SYNOPSIS: AB Cotspin India Limited secured an order worth approximately Rs. 5.45 crore for the supply of 200 metric tonnes of cotton yarn, further strengthening its position as a reliable supplier in the textile industry.

During Monday’s trading session, shares of one of the leading textile manufacturers with over 25 years of industry expertise surged nearly 6.4 percent on the NSE, after the company announced securing an order for 200 million tonnes (MT) of cotton yarn.

At 11:20 a.m., shares of AB Cotspin India Limited were trading in green at Rs. 400.1 on NSE, up by around 4 percent, compared to its previous closing price of Rs. 384.25, with a market cap of Rs. 879 crores. The stock has delivered positive returns of around 16 percent in one year, but has fallen by nearly 6 percent in the last one month.

What’s the News

According to the latest regulatory filings with the stock exchanges, AB Cotspin India Limited has secured an order worth around Rs. 5.45 crore for the supply of 200 metric tonnes (MT) of cotton yarn, to be executed within one month. This order further strengthens the company’s position as a reliable supplier of premium cotton yarn, knitted fabrics, and eco-friendly textile products in both domestic and international markets.

The company also highlighted the Government of India’s recent launch of the Rs. 600 crore “Kapas Kranti Mission”, aimed at promoting high-yield, long-staple cotton cultivation through scientific research, technological innovation, and farmer-focused extension programs.

In addition, the Prime Minister Narendra Modi-led central government’s decision to reduce GST rates has significantly boosted consumer sentiment, turning this year’s Navratri season into one of the strongest consumption phases in recent years. The lower tax burden on essential and consumer goods has provided relief to households and is expected to drive stronger festive and Diwali demand.

The company also reaffirmed its support for ‘Kasturi Cotton’, a joint initiative of the Government of India, textile trade bodies, and industry stakeholders, aimed at positioning Indian cotton as a premium global brand through standardisation and quality benchmarking.

For FY26, AB Cotspin India Limited targets a turnover of approximately Rs. 350 crore with an EBITDA in the range of Rs. 50–55 crore, reflecting strong growth visibility.

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Financials & More:

AB Cotspin reported a decline in its revenue from operations, showing a year-on-year decrease of over 7 percent from Rs. 72.5 crores in Q1 FY25 to Rs. 67 crores in Q1 FY26. In contrast, its net profit increased during the same period from Rs. 2.3 crores to Rs. 4.2 crores, representing a significant rise of nearly 83 percent YoY.

AB Cotspin India Limited is a diversified textile manufacturer engaged in the production of cotton yarn, knitted fabrics, cottonseed oil, and oilcakes. Established in 1997, the company began operations with a cotton ginning plant, producing cotton bales and cotton seeds as its initial offerings.

In 2000, the company expanded into oil extraction by installing a crushing unit to process cotton and mustard seeds, adding cottonseed oil, mustard oil, and oilcakes to its product portfolio. 

Continuing its forward integration, AB Cotspin entered the spinning segment in 2011, setting up a modern spinning plant for the production of high-quality cotton yarn. Further diversification came in 2014, with the installation of knitting machinery, enabling the company to manufacture premium knitted fabrics. Additionally, the company’s equity shares were successfully migrated to the Main Boards of both the NSE and BSE, effective 24th September 2025.

Written by Shivani Singh

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