In February 2026, SME IPO activity continued to attract attention across manufacturing and consumer linked segments. Businesses supporting fast growing online retail platforms have remained relevant, especially those with integrated supply chain capability across design, production, warehousing, and fulfilment. Apparel supply chains, in particular, have been evolving rapidly with a focus on faster turnaround, consistent quality, and inventory efficiency for online marketplaces.
Against this backdrop, Fractal Industries Limited is set to open its IPO on February 16, 2026. Here is a detailed insight into Fractal Industries Limited, its IPO, and the industry outlook.
About Fractal Industries Ltd.
Fractal Industries is a full service garment manufacturing and supply chain company. The company designs, sources, and manufactures garments and provides end to end warehousing and logistics services to e commerce platforms such as Myntra, Ajio, and Flipkart.
The company operates across India and focuses on producing fast moving, high quality apparel for online marketplaces. It also offers support services such as product and order management, inventory and return handling, integrated logistics, data analytics, multi channel sales support, and order anomaly detection.
Business Models
1. Outright Sale of Garments
Under this model, the company manufactures garments and sells them in bulk to e commerce platforms such as Myntra or Flipkart. Once sold, the platform owns the products and manages customer sales. Warehousing, delivery, and returns are handled by the platform.
2. PPMP Model (Pure Play Marketplace)
In this model, the company designs and manufactures garments under the marketplace’s brand name such as in house labels. It manages the full cycle from forecasting and manufacturing to warehousing and delivery. Orders are shipped within 48 hours and follow platform specific packaging and shipping guidelines.
3. Direct Sale, Own Brand Manufacturing
The company launched its own apparel brand “7ate9” on May 26, 2025. Under this model, it sells directly to customers through e commerce platforms, manages its own inventory, and handles order fulfilment and customer service.
Fractal Industries has a manufacturing facility in Mumbai with a monthly production capacity of over 3,00,000 garments. It also operates warehouses in Gujarat, Maharashtra, Haryana, West Bengal, and Karnataka.
Competitive Strengths
• Experienced promoters and senior management team
• Technologically advanced and integrated warehouse management system
• Expertise in apparel reverse logistics and returns management
• Quality control and inspection capabilities
Fractal Industries IPO Details
Fractal Industries IPO is a book build issue of ₹49.00 crores. The issue is entirely a fresh issue of 0.23 crore shares aggregating to ₹49.00 crores. The IPO price band is set at ₹205 to ₹216 per share. The issue is proposed to be listed on BSE SME.
The company intends to utilise the net proceeds primarily towards funding working capital requirements and general corporate purposes.
Important IPO Timeline
| Event | Date |
|---|---|
| IPO Open Date | February 16, 2026 |
| IPO Close Date | February 18, 2026 |
| Allotment Date (Tentative) | February 19, 2026 |
| Initiation of Refunds | February 20, 2026 |
| Credit of Shares to Demat | February 20, 2026 |
| Listing Date (Tentative) | February 23, 2026 |
Key IPO Details
Here is the table on the Fractal Industries IPO Review:
| Particulars | Details |
|---|---|
| Face Value | ₹10 per share |
| Issue Price Band | ₹205 to ₹216 per share |
| Lot Size | 600 shares |
| Total Issue Size | 22,68,600 shares aggregating up to ₹49.00 crore |
| Fresh Issue | 22,68,600 shares aggregating up to ₹49.00 crore |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE SME |
| Shareholding Pre issue | 55,80,267 shares |
| Shareholding Post issue | 78,48,867 shares |
| Market Capitalisation Pre IPO | ₹169.54 crore |
Lot Size of Fractal Industries IPO
Investors can bid for a minimum of 1,200 shares and in multiples of 600 shares thereafter. The table below summarises investment amounts based on the upper price band.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Investor Min | 2 | 1,200 | ₹2,59,200 |
| Retail Investor Max | 2 | 1,200 | ₹2,59,200 |
| S HNI Min | 3 | 1,800 | ₹3,88,800 |
| S HNI Max | 7 | 4,200 | ₹9,07,200 |
| B HNI Min | 8 | 4,800 | ₹10,36,800 |
Fractal Industries Ltd. Financials
Fractal Industries IPO has a pre issue market capitalisation of ₹169.54 crore. As per the restated consolidated financials, the company reported Return on Equity of 34.52 as of September 30, 2025 and ROCE of 18.99 percent. The company reported a debt to equity ratio of 1.04 and RoNW of 28.74 percent. PAT margin was reported at 14.34 percent and EBITDA margin at 19.63 percent. The price to book value is stated at 7.57.
Other financial details of the company include the following:
Key Company Financials
| Period Ended | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 62.03 | 51.42 | 42.27 | 41.21 |
| Total Income | 47.33 | 85.51 | 50.01 | 88.91 |
| Profit After Tax | 6.78 | 7.54 | 2.27 | 2.66 |
| EBITDA | 9.29 | 11.15 | 4.05 | 4.13 |
| Net Worth | 23.59 | 15.70 | 8.16 | 5.89 |
| Reserves and Surplus | 18.01 | 15.20 | 7.66 | 5.39 |
| Total Borrowing | 24.63 | 27.61 | 21.88 | 14.05 |
Amount in ₹ crore.
Fractal Industries Ltd.: Industry Outlook
• Demand for fast moving apparel on e commerce platforms continues to drive need for reliable manufacturing and fulfilment partners
• Supply chain capability across design, sourcing, production, warehousing, and reverse logistics can support shorter delivery cycles and better inventory efficiency
• Returns management and quality control can impact platform relationships and long term scalability
• The segment remains competitive and performance can be influenced by order pipeline, seasonality, platform demand trends, and working capital management
Conclusion
Fractal Industries Limited presents an SME IPO opportunity for investors seeking exposure to an integrated garment manufacturing and supply chain business serving major e commerce platforms. The company operates across multiple models including bulk garment sales to marketplaces, manufacturing under marketplace brands, and a direct sale model under its own apparel brand launched in 2025. It also has a Mumbai manufacturing facility and warehouse presence across multiple states.
However, investors should consider risks such as variability in top line and bottom line performance across periods, competitive intensity in apparel supply chains, and the working capital requirements typical of inventory led and fulfilment driven operations. Reviewing the offer documents carefully and aligning the investment decision with individual risk appetite remains important before participating in the IPO.
