Can Kusumgar IPO deliver long-term growth for high risk investors?

Kusumgar, a Gujarat-based manufacturer of engineered synthetic fabrics used in defence gear, rubber goods and activewear, is set to launch its IPO. Revenue grew 21.6 percent annually to about Rs 692 crore between FY24-26, though net profit rose only 7.9 percent to Rs 98.2 crore with YoY declines of 11.2 percent in revenue and 12.3 percent in profit in FY26 due to deferred defence orders and US tariff impact. The post-IPO P/E multiple of 45 is at the upper end of the 33-46 range for peers Arvind, Garware Technical Fibres and SRF, while customer concentration risk is high with top 10 clients contributing around 60 percent of revenue.