Ambika Cotton Mills Limited (AMBIKCO)
₹1,502.80 +0.19% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Ambika Cotton's revenue was ₹258 Cr (+34.3% year on year, +20.0% on the previous quarter), and net profit ₹25.7 Cr (+60.6% year on year); the operating margin was 15.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹258 | +34.3% | +20.0% |
| Operating profit | ₹39.4 | +46.0% | +9.5% |
| Net profit | ₹25.7 | +60.6% | +2.8% |
| EPS (₹) | 44.89 | +61.4% | +4.8% |
| Operating margin | 15.3% | — | — |
AMBIKCO delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 59.75% of the AMBIKCO shares traded on NSE were taken to delivery, against the stock's own 20-session average of 60.51%. That is close to its usual level. Turnover was only ₹24 lakh, so a handful of trades can move this figure. Volume was 0.2 times its average, well below normal.
Delivery in the last 5 sessions: 48.0% · 51.4% · 70.2% · 70.3% · 59.8%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Ambika Cotton Mills Limited has submitted an exchange intimation providing a website link to the video recording and presentation of its 38th Annual General Meeting (AGM). The company, which reported TTM revenue of Rs 847 Cr and a debt-free balance sheet, is sharing the proceedings for shareholder access. No new financial results, operational metrics, or material corporate actions were disclosed in this filing.
- Published web link for the 38th AGM proceedings and presentation
- Filing dated 09/10/2026 under reference ACM/SE/35/2026-27
- Company trades at a P/E of 10.4 with zero debt on a net worth of Rs 955 Cr
Ambika Cotton Mills Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2026. The company confirmed that share certificates received for dematerialization were processed, mutilated, and cancelled within 15 days of receipt. The confirmation was validated by its Registrar and Share Transfer Agent, MUFG Intime India Private Limited. This is a standard regulatory filing with zero impact on the company's financial or operational performance.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- Confirmation that securities received were mutilated, cancelled, and depositories substituted within 15 days of receipt
- Certification provided by Registrar and Transfer Agent MUFG Intime India Private Limited on October 03, 2026
At its 38th AGM, Ambika Cotton Mills outlined an upcoming modernisation of Unit 4 with an investment of ₹135 to ₹138 crore, funded entirely through internal accruals. The project involves replacing approximately 43,000 spindles with 45,000 new-generation spindles by March 2027 to boost productivity and automation. The company also announced commissioning 6,480 spindles on 26-09-2026, taking total spindle capacity to 120,816. The company remains debt-free, reporting FY26 revenue of ₹780.95 crore and operating cash flow of ₹228.25 crore.
- Planned modernization capex of ₹135 to ₹138 crore in Unit 4 funded entirely via internal accruals (~16% of TTM revenue)
- Installed capacity reached 120,816 spindles following the commissioning of 6,480 spindles on 26-09-2026
- Replacing 43,000 existing spindles with 45,000 new-generation automated spindles targeted for operational date by March 2027
- Operating cash flow stood at ₹228.25 crore in FY26, maintaining a zero-debt balance sheet
- Recommended final dividend of ₹37 per equity share, representing a total payout of ₹21.18 crore
Ambika Cotton Mills Limited filed a revised Scrutinizer's Report for its 38th Annual General Meeting held on September 29, 2026. The amendment corrects a typographical error where the month of the AGM was mistakenly noted as 'June' instead of 'September'. All 8 resolutions—including adoption of FY26 financial statements, dividend declaration, and director re-appointments—were approved with over 99.9% majority votes.
- Typographical error corrected in Scrutinizer's Report referring to AGM month as 'September' instead of 'June'
- All 8 resolutions passed with >99.9% majority votes cast
- Total shareholder count as on cut-off date (September 22, 2026) was 24,298
- Votes cast by 13 shareholders covering 79,872 shares were treated as invalid due to missing documentation
Ambika Cotton Mills announced that shareholders approved all resolutions at its 38th AGM held on September 29, 2026. This includes the approval of a final dividend of Rs 37 per share for FY26. Managing Director Sri P.V. Chandran was re-appointed for a 5-year tenure starting April 1, 2027, through March 31, 2032. Additionally, shareholders approved the continuation of Dr. K. Venkatachalam as Non-Executive Director beyond age 75, along with the appointments of two Independent Directors.
- Declared a final dividend of Rs 37 per share for FY26
- Managing Director Sri P.V. Chandran re-appointed for 5 years from 01.04.2027 to 31.03.2032
- Approval for Dr. K. Venkatachalam to continue as Non-Executive Director beyond age 75
- Re-appointment of Mrs. Vijayalakshmi Narendra as Independent Women Director from 12.08.2026 to 11.08.2031
- Appointment of Sri K. Murali Mohan as Independent Director for a 5-year term
Ambika Cotton Mills Limited has announced the successful commissioning of imported plant and machinery comprising 6,480 spindles. The machinery arrived on September 22, 2026, following up on their earlier intimation dated September 10, 2026. The commissioning adds spinning capacity to the debt-free company, which generated Rs 847 Cr in TTM revenue. This operational addition supports the company's focus on premium textile yarn production.
- Commissioned plant and machinery comprising 6,480 spindles
- Imported machinery arrived on September 22, 2026
- Follows earlier communication dated September 10, 2026
Ambika Cotton Mills Limited has announced the closure of its trading window starting October 1, 2026. The closure applies to all Directors and Designated Officers pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015. The restriction is tied to the consideration and approval of the Unaudited Financial Results for the quarter and half-year ended September 30, 2026. The window will reopen 48 hours after the declaration of the financial results.
- Trading window closes with effect from October 1, 2026
- Applies to all Directors and Designated Officers under SEBI Insider Trading Regulations
- Window will remain closed until 48 hours after the declaration of Q2/H1 results for the period ended September 30, 2026
Ambika Cotton Mills reported a minor logistics delay in the import of plant and machinery for its 6,480-spindles capacity project. Due to feeder vessel space constraints operating between Colombo and India, the expected arrival date at Tuticorin port has shifted from September 4, 2026, to September 13, 2026. The company stated that the rest of the project is completed, and commissioning will proceed immediately after installation upon machine arrival. Given the delay is only about 9 days, the financial and operational impact on this debt-free mill is negligible.
- Machinery import pertains to a project involving 6,480 spindles
- Shipment arrival date revised from September 4, 2026, to September 13, 2026
- Shipment includes 31 packages imported from Spindelfabrik Suessen, Germany
- Project stands completed except for installation and commissioning of the incoming machinery
Ambika Cotton Mills Limited has fixed Tuesday, September 22, 2026, as the record date to determine eligibility for a final dividend of Rs 37 per equity share (face value Rs 10) for FY 2025-26. The dividend payout is subject to shareholder approval at the upcoming 38th Annual General Meeting scheduled for September 29, 2026. Relative to the current share price of Rs 1,640.4, this dividend represents a yield of approximately 2.26% and an annual payout ratio of ~29.6% against FY26 EPS of Rs 125.0.
- Final dividend of Rs 37 per equity share (face value Rs 10) for FY 2025-26
- Record date set for Tuesday, September 22, 2026
- 38th Annual General Meeting scheduled for Tuesday, September 29, 2026
- Dividend yield is approximately 2.26% against current market price of Rs 1,640.4
Ambika Cotton Mills Limited has published the notice for its 38th Annual General Meeting (AGM) to be held on September 29, 2026, along with its FY2025-26 Annual Report. The Board has recommended a final dividend of ₹37 per equity share of ₹10 face value, with an entitlement date of September 22, 2026. The meeting will also consider the re-appointment of 77-year-old Chairman & Managing Director P.V. Chandran for a 5-year term from April 1, 2027, to March 31, 2032, at a monthly remuneration of ₹2,00,000.
- Final dividend of ₹37 per equity share of ₹10 face value proposed for FY 2025-26
- Entitlement / Record date for final dividend set as September 22, 2026
- 38th Annual General Meeting to be conducted via Video Conferencing on September 29, 2026
- Re-appointment of Managing Director Sri P.V. Chandran (aged 77) for a 5-year term from 01.04.2027 to 31.03.2032 at ₹2,00,000 per month
CRISIL Ratings has upgraded Ambika Cotton Mills' short-term bank facilities rating to 'CRISIL A1+' from 'CRISIL A1' and reaffirmed its long-term rating at 'CRISIL A+/Stable' covering Rs 455.55 crore in bank facilities. The upgrade is driven by sustained liquidity improvement, with net cash rising to Rs 198 crore as of March 2026 (up from Rs 135 crore in March 2024) and zero external debt. The company is currently executing a modernization capex of Rs 130-140 crore in FY27, which is fully funded through internal accruals.
- Short-term bank facility rating upgraded to 'CRISIL A1+' from 'CRISIL A1'; long-term rating reaffirmed at 'CRISIL A+/Stable' on Rs 455.55 crore bank loan facilities.
- Company remains completely debt-free with net cash expanding to ~Rs 198 crore as of March 31, 2026.
- Management has committed to maintaining a minimum unencumbered liquidity buffer of ~Rs 150 crore over the medium term.
- Modernisation capex of Rs 130-140 crore in the current fiscal is being funded entirely via internal cash generation without external debt.
- Average yarn price realization stood at ~Rs 382/kg in FY26 compared to the domestic industry average of ~Rs 275/kg due to its focus on 60s-100s premium counts.
Ambika Cotton Mills has recommended the appointment of Sri. K. Murali Mohan as an Independent Director, subject to shareholder approval via a Special Resolution at the upcoming Annual General Meeting. Sri. Mohan is a dual-qualified professional (Electrical Engineer and Chartered Accountant) with over 50 years of experience in statutory auditing and consultancy. He currently serves on the boards of four other companies, including The Lakshmi Mills Company Ltd. This move is a routine governance update to the board composition of the Rs 1,097 Cr market cap company.
- Board recommended Sri. K. Murali Mohan for appointment as Independent Director on August 8, 2026
- Candidate brings over 50 years of experience in auditing, Company Law, FEMA, and taxation
- Appointment is subject to shareholder approval through a Special Resolution at the ensuing AGM
- Sri. Mohan holds directorships in 4 other companies and is a member of the Audit Committee at Lakshmi Mills
- The candidate holds 0 shares in Ambika Cotton Mills and is not related to any existing directors
Ambika Cotton Mills has recommended the appointment of Sri. K. Murali Mohan as an Independent Director, subject to shareholder approval via a Special Resolution at the upcoming AGM. Mr. Mohan is a Chartered Accountant and Electrical Engineer with over 50 years of experience in statutory auditing, FEMA, and tax representation. He currently holds directorships in four other entities, including The Lakshmi Mills Company Ltd. This appointment is a routine governance update for the Rs 1,097 Cr market cap company.
- Sri. K. Murali Mohan has over 50 years of professional practice experience in auditing and legal consultancy
- The proposed director holds 0 shares in Ambika Cotton Mills Limited as of the announcement date
- He currently serves as a director in 4 other companies, including The Lakshmi Mills Company Ltd
- The appointment was recommended by the Board of Directors on August 8, 2026
The Board of Ambika Cotton Mills has approved the re-appointment of Sri. P.V. Chandran as Managing Director for a five-year term starting April 1, 2027. Mr. Chandran, the founder who established the company in 1988, currently oversees a debt-free operation with 114,336 spindles and a knitting capacity of 40,000 kg per day. The company reported a TTM revenue of Rs 781 Cr and maintains a strong financial profile with a net worth of Rs 955 Cr. This re-appointment ensures leadership continuity for the premium textile manufacturer through 2032.
- Re-appointment for a 5-year term effective from April 1, 2027, to March 31, 2032.
- Company operates 114,336 spindles of compact facility and a knitting capacity of 40,000 kg of yarn per day.
- Captive renewable energy infrastructure includes 27.4 MW of wind and 8.33 MW of solar capacity.
- Maintains a debt-free balance sheet with a Net Worth of Rs 955 Cr and TTM PAT of Rs 72 Cr.
- Sri. P.V. Chandran is the founder (1988) and father of two current Non-Executive Directors.
Ambika Cotton Mills reported a strong Q1 FY27 with revenue growing 34.3% YoY to ₹257.92 Cr and Net Profit increasing 61.4% YoY to ₹25.70 Cr. The company announced a ₹135 Cr modernization project for Unit IV, funded entirely via internal accruals, which will increase capacity from 43,000 to 45,000 spindles while improving productivity. A shipment delay of 6,480 spindles from Germany due to the West Asia crisis was noted, with operations now expected to start in September 2026. The company maintains its debt-free status with a net worth of ₹955 Cr.
- Revenue from operations grew 34.3% YoY to ₹257.92 Cr in Q1 FY27.
- Net Profit increased 61.4% YoY to ₹25.70 Cr compared to ₹15.92 Cr in Q1 FY26.
- Announced ₹135 Cr modernization of Unit IV, representing approximately 12.3% of current Market Cap.
- Unit IV capacity to increase from 43,000 to 45,000 spindles with enhanced productivity and quality.
- Operationalization of 6,480 spindles delayed to September 2026 due to West Asia crisis shipment issues.
Financial Performance
Revenue Growth by Segment
Net Sales decreased by 14.65% (INR 117.46 Cr) in FY 2025 compared to a 1.89% decrease (INR 15.43 Cr) in FY 2024, indicating a significant slowdown in turnover. The decline is primarily driven by a sharp drop in export demand and volatile cotton prices affecting realization.
Geographic Revenue Split
Exports contributed significantly but saw a sharp decline of 16.49% (INR 97.85 Cr) in FY 2025 compared to a marginal 0.79% (INR 4.72 Cr) decline in FY 2024. This indicates a high sensitivity to international textile demand and global trade conditions.
Profitability Margins
Net Profit Margin after Tax improved to 9.61% in FY 2025 from 7.86% in FY 2024. Operating Profit Margin before Tax also rose to 18.98% from 16.47%. This margin expansion despite falling revenues suggests improved operational efficiencies or a shift toward higher-value yarn products.
EBITDA Margin
Operating Profit Margin before Tax stood at 18.98% in FY 2025, a YoY increase of 251 basis points. For the half-year ended September 30, 2025, the operating profit before working capital changes was INR 53.51 Cr, down 6.4% from INR 57.18 Cr in the previous H1 period.
Capital Expenditure
The company invested INR 41.31 Cr in the purchase of fixed assets during H1 FY 2026 (ending Sept 2025), a 175.7% increase from INR 14.98 Cr in H1 FY 2025. This indicates an aggressive push for capacity modernization or expansion despite current revenue headwinds.
Credit Rating & Borrowing
CRISIL reaffirmed 'CRISIL A+/Stable' for long-term and 'CRISIL A1' for short-term facilities as of February 2024. Finance costs for H1 FY 2026 were INR 7.42 Cr, a 21.2% reduction from INR 9.42 Cr in H1 FY 2025, reflecting lower debt utilization or better interest terms.
Operational Drivers
Raw Materials
Raw cotton is the primary raw material, accounting for the majority of the company's turnover and production costs. Specific percentage of total cost is not disclosed, but it is identified as the single most critical input cost driver.
Import Sources
Not specifically disclosed in the documents, though the company notes that cotton prices are heavily dependent on the Indian monsoon, suggesting significant domestic sourcing.
Capacity Expansion
Current capacity is not explicitly stated in MT, but the company employs 1,771 staff and workmen. Recent H1 FY 2026 capex of INR 41.31 Cr suggests ongoing capacity enhancement or technological upgrades in the spinning units.
Raw Material Costs
Raw material costs are subject to high volatility due to monsoon dependency. The company does not engage in commodity hedging, making margins highly sensitive to seasonal cotton price fluctuations.
Manufacturing Efficiency
Operating margins improved from 16.47% to 18.98% YoY, indicating high manufacturing efficiency and effective cost control measures in the production of cotton yarn.
Strategic Growth
Expected Growth Rate
19%
Growth Strategy
The company aims to achieve growth by maintaining operating margins above 19% through established market positioning in the premium textile segment and strong operating efficiencies. Growth is supported by internal accruals for capex rather than debt, ensuring a low-risk financial profile.
Products & Services
The company produces high-quality cotton yarn and related textile products sold to both domestic and international garment manufacturers.
Brand Portfolio
Ambika Cotton Mills.
Market Expansion
The company focuses on penetration of new markets and offering new products through constant technological upgradation, though specific target regions are not listed.
External Factors
Industry Trends
The textile industry is seeing a shift toward high-efficiency manufacturing and sustainable sourcing. Ambika is positioning itself through technological absorption and maintaining a debt-free growth model.
Competitive Landscape
Operates in a fragmented and competitive textile market, competing with both large-scale organized players and smaller unorganized units.
Competitive Moat
The company's moat is built on cost leadership and a superior financial risk profile (TOL/TNW of 0.10x). This is sustainable because it allows the company to survive industry downturns that would bankrupt more leveraged competitors.
Macro Economic Sensitivity
Highly sensitive to agricultural output (monsoon) and global discretionary spending on apparel, which dictates demand for cotton yarn.
Consumer Behavior
Shifts toward sustainable and high-quality cotton fabrics are driving demand for the company's specialized yarn products.
Geopolitical Risks
Trade barriers or global supply chain disruptions could further impact the export segment, which is already under pressure.
Regulatory & Governance
Industry Regulations
Subject to textile industry standards and pollution control norms for spinning mills. The company is fully compliant with Corporate Governance requirements as per Regulations 17 to 27 of SEBI LODR.
Environmental Compliance
The company ensures high environmental standards and safety measures through departmental safety committees, though specific ESG costs are not disclosed.
Taxation Policy Impact
The effective tax rate is approximately 27.9%, based on a Net Profit Margin before Tax of 13.33% and after Tax of 9.61% for FY 2025.
Legal Contingencies
BSE and NSE levied fines for non-compliance with Regulation 17(1)(b) and 17(1A) regarding board composition. The company has paid these fines and filed waiver applications. No other major penalties or strictures from SEBI or Stock Exchanges were reported in the last three years.
Risk Analysis
Key Uncertainties
Raw material price volatility (Cotton) and export demand fluctuations are the primary uncertainties, with potential to impact margins by 200-300 basis points in a bad crop year.
Geographic Concentration Risk
Significant exposure to export markets, which accounted for a decline of INR 97.85 Cr in FY 2025, indicating high geographic risk outside of India.
Third Party Dependencies
High dependency on cotton farmers and ginners; however, no single supplier dependency is mentioned.
Technology Obsolescence Risk
The company mitigates technology risk through 'constant and continued upgradation' of its plant and machinery.
Credit & Counterparty Risk
Trade receivables stood at INR 10.26 Cr (adjustment) in H1 FY 2026, suggesting a manageable credit exposure relative to total sales.
