Yajur Fibres - Should You Apply Or Not?

06 January 2026

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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Parameter	Details
Issue Type	100% Fresh Issue
Issue Size	INR ₹120.41 crore
Price Band	INR 168-174 per share
Lot Size	800 shares
Net Issue	69,20,000 Shares
Listing Platform	NSE EMERGE
Issue Opens	January 07, 2026
Issue Closes	January 09, 2026
Listing Date	January 14, 2026

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

Strengths	Risks
Leader in cottonised bast fibres: Among the few Indian players manufacturing premium cottonised flax, jute and hemp fibres at a commercial scale, with proven know-how in cottonisation.	Pending Criminal Investigation (CBI): The Company is subject to a CBI investigation regarding alleged wrongful disbursement of subsidy amounting to ₹1.02 Cr, for which a charge sheet has been filed. Any adverse outcome could materially affect operations.
Sustainability-led value proposition: Products are 100% natural, biodegradable, and allow cotton replacement up to ~55%, aligned with global ESG and sustainable textile trends	Customer Concentration: The top 10 customers contributed 65.28% of the total revenue for the period ended Nov 30, 2025. The loss of any key customer could have a significant impact on revenues.
Strong Customer Relationships: The company has secured repeat orders from 159 out of over 260 customers in the last five years, indicating consistency and reliability.	Raw Material Sourcing (Critical Dependency): Flax is sourced primarily from France and Belgium due to the specific climatic conditions required for its cultivation. This exposes the company to foreign exchange risks and global supply chain volatility
Quality  Certification: The manufacturing plant holds multiple certifications, including ISO 9001, ISO 14001, ISO 45001, OEKOTEX 100, and EUROPEAN FLAX, meeting global quality standards.	Working-capital-intensive business: High inventory and receivable requirements increase dependence on funding and expose the business to liquidity risks.
Experienced  Management: The company is led by Ashish Kankaria (MD), who has over a decade of experience in the jute and fibre industry and serves on the Board of the Indian Jute Mills Association.	Negative Cash Flows: The Company reported negative cash flows from operating activities of ₹(282.28) Lakhs for the period ended Nov 30, 2025, and ₹(2,537.67) Lakhs for FY 2025. Sustained negative cash flows could impact growth.
Cost-Effective Production: The company utilises an efficient production system and smooth labour relations to ensure the timely fulfilment of large orders while maintaining cost efficiency.	Limited intellectual property protection: No patents; competitive advantage relies on process know-how, which may be replicable over time.
Diversified Product Applications: The company's fibres are used in diverse sectors, including apparel, home textiles, insulation, geotextiles, automotive, and even currency paper.	Dependence on textile industry cycles: End demand is linked to apparel, home textiles and fabric markets, which are cyclical and fashion-sensitive.
Forward Integration Strategy: The company is expanding into yarn manufacturing through its subsidiary, Yashoda Linen Yarn Limited, to create additional revenue streams and capture more value.	Expansion & Execution Risk: The company is venturing into a new product line (linen yarn) via a greenfield unit, in which it has limited experience. Delays in commissioning the unit or cost overruns could adversely affect financial conditions.

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.

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