Fractal Industries IPO

Fractal Industries designs, sources and manufactures garments for online fashion marketplaces and runs the warehousing and fulfilment behind them. It began in 2020 making clothing for Myntra, later adding Ajio and Flipkart. Under the model it adopted in Fiscal 2025 it produces apparel under brands the marketplaces themselves own, forecasts demand, holds inventory and sells through the platform, which charges a commission. An older vertical sells garments outright to the platform, which then owns the stock. It also sells supply-chain services around this: order and inventory management, returns handling, logistics and order-anomaly detection. Its manufacturing unit is in Mumbai, with warehouses in Gujarat, Maharashtra, Haryana, West Bengal and Karnataka, and stated monthly capacity above 300,000 garment units. It employed 45 permanent staff and 38 contract workers at 30 September 2025.

Revenue is the sale value of garments, booked either outright to the marketplace or, since Fiscal 2025, through the platform under its own brands with a commission deducted. Materials dominate the cost base: cost of material consumed was 51.57% of total income in FY25 and 50.44% in H1 FY26, against 106.16% in FY24 and 92.76% in FY23. The structural constraint is customer concentration — the top ten customers were 100.00% of revenue in FY25, and one customer alone was 78.45% of revenue in the six months to 30 September 2025. Carrying demand-forecast and inventory risk under the newer model, rather than producing to a platform's order, is what makes that concentration bite.