AB Cotspin India Executes Land Purchase Agreement for ₹60 Lakh Expansion Project

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

AB Cotspin India Limited has executed a land purchase agreement for ₹60 lakh as part of its Board-approved ₹1,500 crore expansion plan in the textile sector. The company acquired 27 Kanal-15 Marla land in Village Gumti Khurd, Punjab, on December 18, 2025, following previous land acquisitions in August and September 2025. This systematic approach supports the company's plan to add approximately 2,00,000 spindles capacity through an integrated green textile manufacturing facility over the next 3 years.

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 executed a land purchase agreement as part of its ambitious ₹1,500 crore expansion plan. The company recently reported significant financial improvements in H1FY26 and continues to advance its strategic growth initiatives through systematic land acquisitions.

Latest Land Acquisition

AB Cotspin executed a land purchase agreement on December 18, 2025, as part of its Board-approved expansion strategy:

Parameter: Details
Purpose: Land acquisition for approved expansion plan
Location: Village Gumti Khurd, Tehsil Jaitu, Faridkot, Punjab
Area Acquired: 27 Kanal-15 Marla
Consideration: ₹60.00 lakh
Transaction Date: December 18, 2025

This acquisition follows the company's systematic approach to securing land for its expansion plans, with previous acquisitions in August and September 2025.

Comprehensive Expansion Strategy

The Board of Directors approved a comprehensive expansion plan in July 2025, authorizing investment of up to ₹1,500 crore in the cotton and textile sector. The expansion encompasses:

Expansion Component: Details
Investment Approved: Up to ₹1,500 crore
Capacity Addition: 2,00,000 spindles (approximately)
Implementation Period: Up to 3 years
Current Capacity Utilization: 96.39%
Facility Type: Integrated green textile manufacturing

The expansion includes acquisition of land from government and other authorities, establishment of manufacturing plants, warehousing facilities, logistics units, and related infrastructure for spinning, ginning, yarn manufacturing, processing, and by-product utilization.

Previous Land Acquisitions

AB Cotspin has been systematically acquiring land for its expansion:

August 2025 Acquisition:

  • Location: Village Jaitu, Faridkot, Punjab
  • Area: 4 Kanal-17.15 Marla (combined parcels)
  • Consideration: ₹13.50 lakh

September 2025 Transaction:

  • Location: Village Bains, Ludhiana, Punjab
  • Area: 3 acres (approximately)
  • Total consideration: ₹18.00 crore
  • Advance payment: ₹1.50 crore

Strong Financial Performance

AB Cotspin's H1FY26 results demonstrate strong operational efficiency supporting its expansion plans:

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

Despite revenue decline, the company achieved remarkable profitability improvements with net profit growing 97.37% and EBITDA margins expanding significantly.

Strategic Vision

Managing Director Deepak Garg previously stated that the expansion aligns with the Prime Minister's 'Five Fs' framework for the textile sector. The company expects to achieve turnover of around ₹350 crore and EBITDA of ₹40-45 crore for FY2025-26.

AB Cotspin's shares trade on the main boards of NSE and BSE since September 24, 2025, following successful migration from the SME platform. The systematic land acquisition approach demonstrates the company's commitment to executing its expansion strategy while maintaining regulatory compliance.

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 TScanX 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