Is Shree Ram Twistex IPO a good or bad

Shree Ram Twistex Limited is launching its IPO, which will be open for investment from February 23, 2026, to February 25, 2026. Before investing, you might wonder whether the Shree Ram Twistex IPO is good or bad, whether it's worth investing in, and whether this IPO can deliver good returns in the long term. In this article, we'll provide a simple and detailed review of the Shree Ram Twistex IPO, analyzing the company's business model, financial position, strengths, risks, and growth prospects, so you can make an informed investment decision.

Company Overview of Shree Ram Twistex Ltd.

Shree Ram Twistex Limited is a textile company primarily engaged in the production of cotton yarn. The company produces Compact Ring Spun and Carded Yarns, including both Combed and Carded yarns. Its products are used for both knitting and weaving, and are used in a variety of products such as denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics.

The company also offers value-added yarns, such as Eli Twist (Combed and Carded), Compact Slub Yarns, and Lycra-Blended Yarns, which are designed for high-quality and specialized products. Shree Ram Twistex's business model is B2B (Business-to-Business), supplying its products to textile manufacturers, garment exporters, fabric processors, and large buyers.

The company sells its products in several Indian states, including Gujarat, Rajasthan, West Bengal, Maharashtra, Tamil Nadu, Madhya Pradesh, and Punjab, as well as in the Union Territories of Dadra and Nagar Haveli. It also exports to international markets, providing geographical diversification to its business.

Shree Ram Twistex's manufacturing unit is located in Gondal, Rajkot district, Gujarat. The company has 17 modern Compact Ring-Spinning machines with a total spindle capacity of 27,744. The company also has five warehouses: two for raw materials, two for finished products, and one for general storage. Their total storage capacity is approximately 9,855 MT, strengthening the company's supply chain and operational capabilities. The company's promoters include Bhaveshbhai Bhikhumbhai Ramani, Jay Atulbhai Tilala, and Nidhi Bhaveshbhai Kothari, all of whom have extensive experience in the textile industry. An experienced management team and strong customer relationships can play a key role in the company's long-term growth.

Industry Overview of Shree Ram Twistex Ltd.

India's textile and cotton yarn sector is one of the country's oldest and most important industries, contributing significantly to both employment and exports. Demand for cotton yarn remains strong in both domestic and international markets, as it is used in denim, home textiles, garments, industrial fabrics, and many other products. Growth in the knitting and weaving sector directly impacts yarn demand, providing long-term growth potential for this industry.

Demand for this sector is influenced by several factors, such as a growing population, fashion trends, home textile demand, and increasing exports. India is one of the world's leading cotton-producing countries, ensuring robust raw material availability. Furthermore, the growing demand for value-added yarn and premium textile products is creating new opportunities for companies.

The government is also implementing several schemes and policies to promote this sector, such as textile parks, export incentives, and manufacturing promotion initiatives. This helps Indian textile companies compete in the global market. Furthermore, exports also increase foreign exchange earnings, providing long-term support to the industry.

However, the industry faces some challenges, such as fluctuations in raw material prices, changes in global demand, foreign competition, and the impact of economic slowdowns. Rising or falling cotton prices can impact companies' margins. Furthermore, energy costs and export risks also impact the sector.

Overall, the textile and cotton yarn sector is a cyclical industry, but India's strong production capacity, growing domestic demand, and export opportunities offer long-term growth potential for the sector, providing opportunities for companies like Shree Ram Twistex to thrive.

Financial Overview of Shree Ram Twistex Ltd

Looking at the financial performance of Shree Ram Twistex Ltd., the company has shown stable and positive growth over the past few years. Revenues have increased significantly from FY23 to FY25. Income from operations was approximately Rs.213.10 crore in FY23, which increased to Rs.231.59 crore in FY24 and Rs.255.04 crore in FY25. This indicates that the company's business is steadily expanding and demand is improving.

The company's profitability has also improved. Profit After Tax was approximately Rs.2.05 crore in FY23, which increased to Rs.6.55 crore in FY24 and Rs.8.00 crore in FY25. The company's PAT for the six months ended September 30, 2025, was approximately Rs.7.00 crore, indicating strong earnings potential. EBITDA has also remained stable, increasing from Rs. 17.40 crore in FY23 to Rs. 21.85 crore in FY25, while remaining at approximately Rs. 17.04 crore by September 2025.

The company's balance sheet has also gradually strengthened. Total assets have increased from approximately Rs. 135.71 crore in FY23 to Rs. 217.44 crore by September 2025. Net worth has also increased from Rs. 61.11 crore in FY23 to Rs. 80.70 crore in September 2025, reflecting the company's improving financial position.

The company has also tried to keep its debt levels under control. Total borrowings have decreased from Rs. 67.04 crore in FY24 to approximately Rs. 60.70 crore by September 2025. The debt-to-equity ratio decreased from 0.84 in FY25 to 0.75 by September 2025, a positive sign for the balance sheet.

Margins have also improved. EBITDA margin increased from 8.57% in FY25 to 12.90% by September 2025, while PAT margin also increased from 3.14% to 5.30%. Return ratios have also remained stable, with ROCE at 10.74% and RoNW at 9.05% in September 2025

Overall, Shree Ram Twistex Ltd.'s financial position appears balanced and improving. The company's revenue, profit, net worth, and margin growth reflect the stability of its business model. Although it is a cyclical company in the textile sector, its current financial performance can be considered a positive sign for investors.

Financial Summary Table Shree Ram Twistex Ltd

Key Performance Indicators (KPI) Shree Ram Twistex Ltd

Strengths of Shree Ram Twistex Ltd.

Fully Integrated Spinning Infrastructure : Shree Ram Twistex Ltd. has a robust and fully integrated spinning infrastructure. The company has modern compact ring-spinning machines with a total spindle capacity of 27,744. This helps the company maintain production quality, cost control, and operational efficiency. This infrastructure enables the company to fulfill large orders on time.

Modern Technology and Value-Added Products : The company uses modern technologies in its production and focuses on value-added yarns such as Eli Twist, Compact Slub Yarns, and Lycra-Blended Yarns. This strategy can help the company compete in the premium segment and achieve better margins.

Long-Standing Customer Relationships : Shree Ram Twistex has long-standing and strong relationships with many customers. The company's B2B business model helps it maintain stable and consistent demand with textile manufacturers, garment exporters, and fabric processors, improving revenue visibility.

Strategic Manufacturing Location : The company's manufacturing unit is located in Gondal, Rajkot (Gujarat), an important region for the textile and cotton industry. This location is advantageous in terms of raw material availability, logistics, and customer connectivity.

Adequate Storage and Supply Chain Network : The company has a total of five warehouses, with separate storage facilities for raw materials and finished products. The storage capacity of approximately 9,855 MT helps the company manage its supply chain and ensure timely delivery.

 Healthy Growth Track Record : The company has shown steady growth in revenue and profit over the past few years. This demonstrates the stability of the company's business model and management capabilities, which is a positive sign for future growth.

Experienced Promoters and Management Team : The company's promoters and management team have extensive experience in the textile industry. Their experience can play a key role in strengthening the company's expansion, customer relationships, and operational efficiency.

Risks of Shree Ram Twistex Ltd.

Dependence on the Textile Industry Cycle : Shree Ram Twistex Ltd.'s business is primarily based on the textile and cotton yarn sector, which is considered a cyclical industry. Demand in this sector depends on economic conditions, fashion trends, and exports. If there is a downturn in the textile sector, the company's sales and margins could be negatively impacted.

Fluctuations in Raw Material Prices : Cotton is the company's primary raw material, and its prices fluctuate depending on the season, production, and global demand. Rising or volatility in cotton prices can increase the company's costs, impacting profitability.

Domestic and Global Competition : The textile and yarn industry is dominated by numerous organized and unorganized players. Furthermore, there is competition from international companies. Due to increased competition, the company may face pressure on prices and margins.

Customer Concentration Risk : The company operates on a B2B model and supplies to major textile manufacturers and exporters. If orders from certain key customers decline or relationships weaken, the company's revenue could be impacted.

Export-Related Risks : The company exports to both the domestic market and the international market. Declining global demand, changes in currency exchange rates, or changes in international trade policies could impact the company's business.

Debt and Margin Pressure : Although the company has attempted to improve its debt-to-equity ratio, future expansion and capital expenditures could increase debt. This could put pressure on interest costs and margins.

Strategies of Shree Ram Twistex Ltd

Expansion through Renewable Energy : Shree Ram Twistex Ltd. is focusing on renewable energy to reduce its costs and enhance long-term sustainability. The company plans to use the proceeds from the IPO to set up a 6.1 MW solar power plant and a 4.2 MW wind power plant. This could reduce the company's electricity costs and improve margins in the future.

Cost Reduction through Solar and Wind Power : Electricity costs are a major expense in the textile industry. Through its captive solar and wind power projects, the company aims to reduce its energy dependence. This will reduce operational costs, increase profitability, and give the company a competitive edge.

Improving Capacity and Operational Efficiency : The company is continuously focusing on increasing its production capacity and efficiency. Through modern machinery and improved processes, the company aims to improve both production quality and cost. This will enable the company to handle larger orders and meet customer demands.

Focus on Value-Added and Premium Yarns : Shree Ram Twistex is focusing on value-added products such as Eli Twist, Compact Slub, and Lycra-Blended, along with traditional yarns. This strategy could help the company improve margins and reach new customers.

Strengthening Export Markets : The company already exports its products to international markets. In the future, it plans to further expand its exports and enter new markets, which could diversify and stabilize revenue.

Expanding Customer Base : The company is focusing on strengthening its B2B model and building relationships with new textile manufacturers, garment exporters, and fabric processors. This will reduce the risk of customer concentration and provide the company with stable demand.

Technology Upgrades and Modernization : The company is focusing on adopting modern technologies and continuously upgrading its production process. This can improve quality, productivity and cost control, which is crucial for long-term growth.

Shree Ram Twistex IPO Peer Comparison

The company's major listed peers include Ambika Cotton Mills Limited, Damodar Industries Limited, and Rajapalayam Mills Limited. These companies also operate in the cotton and textile segments and have business models somewhat similar to Shree Ram Twistex.

Valuation Comparison (P/E and P/B) : Shree Ram Twistex Ltd.'s EPS based on FY25 is approximately Rs. 2.72. The company's P/E ratio based on the issue price is approximately 29.69 (post-issue). This appears higher than some established companies, as larger and older textile players have higher profits and scale.

The company's Price to Book Value is approximately 4.13, indicating that the company is offering its IPO at a premium valuation compared to its book value.

Return Ratios Comparison : Shree Ram Twistex Ltd. The company's Return on Net Worth was approximately 11.36% in FY25 and 9.05% by September 2025. This represents a mid-level return. While it may be lower than some larger and established peers, the company's performance has been improving over the past few years. ROCE also stood at approximately 13.37% in FY25, indicating stable operational efficiency.

Revenue and Profitability Comparison : The company's total income in FY25 was approximately Rs. 256.32 crore, which is lower than larger peers. However, both revenue and EBITDA have seen growth.

Between FY23 and FY25, the company's revenue CAGR was approximately 9.55% and EBITDA CAGR was approximately 12.06%, while PAT CAGR was approximately 97.46%. This indicates that the company's profitability has increased rapidly.

Margin and Operational Efficiency : Shree Ram Twistex's EBITDA margin has increased from 8.57% in FY25 to 12.90% by September 2025. PAT margin has also increased from 0.96% (FY23) to 5.30%. This margin improvement reflects the company's operational efficiency and improved product mix.

Debt and Financial Stability Comparison : The company's debt-to-equity ratio is 0.84 in FY25 and 0.75 by September 2025, indicating balanced leverage. This level is considered normal for the textile sector and indicates an improving balance sheet.

Market Positioning and Growth Potential : Shree Ram Twistex Ltd. Currently a mid-sized textile company, it is focusing on value-added yarns, modern infrastructure, and renewable energy. This could provide the company with improved margins and a competitive advantage in the future.

Although the company's scale is smaller than established companies like Ambika Cotton Mills, growth potential is likely to be high, especially if it expands its capacity and product portfolio.

Objectives of Shree Ram Twistex IPO

Setting up a Solar Power Plant (6.1 MW) : Shree Ram Twistex Ltd. plans to use a portion of the proceeds from the IPO to set up a 6.1 MW solar power plant. Electricity costs are a major expense in the textile industry, so this project could help the company reduce energy costs in the long run. This is expected to improve the company's operational efficiency and margins.

Setting up a Wind Power Plant (4.2 MW) : The company also proposes to set up a 4.2 MW wind power plant. This reflects the company's focus on renewable energy. This will provide the company with stable and affordable electricity, which could benefit both cost control and environmental sustainability in the future.

Repayment and Prepayment of Borrowings : The company will also use the IPO proceeds to repay or reduce some of its existing debt. This will reduce interest expenses, strengthen the balance sheet, and improve the debt-to-equity ratio. Lower debt can improve the company's financial position and investment potential in the future.

Meeting Working Capital Needs : The company is raising funds through the IPO to meet its working capital needs. The textile industry requires significant capital to purchase raw materials, especially cotton. Approximately 75% of the company's revenue is spent on raw materials. Cotton is a seasonal crop, so the company purchases large quantities at better prices, which requires more working capital.

These funds will be used to support day-to-day operations, production continuity, and future growth.

General Corporate Purposes : A portion of the proceeds raised through the IPO will also be used for general corporate purposes. This may include business expansion, strategic initiatives, branding, technology upgrades, and other corporate needs. This will provide the company with flexibility to implement future plans.

Impact on Growth and Profitability : These objectives could have a positive impact on the company's future. Renewable energy projects will reduce costs, reducing debt will strengthen its financial position, and the availability of working capital will provide business expansion and operational stability.

Overall, the funds raised from the IPO will be used to control costs, increase production capacity, and support long-term growth, which could strengthen the company's profitability and competitive position.

Shree Ram Twistex IPO Details

IPO Dates : 

The Shree Ram Twistex IPO will be open for investment from February 23, 2026, to February 25, 2026. Investors are expected to receive share allotment on February 26, 2026. Refunds will then commence on February 27, 2026, and shares will be credited to investors' demat accounts on the same day. The company's shares are expected to be listed on the BSE and NSE on March 2, 2026. 

IPO Issue Price : 

Shree Ram Twistex is offering its shares in a price band of Rs.95 to Rs.104 per share. The minimum investment required to apply for this IPO is Rs.14,976, if you apply for one lot at the upper price band. The company's valuation has been determined based on this price range.

IPO Size : 

The total size of the Shree Ram Twistex IPO is approximately Rs.110.24 crore. This is a completely fresh issue, in which the company will issue 10.6 million new shares. The company's equity shareholding will increase following this IPO, and the proceeds will be used for company expansion and other purposes.

IPO Lot Size & Investment : 

The minimum lot size for this IPO is 144 shares. Retail investors must apply for a minimum of one lot. The maximum retail investment limit is 13 lots. SNII investors must apply for a minimum of 14 lots (2,016 shares) and BNII investors must apply for 67 lots (9,648 shares). This structure provides a fair participation opportunity for different investors.

IPO Allotment Status : 

Investors who applied for the IPO can check their allotment status after February 26, 2026. The registrar is Bigshare Services Pvt. Ltd. You can apply using the website of the BSE, NSE, or your stockbroker platform.

IPO Listing Date : 

Shree Ram Twistex shares are expected to be listed on the BSE and NSE on March 2, 2026. The stock's performance on the listing day will depend on market conditions, subscriptions, and investor demand.

IPO Application Link : 

If you wish to apply for this IPO, you can easily apply through ASBA or UPI. You can apply through your bank or online stockbroker platform. You can simplify and expedite the IPO application process by opening a demat account through an easy and user-friendly platform Rupeezy.

Apply for Shree Ram Twistex IPO