Axita Cotton Reports Profit Turnaround and Auditor Resignation in Q1

Axita Cotton Limited , a prominent player in the textile industry, has announced its financial results for the first quarter, showcasing a significant turnaround in profitability. The company also disclosed the resignation of its statutory auditors.

Financial Performance

Axita Cotton reported a consolidated revenue from operations of Rs. 156.70 crore for Q1, compared to Rs. 139.86 crore in the previous quarter. The company's performance showed a marked improvement, with a net profit after tax of Rs. 1.33 crore, reversing the loss of Rs. 1.85 crore incurred in the preceding quarter.

On a standalone basis, the company's results were even more impressive:

Particulars (Standalone)	Q1	Q4	Change
Revenue from Operations	156.70	139.86	+12.0%
Net Profit After Tax	1.61	(1.86)	N/A
Basic EPS (Rs.)	0.05	(0.05)	N/A

All figures in Rs. crore, except EPS

The company's Basic Earnings Per Share (EPS) stood at Rs. 0.04 for consolidated results and Rs. 0.05 for standalone results.

Segment Performance

Axita Cotton's textile segment, which is its primary business, reported revenue of Rs. 156.70 crore for the quarter. The segment results showed a loss before tax and finance costs of Rs. 0.33 crore, which was an improvement from the loss of Rs. 2.78 crore in the previous quarter.

Auditor Resignation

M/s Mistry & Shah LLP, Chartered Accountants, the statutory auditors of Axita Cotton Limited, have tendered their resignation effective August 11. The auditors cited an internal strategic realignment and a decision to restrict the firm's assurance services, including statutory audits, as the reason for their resignation.

The company's Board of Directors, in a meeting held on August 11, accepted the auditors' resignation. Both the Audit Committee and the Board noted that there were no reasons other than those mentioned in the resignation letter for the auditors' departure.

Management Commentary

Nitinbhai Govindbhai Patel, Chairman and Managing Director of Axita Cotton Limited, stated, "We are pleased with the company's performance this quarter, which demonstrates our resilience and ability to navigate challenging market conditions. The profit turnaround is a testament to our operational efficiency and strategic initiatives."

Divestment Update

The company also completed the disinvestment of 55% equity in its subsidiary, KPR Sports and Media Services Private Limited, on June 27. This move aligns with Axita Cotton's strategy to focus on its core textile business.

As Axita Cotton Limited continues to strengthen its position in the textile industry, investors and stakeholders will be keenly watching the company's performance in the coming quarters and its response to the auditor change.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.50%	-3.15%	-5.10%	-16.23%	-38.08%	-21.95%

Axita Cotton Limited , a prominent player in the cotton industry, has received approval from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for the reclassification of seven shareholders from the Promoter/Promoter Group category to the Public category. The approval, granted on July 24, 2025, marks a significant change in the company's shareholding structure.

Reclassification Details

The reclassification involves the following shareholders:

Shareholder Name	Previous Category	New Category	Shares Held
Krunalbhai Girishkumar Patel	Promoter Group	Public	5,333
Dineshkumar Sitarambhai Patel	Promoter Group	Public	0
Rekhaben Dineshkumar Patel	Promoter Group	Public	0
Hit Dineshkumar Patel	Promoter Group	Public	0
Nathalal B Patel	Promoter Group	Public	0
Patel Champaben	Promoter Group	Public	0
Kanaiyalal N Patel	Promoter Group	Public	0

Impact on Shareholding Structure

The reclassification has resulted in a minor shift in the company's shareholding pattern:

Promoter Holding: Decreased from 41.93% to 41.92%
Public Holding: Increased from 58.07% to 58.08%

Regulatory Compliance

The approval for reclassification was granted under Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Axita Cotton Limited had initially applied for this reclassification on November 30, 2024, demonstrating the company's commitment to maintaining transparency and adhering to regulatory requirements.

Exchange Approvals

BSE Limited approved the reclassification through letter No. LIST/COMP/PJ/354/2025-26 dated July 24, 2025.
National Stock Exchange of India Limited granted approval via letter No. NSE/LIST/441 dated July 24, 2025.

The company has duly informed the exchanges of this development, fulfilling its obligation to disclose material events as per SEBI regulations. Investors and stakeholders can access this information on the company's official website at www.axitacotton.com .

This reclassification, while minimal in terms of shareholding percentage, aligns the company's promoter and public shareholding categories with the current ownership structure, enhancing transparency for investors and regulatory bodies alike.