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IPO at a Glance
The table below covers all key parameters of the Vahh Chemicals IPO as stated in the prospectus dated May 27, 2026.
| Parameter | Details |
| Issue Type | 100% Fresh Issue – Fixed Price (No OFS) |
| Total Issue Size | 22,42,000 equity shares (Rs 13.45 crore) |
| Market Maker Reservation | 1,14,000 shares (Rs 68.40 lakh) – Mansi Share and Stock Broking Pvt. Ltd. |
| Net Issue (Public) | 21,28,000 shares (Rs 12.77 crore) |
| Issue Price | Rs 60 per share (6x face value) |
| Face Value | Rs 10 per share |
| Lot Size | 4,000 shares (minimum application) |
| Minimum Retail Investment | Rs 2,40,000 (4,000 shares at Rs 60) |
| Investor Allocation | 50% Retail (RII), 50% NII, 0% QIB |
| Issue Opens | Thursday, June 4, 2026 |
| Issue Closes | Monday, June 8, 2026 |
| Allotment Date | June 9, 2026 |
| Tentative Listing Date | June 11, 2026 (BSE SME) |
| Lead Manager | Marwadi Chandarana Intermediaries Brokers Pvt. Ltd. |
| Registrar | KFin Technologies Limited |
| Banker to Issue | Kotak Mahindra Bank Limited |
| CIN | U24110GJ2019PLC111346 |
| Post-Issue Dilution | 26.99% (Public Issue) | 25.62% (Net Issue) |
About the Company
Vahh Chemicals Limited was incorporated on December 11, 2019 as a public limited company under the Companies Act, 2013, with the Registrar of Companies at Central Registration Centre. Its registered office is at World Trade Centre, Ring Road, Surat, Gujarat, which places it at the centre of India’s largest synthetic textile processing hub.
The company is ISO 9001:2015 certified and holds ISIN INE0H3U01013. Its statutory auditor is ACG and Co., Chartered Accountants. CFO is Mr. Sahil Bhaveshkumar Modi and Company Secretary is Ms. Shivani Parth Kothari.
The three promoters are Mr. Hiren Indravadan Desai (Managing Director), Mrs. Hetal Hirenbhai Desai, and Mr. Aayush Hiren Desai. This is a family-promoted business rooted in Surat’s textile chemicals ecosystem.
Three Business Segments
An important detail from the prospectus is that Vahh Chemicals no longer operates as a single-segment chemical blender. Its business has diversified into three distinct segments:
| Segment | FY2026 Revenue Contribution | Description |
| Customised Chemical Blending | 66.59% (Rs 28.74 crore) | Core business: formulation and supply of textile auxiliary chemicals for pre-treatment, dyeing, printing, and finishing |
| Nutraceutical Products | Via subsidiary | Health and nutrition products developed through its subsidiary company |
| Third Segment / Other | Balance of revenue | Additional product lines contributing to the remaining Rs 43.15 crore consolidated revenue |
The nutraceutical presence through its subsidiary adds diversification beyond textiles. However, the core textile chemical blending business remains the dominant revenue driver at 66.59% of FY2026 consolidated revenue.
Product Portfolio – Textile Chemicals
As of September 30, 2025, the company offered 92 SKUs across cotton, polyester, silk, and synthetic blends. Its textile chemical products span:
- Pre-treatment chemicals: wetting agents, scouring agents, and sequestering agents
- Dyeing chemicals: levelling agents, dispersing agents, and fixatives
- Printing chemicals: binders, thickeners, and printing auxiliaries
- Finishing chemicals: softeners, water-repellent agents, and anti-crease agents
- Specialty functional chemicals: flame resistance, UV protection, anti-microbial effects, and wrinkle-free finish products
The company also provides customised formulations for individual client requirements, adding stickiness to its B2B relationships.
Business Model and Facility
Vahh Chemicals operates on a pure B2B model. All products go to dyeing houses, printing units, and textile processors. It does not sell to consumers directly. The company sources raw chemical ingredients, undertakes in-house blending and formulation, and delivers finished products.
Its current facility covers approximately 301.25 square metres, appropriate for a blending operation rather than large-scale chemical synthesis. The IPO proceeds include setting up a larger, purpose-built manufacturing facility in Surat.
Financial Performance
The financials below come from the restated consolidated financial statements covering three full fiscal years, as disclosed in the prospectus.
| Metric | FY2024 | FY2025 | FY2026 |
| Revenue from Operations (Rs Crore) | 10.16 | 23.75 | 43.15 |
| Profit After Tax (Rs Crore) | 0.34 | 2.58 | 5.09 |
| PAT Margin | 3.35% | 10.86% | 11.8% |
| EBITDA Margin | 11.05% | 19.69% | 19.06% |
Revenue grew from Rs 10.16 crore in FY2024 to Rs 23.75 crore in FY2025 and further to Rs 43.15 crore in FY2026. This represents a two-year revenue CAGR of approximately 106%, which is a high-growth trajectory for a six-year-old blending business.
EBITDA margin of 19.06% and PAT margin of 11.79% in FY2026 are strong for a B2B chemical formulation company. For context, the listed peer Bhatia Colour Chem operates at EBITDA margins of approximately 5.72% and PAT margins of 2.70% as per FY 2025-26, making Vahh’s margin profile significantly superior despite being a smaller company.
At the issue price of Rs 60, the trailing P/E works out to approximately 7.50x on FY2026 earnings, which appears modest relative to its listed peer Bhatia Colour Chem’s P/E of approximately 18.07x.
Objects of the Issue
Since the IPO is a 100% fresh issue, all net proceeds flow to the company. Proposed utilisation as per the prospectus:
| Purpose | Details (INR in Crores) |
| Setting up a new manufacturing facility in Surat, Gujarat | 1.93 |
| Funding incremental working capital requirements | 5.84 |
| Repayment of certain outstanding borrowings | 1.84 |
| General corporate purposes | 2.02 |
| Issue-related expenses | 1.82 |
The new facility is in proximity to their facility in Surat, Gujarat. It will move the company beyond the existing facility to a larger-scale manufacturing base. The working capital allocation addresses the demand expansion the company has seen through its revenue CAGR. Out of 1.93 crores, 0.57 crore will be used for building & civil works and the rest of 1.36 crores will be used for the purchase of plant & machinery.
Industry Context
Surat processes hundreds of millions of metres of fabric annually and is the world’s largest synthetic fabric processing hub. Textile auxiliary chemicals are essential inputs at every processing stage. India’s textile sector is growing, supported by the Production Linked Incentive (PLI) scheme, rising exports, and domestic consumption.
However, this market is fragmented with many small and medium suppliers. Pricing power is limited and differentiation relies on consistency, customisation, and service quality.
Key Strengths
- 106% revenue CAGR over two years (FY2024 to FY2026)
- EBITDA margin of 19.06% and PAT margin of 11.79% in FY2026
- 116 SKUs across multiple textile substrates with customisation capability
- ISO 9001:2015 certified quality management system in place
- Three-segment business with nutraceutical diversification via subsidiary
- 100% fresh issue, all proceeds go directly to the company
- Surat location at the centre of India’s largest textile cluster
- Modest P/E of approximately 7.50x on FY2026 earnings
Key Risks
- Company is only 6 years old – limited operating history and institutional depth
- Small existing facility at 759.93 sq. ft., scale is very limited currently
- Revenue CAGR of 106%, such growth rates are difficult to sustain
- Nutraceutical subsidiary segment adds complexity without disclosed profitability
- Fragmented chemical market with limited pricing power
- Raw material price volatility in chemical intermediates can squeeze margins
Closing Thoughts
Vahh Chemicals presents a striking growth story from within Surat’s textile ecosystem. A 106% revenue CAGR in two years combined with 19% EBITDA margins and a 7.5x trailing P/E on FY2026 earnings puts this on a different footing than many SME IPOs in this space. The move into nutraceuticals through a subsidiary adds a second growth leg beyond textiles. That said, the company is young, the facility remains small, and growth at this pace always carries execution and sustainability questions. The prospectus’ three-year financial trajectory is the starting point for understanding whether this is a business in a sustainable phase or one at peak momentum.
