Axita Cotton Limited has officially initiated the postal ballot process for its proposed 1:10 bonus equity share issuance, with e-voting commencing January 8, 2026. The company has set February 13, 2026, as the record date for the bonus issue, following its strong Q3FY26 financial turnaround that showed net profit of ₹259.58 lakhs compared to a loss of ₹122.04 lakhs in the corresponding quarter.

E-Voting Schedule and Process

The company has engaged National Securities Depository Limited (NSDL) to facilitate remote e-voting for shareholder approval. The postal ballot notice dated January 5, 2026, seeks consent for the bonus share issuance through ordinary resolution.

Q3FY26 Financial Performance

The company's quarterly results demonstrated significant profitability improvement despite revenue decline. Revenue from operations decreased to ₹8,939.85 lakhs in Q3FY26 from ₹22,803.80 lakhs in Q3FY25, while achieving complete turnaround in profitability.

Bonus Issue Structure and Capital Impact

The proposed bonus issue will be funded through capitalization of free reserves available as per audited financial statements. Shareholders holding equity shares as on February 13, 2026, will be eligible to receive bonus shares in the ratio of 1:10.

Regulatory Compliance and Shareholder Eligibility

The postal ballot notice has been sent electronically to shareholders whose email addresses are registered with the company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited, and depositories NSDL and CDSL. The company maintains free reserves of ₹28.03 crores, sufficient to cover the required amount for the bonus issue.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, the company demonstrated consistent growth in profitability with net profit increasing to ₹424.37 lakhs from ₹295.04 lakhs in the corresponding period.

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:

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.