Axita Cotton has fixed September 11, 2026 as the record date to determine shareholder eligibility for its final dividend of ₹0.05 per equity share for FY26. The Company Secretary confirmed the date in a filing dated September 5, 2026, pursuant to SEBI Listing Regulations. The company recently re-submitted this disclosure under the correct "Corporate Action" category after an inadvertent filing error.

The Board of Directors had previously recommended this payout at a 13th Annual General Meeting scheduled for September 30, 2026. The dividend amount is subject to final approval by shareholders at the meeting. If declared, the payout will be made after September 30, 2026, subject to applicable tax deductions at source.

Governance Changes

The company seeks to fill a casual vacancy in the office of the statutory auditor. M/s. P K N & Co., Chartered Accountants, resigned on August 12, 2026. Shareholders will vote to appoint M/s. DTA & Associates as the new statutory auditors for a five-year term from FY27 to FY31.

The proposed annual remuneration for the new auditors is ₹6 lakh plus taxes and out-of-pocket expenses. The explanatory statement notes there is no upward revision in fees compared to the outgoing auditors.

Director Appointments

Mr. Nitinbhai Govindbhai Patel, Chairman and Managing Director, retires by rotation and seeks re-appointment. He holds over 10 crore equity shares in the company.

Additionally, shareholders will consider a special resolution for the re-appointment of Mr. Vinod Kanubhai Rana as an Independent Director for a second term of five years, effective from February 22, 2027.

Cost Audit Ratification

The meeting will also ratify the remuneration of M/s. Reena Patadiya & Co. as cost auditors for FY27. The approved fee is ₹35,000 plus applicable taxes and reimbursement of actual out-of-pocket expenses.

Axita Cotton reported a 74% year-on-year increase in net profit to ₹1.9 crore for the financial year ended March 2026, driven by improved margins and disciplined working capital management.

The Ahmedabad-based cotton manufacturer and exporter saw revenue from operations decline 43% to ₹370.4 crore from ₹652.7 crore in the previous year, reflecting a selective approach to trading amid volatile cotton prices and subdued international demand.

Financial Performance

Profit before tax rose to ₹2.84 crore from ₹1.55 crore. The company’s return on capital employed improved from 3.23% to 5.55%. Cash and bank balances increased by approximately 51% to ₹15.98 crore from ₹10.56 crore.

Operational Highlights

Exports grew more than three-and-a-half times to ₹30.57 crore from ₹8.94 crore, contributing 8.29% of total turnover compared to roughly 1% previously. The company diversified its export portfolio by adding cotton bales and groundnut oil alongside sesame seeds.

Inventory turnover surged from 63 times to 283 times, indicating a shift toward a back-to-back trading model with minimal stock carried at period ends. Trade receivables reduced significantly from ₹31.96 crore to ₹17.48 crore.

What the Numbers Show

The divergence between the sharp revenue contraction and profit expansion highlights a strategic pivot from volume-driven growth to margin protection. By prioritizing transaction quality over volume, Axita Cotton improved its bottom line despite a lower top line, demonstrating resilience in a challenging commodity cycle.

Corporate Actions

The Board issued bonus shares in the ratio of 1:10 and recommended a final dividend of ₹0.05 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.