Company plans to double spinning capacity, expand dyeing capacity and diversify beyond Punjab while strengthening its presence in recycled and sustainable fibres

Paramount Syntex Ltd., a manufacturer of synthetic fibres, yarns and textile products, is looking to use its proposed IPO to expand manufacturing capacity and strengthen its position in recycled and sustainable fibre products. The company, which has manufacturing facilities in Ludhiana, Punjab, is raising ₹81.79 crore through the issue, of which ₹61.68 crore is earmarked for machinery purchases. The IPO is scheduled to open on September 30, 2026 and close on October 6, 2026, with the company proposed to be listed on the BSE SME platform.

Paramount Syntex operates across yarns, synthetic fibres and fabric/textile products, with acrylic and wool yarns accounting for 60.58% of its FY26 revenue. Its revenue from operations increased from ₹92.78 crore in FY24 to ₹112.42 crore in FY25 and ₹122.03 crore in FY26. Over the same period, PAT rose sharply from ₹1.35 crore to ₹6.73 crore and then to ₹13.87 crore.

In an interaction, Punit Arora, Chairman and Managing Director, Paramount Syntex Ltd., said the company’s focus on recycled fibre has played an important role in improving product acceptance and profitability.

“We have been working on it and sometime back we started using 100% recycled waste and we were certified with RCS and GRS certificates also.”

According to Arora, the company previously relied more on fresh fibre but has increasingly moved towards recycling acrylic waste to manufacture recycled fibre and yarn. He said the quality of the recycled products has enabled the company to gain acceptance among brands in India as well as markets in Europe and the US.

IPO-funded capacity expansion

A key focus of the IPO proceeds will be expanding the company’s manufacturing capabilities. Arora said the company plans to invest primarily in spinning and dyeing, with some investment potentially going towards fabric.

“We would increase 100% capacity, existing capacity of spinning and around 200% of the dyeing capacity,” he said, adding that the objective is to remove bottlenecks across the manufacturing process.

The company currently has an installed capacity of 6,210 MTPA and reported overall capacity utilisation of approximately 88.8% in FY26. Its investor presentation shows utilisation levels of 94.44% for hank dyeing and 91.67% for spinning in FY26.

Arora expects the expansion to have a significant impact on the company’s topline. “Once everything is into picture and we are able to run it and things get smooth, we expect almost doubling the current top line,” he said.

Focus remains on acrylic and wool

While Paramount Syntex intends to diversify its product mix, Arora said acrylic and wool will remain central to the company’s strategy.

“We will diversify, but not to a major extent,” he said, adding that the company would continue to concentrate on its core acrylic and wool business while also utilising other materials.

The company’s FY26 product mix reflects this focus, with acrylic/wool yarns contributing ₹73.92 crore, or 60.58%, of total revenue.

Looking beyond Punjab

Another strategic priority is reducing the company’s geographical concentration. Punjab contributed 90.64% of Paramount Syntex’s FY26 revenue, although the company has also begun expanding its reach to other markets.

Arora said the concentration is partly linked to Punjab’s established position in winter-product manufacturing. However, he said the company is already looking at markets in South India, Maharashtra, Uttar Pradesh and other regions.

“We plan to diversify almost 50% of our products out of Punjab in coming time,” he said. The company is also exploring opportunities in European and American markets, where its recycled fibre products have received acceptance.

Raw-material volatility remains a challenge

The company’s investor presentation identifies dependence on imported raw materials and raw-material price fluctuations among its key risks.

Arora acknowledged that the volatility is a broader industry issue, particularly because synthetic fibre markets remain linked to oil prices and global supply chains. Rather than being able to completely eliminate this exposure, he said the company manages the risk partly through inventory planning.

“Ultimately, everything depends on oil,” Arora said, adding that maintaining stocks is one way the company seeks to minimise short-term supply and price risks.

Looking ahead, the company sees recycled and “green” fibre as a key growth avenue. Arora said the company intends to build supply-chain relationships with brands targeting European and American markets, either through exports or by supplying products locally to companies serving these markets.

On the transition to a listed company, Arora said Paramount Syntex is strengthening its internal governance framework through committees, internal auditors and independent directors, with an emphasis on transparency.

He also outlined a longer-term ambition of moving to the main board, saying the company expects this transition to take around three to four years.