AB Cotspin India Secures Rs 13.75 Crore Cotton Yarn Order, Projects Strong FY2025-26 Performance

1 min read     Updated on 18 Nov 2025, 12:26 PM
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Overview

AB Cotspin India Limited has received a Rs 13.75 crore order for cotton yarn supply, to be executed within two months. The company projects a turnover of Rs 350 crore and EBITDA of Rs 40-45 crore for FY 2025-26. AB Cotspin's shares now trade on NSE and BSE main boards. This order comes amid 10% YoY growth in India's textile exports and government initiatives supporting the sector, including a Rs 25,000 crore Export Promotion Mission and additional credit for exporters.

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

AB Cotspin India Limited , a leading textile manufacturer with over 25 years of industry expertise, has announced a significant order worth approximately Rs 13.75 crore for the supply of cotton yarn. This development marks a positive step for the company in the competitive textile market.

Order Details and Execution

The order, received from a domestic entity, is to be executed within a timeframe of two months. This quick turnaround demonstrates AB Cotspin's operational efficiency and its ability to meet client requirements.

Financial Projections

Looking ahead, AB Cotspin has set targets for the fiscal year 2025-26:

Metric Projected Value
Turnover Rs 350.00 crore
EBITDA Rs 40-45 crore

These projections suggest a positive outlook for the company's financial performance in the coming fiscal year.

Market Presence

AB Cotspin India Limited has recently achieved a significant milestone in its market presence. As of September 24, 2025, the company's equity shares are trading on the main boards of both the National Stock Exchange (NSE) and BSE Limited (BSE). This dual listing on major exchanges may enhance the company's visibility and potentially improve liquidity for its shareholders.

Industry Context

The order comes at a time when India's textile sector is showing signs of growth. According to government data, India's textile exports to 111 countries recorded a 10% year-on-year growth during April-September 2025. This growth aligns with government initiatives such as 'Make in India' and 'Aatmanirbhar Bharat', which aim to boost domestic manufacturing and exports.

Government Initiatives

The Indian government has been supporting the textile sector:

  • A Rs 25,000.00 crore Export Promotion Mission has been cleared by the cabinet.
  • An additional Rs 20,000.00 crore collateral-free credit has been allocated to support exporters facing global trade uncertainties.
  • The textile sector is among the priority sectors receiving support to address challenges related to US tariffs.

Sustainability Focus

The textile industry is also aligning with global sustainability trends. The government has set a goal of making India's textile sector carbon-neutral by 2030, aiming to achieve a USD 350.00 billion textile industry, including USD 100.00 billion in exports.

AB Cotspin's recent order and projections position it to potentially benefit from these industry trends and government initiatives. As the company moves forward with executing this order, its performance in the coming months may be of interest to investors and industry observers.

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

2 min read     Updated on 13 Nov 2025, 12:00 PM
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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.

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*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.

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