Indian ethnic wear brand Libas is targeting a public listing by early fiscal year 2027 as it accelerates store expansion plans, according to CEO Sidhant Keshwani as reported by Reuters. However, market volatility could delay the offering by a few months due to geopolitical tensions and renewed U.S. tariff pressures. As Keshwani explained, "If markets don't allow and if (Middle East) tensions don't reduce, then it probably will be delayed by a few months or so." The prevailing market conditions have created additional challenges, with Indian equities experiencing pressure from global geopolitical tensions, renewed U.S. tariff concerns, and massive foreign investor outflows that have undermined industry valuations and given a foreboding atmosphere to companies preparing for IPOs.
Libas currently operates around 50 stores across more than 15 cities in India and plans to add at least 70 outlets annually over the next two years, taking the total to more than 200 stores. The company has already demonstrated significant expansion momentum, opening 28 new stores in FY2026 compared to just 10 in the previous year. The company is also considering international expansion, aiming to open stores in the United Arab Emirates and the United States over the next one to two years. However, Libas is taking a wait-and-watch approach to international expansion due to the Middle East crisis and the U.S.-Iran war making companies more cautious about expansion and costs. The geopolitical crisis, especially the U.S.-Iran tensions, has caused companies to become more apprehensive about foreign investments and the supply chain expenditures, which may affect both expansion timelines and overall IPO plans.
The company has achieved an impressive ₹1,000 crore annual run rate as of March 2026, representing a remarkable transformation from ₹4 crore turnover when Keshwani took over in 2013. Libas competes with brands including Biba and Aurelia in the ethnic wear segment, with Biba reporting ₹872 crore revenue for FY2023 and operating 453 stores, while Aurelia contributes significantly to TCNS Clothing's revenue with over 215 standalone stores. The company's revenue has grown at an average annual rate of 30%-35% over the last few years and is expected to have exceeded ₹7 billion for the financial year ended March 31, representing roughly 30% growth from a year earlier. The company previously raised ₹1.5 billion ($16.1 million) at an undisclosed valuation in 2024 and is also weighing a private equity round with "a decent amount of runway." These strong financial figures serve as strong arguments in favor of Libas IPO plans to make the brand one of the high-growth participants in India's competitive fashion market.
Significant cost pressures are emerging as a primary concern for Libas as it pursues aggressive expansion. Raw material expenses, particularly for petroleum-based synthetics and dyes, have jumped 20-25% amid crude oil prices over $100 per barrel. Shipping and freight costs have seen dramatic increases of 80-90% due to global supply chain disruptions and tensions on key shipping routes. While Libas has absorbed these higher costs rather than passing them on to customers, its ability to maintain profitability and reach its target EBITDA margins of over 7% will be tested if these pressures continue. The rising costs are another prime issue for the company, with management indicating that in case of cost pressures experienced over a few months, the gradual increase of prices might be required, a decision that will be closely watched by investors as pricing strategy and margin management are crucial to the success of the Libas IPO plans.
Libas operates in India's dynamic ethnic wear market, valued at approximately $20.9 billion in FY2023 and expected to grow significantly. The company leverages an omnichannel strategy, with online channels accounting for 70% of revenue, while offline expansion is accelerating rapidly. The company is exploring additional private equity funding and aims to increase its EBITDA margins from the current 1-5% to over 7%. A strategic push into quick commerce platforms is also underway to capture more of the fast-fashion ethnic wear market. The broader Indian retail sector benefits from rising disposable incomes and urbanization, with e-commerce playing a vital role, and the ethnic wear segment, especially women's apparel, remains strong, with fusion wear gaining popularity. Libas's direct-to-consumer (D2C) model and agility have been key drivers of its success in this competitive landscape.
