AB Cotspin India Reports 97.37% PAT Growth in H1FY26, Announces Major Expansion Plans

2 min read     Updated on 13 Nov 2025, 12:00 PM
scanx
Reviewed by
Ashish ThakurScanX News Team
Overview

AB Cotspin India Limited reported significant financial improvements in H1FY26 despite a 24.06% revenue decrease. EBITDA increased by 44.77% to ₹21.30 crore, with margins expanding to 18.13%. Net profit grew by 97.37% to ₹7.82 crore. The company announced expansion plans including a real estate venture in Ludhiana, a ₹1500 crore capacity expansion adding 2,00,000 spindles, and an increase in solar power capacity. AB Cotspin also began trading on the main boards of NSE and BSE from September 24, 2025.

24561019

*this image is generated using AI for illustrative purposes only.

AB Cotspin India Limited , a textile manufacturer with over 25 years of industry expertise, has reported significant financial improvements in its H1FY26 results, along with ambitious expansion plans. The company, which recently began trading on the main boards of NSE and BSE, has shown remarkable growth in profitability despite a decrease in revenue.

Financial Performance

AB Cotspin's financial results for H1FY26 demonstrate strong profit growth:

Metric H1FY26 H1FY25 YoY Change
Revenue ₹117.49 ₹154.71 -24.06%
EBITDA ₹21.30 ₹14.71 +44.77%
EBITDA Margin 18.13% 9.51% +862 bps
Net Profit ₹7.82 ₹3.96 +97.37%
Net Profit Margin 6.65% 2.56% +409 bps
Diluted EPS ₹3.57 ₹2.89 +23.53%

Despite a 24.06% decrease in revenue, the company has managed to significantly improve its profitability. The EBITDA surged by 44.77% year-on-year, with margins expanding by 862 basis points to 18.13%. Net profit showed impressive growth, rising by 97.37% to ₹7.82 crore.

Expansion and Diversification

AB Cotspin has announced several strategic initiatives:

  1. Real Estate Venture: The company plans to enter the real estate sector with a premium residential and commercial project in Ludhiana, Punjab. The project is expected to involve approximately 3 acres of land, acquired for ₹18 crore.

  2. Major Capacity Expansion: AB Cotspin plans a significant expansion of up to ₹1500 crore, aiming to add approximately 2,00,000 spindles for an integrated green textile manufacturing facility.

  3. Current Capacity Increase: The company has successfully installed an additional 14,592 spindles, bringing its total capacity to 50,832 spindles.

  4. Solar Power Enhancement: AB Cotspin has expanded its solar power capacity from 2,500 KW to 3,131 KW, reinforcing its commitment to sustainable manufacturing.

Management Commentary

Deepak Garg, Managing Director of AB Cotspin India, commented on the results: "We are pleased to report a robust performance for H1 FY26. Our focus on operational efficiency has led to significant margin expansion and profit growth. We expect to achieve a turnover of around ₹350 crore and EBITDA of ₹40-45 crore for FY2025-26."

Garg added, "Our strategic expansion aligns with the Hon'ble Prime Minister's 'Five Fs' framework for the textile sector— Farm to Fiber, Fiber to Factory, Factory to Fashion, and Fashion to Foreign. By enhancing production capabilities, AB Cotspin reaffirms its commitment to quality, sustainability, and global competitiveness."

Stock Listing

The company's shares began trading on the main boards of NSE and BSE from September 24, 2025, marking a significant milestone in AB Cotspin's corporate journey.

AB Cotspin India Limited continues to demonstrate its commitment to growth, sustainability, and shareholder value creation through its financial performance and strategic initiatives.

AB Cotspin India Secures ₹5.45 Crore Order for Cotton Yarn, Reinforcing Market Position

1 min read     Updated on 20 Oct 2025, 10:36 AM
scanx
Reviewed by
Ashish ThakurScanX News Team
Overview

AB Cotspin India Limited has received a ₹5.45 crore order for 200 MT of cotton yarn from two domestic clients, to be executed within one month. The company, with over 25 years of industry experience, projects a turnover of ₹350 crores and EBITDA of ₹50-55 crores for FY 2025-26. AB Cotspin's shares began trading on NSE and BSE main boards on September 24, 2025. The Indian textile industry is benefiting from government initiatives like the Kapas Kranti Mission, GST rate reductions, and sustainability goals.

22482391

*this image is generated using AI for illustrative purposes only.

AB Cotspin India Limited , a prominent textile manufacturer with over 25 years of industry expertise, has announced a significant order worth approximately ₹5.45 crore for 200 MT of cotton yarn. This development underscores the company's strong position in the textile industry and its ability to secure substantial contracts.

Order Details

The order, to be executed within one month, comes from two domestic entities:

Client Order Quantity
M/s Das Fabrics Ludhiana 100 MT
M/s C Mohan International Ludhiana 100 MT

This new contract reinforces AB Cotspin's status as a trusted supplier of high-quality cotton yarn, knitted fabrics, and eco-friendly products.

Company Outlook

AB Cotspin India Limited has set ambitious targets for its financial performance:

  • Expected turnover for FY 2025-26: Around ₹350 crores
  • Projected EBITDA for FY 2025-26: ₹50-55 crores

These projections reflect the company's confidence in its growth trajectory and market position.

Recent Milestones

A significant development for AB Cotspin occurred on September 24, 2025, when its equity shares began trading on the main boards of both the National Stock Exchange (NSE) and BSE Limited (BSE). This listing on major exchanges may enhance the company's visibility and potentially improve its access to capital markets.

Industry Context

The textile industry in India is experiencing positive momentum, supported by various government initiatives:

  1. The ₹600 crore "Kapas Kranti Mission" aims to promote high-yield, long-staple cotton cultivation through scientific research and technological innovation.
  2. Recent GST rate reductions have boosted consumer sentiment, particularly during the festive season, which may indirectly benefit textile manufacturers.
  3. The government's '5F' vision (Farm–Fibre–Factory–Fashion–Foreign) and the Kasturi Cotton initiative are expected to strengthen India's position in the global textile market.
  4. The textile sector is aligning with sustainability goals, with the government aiming to make the industry carbon-neutral by 2030.

These factors create a favorable environment for companies like AB Cotspin to grow and expand their market presence.

Conclusion

The securing of this ₹5.45 crore order by AB Cotspin India Limited demonstrates the company's strong market position and its ability to capitalize on the growing opportunities in the Indian textile sector. As the industry continues to evolve with government support and increasing focus on sustainability, AB Cotspin appears well-positioned to benefit from these trends and potentially achieve its ambitious financial targets for the coming years.

More News on AB Cotspin
Explore Other Articles