India’s defence-textile opportunity is moving beyond conventional uniforms towards high-performance, mission-specific products such as flame-resistant fabrics, ballistic protection, aramid-based materials and climate-adaptive combat clothing. Grand View Research estimates India’s law enforcement and military clothing market at US$111.6 million in 2025, with the market projected to reach US$204.7 million by 2033, implying an 8% CAGR between 2026 and 2033. Aramid, a high-performance fibre used where thermal and ballistic resistance are required, is identified as the fastest-growing material segment.
The opportunity, however, extends well beyond finished military clothing. MarketsandMarkets estimates India’s technical-textile market at US$4.13 billion in 2025, rising to US$6.26 billion by 2030 at an 8.7% CAGR. Within this market, the Protech segment, covering protective technical textiles, is estimated at US$227 million in 2025 and US$346.9 million by 2030, representing an 8.8% annual growth rate.
Specifically, the market for India’s fire-resistant fabrics for defense and public safety services is estimated at US$56.6 million in 2025 and is projected to reach US$81.8 million by 2030, implying a 7.65% CAGR. The broader Indian armour-materials market is estimated at US$544.6 million in 2025 and US$878.8 million by 2030, growing at about 10%.
Policy support is also developing. The National Technical Textiles Mission supports research and development in areas including defence textiles. NITI Aayog has noted that 116 technical-textile products were identified for mandatory use across 10 ministries and departments, with 73 notified by June 2025. Defence textiles are among the research areas supported under the mission.
But for readers, the larger market opportunity is only the starting point. The more important question is how much of that opportunity is visible in the financials of listed companies, how much has already translated into defence orders, and how much could eventually flow into earnings.
The two stocks worth tracking against this backdrop are Kusumgar Limited and Garware Technical Fibres.
Kusumgar Limited: Defence Exposure You Can Actually See
Kusumgar Limited has a dedicated Aerospace and Defence business spanning both technical fabrics and finished defence solutions. The company has developed more than 1,000 fabric configurations using polyamide, polyester filaments and polyurethane chemistry, with capabilities covering weaving, finishing, coating and lamination.
Its defence fabric portfolio includes materials for cargo-drop, tactical-assault, high-altitude penetrator, drogue, recovery and space-module recovery parachutes, alongside rainwear, cold-weather clothing, modular lightweight load-carrying equipment, rucksacks and sleeping bags. It also supplies fabrics for two-dimensional and three-dimensional camouflage nets, ghillie suits and decoys.
The defence opportunity extends beyond fabric supply. Through its Aerospace and Defence Solutions segment, Kusumgar manufactures end-user systems under three business lines: aerial systems, stealth systems and rapid-deployment systems.
As of March 31, 2026, Kusumgar operated six manufacturing facilities in Gujarat, along with one fabrication unit in Uttar Pradesh.
The Order Book Gives the First Clue
Kusumgar’s recent orders provide a clearer view of defence exposure than the company’s consolidated financial statements alone.
In April 2026, Kusumgar emerged as L1 for a Troop Comforts Limited procurement of Nylon 66 air-textured PU-coated Indian Army-print fabric, with the tender value reported at around ₹50.4 lakh. In March 2026, Kusumgar participated in a Troop Comforts tender for 300 GSM nylon ripstop PU-coated flame-resistant fabric and emerged as the L1 bidder at about ₹16.89 crore. The procurement was for Troop Comforts Limited, a Ministry of Defence enterprise.
Kusumgar also bagged a major order worth ₹237.20 crore in FY26. Only 23.61% of the contract value was executed in FY26, meaning approximately ₹56.03 crore had been executed during the year and about ₹181.17 crore remained unexecuted at FY26-end, based on the stated execution percentage. This remaining value provides potential execution visibility, but it should not automatically be treated as FY27 revenue because revenue recognition depends on actual execution and contractual milestones.
The order came after Kusumgar’s FY25 ramp-up in defence solutions, when the company recognised ₹222.19 crore of Aerospace & Defence Solutions revenue, largely driven by a large Combat Free Fall (CFF) parachute systems order.
This history also exposes an important characteristic of the business: defence revenue can be lumpy. A large order can materially lift revenue in one year, while a non-repeat order or delayed execution can cause a sharp decline in the next.
Defence Revenue Is Material, But Not Steady
Kusumgar’s FY26 business-wise disclosures provide the clearest available measure of its defence exposure.
Aerospace & Defence Fabrics generated ₹213.70 crore and Aerospace & Defence Solutions generated ₹155.02 crore in FY26. Together, the two businesses generated ₹368.72 crore, accounting for 54.6% of FY26 revenue from customer contracts.
However, this should be described as Aerospace & Defence revenue, rather than treating the entire amount as pure defence-textile revenue. Aerospace & Defence Solutions includes finished systems, while Aerospace & Defence Fabrics covers textile products.
The FY26 decline also shows why readers need to look beyond the headline order pipeline. Aerospace & Defence Fabrics fell 42.26% because a large FY25 order was not reordered, while Aerospace & Defence Solutions declined 30.14% because execution of a large contract was partly deferred.
Global Revenue Adds Another Layer
Kusumgar is not solely an India-focused supplier. In FY26, 39.99% of revenue from customer contracts came from outside India, up sharply from 23.22% in FY25. International revenue increased to ₹269.84 crore in FY26 from ₹178.81 crore in FY25, a 50.91% increase. International exposure broadens the customer base, but it also means the company’s revenue is not a direct proxy for India’s defence spending.
The company’s customer structure further highlights concentration. Its top five customers accounted for 45.38% of FY26 revenue from customer contracts, while its top 10 customers accounted for 59.52%.
For readers, this means individual customer decisions, order timing and contract execution can have a meaningful effect on annual revenue.
Q1 FY27: Strong Growth, But Do Not Extrapolate Blindly
Kusumgar Limited reported consolidated revenue from operations of ₹247.25 crore in Q1 FY27, up 101.9% YoY, but down 21.0% QoQ. In Q1 FY27, PAT rose to ₹42.65 crore, up 541.5% YoY. However, PAT declined 48.0% QoQ.
EBITDA stood at ₹76.79 crore, against ₹26.99 crore in Q1 FY26 and ₹128.71 crore in Q4 FY26. The EBITDA margin improved to about 31.1% from 22.0% YoY, but moderated from 41.1% in Q4 FY26.
The key limitation is that the Q1 filing does not separately disclose defence revenue or profit. Kusumgar states that the group is predominantly engaged in a single operating segment, manufacturing of technical-textile fabrics, and therefore does not furnish separate Ind AS 108 segment results.
As a result, while the reported order pipeline signals a meaningful defence opportunity, the available financial disclosures do not reveal how much of the quarter’s sharp growth was actually driven by defence orders.
Kusumgar’s Five-Year Financial Track Record
| Particulars | FY22 | FY23 | FY24 | FY25 | FY26 |
| Sales (₹ in crores) | 221 | 313 | 474 | 806 | 676 |
| Operating Profit (₹ in crores) | 40 | 66 | 126 | 183 | 170 |
| Net Profit (₹ in crores) | 22 | 37 | 81 | 109 | 88 |
Source: Screener.in
The five-year numbers show the broader financial trajectory, but they also reinforce the need to distinguish structural growth from order-driven fluctuations. FY25 was particularly strong, while FY26 saw a decline in sales and net profit as large defence orders were not repeated or were partly deferred.
Listing, Valuation and Market View
Kusumgar was listed on the BSE and NSE on July 15, 2026, following its IPO, which comprised a 100% offer for sale. Since its listing, its shares have surged by 9.7%.
As per the numbers considered for this analysis, the stock was trading at a P/E multiple of 51.71x and a Return on Capital Employed (ROCE) of 18.84%. Valuation is therefore an important part of the investment case, as investors are paying a relatively high multiple for the company’s future earnings growth. For the defence thesis to support this valuation, growth in aerospace and defence orders will need to translate into sustained revenue and profit growth rather than remain at the order or opportunity stage.
Emkay Research initiated coverage on Kusumgar on July 15, 2026, with a Buy rating and a ₹800 target price. The stock was at ₹616.15 at the close of trading on 22 September 2026. The brokerage identified a recovery in defence orders from FY27 as one of the company’s key growth drivers. This is an external analyst assessment and should not be treated as company guidance or as evidence that the projected growth will materialise.
Garware Technical Fibres: Defence Products, But No Defence Revenue Line
Garware Technical Fibres Ltd has a dedicated Defence & Government Sector business covering specialised technical-textile products rather than conventional textile fabrics. Its official website lists air-inflatable tents, shelters and structures, radomes, aerostat balloons, air-inflatable shelters, modular air-inflatable tents and deployable tents for this segment.
The company also supplies Plateena (Dynam) recovery ropes for recovery and under-slung applications, fast ropes, and fire-retardant tarpaulins, vehicle covers, gun covers and muzzle covers.
Outside defence, Garware operates across aquaculture, fisheries, agriculture, sports, safety, shipping and offshore, material handling, coated fabrics, industrial applications, geosynthetics, bird protection, and yarn and threads.
Q1 FY27: Growth Across the Broader Business, Not Proven Defence Growth
Garware Technical Fibres Ltd.’s consolidated revenue from operations rose 31.35% YoY to ₹482.37 crore in Q1 FY27, and increased 13.12% QoQ.
Consolidated profit after tax attributable to owners rose 21.56% YoY to ₹64.60 crore, and 12.83% QoQ to ₹57.26 crore.
The segment numbers show that Synthetic Cordage was the main driver of consolidated revenue. This segment’s revenue increased 36.53% YoY to ₹380.68 crore from ₹278.83 crore and 8.87% QoQ from ₹349.65 crore.
The other segment, Fibre and Industrial Products & Projects, reported revenue of ₹109.00 crore, up 14.24% YoY from ₹95.42 crore and 34.90% QoQ from ₹80.80 crore.
Garware Technical Fibres’ defence products overlap with both its Synthetic Cordage and Fibre and Industrial Products & Projects businesses. That means readers cannot take the performance of either segment and label it as defence growth.
The key limitation is that Garware’s defence capabilities and product portfolio are clearly established, but the company’s financial disclosures do not separately quantify revenue or profit from its defence business.
Why Garware’s Order Disclosure Needs Careful Reading
Garware Technical Fibres’ materiality policy requires disclosure of an order or contract that is not in the normal course of business when its value exceeds 10% of the previous financial year’s turnover. Therefore, the absence of a recent exchange-announced defence order should not be interpreted as the absence of smaller defence orders. At the same time, the absence of such disclosure cannot be interpreted as evidence of strong defence order inflows either.
Garware’s Five-Year Financial Track Record
| Particulars | FY22 | FY23 | FY24 | FY25 | FY26 |
| Sales (₹ in crores) | 1,189 | 1,306 | 1,326 | 1,540 | 1,529 |
| Operating Profit (₹ in crores) | 223 | 230 | 272 | 306 | 267 |
| Net Profit (₹ in crores) | 165 | 172 | 210 | 232 | 199 |
Source: Screener.in
The five-year numbers show a large, diversified technical-textile business rather than a defence-focused earnings profile. The company’s scale is substantially larger than the defence opportunity that can currently be isolated from its financial disclosures.
Garware’s Defence Thesis Requires a Different Tracking Method
For Garware, readers cannot simply track defence revenue because the company does not disclose it separately. The more appropriate indicators are:
- New Defence & Government Sector orders
- Growth in Fibre and Industrial Products & Projects
- Growth in products with identifiable defence applications
- Customer additions in defence
- Any future defence-specific disclosures
- Segment revenue and PBIT margins
Valuation and Stock Performance
Garware Technical Fibres has delivered positive stock returns across different time periods. The shares gained 4.95% over the previous 30 days, while the six-month return stood at 31.74%. Year-to-date, the stock had risen 14.86%. These gains suggest the market has already priced in positive earnings and growth prospects.
The stock trades at a PE multiple of 35.48x. The stock also gave a dividend yield of 1.11% and its ROCE of 21.98% showed that the company was generating a fairly high return on the capital employed in its business.
However, the valuation needs to be viewed in the context of Garware’s diversified business rather than its defence portfolio alone.
The Defence Textile Test: Repeat Orders or One-Off Wins?
The key issue now is conversion, not opportunity. Readers should track whether Kusumgar converts its defence pipeline into sustained quarterly execution without another sharp year-on-year swing. Order inflows, execution timelines, working-capital intensity and cash generation will be critical indicators. For Garware, the bigger trigger would be greater disclosure around defence-specific orders, customers or revenue, allowing readers to measure the business rather than infer it from product capabilities.
Across both companies, readers should monitor qualification wins, domestic sourcing of speciality fibres, procurement timelines and repeat orders, as these can indicate whether defence demand is becoming recurring. Valuation also deserves close attention: premium multiples leave less room for execution delays or weaker orders.
Ultimately, readers should distinguish announced opportunity, awarded orders, executed revenue and recurring earnings rather than treating them as interchangeable.
It may be a good idea to add these stocks to your watchlist and keep track to see how they perform in time to come.
Disclaimer
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Rishabh Sinha is a seasoned financial content creator with over 10 years of experience in BFSI domain. His portfolio spans over 20 of India’s most trusted financial brands. Rishabh brings depth, structure, and a reader-first approach to every piece he crafts.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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