Fractal Industries Limited is engaged in the business of designing, sourcing and manufacturing of garments and providing end-to-end warehousing and supply chain services to e-commerce platforms. Having Pan India presence, Fractal Industries is a full service garment manufacturing and technology-driven supply chain management company focused on fast moving, high quality apparel for e-commerce marketplaces (Myntra, Ajio and similar platforms). They integrate agile design-to-delivery manufacturing, scalable production capabilities, rigorous quality control, and data-driven supply chain management to help brands and private labels accelerate speed-to-market, improve margins, and enhance customer satisfaction. They also provide integrated supply chain and fulfilment solutions that enable apparel brands, partners, and marketplaces to optimize and streamline their e-commerce operations. With a monthly manufacturing capacity of more than 3,00,000 garment units the Company has built a robust supply chain capable of handling multiple daily orders and shipments across multiple marketplaces. Their Manufacturing unit is located at Mumbai with warehouses located in Gujarat, Maharashtra, Haryana, West Bengal and Karnataka. Company has a subsidiary, Nested Brands Private Limited which was incorporated on April 6, 2025 and is engaged in the business of brand creation, including the development of brand identities, concept and strategies for itself as well as for other companies and parties. As per financial performance, Fractal Industries Limited has posted total income / net profits of Rs 88.91 / 2.65 Cr (FY23), Rs 50.00 / Rs 2.26 Cr (FY24), Rs 85.51 Cr / 7.53 Cr (FY25) and Rs 47.33 Cr / 6.70 Cr (upto Q2 FY26). So as per previous financials data, company has shown zig-zag results. Higher inventory level, high debt and negative cash flow are red flags. Company has an average EPS of Rs 9.03 and average RoNW of 40.79% for last three fiscals. Issue is priced at a P/BV of 5.11 as per NAV of Rs 42.28/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 74.83, 22.49 and 12.64 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Finaax Capital Advisors Private Limited is associated with this IPOs, and has handled 2 IPOs in last three fiscal years. From last 2 IPOs, one opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 2 IPOs, all are trading below issue price or at par. (as on 10.02.26 ) As per financials, Fractal Industries Limited has shown zig-zag results, RoNW is 48.02% and P/E is 74.83, 22.49 and 12.64 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced, also higher inventory level, high debt and negative cash flow are red flags. Company is engaged in the business of designing, sourcing and manufacturing of garments and providing end-to-end warehousing and supply chain services to e-commerce platforms, which is very competitive business segment. Performance of BRLM is poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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