A B Cotspin India Ltd., a leading name in the Indian textile manufacturing sector with over 25 years of experience, has reported a remarkable Q1 FY26 performance, demonstrating operational efficiency, financial resilience, and long-term growth potential.

The company’s consolidated net profit for the quarter stood at ₹4.23 crore, marking a 94.78% quarter-on-quarter (QoQ) surge compared to ₹2.17 crore in Q4 FY25. Year-on-year (YoY), the profit rose by 76.12% from ₹2.40 crore in Q1 FY25. The strong bottom-line performance came despite a decline in total revenue, which dropped 8.52% YoY to ₹66.70 crore and 23.15% QoQ from ₹86.79 crore.

EBITDA growth remained a standout highlight, climbing 25.88% YoY to ₹9.99 crore, with margins improving by 409 basis points YoY to 14.99%. On a sequential basis, EBITDA grew 9.71%, and margins expanded by 449 BPS from 10.50% in the previous quarter. Diluted earnings per share (EPS) improved to ₹1.91, up 17.18% YoY and 12.35% QoQ.

Major Capacity Expansion

In a significant strategic move, A B Cotspin announced a massive ₹1500 crore capacity expansion plan. This project involves the addition of approximately 2,00,000 spindles, creating an integrated green textile manufacturing facility. The expansion is aligned with the Hon’ble Prime Minister’s “Five Fs” framework—Farm to Fiber, Fiber to Factory, Factory to Fashion, and Fashion to Foreign.

In the first phase of this expansion, the company has already installed 14,592 new spindles, increasing its total installed capacity to 50,832 spindles. This enhancement will allow the company to scale operations, improve efficiency, and strengthen its market position in both domestic and export markets.

Sustainability Initiatives

Sustainability remains a core business pillar for A B Cotspin. The company expanded its solar power capacity from 2,500 KW to 3,131 KW, reducing dependence on conventional energy sources and lowering its carbon footprint.

NSE-Emerge Milestone and Main Board Eligibility

Listed on NSE-Emerge since January 11, 2022, A B Cotspin has now successfully completed three years of listing, making it eligible for migration to the main board. This milestone is a testament to its growth trajectory, operational strength, and investor confidence.

Management Commentary

Commenting on the results, Mr. Deepak Garg, Managing Director, expressed pride in the company’s achievements:

“We are pleased to report a robust performance for Q1 FY26. Our EBITDA surged by 25.88% YoY to ₹9.99 crore, with margins expanding by 409 basis points to 14.99%, reflecting our continued focus on operational efficiency. Net profit also showed strong growth, rising by 76.12% to ₹4.23 crore, demonstrating the resilience of our business and the value we are creating for our stakeholders.”

He further stated that the company aims to achieve a turnover of ₹350–₹400 crore and EBITDA of ₹50–₹55 crore in FY 2025–26. The ₹1500 crore expansion, he said, will position the company as a global competitor in sustainable textile manufacturing.

Future Outlook

With strong financial fundamentals, ambitious capacity expansion, and a steadfast commitment to green energy and sustainable production, A B Cotspin is well-poised to deliver consistent growth. The company’s strategy integrates scalability, market diversification, and sustainability, ensuring that it remains a leading player in the competitive textile industry.

By enhancing production capabilities and investing in renewable energy, A B Cotspin not only meets market demand but also supports India’s vision of becoming a global textile hub. As it moves towards main board listing, investor interest and visibility are likely to increase further, making FY26 a transformative year for the company.

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