Manisha Textiles Limited IPO

The Company requires significant working capital for its operations, and any inability to meet the company's working capital requirements may have an adverse effect on its business, results of operations, and financial condition.

The company's net cash flows have been negative in some years in the past. Any negative cash flow in the future may affect its liquidity and financial condition.

The textile industry is cyclical and demand for grey fabrics and blended fabrics is closely linked to garment manufacturing cycles, export orders, and consumer preferences. Any slowdown in apparel demand may adversely affect its revenues.

The company's business is heavily dependent on the sale of Yarn and Fabrics, which together constitute all of its revenue from operations. Any reduction in the demand for, or the company's ability to manufacture and sell, these products, or any adverse movement in the prices at which the company is able to sell its products, may have a material adverse effect on its business, results of operations, cash flows and financial condition.

A majority of the company's revenue from operations is from its top 10 customers (which accounted for 46.47%, 41.53%, 49.35% and 53.25% of the company's revenue from operations for the period ended September 30, 2025, and Fiscal Year ended March 31, 2025, March 31, 2024 and March 31, 2023). Additionally, a significant portion of its revenue from operations is derived from the company's existing customers. Loss of any such customers or reduction in business or demand from such customers will have a significant adverse impact on its business and results of operation.

The company's business operates on high volumes and low margins, and any adverse movement in traded goods prices, increases in costs, or inability to consistently grow the company's turnover may materially and adversely affect its revenues, profitability, and overall financial condition.

The company's revenues are significantly dependent on certain geographical regions, and any adverse developments in these regions could adversely impact its business, financial condition and results of operations.

The industry in which the company operates is highly fragmented with intense competition from organized and unorganized players. Competitive pricing pressures may erode the company's profitability and market share.

The company's business is dependent on the continued and uninterrupted operations of its manufacturing facility, and any disruption, shutdown, or increase in operating costs may materially and adversely affect the company's business, results of operations, and financial condition.

The company's manufacturing operations depend on the timely procurement of spun, texturized, and twisted yarn from third-party suppliers. Any disruption in supply, quality inconsistency, or delay in delivery may adversely impact production schedules.