Sonaselection India Limited
RHP · filed 09 Sept 2026
Sonaselection India Limited is a manufacturer of textile products with a revenue of Rs 516.95 crore and a profit of Rs 34.02 crore in the latest fiscal year, growing at a revenue CAGR of 106.71%. The IPO is structured as a fresh issue of equity shares, and the company has a high debt-to-equity ratio of 2.48. The company faces significant risks due to its single manufacturing facility in Bhilwara, Rajasthan, which accounts for over 95% of revenue and procurement, and it has experienced negative cash flows from operating activities in the past.
What stands out
Risk factor. The company's Manufacturing Facility and Registered Office are located in Bhilwara, Rajasthan, and a significant portion of revenue (37.31%, 50.47%, and 95.31% for Fiscal 2026, 2025, and 2024 respectively) and procurement (96.01%, 98.36%, and 96.26% for Fiscal 2026, 2025, and 2024 respectively) is d
Risk factor. The company operates a single manufacturing facility located in Bhilwara, Rajasthan, and does not operate any alternate or backup manufacturing facility, exposing the company to risks associated with a single point of failure.
Strong revenue growth. Restated revenue CAGR of 106.7%.
Healthy return on equity. ROE of 32.7%.
How the offer is structured
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company from banks₹80.0 Cr
- Funding of capital expenditure towards purchase of plant and machineries at the existing Manufacturing Facility situated at located at 18th K M Stone, Chittorgarh Road, Hamirgarh, Bhilwara- 311025 Rajasthan, India₹50.6 Cr
- General Corporate purposes
Restated financials
Revenue
₹517 Cr
Latest fiscal year
Profit after tax
₹34.0 Cr
Revenue CAGR
106.7%
Return on equity
32.7%
Debt / equity
2.48
PAT CAGR
61.2%
| Fiscal year | Revenue | EBITDA | PAT | Net worth |
|---|---|---|---|---|
| 2024 | ₹121 Cr | ₹28.8 Cr | ₹13.1 Cr | ₹38.9 Cr |
| 2025 | ₹316 Cr | ₹58.5 Cr | ₹18.6 Cr | ₹70.1 Cr |
| 2026 | ₹517 Cr | ₹85.6 Cr | ₹34.0 Cr | ₹104 Cr |
Promoters, litigation & related parties
Promoter (pre)
86.2%
There are no outstanding criminal proceedings, actions by statutory or regulatory authorities, claims related to direct and indirect taxes, or other pending material litigations involving the Company, Directors, Promoters, Subsidiary, or Group Companies. There are no disciplinary actions imposed by SEBI or stock exchanges against Promoters or Directors in the last five Fiscals. There is one outstanding material civil litigation against Key Managerial Personnel and Senior Management with an amount of 504.
Risks the company discloses
The company's Manufacturing Facility and Registered Office are located in Bhilwara, Rajasthan, and a significant portion of revenue (37.31%, 50.47%, and 95.31% for Fiscal 2026, 2025, and 2024 respectively) and procurement (96.01%, 98.36%, and 96.26% for Fiscal 2026, 2025, and 2024 respectively) is derived from this state, exposing the company to geographic concentration risks.(Geographic Concentration)
The company operates a single manufacturing facility located in Bhilwara, Rajasthan, and does not operate any alternate or backup manufacturing facility, exposing the company to risks associated with a single point of failure.(Operational Concentration)
The company has experienced negative cash flows from operating activities in the past (₹109.89 million in Fiscal 2026 and ₹141.77 million in Fiscal 2025), and any significant negative cash flows may adversely affect the business, financial condition, and growth prospects.(Financial)
The company's manufacturing operations are dependent on the effective operation and management of a single facility, which is subject to various operational risks including breakdown or failure of equipment, automation systems, industrial accidents, labour unrest, pandemics, fire hazards, power supply interruptions, and natural or man-made disasters.(Operational)
The company's manufacturing facility is central to its operations and includes warehousing capacity of approximately five million meters; any significant malfunction or failure of equipment or systems at this facility may entail substantial repair and maintenance costs and lead to production delays.(Operational)
The company has incurred ₹17.00 million, ₹6.49 million, and ₹6.16 million towards repairs and maintenance in Fiscal 2026, Fiscal 2025, and Fiscal 2024 respectively, and there is no assurance that such costs will not increase in the future.(Operational)
The company may be required to undertake planned shutdowns of its Manufacturing Facility from time to time for equipment upgrades, which may adversely affect production schedules and delay customer deliveries.(Operational)
The company's revenue is highly concentrated in the domestic market (99.84% in Fiscal 2026) with exports currently very limited (0.16% in Fiscal 2026), and the lack of geographic diversification may increase the impact of adverse developments in Rajasthan on the business and operating performance.(Market Concentration)
How this document reads, dimension by dimension
Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.