Axita Cotton Limited (AXITA)
₹7.30 -0.27% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Axita Cotton's revenue was ₹58.3 Cr (-62.8% year on year, -4.5% on the previous quarter), and net profit ₹3.6 Cr (+122.8% year on year); the operating margin was 2.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹58.3 | -62.8% | -4.5% |
| Operating profit | ₹1.7 | from loss | from loss |
| Net profit | ₹3.6 | +122.8% | from loss |
| EPS (₹) | 0.09 | — | from loss |
| Operating margin | 2.9% | — | — |
No EPS growth against Q1 FY26: 1:10 bonus in Feb 2026.
AXITA delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 38.99% of the AXITA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 50.02%. That is close to its usual level. Turnover was only ₹88 lakh, so a handful of trades can move this figure.
Delivery in the last 5 sessions: 35.0% · 48.3% · 32.2% · 22.1% · 39.0%
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
Axita Cotton Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period ended September 30, 2026. The confirmation was issued by its Registrar and Share Transfer Agent, MUFG Intime India Private Limited (formerly Link Intime India Private Limited), on October 03, 2026, and received by the company on October 07, 2026. The certificate confirms that all dematerialisation requests received during the quarter were duly processed, verified, and cancelled as per regulatory mandates. This is a purely procedural compliance filing with no impact on business operations or financials.
- Regulation 74(5) certificate submitted for the quarter ended September 30, 2026
- Issued by RTA MUFG Intime India Private Limited on October 03, 2026
- Received and filed with BSE and NSE on October 07, 2026
- Confirms that security certificates received for dematerialisation were processed and mutilated as required
Axita Cotton Limited reported the voting results and scrutinizer's report for its 13th Annual General Meeting held on September 30, 2026. All 6 proposed resolutions were approved by shareholders, including the adoption of standalone financial statements, declaration of final dividend for FY26, auditor appointments, and director re-appointments. Overall voter turnout was 42.04% of total outstanding shares, heavily driven by 100% participation from the promoter group (16.04 crore shares), while public non-institutional participation stood at just 0.27% (4.96 lakh shares).
- All 6 resolutions passed with over 99.9% overall approval each
- Overall voter turnout was 42.04% (16,08,77,651 votes polled out of 38,26,73,533 total shares)
- Promoter group participated at 100% (16,03,81,749 shares) voting entirely in favour
- Public non-institutional participation was modest at 0.269% (4,95,902 shares polled)
- Total registered shareholders stood at 1,58,371 on the cut-off date of September 23, 2026
Axita Cotton Limited has refiled its record date notification under the correct 'Corporate Action' category. The company has fixed Friday, September 11, 2026, as the record date to determine shareholder eligibility for a final dividend of Rs 0.05 (5%) per equity share of face value Re 1 for FY25-26. If approved at the upcoming Annual General Meeting, the dividend will be paid after September 30, 2026.
- Final dividend declared at Rs 0.05 per equity share of face value Re 1 (5%)
- Record date fixed as Friday, September 11, 2026
- Payment scheduled to be disbursed after September 30, 2026
- Filing was re-submitted to correct an exchange filing categorization error from September 5, 2026
Axita Cotton Limited has fixed Friday, September 11, 2026, as the record date to determine shareholder eligibility for a final dividend of Rs 0.05 per equity share (5% on face value of Re 1 each) for FY 2025-2026. The dividend is subject to shareholder approval at the upcoming Annual General Meeting and will be disbursed after September 30, 2026. At the current share price of Rs 8.0, the dividend represents a modest yield of approximately 0.63%.
- Final dividend fixed at Rs 0.05 per equity share (5% on Re 1 face value)
- Record date established as Friday, September 11, 2026
- Payment scheduled after September 30, 2026, subject to AGM approval
- Implies a dividend yield of ~0.63% on the current share price of Rs 8.0
Axita Cotton Limited has issued the notice for its 13th Annual General Meeting (AGM) scheduled for September 30, 2026, via video conferencing. Key resolutions include the declaration of a 5% final dividend (₹0.05 per ₹1 face value share) for FY26. Shareholders will also vote on appointing M/s. DTA & Associates as Statutory Auditors for a 5-year term following the resignation of M/s P K N & Co., and the re-appointment of Independent Director Vinod Kanubhai Rana for a second 5-year term.
- 13th Annual General Meeting scheduled for Wednesday, September 30, 2026 at 02:30 PM IST via VC/OAVM.
- Proposed final dividend of 5% (₹0.05 per equity share of face value ₹1 each) for FY26.
- Appointment of M/s. DTA & Associates as Statutory Auditors for a 5-year term (FY27 to FY31) to fill casual vacancy from resignation of M/s P K N & Co.
- Proposed re-appointment of Mr. Vinod Kanubhai Rana as Independent Director for a second 5-year term (Feb 2027 to Feb 2032).
- Ratification of Cost Auditor remuneration of ₹35,000 plus taxes for FY27.
Axita Cotton Limited has submitted an Expression of Interest (EoI) on August 21, 2026, to participate in the Corporate Insolvency Resolution Process (CIRP) of Varidhi Cotspin Private Limited. Varidhi operates a cotton yarn spinning unit in Dholka, Gujarat, with 29,184 spindles and an annual capacity of approximately 4,442 metric tonnes per annum (MTPA). If successful, this acquisition would mark Axita's forward integration from cotton ginning into yarn manufacturing. Bid amounts and financial terms were not disclosed at this stage.
- Submitted EoI on August 21, 2026, under the Insolvency and Bankruptcy Code (IBC) for Varidhi Cotspin.
- Target facility houses 29,184 spindles with a manufacturing capacity of ~4,442 MTPA.
- Target unit was established in 2017 in Dholka, Ahmedabad, producing ring spun 100% cotton yarn.
- Bid value and resolution plan terms remain undisclosed.
Axita Cotton Limited announced that its statutory auditor, M/s. P K N & Co., Chartered Accountants, has resigned effective August 12, 2026, before the completion of their term scheduled until the 17th AGM. The auditor cited internal administrative and operational restructuring and manpower constraints as reasons for the premature exit. The auditor confirmed there are no disagreements, unresolved accounting issues, or scope limitations. Prior to resigning, the firm completed the FY26 audit report and the Q1 limited review report dated August 12, 2026.
- Statutory auditor M/s. P K N & Co. resigned effective August 12, 2026
- Appointed on August 25, 2025, with tenure originally scheduled until the 17th AGM
- Auditor issued the Limited Review Report for the quarter ended June 30, 2026, on August 12, 2026, prior to resignation
- No disagreements, audit qualifications, or accounting policy issues were reported
Axita Cotton reported a significant 62.8% YoY decline in revenue from operations to ₹58.28 Cr for Q1 FY27. Despite the top-line contraction, net profit grew 170% YoY to ₹3.59 Cr, largely supported by a reduction in purchase costs and ₹3.69 Cr in 'Other Income'. Simultaneously, the company announced the resignation of its statutory auditor, M/s. P K N & Co., effective August 12, 2026, and the appointment of M/s DTA & Associates. The board also re-appointed Mr. Vinod Kanubhai Rana as an Independent Director for a second five-year term.
- Revenue from operations fell 62.8% YoY to ₹58.28 Cr from ₹156.70 Cr in the previous year's quarter.
- Net Profit increased 170% YoY to ₹3.59 Cr, up from ₹1.33 Cr in June 2025.
- Other Income of ₹3.69 Cr contributed significantly to the bottom line, nearly equaling the total net profit.
- Statutory Auditor M/s. P K N & Co. resigned effective August 12, 2026, replaced by M/s DTA & Associates.
- Total expenses decreased by 63.6% YoY to ₹57.23 Cr, primarily due to lower purchase of stock-in-trade.
Axita Cotton Limited's statutory auditor, M/s. P K N & Co., resigned on August 12, 2026, before the completion of their scheduled term. The firm cited internal administrative and operational restructuring, stating they could no longer commit the required level of partner involvement and manpower for a listed entity. The resignation occurred immediately after the auditor signed off on the Q1 FY27 limited review. The auditor has explicitly stated there are no disagreements with management or concerns regarding accounting policies.
- Resignation effective August 12, 2026, despite an original term intended to last until the 17th AGM
- Auditor completed the Q1 FY27 limited review on the same day as the resignation (August 12, 2026)
- Firm cited internal resource constraints and partner-level changes as the primary reason for exit
- Company reported a TTM net loss of ₹1 Cr on a revenue base of ₹654 Cr
- Auditor confirmed no unresolved accounting or auditing matters prior to departure
Axita Cotton reported a significant 62.8% YoY decline in Q1 FY27 revenue to ₹58.28 Cr, down from ₹156.70 Cr in Q1 FY26. Despite the top-line contraction, Net Profit improved to ₹3.59 Cr from ₹1.33 Cr YoY, aided by a sharp reduction in purchase costs and other expenses. A key governance development is the resignation of Statutory Auditor M/s. P K N & Co. effective August 12, 2026, with M/s DTA & Associates appointed as the successor. The board also re-appointed Mr. Vinod Kanubhai Rana as an Independent Director for a second five-year term.
- Revenue from operations fell 62.8% YoY to ₹58.28 Cr in Q1 FY27 compared to ₹156.70 Cr in Q1 FY26
- Net Profit increased to ₹3.59 Cr for the quarter, up from ₹1.33 Cr in the corresponding previous year quarter
- Statutory Auditor M/s. P K N & Co. resigned effective August 12, 2026, replaced by M/s DTA & Associates
- Total expenses decreased to ₹57.23 Cr from ₹157.34 Cr YoY, primarily due to lower stock-in-trade purchases
- Independent Director Vinod Kanubhai Rana re-appointed for a 5-year term from February 2027 to February 2032
Axita Cotton Limited has re-appointed M/s. R J and Associates, Cost Accountants, as its Internal Auditor for the financial year 2026-2027. The firm has been associated with the company since 2023 and possesses expertise in sectors including textiles, cement, and pharmaceuticals. This routine appointment was approved by the Board on August 12, 2026, to oversee risk profiling and control evaluation. Given the company's current financial state, including a TTM net loss of Rs 1 Cr and a negative operating margin of -0.8%, robust internal audit functions are necessary for operational oversight.
- Appointment of M/s. R J and Associates as Internal Auditor for the full FY 2026-2027 period.
- The audit firm has been associated with Axita Cotton since 2023, providing continuity in internal oversight.
- The firm is led by partners with over 10 years of experience in costing, legal, and financial fields.
- Axita Cotton reported a TTM revenue of Rs 654 Cr against a thin net loss of Rs 1 Cr.
- The appointment aims to manage operational and financial risks following a 43.87% decline in net capital turnover ratio.
Axita Cotton reported a significant 62.8% YoY decline in Q1 FY27 revenue to ₹58.28 Cr, down from ₹156.70 Cr in Q1 FY26. Despite the top-line contraction, net profit rose to ₹3.59 Cr from ₹1.33 Cr YoY, largely supported by ₹3.69 Cr in Other Income. A major governance update includes the resignation of Statutory Auditor M/s. P K N & Co., replaced by M/s DTA & Associates. The board also re-appointed an Independent Director for a second five-year term.
- Revenue from operations fell sharply to ₹58.28 Cr in Q1 FY27 from ₹156.70 Cr in the same quarter last year
- Net Profit increased to ₹3.59 Cr for the quarter ended June 30, 2026, compared to ₹1.33 Cr in Q1 FY26
- Other Income of ₹3.69 Cr exceeded the total Net Profit for the quarter
- Statutory Auditor M/s. P K N & Co. resigned effective August 12, 2026, with M/s DTA & Associates appointed as successors
- Independent Director Vinod Kanubhai Rana re-appointed for a 5-year term from February 2027 to February 2032
Axita Cotton Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited (formerly Link Intime), confirms that share certificates received for dematerialization during the quarter ended June 30, 2026, were processed within prescribed timelines. This involves the verification, cancellation, and substitution of the depository's name in the register of members. This is a standard administrative filing with no impact on the company's financial performance or business operations.
- Compliance certificate issued for the quarter ended June 30, 2026
- Certificate dated July 01, 2026, and received by the company on July 04, 2026
- Issued by Registrar and Share Transfer Agent (RTA) MUFG Intime India Private Limited
- Confirms that securities received for dematerialization were listed on stock exchanges where earlier securities were listed
Axita Cotton Limited has announced the closure of its trading window starting July 1, 2026, in compliance with SEBI Prohibition of Insider Trading Regulations. This closure is ahead of the announcement of financial results for the quarter ending June 30, 2026. The window will remain closed for all designated persons and insiders until 48 hours after the results are officially declared. This is a standard regulatory procedure to prevent insider trading before sensitive financial information is disclosed to the public.
- Trading window closure effective from Wednesday, July 1, 2026.
- Closure is related to the financial results for the quarter ending June 30, 2026.
- The window will reopen 48 hours after the board meeting and result declaration.
- The filing is in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015.
Axita Cotton Limited has announced the grant of 2,14,930 stock options to eligible employees under its Employee Stock Option Plan 2023. Each option is exercisable into one equity share of face value Re. 1 at a fixed exercise price of Rs. 1.82 per share. The options must be exercised within one year from their respective vesting dates. This initiative is designed to incentivize employees and align their interests with the company's long-term growth.
- Grant of 2,14,930 ESOP options to eligible employees under the ESOP 2023 Scheme.
- Exercise price determined at Rs. 1.82 per option for shares with a face value of Re. 1.
- Vested options are exercisable within a maximum period of one year from the date of vesting.
- The scheme is compliant with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment (Cotton Ginning and Trading). Revenue from operations declined by 40.8% YoY, falling from INR 1,102.58 Cr in FY 2023-24 to INR 652.72 Cr in FY 2024-25. This sharp decline was primarily driven by geopolitical conflicts disrupting export operations and domestic market volatility.
Geographic Revenue Split
Export sales experienced a massive 86.9% decline, dropping from INR 68.53 Cr in FY 2023-24 to just INR 8.94 Cr in FY 2024-25. Exports now contribute only 1.37% of total revenue, down from 6.21% in the previous year, as geopolitical instability restricted trade access in major overseas markets.
Profitability Margins
Profitability margins saw a severe contraction. Net Profit Margin (PAT Margin) plummeted from 1.84% in FY 2023-24 to 0.17% in FY 2024-25. Return on Equity (ROE) dropped by 95.07% YoY, falling from 34.78% to 1.72%, while Return on Capital Employed (ROCE) fell by 90.88% YoY from 43.70% to 3.98% due to margin pressures and cotton price volatility.
EBITDA Margin
EBITDA margin collapsed from 2.66% in FY 2023-24 to 0.44% in FY 2024-25. Absolute EBITDA fell by 90.2% YoY, from INR 29.36 Cr to INR 2.88 Cr, reflecting the company's inability to pass on raw material price fluctuations and the impact of reduced scale on fixed cost absorption.
Capital Expenditure
Property, Plant & Equipment (PPE) stood at INR 3.57 Cr as of March 31, 2025, and slightly decreased to INR 3.32 Cr by September 30, 2025. The company invested INR 0.024 Cr in PPE and intangible assets during H1 FY26, indicating a focus on maintenance rather than aggressive capacity expansion.
Credit Rating & Borrowing
Current financial borrowings surged to INR 21.35 Cr as of September 30, 2025, compared to zero borrowings as of March 31, 2025. Finance costs increased by 25.4% YoY in H1 FY26 to INR 0.70 Cr, reflecting higher utilization of working capital limits to manage increased inventory levels.
Operational Drivers
Raw Materials
The primary raw material is Kapas (seed cotton), which is processed into cotton bales and yarns. Purchase of stock-in-trade (including raw cotton) accounted for INR 586.95 Cr in FY 2024-25, representing approximately 90% of total revenue, highlighting the company's high sensitivity to cotton price fluctuations.
Import Sources
Raw materials are primarily sourced domestically from major cotton-producing states in India, particularly Gujarat, to ensure the procurement of premium varieties like Shankar-6.
Capacity Expansion
The company continues to invest in technology upgrades and operational efficiencies at its manufacturing locations in Gujarat, though specific MTPA (Metric Tonnes Per Annum) capacity figures for its ginning and pressing units were not disclosed.
Raw Material Costs
Raw material costs are highly volatile; the company reported a 'Purchase of Stock-In-Trade' of INR 225.29 Cr for H1 FY26, which is 102.4% of its revenue from operations for the same period, indicating extreme margin pressure and potential inventory valuation impacts.
Manufacturing Efficiency
Manufacturing efficiency is being addressed through technology upgrades. However, the drop in the net capital turnover ratio from 20.60 to 11.56 (a 43.87% decline) indicates reduced operational efficiency and slower inventory rotation.
Logistics & Distribution
The company expects government infrastructure investments to improve logistics efficiency, though specific distribution costs as a percentage of revenue were not provided.
Strategic Growth
Growth Strategy
Growth is targeted through technology upgrades, operational efficiencies, and a focus on premium cotton varieties like Shankar-6. The company is also diversifying its export markets to mitigate risks and leveraging favorable government policies in the textile industry to strengthen its domestic presence.
Products & Services
The company sells cotton bales, cotton yarns, and agri-commodities including cottonseed and sesame seeds.
Brand Portfolio
Axita Cotton.
New Products/Services
The company is focusing on enhancing its value-added product offerings in the cotton and textile industry to ensure sustainable growth, though specific new product revenue contributions were not disclosed.
Market Expansion
The company is diversifying its export markets to mitigate risks from global disruptions and is strengthening its domestic market presence in India.
Strategic Alliances
The company acquired a 55% equity stake in KPR Sports and Media Private Limited on June 17, 2024, but subsequently disinvested from this subsidiary on June 27, 2025.
External Factors
Industry Trends
The cotton and textile industry is benefiting from growing domestic consumption in India and favorable government policies. The industry is shifting toward technology-driven operational efficiencies and high-quality premium cotton varieties.
Competitive Landscape
The company operates in a competitive market for cotton bales and yarns, facing pressures from both domestic ginners and international market dynamics.
Competitive Moat
The company's moat is built on its ability to procure premium cotton varieties like Shankar-6 and its established presence in the ginning and pressing segment. However, this moat is currently challenged by extreme price volatility and geopolitical barriers.
Macro Economic Sensitivity
The company is highly sensitive to global geopolitical stability and domestic agricultural output. GDP growth and rural development policies are expected to boost cotton cultivation and logistics efficiency.
Consumer Behavior
Growing consumption within India is a key driver for the company's domestic market positioning.
Geopolitical Risks
Geopolitical conflicts in key international markets significantly disrupted export operations, causing export revenue to fall from INR 68.53 Cr to INR 8.94 Cr in FY 2024-25.
Regulatory & Governance
Industry Regulations
Operations are subject to agricultural reforms and government policies regarding cotton cultivation and textile exports.
Taxation Policy Impact
The company's current income tax expense for FY 2024-25 was INR 41.53 Lakhs, a significant decrease from INR 698.48 Lakhs in the previous year due to lower taxable profits.
Risk Analysis
Key Uncertainties
Key risks include cotton price volatility (which caused a 95% drop in ROE) and geopolitical instability (which caused an 87% drop in exports).
Geographic Concentration Risk
The company has a high concentration in the Indian domestic market following the collapse of its export business, which now accounts for less than 2% of revenue.
Third Party Dependencies
High dependency on cotton farmers and suppliers for raw Kapas; trade payables decreased as the company moved toward faster settlements to secure supply.
Technology Obsolescence Risk
The company is mitigating technology risks by continuously investing in technology upgrades to maintain high-quality production standards.
Credit & Counterparty Risk
Trade receivables stood at INR 20.55 Cr as of September 30, 2025. The net capital turnover ratio drop suggests slower receivable collections or inventory rotation, increasing credit risk exposure.
