Fractal Industries IPO

About Fractal Industries IPO

The Fractal Industries IPO opens on Monday, Feb 16, 2026 and closes on Wednesday, Feb 18, 2026. The allotment of shares will take place on Thursday, Feb 19, 2026. The credit of shares to the demat account will take place on Friday, Feb 20, 2026. The initiation of refunds will take place on Friday, Feb 20, 2026. The listing of shares will take place on Monday, Feb 23, 2026.

The offer consists of a fresh issue component. The fresh issue will include 0.23 crore shares of ₹49.00 crores. The total number of shares is 22,68,600 shares (aggregating up to ₹49 crores).

Fractal Industries IPO’s price band is set at ₹205 to ₹216 per share. The lot size for an application is 600. The minimum amount of investment required by an individual investor (retail) is ₹2,59,200 (1,200 shares) (based on upper price). The minimum lot size for investment required by HNIs is 3 lots (1,800 shares), amounting to ₹3,88,800.

Initially, Fractal Industries started manufacturing garments for Myntra. Gradually, on a year-on-year basis, the company started manufacturing for other marketplaces as well. With a monthly manufacturing capacity of more than 3,00,000 garment units, the company has built a robust supply chain capable of handling multiple daily orders and shipments across multiple marketplaces.

Objectives of Fractal Industries

• Funding the working capital requirements.
• General corporate purposes.

Industry Outlook

The Indian apparel market, estimated at USD 110.09 crores in 2024 and projected to reach USD 16182 crores by 2034 at a CAGR of 3.93%, reflects steady and sustained growth over the forecast period. This trajectory underscores the increasing domestic demand for apparel driven by rising disposable incomes, urbanization, and evolving consumer preferences across both mass-market and premium segments. The moderate yet consistent CAGR indicates a stable market environment, supported by the expansion of organized retail, e-commerce penetration, and a growing focus on branded and sustainable apparel.

The Indian Supply Chain Management market, estimated at USD 238 crores in 2024 and projected to reach USD 683 crores by 2034 at a CAGR of 11.11%, demonstrates robust growth potential over the forecast period. The high CAGR reflects strong demand for efficient, technology-driven supply chain solutions, driven by the rapid expansion of e-commerce, organised retail, and industrial sectors in India.

About Fractal Industries

Fractal Industries is engaged in the business of designing, sourcing and manufacturing of garments and providing end-to-end warehousing and supply chain services to e-commerce platforms. Having a pan-India presence, Fractal Industries is a full-service garment manufacturing and technology-driven supply chain management company focused on fast-moving, high-quality apparel for e-commerce marketplaces (Myntra, Ajio and similar platforms).

They integrate agile design-to-delivery manufacturing, scalable production capabilities, rigorous quality control, and data-driven supply chain management to help brands and private labels accelerate speed-to-market, improve margins, and enhance customer satisfaction. They also provide integrated supply chain and fulfilment solutions that enable apparel brands, partners, and marketplaces to optimise and streamline their e-commerce operations.

Strengths of Fractal Industries

• Experienced promoters and senior management team.
• Technologically advanced and integrated warehouse management system (WMS).
• Expertise in apparel reverse logistics (Returns Management).
• Quality control and inspection.

Risks of Fractal Industries

• Loss of any major customers.
• Cybersecurity and data protection risks in their technology-driven warehouse operations.
• Changing fashion trends on online marketplaces.
• Disruptions or inefficiencies in their supply chain and logistics network.
• Fluctuations in raw material prices.

1. Closing market price as on January 19, 2026 of Bang overseas Limited is considered as CMP.
   
2. Basic and Diluted EPS refers to the Basic and Diluted EPS sourced from the annual report for FY 2024-25 of the listed peer companies.
   
3. P/E ratio cannot be calculated as EPS of the peer company is negative.
   
4. Return on Net Worth (%) for listed industry peers has been computed based on the Net Profit After Tax for the year ended March 31, 2025 divided by Total Equity as on March 31, 2025.
   
5. NAV per share for listed peers is computed as the Total Equity as on March 31, 2025 divided by the outstanding number of equity shares as on March 31, 2025.
   
6. The Profit figures for the calculation of EPS & RoNW and Total revenue of Fractal Industries have been derived from the Restated Financial Statements.
   **The details shall be provided post the fixing of the price band by Fractal Industries at the stage of the Red Herring Prospectus or the filing of the price band advertisement.

Anchor Investor Bidding Date

Friday, February 13, 2026

• Registrar: KFin Technologies Limited
• Book Running Lead Managers: Finaax Capital Advisors Private Limited

Fractal Industries Business Model

The company earns its revenue through the following:

1. Outright sale of garments: the company manufactures garments or provides to a third-party vendor on a job work basis and sells finished garments directly to e-commerce platforms (such as Myntra, Ajio, or Flipkart) or to other online retailers.
2. PPMP model (Pure Play Marketplace) for sale of garments: the company is responsible for designing, sourcing and manufacturing garments under the brands owned by the e-commerce platforms (such as Myntra, Ajio or Flipkart).
3. Direct sale of garments (own brand manufacturing): the company manufactures its own garments and sells directly to customers through e-commerce platforms or other online channels.

Fractal Industries Growth Trajectory

(Standalone Data- 2025)

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹85.513 crores, ₹7.538 crores, and ₹11.148 crores, respectively.

(Consolidated Data- 2024 & 2023)

The total income of Fractal Industries for the fiscal year 2024 was ₹50.01 crores against ₹88.91 crores of total income for the fiscal year 2023, with a decrease of 43.75% in total income.

The revenue from operations of the company for the fiscal year 2024 was ₹49.94 crores against ₹88.91 crores for the fiscal year 2023, with a decrease of 43.83% in revenue from operations.

The profit after tax for fiscal 2024 was ₹2.27 crores against a profit after tax of ₹2.66 crores in fiscal 2023, a decrease of 14.73%.

Their EBITDA decreased from ₹4.05 crores in fiscal 2023 to ₹4.13 crores in fiscal 2024.

Fractal Industries Market Position

Fractal Industries’ manufacturing unit is located in Mumbai with warehouses located in Gujarat, Maharashtra, Haryana, West Bengal and Karnataka. The company also offers a wide array of value-added services to enhance e-commerce operations including Product Management System, Data Analytics, Integrated Logistics Management, Order Management System, Inventory and Returns Management, Order Anomaly Detection, and Multi-Channel Sales Enablement.

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹85.513 crores, ₹7.538 crores, and ₹11.148 crores, respectively.

How to apply for Fractal Industries IPO?

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.