Raunak Bansal

Analyst @Orbit_Cap | CFA L3 Cleared

[Raunak Bansal @Raunakbansal2]

Listed at 77%, once the new capacities are live growth will start kicking in and it will be interesting to see how they gain business from private brands.

#Qualiance

[Nova Orbit @Orbit_Cap]

A new, fairly interesting business is coming up for an IPO — Qualiance International 💡

What caught my attention is the nature of the business: a Tiruppur-based manufacturer of technical/performance garments, with ~99% of revenue coming from exports, and a planned capacity expansion that would take total installed capacity from 4.5 lakh to ~15.3 lakh pieces ( ~3.4x the current base).

They are raising ~₹45 Cr through a 100% fresh issue, with ~₹38 Cr going towards setting up the new manufacturing facility in Tiruppur. The IPO is priced at PE 14.4x FY26 PAT post money.

Here’s a quick look at the business:

1. What does Qualiance do?

Qualiance isn't a typical apparel exporter making basic T-shirts or shirts.

It makes technical garments — military uniforms, tactical outerwear, waterproof/all-weather jackets, high-visibility workwear, police & border patrol uniforms, protective workwear and performance activewear.

The customer generally provides the design/specifications/technical drawings, while Qualiance works on the engineering, material compatibility and manufacturing required to produce the final garment.

2. Brief Journey

1994: Founded as a generic partnership firm, doing basic "cut-and-sew" apparel.
2001: Partnered with the Swiss Army to develop their new clothing collection, initiating a steep learning curve in material compatibility and engineering.
2006: Converted to a private limited company.
2017: Built its first dedicated factory in Tiruppur, Tamil Nadu.
2025: Officially converted to a public limited company.

3. Why is the product different?

A technical jacket can involve multiple layers/materials, waterproof membranes, insulation, specialised adhesives etc.

Qualiance has capabilities such as:

• Seam sealing
• Bonded/stitch-free construction
• Ultrasonic welding
• Laser cutting
• Lamination
• Reflective fusing
• Quilting & down filling
The company also carries out testing for things such as seam leakage, shrinkage, washing/rubbing fastness and button pull strength.

Its FY26 average realisation was over Rs.1900/garment, versus roughly ₹400-500 for a typical Indian garment exporter — essentially reflecting the much higher complexity/value addition in its products.

4. Customers & markets

This is where the business becomes interesting — and also where one of the biggest risks lies.

FY26 revenue by geography:

Switzerland — 80.67%
USA — 16.60%
UK — 1.54%
India — 1.18%

Government of Switzerland departments alone contributed ₹60.45 Cr (79.24%) of FY26 revenue. The company has supplied to Swiss Army, Railways, Customs and Police.

Management also says it is in discussions with European, US and Canadian private brands for technical outerwear. Importantly, these are prospective opportunities as the new facility is up and running, not current customers.

5. Manufacturing

Current facility is in Tiruppur, with:

• 45,000+ sq ft built-up area
• 4.5 lakh pieces/year installed capacity
• 240 sewing machines
• In-house manufacturing rather than outsourcing
The company says essentially all exported garments are engineered and manufactured in its own facility.
The important part isn't just the sewing capacity, but the specialised processes and quality systems built around it.

6. The big expansion

The IPO is primarily funding a new Tiruppur facility.

Planned facility:
• ~1.43 lakh sq ft, 4 floors
• 600 sewing machines
• ~10.8 lakh pieces/year capacity
• ₹38 Cr of IPO proceeds allocated towards it
So total installed capacity could move from 4.5 lakh → ~15.3 lakh pieces, or roughly 3.4x.

The land has been acquired and approvals are in place with construction to begin in Sept'26 itself. This capacity is expected to come live by the first half of FY28.

The key thing to track would be: how quickly does this capacity get filled, and at what realisation/margin.

7. Financials

The numbers have improved meaningfully over the last 3 years — revenue has more than doubled from ₹37 Cr to ₹77 Cr, while PAT has grown over 4x from ₹2.8 Cr to ₹11.9 Cr.

The bigger takeaway is the operating leverage: EBITDA margin expanded from 13% to 22%, while PAT margin moved from 7.6% to 15.4%. FY26 alone saw 45% revenue growth and 142% PAT growth.

At the ₹127 upper band, it is valued at roughly 14.4x FY26 earnings.

8. Why does it look interesting?

A niche within a large export industry: India is already the 6th-largest textile & apparel exporter globally, with textile & apparel exports of ~₹3.25 lakh Cr in FY26. The industry also has a large manufacturing ecosystem, skilled labour base and government push towards technical textiles and higher-value manufacturing.

Moreover, there is also a China + Bangladesh angle worth watching. China faces increasing trade/geopolitical and tariff considerations in Western markets, while Bangladesh's advantage is strongest in large-scale, labour-intensive basic apparel. Bangladesh has also faced recent tariff, labour and political challenges. This creates an interesting space for Indian manufacturers like Qualiance.

Qualiance sits in an interesting part of the garment export market — technical, performance-oriented garments where manufacturing capabilities and compliance matter more than simply competing on cost. It has built a 20+ year relationship with Swiss government and institutional customers, while FY26 also showed strong growth in volumes and realisations.

Now, the company is expanding its capacity to ~3.4x and is simultaneously looking to broaden its customer base across private brands in multiple export markets like Europe and America. With ~99% of revenue already coming from exports, the new facility could give the company room to scale its existing business while moving into a larger addressable customer base.

This is the part of the story that makes the company worth watching: a specialised export manufacturing business, with proven customers and improving economics, entering a fairly significant capacity-expansion phase.

It will be key to track the onboarding of private brands to utilize its new upcoming caapcity.

9. Key risks

The biggest risk is customer concentration — the top customer contributed ~57% of FY26 sales and the top 5 ~97%. 

There is also significant geographic concentration, with 98.8% of revenue coming from exports and ~81% from Switzerland. On the input side, ~60% of raw-material purchases were imported in FY26, exposing the company to currency movements, freight costs, tariffs and supply-chain disruptions. 

The other key question is execution of the new capacity — the company is nearly 2.4x-ing its current capacity, so delays/cost overruns or slower-than-expected customer additions could impact returns. And after the sharp FY26 jump in margins, sustainability of the current 15.4% PAT margin will be something to watch.

The new capacity could also help address some of these risks, as the company is looking to use the additional capacity to onboard private outdoor/performance-wear brands and expand into new geographies, particularly Europe and North America. The key will be how successfully these prospective customers translate into actual orders.

10. Management

Promoter-led business.

Vipul Badani, Chairman & MD, is a textile engineer with 30+ years of experience.

Bhoomin R. Badani, Whole-Time Director & CEO, has 15+ years of apparel manufacturing experience. It is effectively a first/second-generation promoter setup.

Conclusion:

Overall, Qualiance is an interesting specialised export manufacturer with a clear capacity-led growth opportunity ahead. FY27 could be relatively flat as the existing facility is already running close to capacity, but the 10.8 lakh-piece new facility should create a much larger growth runway once it comes on stream.

If utilisation ramps up over the next 2–3 years, the company has the potential to grow meaningfully from the current base, while new private-brand customers and geographies could also reduce its current concentration. The key will be execution, filling the new capacity while maintaining the margins and customer quality it has built so far.

Disclosure: This post is for informational purposes only and is not a recommendation to buy or sell. Please do your own due diligence (DYDD) before making any investment decision.

#Qualiance #SME #SMEIPO #Export

[Raunak Bansal @Raunakbansal2]

No surprise, Apple event starts with a conversation on AI.

#apple #appleevent

[Raunak Bansal @Raunakbansal2]

@EquityInsightss 😂😂😂

[Raunak Bansal @Raunakbansal2]

Watched #HanumanAnsh today after reading so much about it, and it truly tells you about the power of devotion and also our rich culture.
Hoping more of such Bhartiya folklore will be told in a similar manner!
PS: the background score and music is captivating

Sita Ram! Sita Ram🙏

[Raunak Bansal @Raunakbansal2]

Like we have general public guidelines announced inside metros, similarly can we have a gentle announcement in all the train to not watch reels on full volume at night, people don’t seem to care these days. @IRCTCofficial @AshwiniVaishnaw

[Raunak Bansal @Raunakbansal2]

@AMIT55B @stockscansin An option to download, lets say all filings of last three years as Zip to facilitate easier usage via notebookLm
Instead of manually downloading each, and also within the platform the token usage is very high if I have too many questions.

[Raunak Bansal @Raunakbansal2]

Happy Independence Day🇮🇳

#JaiBharat #JaiHind

[Aditya Agarwal @barb_adi_]

Siliguri deserves better. This is the condition of the road connecting:
📍 Eastern Bypass → Universe → Green Exotica → Dumping Ground

This is NOT a remote stretch.
It’s right next to a top school and a key business zone.

@shankarghoshbjp @siliguriMC
🎥 Video attached

[Augadh @AugadhBhudeva]

🔴 Must Watch 🔴
“Foreign Algorithms Are Quietly Conditioning the Minds of India's Youth” - Mallika Bajaj

Mallika Bajaj is a digital transformation expert who studies how technology affects the way people learn, behave and think.

Digital transformation architect Mallika Bajaj argues that foreign social media algorithms are engaging in “cognitive warfare” by conditioning Indian youth through an Algorithmic Cognitive Reinforcement Loop (ACRL). Bajaj suggests these platforms prioritize “Four Vs” (Viciousness, Virality, Vulgarity, Violence) over truth, prompting a need for Indian cognitive neural sovereignty and indigenous technology development.

Credit : ANI Podcast With Smita Prakash Clips.

[Raunak Bansal @Raunakbansal2]

@talk2anuradha @IndiGo6E I have faced this issue a couple of times, and have received the same response from their customer care! @IndiGo6E doesn’t seem to care after so much operational disruptions last year at their end already.

[Nova Orbit @Orbit_Cap]

📊 EPW India Limited | FY26 Results | Blockbuster Set

Revenue more than Doubled
Full Year FY26: ₹107.5 Cr vs FY25: ₹53.3 Cr | +102% YoY
H2 FY26: ₹63.4 Cr vs H2 FY25: ₹32.8 Cr | +93% YoY

PAT over 2.3x
Full Year FY26: ₹10.3 Cr vs FY25: ₹4.25 Cr | +143% YoY
H2 FY26: ₹6.2 Cr vs H2 FY25: ₹2.64Cr | +135% YoY

PE slashed down to 14 vs FY25 PE 36

#EPWIndia #Results #FY26 #SME #SmallCap

[Nova Orbit @Orbit_Cap]

#VividElectro #VividElectromech #DataCentre #SME

[Raunak Bansal @Raunakbansal2]

Not far away from a new party😂

#cockroachjantaparty

[NDTV Profit Alpha @NDTVProfitAlpha]

In a significant political development, TMC chief Mamata Banerjee concedes defeat in Bhabanipur as BJP leader Suvendu Adhikari secures a clear lead, marking a shift in the constituency’s electoral outcome in the 2026 Assembly elections.

[Raunak Bansal @Raunakbansal2]

@SureshKBN These are mostly open air seats with ac lounges at the back with few refreshments, some of the better seats in the stadium keeping aside the corporate boxes

[Raunak Bansal @Raunakbansal2]

Influx is at a cusp of growth with large capacities coming up, and it will be interesting to observe how the story of the Veterinary segment pans out.

#Influx #nutraceutical #healthcare #sme

[Nova Orbit @Orbit_Cap]

https://t.co/oZfk9kHZv0

[Gabbar @GabbbarSingh]

Dhurandhar 1 was taken down by Gulf countries, by the time Dhurandhar 2 came Gulf countries were taken down.

Peak detailing.

[Raunak Bansal @Raunakbansal2]

@LearningEleven Even households in some cities have started facing trouble getting LPG, might be the case of hoarding by some local agencies as well.
🤞

[Sagar @sagarcasm]

One of the most fascinating stories on why Jasprit Bumrah learnt to bowl a yorker

[Nova Orbit @Orbit_Cap]

Maxvolt Energy Industries Limited is emerging as a key player in India's Lithium-ion ecosystem. Listed on NSE Emerge in Feb '25, they don't just make batteries, they are building a "Circular Economy." Let's dive into their business, financials, & future plans. 👇⚡️

#Maxvolt #SME #Battery #EV #Energy #SMEIPO

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