UNI-BIOFIBRE are not registered, and both applications have been objected to (RHP p.42).

16Peers the company named

Peers named in the offer document: Ganesha Ecosphere Limited and Divyadhan Recycling Industries Limited (RHP p.125).

Source: RHP p.125; peer P/E at closing prices of September 16, 2026. Ganesha Ecosphere's FY26 revenue was about 6.6 times Unitec's, reported on a consolidated basis; Divyadhan's was about a third of Unitec's, on a standalone basis, by our arithmetic (RHP p.127, RHP p.128). The prospectus itself warns that it has few comparable listed peers (RHP p.61).

17Valuation at the issue price

At the upper band of ₹88, with all 39,16,800 new shares added to the 1,05,01,778 existing shares (our arithmetic, RHP p.75):

Source: RHP p.79, RHP p.124, RHP p.126. At the lower band of ₹83 the market capitalisation is ₹11,967.42 lakh, by our arithmetic (RHP p.75). Enterprise value uses the shares before the issue at ₹88, March 2026 borrowings of ₹7,719.22 lakh and cash and bank balances of ₹298.06 lakh: ₹16,662.72 lakh, by our arithmetic (RHP p.77, RHP p.78). After the issue, book value including the gross proceeds would be about ₹9,946.34 lakh, and the market capitalisation at ₹88 about 1.3 times that, by our arithmetic (RHP p.77). On the weighted average EPS of ₹7.40, the P/E at ₹88 is 11.9 times (RHP p.123).

The two named peers traded at 68.88 and 39.29 times earnings on September 16, 2026, an average of 54.08 (RHP p.124). At the upper band the issue is priced at 16.7 times FY26 profit on the enlarged share count and 12.2 times FY26 EPS.

The BSE issue page gives a lot of 1,600 shares, ₹1,40,800 at ₹88. An individual investor's application must be for two lots and exceed ₹2,00,000 (RHP p.348), which is ₹2,81,600 at ₹88.

18Risks, in plain words

Customers: sales are on purchase orders with no long-term contracts (RHP p.33) → a customer can stop ordering at short notice → the top ten were 45.94% of FY26 revenue, and the number of customers fell from 181 to 139 in two years (RHP p.170, RHP p.161).

Suppliers: raw material comes from a few suppliers without long-term contracts (RHP p.34) → a supply break stops the lines → the top ten were 64.64% of FY26 purchases and the largest 15.78% (RHP p.171).

One product, one place: fibre was 98.04% of FY26 revenue and both plants are at Tarapur (RHP p.162, RHP p.35) → a slowdown in furnishing or automobile demand, or a stoppage at Tarapur, hits the whole company → the plants ran at 90.85% of capacity (RHP p.169).

Debt and cash: borrowings were ₹7,719.22 lakh and debt to equity 1.19 at March 2026 (RHP p.77, RHP p.126) → interest and repayments depend on cash the business has lately produced less of → operating cash flow fell from ₹2,141.75 lakh in FY24 to ₹400.24 lakh in FY26, and debt service cover from 6.18 to 1.61 (RHP p.81, RHP p.273). Unsecured loans of ₹1,401.30 lakh can be recalled at any time (RHP p.55).

Regulation and tax: EPR credit income fell from ₹299.92 lakh in FY24 to ₹120.23 lakh in FY26 (RHP p.264) → it depends on rules the company does not control → company tax matters total ₹727.19 lakh, including new GST demands of ₹234.88 lakh for FY23 by our arithmetic (RHP p.37, RHP p.305). The company has filed GST, TDS, provident fund and company returns late on several occasions (RHP p.47).

Records and controls: stock and debtor statements given to the bank differed from the books (RHP p.41) → lenders or regulators may ask for reconciliations → the payables difference was ₹707.91 lakh at March 2026 (RHP p.41). Bank statements for the 2005 and 2006 share allotments are not available (RHP p.46).

People: 75 employees left in FY26 against 171 remaining, an attrition rate of 43.86% (RHP p.59).

Issue-specific: no monitoring agency will watch the use of proceeds, and general corporate purposes and issue expenses are blank (RHP p.92, RHP p.116). The prospectus notes an ongoing SEBI investigation concerning the market maker, Shreni Shares Limited, after an ex-parte interim order of July 9, 2026 (RHP p.96).

19Litigation and regulatory matters

The company, its promoters, directors and key managers face no criminal cases, no regulatory actions and no material civil suits (RHP p.302, RHP p.306, RHP p.307). The prospectus's total of ₹727.19 lakh for 17 tax matters against the company includes the ₹152.17 lakh refund the company itself has claimed (RHP p.37, RHP p.304). Charges for two vehicle loans were never registered with the Registrar of Companies; the loans have since been repaid (RHP p.42, RHP p.279).

20Related-party transactions

Source: RHP p.268, RHP p.269; the two loan rows are our arithmetic from the lender lines. Unitec Inc is a proprietorship of Virander Behl and Roha one of Vibhuti Behl (RHP p.227). Of the related-party loans, only Roha's ₹100.00 lakh carries interest, at 8.50% (RHP p.255). The registered office is leased from Virander Behl at ₹0.50 lakh a month (RHP p.52, RHP p.178).

What appeared or disappeared in the last two years: Uni Eco Beacon Private Limited, incorporated in December 2023, lent ₹450.50 lakh and was paid ₹5.90 lakh of commission in FY26 (RHP p.228, RHP p.268). Unitec Inc lent ₹450.00 lakh in FY26 and was paid ₹9.50 lakh of rent (RHP p.268). Salaries to Vibhuti Behl stopped after FY24 and to Vibha Behl after FY25, and Mihir Suvanam was paid ₹45.00 lakh from FY26 (RHP p.268).

21What the offer document does not say

Tonnes of fibre sold and the price per tonne are not disclosed, only tonnes produced. The capacity, cost, funding and start date of Unit 3 are not disclosed. Which loans the ₹3,100.00 lakh repays, and in what amounts, is not stated. The amount of interest capitalised into work in progress is not stated. The size of the recycled polyester fibre market is not given. Customers and suppliers are not named.

What the ₹1,034.09 lakh balance with revenue authorities consists of is not explained beyond a line. The prospectus does not describe Bhartia Yarns Pvt Ltd, which lent ₹357.50 lakh. The issue amount, general corporate purposes and issue expenses are left blank.

22Five questions for management

1. How many tonnes of fibre were sold in each of FY24, FY25 and FY26, and at what average price per kilogram?
2. What capacity will Unit 3 add, what will it cost in total, how much of the ₹4,492.54 lakh of work in progress belongs to it, and when is it due to start?
3. Which loans will the ₹3,100.00 lakh repay, in what amounts, and how much interest was capitalised in FY26?
4. What makes up the ₹1,034.09 lakh balance with revenue authorities at March 2026, and how much of it is expected back as refunds?
5. Why did the number of customers fall from 181 to 139 between FY24 and FY26, and what share of FY26 revenue came from customers added in the year?

1Sources and cited facts

This study was read from 1 document the company filed. The 124 figures it cites are listed under the document each came from, with the page and the sentence as printed.