T.C.Terrytex Limited IPO

IPO Details

• Open date: TBA
• Close Date: TBA
• Minimum Investment: To be updated
• Lot Size: TBA
• Price Range: TBA
• Listing: BSE, NSE
• Issue Size: Fresh Issue ₹1,700 million + OFS of 67,50,000 equity shares
• Listing Date: TBA

IPO Timeline

• Bidding Start: TBA
• Bidding Ends: TBA
• Allotment Finalisation: TBA
• Refund Initiation: TBA
• Demat Transfer: TBA
• Listing: TBA

About T.C. Terrytex Limited

Incorporated in 2005, T.C. Terrytex Limited is engaged in the manufacturing and export of cotton-based home textile products, primarily terry towels, catering to international markets, along with the sale and processing of dyed yarn in the domestic market. The company’s product portfolio includes dobby and jacquard towels, as well as a range of terry towel products such as face, hand, and bath towels. Its manufacturing facility in Mohali, Punjab, undertakes end-to-end processes including yarn dyeing, weaving, processing, and finishing. As of March 31, 2025, the company has an installed capacity of 9,349.90 MTPA for terry towels and 5,845.00 MTPA for dyed yarn.

T.C. Terrytex Limited IPO Overview

T.C. Terrytex Limited filed its DRHP with SEBI on March 30, 2026, for a book-built IPO comprising a fresh issue of up to ₹1,700 million and an offer for sale (OFS) of up to 67,50,000 equity shares by the promoters. The company may consider a pre-IPO placement of up to ₹150 million. Net proceeds from the fresh issue will be utilized for pre-payment or scheduled repayment of certain outstanding borrowings (₹1,200 million) and general corporate purposes. Lead manager: Sobhagya Capital Options Pvt. Ltd. Registrar: Skyline Financial Services Pvt. Ltd. Listing on BSE and NSE. IPO dates, price band, and lot size are yet to be announced.

T.C. Terrytex Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	Fresh Issue ₹1,700 million + OFS of 67,50,000 shares
Fresh Issue	Up to ₹1,700 million
Offer for Sale (OFS)	67,50,000 equity shares
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹10 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	TBA
Shareholding post-issue	TBA

T.C. Terrytex Limited IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

 

T.C. Terrytex Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer

 T.C. Terrytex Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	₹1.31
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	6.19%
Net Asset Value (NAV)	₹14.61
Return on Equity (RoE)	4.25%
Return on Capital Employed (RoCE)	6.18%
EBITDA Margin	8.38%
PAT Margin	2.43%
Debt to Equity Ratio	0.84

 Objectives of the IPO Proceeds

The net proceeds from the Fresh Issue are intended to be utilised as follows:

Particulars	Amount (₹ in million)
Pre-payment or scheduled repayment of certain outstanding borrowings	1,200.00
General corporate purposes*	[●]

*To be determined upon finalisation of the Offer Price. General corporate purposes shall not exceed 25% of gross proceeds.

T.C. Terrytex Limited Financials (₹ in million)

Particulars	30 Sep 2025	31 Mar 2025	31 Mar 2024	31 Mar 2023
Assets	5,305.88	4,864.27	4,706.60	4,432.42
Revenue from Operations	3,245.79	6,734.80	6,544.22	5,441.31
Profit After Tax	78.73	170.01	134.40	90.28
Reserves and Surplus	596.25	519.87	348.27	211.16
Total Borrowings	1,594.48	1,752.00	1,936.00	2,043.90
Total Liabilities	3,416.45	3,051.22	3,065.15	2,928.08

Financial Status of T.C. Terrytex Limited

SWOT Analysis of T.C. Terrytex Limited

Strengths and Opportunities	Weaknesses and Threats
Fast sampling due to specialized machines enabling quick product development	High customer concentration: top customer contributed 25.62% of FY2025 revenue
Ability to manufacture small order lots on time with higher margins	Significant revenue concentration in Australia (42.47% of FY2025 revenue)
Dedicated design team for developing quality products with 28,000+ designs	High debt levels: total borrowings of ₹1,594.48 million
Timely delivery of goods while meeting quality standards	Low PAT margin of 2.52% compared to industry peers
Strong presence in Australia, US and UK markets	Working capital intensive business model
Vertically integrated producer with strategically located operations	Reliance on exports: 90%+ revenue from international markets
Long standing association with leading consumer brands like Kmart	Currency fluctuation risks affecting export revenue
Healthy financial performance with consistent revenue growth	Intense competition from larger players like Trident and Welspun
Global home textiles market expected to reach USD 140 billion by 2030	Rising raw material costs impacting margins

T.C. Terrytex Limited IPO Strengths

Fast Sampling Due to Specialized Machines

T.C. Terrytex has invested in specialized machinery that enables fast sampling and prototyping of new towel designs and yarn variants. This advanced equipment significantly reduces lead times in developing new products, allowing the company to swiftly cater to evolving market trends, seasonal demands, and customized requirements from its global clientele. With exports forming a major part of revenue, the ability to rapidly create high-quality samples plays a pivotal role in securing large-scale orders from international buyers.

Ability to Manufacture Small Order Lots on Time

T.C. Terrytex has developed the capability to efficiently manufacture small order lots without compromising on quality or lead time. The advanced production setup enables the company to cater to customized, low-volume orders for niche markets, boutique brands, and premium retailers. By maintaining operational agility, the company ensures that even small-batch orders receive the same attention to detail and quality assurance as bulk productions. This capability allows the company to attain higher prices leading to higher margins.

Dedicated Design Team for Developing Quality Products

T.C. Terrytex has established a dedicated design team focused on creating high-quality, durable towel products that meet evolving consumer preferences. The team works closely with industry experts, market analysts, and customers to develop advanced textile solutions which offer enhanced color retention, longevity, and durability. The design team plays a crucial role in maintaining the company’s reputation for excellence by constantly researching and experimenting with new materials, weaving techniques, and finishing processes.

Timely Delivery of Goods While Meeting Quality Standards

T.C. Terrytex has implemented a well-structured supply chain management system that optimizes every stage of production and distribution. The advanced manufacturing infrastructure, combined with efficient production planning, allows the company to streamline processes, reduce lead times, and ensure that every order is delivered as per the agreed schedule. This is particularly crucial for the export-driven business, where international buyers expect precision in both product quality and delivery timelines.

Long Standing Association with Leading Consumer Brands

T.C. Terrytex has established long-standing relationships with leading consumer brands such as Kmart, which has been possible due to decades of association, delivery of quality products, made-to-order products, and maintaining high quality standards. The company has been associated with its top 10 customers for an average period of over 3 years. This long-term association offers significant competitive advantages such as revenue visibility, industry goodwill, and allows the company to up-sell and cross-sell its diverse range of products.

Strong Presence in Australia, US and UK Markets

T.C. Terrytex has a strong presence in Australia, US, and UK markets, which contributed 42.47%, 40.25%, and 6.55% of its revenue respectively during Fiscal 2025. The company’s Three Star Export House certification reinforces its credibility and enables it to position itself as a preferred supplier of high-quality terry towel products. This export-oriented operational framework includes stringent quality control measures, compliance with international regulatory standards, and an efficient logistics network.

Experienced Management Team and Promoters with Qualified Workforce

T.C. Terrytex is led by an experienced management team and promoters who bring deep expertise in the textile industry. With years of industry experience, strategic decision-making capabilities, and a strong focus on operational excellence, the leadership has played a vital role in shaping the company’s growth. The company has a dedicated team of 1,714 employees across various functions, including manufacturing, quality control, research and development, logistics, and customer service.

Other IPO Pages Linking

More About T.C. Terrytex Limited

T.C. Terrytex Limited, incorporated in 2005, has established itself as a manufacturer and exporter of cotton-based home textile products with a strong focus on the international market.

Manufacturing Facility and Capacity

• Location: Sarsini, Mohali, Punjab
• Installed Capacity: 9,349.90 MTPA for terry towels and 5,845.00 MTPA for dyed yarn as of March 31, 2025
• Vertically Integrated Operations: End-to-end processes including yarn dyeing, warping, weaving, fabric processing, finishing, and packaging
• Recent Expansion: 34 additional looms installed after September 30, 2025, increasing production capacity from 4,343.5 MT to 4,964.0 MT (46.46% to 53.09% increase)

Product Portfolio

• Terry Towels: Face towels, hand towels, bath towels, kitchen towels
• Designs: Dobby and jacquard towels, Suvin towels, organic towels
• Yarn: Sale and processing of dyed yarn in the domestic market

Design and Innovation

• In-house design team with 28,000+ designs in portfolio
• Design-driven and customer-driven design approaches
• CAD/CAM integration for precision design

Geographic Presence

• Domestic: Sale and processing of dyed yarn in the Indian market
• International: Strong presence in Australia (42.47% of FY2025 revenue), US (40.25%), and UK (6.55%)
• Three Star Export House Certification

Customer Base

• Long-standing association with leading consumer brands including Kmart
• Top 10 customers contribute approximately 61.23% of total revenue
• Average relationship with top 10 customers over 3 years

Workforce

• 1,714 employees as of September 30, 2025

Industry Outlook

India’s home textiles and terry towel industry is poised for significant growth driven by increasing global demand for premium textile products, changing consumer preferences, and India’s competitive advantage in cotton-based textile manufacturing. The global home textiles market is expected to reach USD 140 billion by 2030, growing at a CAGR of 4-5%. India’s textile and apparel industry is projected to reach USD 350 billion by 2030, with exports expected to grow to USD 100 billion.

Key Growth Drivers:

• Global Demand for Premium Textiles: Increasing consumer preference for high-quality, sustainable, and design-led textile products is driving demand for premium terry towels and home textiles. Consumers are increasingly seeking products with enhanced durability, color retention, and comfort.
• Shift Towards Sustainable Manufacturing: Growing awareness of environmental sustainability is driving demand for organic cotton, eco-friendly dyeing techniques, and responsibly sourced textiles. The Better Cotton Initiative (BCI), Organic Cotton Standard (OCS), and Global Organic Textile Standard (GOTS) certifications are becoming increasingly important.
• Export Growth: India’s textile exports have shown consistent growth, with the country being one of the largest exporters of cotton textiles globally. The US, UK, and Australia remain key export destinations for Indian terry towels.
• E-commerce and Omnichannel Retail: The growth of e-commerce and omnichannel retail is creating new distribution channels for home textile products, enabling manufacturers to reach a wider customer base.
• Product Innovation: Continuous innovation in fabric technology, sustainable dyeing techniques, and design development is driving differentiation in the market.

Market Projections:

• India’s home textile market is expected to grow at a CAGR of 10-12% over the next 3-5 years.
• The global terry towel market is projected to grow steadily, driven by the hospitality sector, residential demand, and premium product segments.
• India’s share in global textile exports is expected to increase from 5% to 7% by 2030.

How Will T.C. Terrytex Limited Benefit

• T.C. Terrytex is strategically positioned to benefit from the global home textiles market growing to USD 140 billion by 2030, with the company’s strong presence in key export markets including Australia, the US, and the UK.
• The company’s Three Star Export House certification provides credibility and access to international buyers, enabling it to position itself as a preferred supplier of high-quality terry towel products in premium markets.
• T.C. Terrytex’s investment in specialized machinery for fast sampling enables it to respond quickly to evolving market trends and customer requirements, securing large-scale orders from international buyers who seek quick turnarounds.
• The company’s ability to manufacture small order lots with higher margins positions it to capture the growing demand for customized, limited-quantity orders from boutique brands, luxury retailers, and niche markets.
• T.C. Terrytex’s vertically integrated manufacturing operations in Mohali, Punjab, provide cost efficiencies and quality control advantages, enabling end-to-end production from yarn dyeing to finished towels.
• With total borrowings reducing from ₹2,043.90 million in FY2023 to ₹1,594.48 million as of September 2025, and the IPO proceeds of ₹1,200 million for debt repayment, the company’s balance sheet will strengthen significantly, improving financial flexibility.
• The company’s focus on sustainability through Responsible Cotton sourcing, water-efficient dyeing, and eco-friendly manufacturing aligns with global consumer preferences for ethical and sustainable textile products.

Peer Group Comparison

Name of Company	Revenue (₹ in million)	Face Value (₹)	Basic EPS (₹)	Diluted EPS (₹)	NAV  (₹)	P/E Ratio	RoNW (%)
T.C. Terrytex Limited	6,734.80	10	1.31	1.31	14.02	[●]	9.84%
Trident Limited	69,870.80	1	0.73	0.73	9.10	29.70	8.28%
Welspun Living Limited	1,05,450.90	1	6.70	6.68	51.04	47.90	13.70%

Key Strategies for T.C. Terrytex Limited

Debt Reduction

T.C. Terrytex aims to make the company more efficient and maximize capacity utilization by reducing debt. The company intends to improve operational efficiencies, reduce debt burden, and enhance profitability. Total borrowings stood at ₹1,943.90 million as of Fiscal 2025. The company’s operating profit margins (EBITDA) have remained consistent at 8.31% in Fiscal 2023, 7.70% in Fiscal 2024, and 8.77% in Fiscal 2025, reflecting better resource management and efficient planning of working capital requirements.

Continuous Expansion of Manufacturing Capacity

T.C. Terrytex is currently operating at near full capacity and has been outsourcing a portion of its weaving process. Subsequent to September 30, 2025, the company has procured and installed 34 additional looms, resulting in an increase in installed production capacity from approximately 4,343.5 MT to 4,964.0 MT of terry towel production (46.46% to 53.09% increase). This expansion is expected to reduce dependence on outsourced processes and improve operational efficiency.

Strengthening Export-Led Growth Strategy

T.C. Terrytex focuses on strengthening its presence in key export destinations by catering to the evolving demands of international consumers and building long-term relationships with global retailers, wholesalers, and hospitality businesses. The Three Star Export House certification reinforces credibility. The company continues to focus on expanding presence in high-potential international markets such as North America, Europe, and the Middle East.

Product Innovation and Diversification

T.C. Terrytex continuously invests in research and development to introduce high-quality, differentiated towel products such as organic towels for sustainability-conscious consumers and highly durable towels for long-term usage. The company intends to add more value-added enhancements at the textile level to its products. In-house design and development team plays a crucial role in ensuring offerings meet functional and aesthetic requirements.

Operational Efficiency and Cost Optimization

T.C. Terrytex has implemented advanced manufacturing technologies, automation, and lean production methodologies to improve productivity, reduce waste, and enhance overall efficiency. The company has adopted water-efficient dyeing techniques, waste reduction programs, and renewable energy initiatives. Investment in real-time data analytics and production planning systems allows the company to manage inventory efficiently and optimize raw material usage.

Enhancing Sustainability and Eco-Friendly Practices

T.C. Terrytex is committed to adopting eco-friendly manufacturing processes that minimize environmental footprint while maintaining highest product quality standards. The company focuses on utilizing sustainable raw materials such as organic cotton and bamboo fibers. Responsible cotton sourcing (BCI, OCS, GOTS certified) ensures reduced water consumption, minimal pesticide use, and improved working conditions. Water-efficient and energy-saving technologies, wastewater treatment and recycling systems, and renewable energy sources are being incorporated.

Customer-Centric Approach and Brand Building

T.C. Terrytex prioritizes understanding customer preferences by maintaining close relationships with domestic and international buyers. The company offers small-lot manufacturing, quick sampling, and tailored product solutions. The company plans to invest in enhancing direct-to-consumer presence by exploring online platforms, exclusive partnerships, and premium retail collaborations.

Expansion of Small Order Capabilities

T.C. Terrytex has strategically enhanced its ability to efficiently manufacture small order lots while maintaining the same high-quality standards as bulk production. The company offers low minimum order quantities (MOQs) with quick turnaround times. Investment in agile production planning, digital order management systems, and efficient inventory control enables the company to swiftly adjust production schedules and minimize lead times.

Strengthening Workforce Capabilities

T.C. Terrytex is committed to investing in employee training, skill development, and leadership programs to enhance the technical expertise and efficiency of its workforce. The company provides continuous learning opportunities in advanced textile manufacturing, quality control, and sustainable production practices. Structured employee engagement initiatives, performance-driven incentive programs, and career progression pathways encourage professional development.

FAQs

How can I apply for T.C. Terrytex Limited IPO?

You can apply via HDFCSky using UPI-based ASBA (Application Supported by Blocked Amount).

What is the total issue size of the T.C. Terrytex IPO?

The IPO comprises a fresh issue of up to ₹1,700 million and an OFS of 67,50,000 equity shares.

When is the T.C. Terrytex IPO opening?

IPO dates including open, close, and listing are yet to be announced by the company.

On which exchanges will T.C. Terrytex shares be listed?

The equity shares will be listed on both BSE and NSE.

How will T.C. Terrytex use the IPO proceeds?

Proceeds will be used for pre-payment of borrowings (₹1,200 million) and general corporate purposes.

Infographic Content

T.C. Terrytex Limited IPO Highlights

T.C. Terrytex is a manufacturer and exporter of cotton-based terry towels with a Three Star Export House certification, serving global markets including Australia, the US, and the UK with vertically integrated manufacturing operations in Mohali, Punjab.

• Offer Size:Fresh Issue up to ₹1,700 million; OFS of 67,50,000 equity shares
• Purpose:Net proceeds will be used for pre-payment of borrowings (₹1,200 million) and general corporate purposes.
• Financials (FY March 2025):Revenue ₹6,734.80 million; Profit After Tax ₹170.01 million; EPS ₹1.31; RoNW 9.84%; Installed Capacity 9,349.90 MTPA
• Listing:Mainboard IPO on BSE & NSE