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

*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.





























