A two-decade-old Tiruppur maker of performance and defence garments for European government buyers opens its Rs 45.11 crore NSE SME issue on September 4
A designer, engineer, manufacturer and exporter of performance garments for international institutional, government and brand clients plans to raise Rs 45.11 crore via an SME listing on NSE SME Emerge.
Qualiance International Ltd (QIL), a Tiruppur-based specialist in military, tactical and protective garments with two decades of European supply relationships.
This is not commodity apparel: its product portfolio spans military uniforms, tactical outerwear, high-visibility workwear, weather-resistant and all-weather outerwear, police and border-patrol uniforms, protective workwear and performance activewear — technically demanding, compliance-heavy categories.
The manufacturing capability is the differentiator. QIL operates a facility in Tiruppur, Tamil Nadu, with a built-up area of over 45,000 square feet and an installed capacity of 450,000 garment pieces per annum.
Beyond regular cut-and-sew operations, it carries out specialised processes including seam sealing, bonded construction, ultrasonic welding, laser cutting and lamination — the kind of technical construction required for military and protective garments, and a meaningful barrier to entry versus ordinary apparel makers.
The client base and track record are export-led and high-credibility. Over the past two decades, QIL has manufactured garments to the product specifications and compliance requirements of European military, government and institutional buyers, and has maintained relationships with Swiss government and institutional clients, supplying various departments of the Government of Switzerland and European brands.
Its clients are located across Europe (including Switzerland) and North America (including the USA), and it follows European quality standards across all stages from sample development to shipment, with fabrics and accessories complying with international requirements backed by recognised-lab test reports.
Crucially, this is a build-to-print model: the designs for the technical garments are provided by customers, and QIL manufactures to the designs, specifications, technical drawings, patterns and quality requirements communicated by them — though it may offer design inputs and technical suggestions during finalisation.
Exports dominate the revenue mix, averaging around 93.4% per year (98.82% in FY26, 93.87% in FY25, 87.77% in FY24). It had 255 employees as of June 30, 2026.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 4, 2026 |
| Issue Closes | September 8, 2026 |
| Listing | NSE SME Emerge |
| Listing Date | September 11, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 120 – Rs 127 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 45.11 crore (35,52,000 shares, entirely fresh) |
| Min. Application | 2,000 shares (multiples of 1,000 thereafter) |
| Min. Retail Investment | Rs 2,54,000 |
| Post-IPO Market Cap | Rs 170.84 crore |
| IPO as % of Post-IPO Capital | 26.40% |
| Lead Manager | Hem Securities Ltd. |
| Market Maker | Hem Finlease Pvt. Ltd. |
| Registrar | MUFG Intime India Pvt. Ltd. |
The issue is entirely a fresh issue. From the net proceeds, the company will utilise Rs 38.00 crore for capex towards setting up a new manufacturing facility, with the rest for general corporate purposes — a growth-oriented, capacity-expansion use of proceeds rather than an exit for existing shareholders, which is a positive.
Post-IPO, paid-up equity capital rises from Rs 9.90 crore (99,00,000 shares) to Rs 13.45 crore. On capital history, the company issued its entire equity at par value, with promoters’ average cost of acquisition at Rs NA and Rs 10.00 per share.
GMP Watch
Grey-market interest has been healthy and volatile. In tracked data, the Qualiance International IPO GMP recorded a high of ₹50–55 (September 1–2) and a low of ₹0 (September 1), settling around ₹27 (~21% premium) by September 2 — implying a listing gain of roughly 21–43% over the Rs 127 upper band across trackers, with one showing ₹55 (+43%).
That is a robust but swingy signal for an SME issue, and it runs notably ahead of the cautious fundamental read on valuation.
Independent reviewers see the specialised, export-oriented model and capacity-expansion focus as attractive but stress monitoring capacity utilisation, order inflows, customer diversification, GMP and QIB/subscription response before applying. As always, GMP is unofficial, unregulated and SEBI-unendorsed, and for a thin SME grey market can swing on low volume — treat it as one data point, not a listing forecast.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 38.14 | 55.06 | 80.95 |
| Net Profit (PAT) | 2.84 | 4.90 | 11.87 |
| PAT Margin (%) | 7.63 | 9.23 | 15.44 |
| RoCE (%) | 18.94 | 21.16 | 37.33 |
The growth has been rapid — total income more than doubled from Rs 38.14 crore in FY24 to Rs 80.95 crore in FY26, and PAT rose from Rs 2.84 crore to Rs 11.87 crore over the same span.
But the profit line is where the caution concentrates: PAT margin more than doubled from 7.63% in FY24 to 15.44% in FY26, an outperformance that is surprising for a company in a highly competitive and fragmented garment-export segment.
QIL’s margins running well ahead of listed peers is itself a flag. A quantum jump in trade receivables for FY26 adds an alarm on cash-conversion quality. The company reported an average EPS of about Rs 9.51 and an average RoNW of 41.11% over three fiscals. On book value, the issue is priced at a P/BV of 5.08 on the March 31, 2026 NAV of Rs 24.99 (post-IPO NAV disclosure is missing).
On earnings, the FY26-annualised P/E is about 14.40x, but on the cleaner FY25 base it jumps to 34.89x — and on average earnings, the issue looks fully priced. Contingent liabilities were modest at Rs 1.17 crore.
Peer Comparison
As per the offer document, the company lists Gokaldas Exports and S P Apparels as peers, trading at P/Es of roughly 55.5x and 24.4x (as of September 1, 2026).
But these are large, established mainboard garment exporters with very different scale and product mix, so the comparison isn’t strictly apples-to-apples — QIL’s much higher margins versus this peer set are precisely what the source note flags as surprising.
On balance, this looks like a fully priced issue, as per analysts.
Risks to Consider
Margin sustainability is the headline risk. PAT margin more than doubling to 15.44% in FY26, well above listed peers and in a fragmented, competitive garment-export segment, raises real window-dressing concerns and the prospect that reported profitability normalises lower post-listing — which would make even the 14.40x annualised multiple look expensive.
Receivables and cash-flow quality are flagged. A quantum jump in FY26 trade receivables raises an alarm over whether book profits are converting into cash — a key watch-item alongside the margin question.
Extreme export and customer concentration is structural. Exports averaged ~93.4% of revenue (98.82% in FY26), heavily concentrated on European government and institutional buyers including Swiss government departments — so any change in those relationships, procurement budgets, or Europe/US trade and tariff dynamics could hit revenue hard, alongside currency risk.
Build-to-print dependence limits pricing power. Designs and specifications are customer-provided; QIL manufactures to order, which caps its ability to differentiate on IP and leaves it dependent on continued order inflows from a concentrated buyer base.