Yajur Fibres - Should You Apply Or Not?

Yajur Fibres Limited is a niche B2B manufacturer of cottonised bast fibres, supplying value-added flax (linen), jute and hemp fibres to spinning and textile mills. The Company enables cost-efficient and sustainable fibre blends compatible with existing cotton spinning systems, serving both domestic and export markets. With improving margins and forward integration into linen yarn, Yajur is transitioning up the textile value chain.

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Before the Deep Dive: What’s Working — and What Isn’t

Industry Overview 

The Indian bast fibre market — encompassing jute, flax/linen, hemp and allied fibres — forms a core part of the broader natural fibre sector, which was valued at ~ INR 45,000 crore in 2025 and is expected to grow at a ~6.3% CAGR by 2030. The Indian bast fibre industry, comprising primarily jute and niche fibres such as flax (linen) and hemp, forms an integral part of the country’s natural fibre and textile ecosystem. Bast fibres are derived from plant stems and are valued for their biodegradability, renewability, and low environmental footprint, making them increasingly relevant amid global sustainability and ESG-driven shifts away from synthetic fibres. India is the world’s largest producer of jute, with bast fibre consumption dominated by jute-based packaging applications, estimated at ~2.3 mn tonnes annually, driven by foodgrain, sugar and cement packaging mandates and growing preference for eco-friendly alternatives. In value terms, India’s bast fibre industry (including fibres, yarns, fabrics and finished products) generates annual exports of ~₹8,000–9,000 cr, highlighting its continued relevance in global trade.

Beyond traditional packaging, the industry is witnessing a gradual but structural shift toward higher-value textile and industrial applications, including apparel, home textiles, denim blends, geotextiles, insulation, non-wovens and speciality industrial uses. Flax/linen and hemp, while significantly smaller in volume compared to jute, cater to premium and emerging segments; India’s domestic flax production remains limited (estimated at ~2,000–3,000 tonnes), resulting in reliance on imports for linen textiles, whereas hemp consumption is still nascent at ~10,000 tonnes annually, but growing on sustainability-led demand. A key industry challenge has been the limited compatibility of bast fibres with conventional cotton spinning systems, constraining wider adoption. This has led to the emergence of cottonised bast fibres, which allow blending of bast fibres with cotton and man-made fibres without requiring fresh spinning capex. Overall, while the bast fibre industry remains jute-led in volumes, its long-term growth is increasingly linked to value-added, cotton-compatible and sustainable fibre solutions, positioning specialised processors favourably within the evolving textile value chain.

India’s bast fibre industry sits at the intersection of agriculture + textiles, supplying natural fibres extracted from plant stems/bark (primarily jute, and emerging hemp and flax/linen) for use in packaging, textiles and eco-friendly industrial applications. Bast fibres are increasingly relevant as biodegradable, renewable alternatives to synthetic fibres and plastics, benefiting from sustainability-driven demand across apparel and technical textiles.

Yajur Fibres Limited operates a B2B bast fibre cottonising unit that serves as a specialized link in the global textile supply chain. The core of the company’s business model is the technical transformation of long, brittle bast fibres—specifically flax (linen), jute, and hemp—into short-staple "cottonised" fibres. This process allows these natural materials to be blended up to 55% with cotton or man-made fibres using standard & existing cotton spinning systems, which are more common than traditional linen spinning systems.

Value Proposition: The company provides a high-quality alternative to 100% linen that is approximately 25% less expensive to produce while maintaining a similar look and feel. Additionally, their cottonised blends resolve the "easy wrinkle" issues associated with pure linen. This makes cottonised fibres attractive to spinning mills and fabric manufacturers seeking to balance cost, sustainability and performance.

Sustainability is a structural pillar of the business model. The Company is fully focused on natural, biodegradable and renewable fibres, positioning it favourably amid global ESG-driven shifts toward eco-friendly textiles and reduced synthetic fibre usage. Cottonised bast fibres allow downstream manufacturers to lower cotton intensity while maintaining process efficiency.

Manufacturing operations are based in West Bengal, a traditional jute hub, providing proximity to raw materials, skilled labour availability and structural cost advantages in procurement and logistics. From this base, Yajur caters to both domestic and export markets, with exports to Turkey, Indonesia, Nepal, Bangladesh and other textile hubs, either directly or through established distribution relationships. Yashoda Linen Yarn Limited is a wholly owned subsidiary of Yajur Fibres Limited, established to support the Company’s forward integration strategy. It is setting up a greenfield manufacturing facility in Ujjain, Madhya Pradesh, to produce 100% wet-spun linen yarn and blended yarns.

Product Portfolio
The company operates in the B2B Business Model and manufactures premium cottonised fibres, including flax (linen), jute, and hemp. The product portfolio includes:

• Flax Yarn 

• Jute Yarn 

• Cottonised Flax Fibre  

• Cottonised Jute Fibre 

• Cottonised Hemp Fibre  

a) Cottonised Flax (Linen) Fibre

This is the core and dominant revenue stream for Yajur Fibres. The Company manufactures premium cottonised flax fibres, converting long and brittle flax bast fibres into cotton-like short staple fibres that can be blended with cotton and man-made fibres on existing spinning systems. These fibres are supplied to spinning mills, blended yarn manufacturers and fabric producers catering to apparel, home textiles, denim and premium linen-blended fabrics. Cottonised flax offers linen-like aesthetics at lower cost, improved softness and reduced wrinkling, making it a preferred substitute for 100% linen. This segment contributes the majority of the Company’s revenues (~78–86%), making Yajur’s performance closely linked to demand in the linen and blended textile segment.

b) Flax Yarn

Flax yarn represents a value-added extension of the Company’s fibre business. The yarn is manufactured using flax fibres and supplied to customers engaged in fabric production, particularly in home textiles such as curtains, upholstery and furnishing fabrics. This segment contributes ~10–13% of revenues and enables Yajur to capture incremental value beyond fibre sales while leveraging its existing raw material expertise and customer relationships.

c) Cottonised Jute Fibre

Under this segment, the Company manufactures cottonised jute fibres that can be blended with cotton and other fibres, enabling jute usage beyond traditional packaging applications. These fibres are used in home textiles, upholstery, denim blends and industrial textile applications. While currently a small contributor (~1–5% of revenues), this segment aligns with sustainability-driven substitution trends and provides optionality for future growth.

d) Jute Yarn and Other Products

This segment includes jute yarn, limited hessian cloth and other minor products, which are supplied to customers engaged in packaging, carpet backing and select industrial uses. Revenue contribution from this segment has declined over time and remains non-core, reflecting the Company’s strategic shift toward higher-value cottonised fibres and yarns

e) Cottonised Hemp Fibre (Early-stage)

The Company has initiated manufacturing of cottonised hemp fibre, targeting emerging applications in sustainable textiles and technical uses. This segment currently contributes negligible revenues but represents a long-term optional growth avenue, given the rising global interest in hemp-based, eco-friendly materials.

Revenue Segmentation  (In Rs. Crs)

Manufacturing Capacity & Utilisation

The company’s manufacturing facility is located in Howrah, West Bengal.

Dip in FY2024: There was a sharp decline in capacity utilization in FY2024 (dropping to 53.17%). The management attributes this specifically to a shortage of raw materials caused by a poor crop cycle. Utilization rates have improved in FY2025 and for the period ended November 30, 2025, indicating a normalization of raw material supply.

The company is promoted by a combination of individual and corporate entities associated with the Kankaria Group.

Individual Promoters:

• Ashish Kankaria (Managing Director): Aged 43, he holds a Post Graduate Diploma in Management from S.P. Jain Institute of Management & Research. He has over a decade of experience in the manufacturing and distribution of jute and jute fibre. He is also a director on the Board of the Indian Jute Mills Association.

• Shruti A Kankaria (Non-Executive Director): Aged 44, she holds a Bachelor’s degree in Arts from the University of Delhi. She has over six years of experience in management and general administration, previously associated with Bally Jute Company Limited. She is the spouse of Ashish Kankaria

Corporate Promoters:

• Ambica Capital Markets Limited: An RBI-registered Non-Banking Financial Company (NBFC) engaged in industrial finance and investment.Surya Prakash Dadheech, Amitava Banerjee and Jitendra Sethia are the Directors of ACM. Ashish Kankaria and Gold View Financial Services Ltd are the promoters of ACML.

• Gold View Financial Services Limited: An RBI-registered NBFC engaged in industrial finance and investment.Sushil Kumar Bhutoria, Ranjit Majumdar and Tej Raj Mehta are Directors of GFSL.Ashish Kankaria and Ambica Capital Markets Ltd are the promoters of GFSL. 

Promoter Shareholding: As of the date of the Red Herring Prospectus, the collective pre-issue shareholding of the Promoters is 67.33%

Financial Analysis (In Rs. Crs)

The company has demonstrated strong top-line growth, with revenue increasing from ₹61.7 cr in FY23 to ₹140.8 cr in FY25, driven by higher volumes, improved realisations and better product mix. Operating leverage is clearly visible, with EBITDA margins expanding from ~9.5% in FY24 to ~13.4% in FY25, and PAT margins improving to 8.3%, reflecting pricing discipline and scale benefits in cottonised bast fibre processing.

Return ratios strengthened meaningfully in FY25, with ROE at ~27% and ROCE at ~17%, indicating improved capital efficiency as utilisation ramped up. However, the business remains working-capital intensive, as reflected in elevated Net Debt/EBITDA (3.4x in FY25) and moderate liquidity ratios, which is typical for raw-material-heavy textile input businesses. Capacity utilisation has improved post-expansion, but remains below optimal levels, providing headroom for margin-led growth as volumes scale. Overall, the financials point to a company entering an operating-leverage phase, offset by leverage and working-capital sensitivity.

• Capital Expenditure for Existing Unit Expansion ( Rs.11.92 Cr.)

The company plans to set up a 50,000 sq. ft. shed and install additional machinery to              increase production capacity by 4 tons per day at its existing manufacturing unit located at Jagannathpur, Phuleshwar, Uluberia, District Howrah.

• Investment in Subsidiary for Greenfield Project (Rs.. 48 Cr.)

A significant portion of the proceeds will be invested in the subsidiary, Yashoda Linen Yarn Limited, to establish a new greenfield unit at Vikram Udyogpuri, DMIC (Industrial Park, Ujjain, Madhya Pradesh). This facility will be dedicated to manufacturing 100% wet spun linen yarn and blended yarn.

• Funding Working Capital Requirements (Rs.36 Cr.)

The company intends to use the proceeds to meet its incremental working capital needs required for business operations.

• General Corporate Purposes

The balance of the proceeds will be used for general corporate purposes, subject to the condition that the amount utilized for this purpose shall not exceed 15% of the gross proceeds of the Issue.

Final Words

Through the LMVT Framework

Leadership: Promoter-led company with deep operating experience in bast fibre processing. Strong hands-on execution, quality control and customer relationships have driven scale-up and margin expansion, while forward integration reflects long-term strategic intent.

Moat: Operational moat driven by cottonisation know-how, enabling bast fibres to run on existing cotton spinning systems. High repeat orders and consistent quality create stickiness, though the moat remains execution-dependent rather than structural.

Valuation: Positioned as a value-added niche textile processor, not a commodity jute player. Improving margins and ROE support a premium to traditional bast fibre peers, partly offset by product concentration and leverage risks.

Tailwinds: Structural tailwinds from sustainability-led fibre substitution, rising blended fabric adoption, export demand and forward integration into linen yarns, which should improve value capture over time.

Bottom line

Yajur Fibres is a specialty, process-driven textile play entering an operating-leverage phase. Risks remain, but improving financials and value-chain expansion make it a differentiated IPO within the bast fibre space.