A B Cotspin India Ltd
📊 Robust Profit Growth & Strategic Expansion Highlights
⚡️ Quick Scoop
• Reported 97.37% PAT growth in H1 FY26 vs H1 FY25
• Revenue down 24.06% to ₹117.49 crore
• EBITDA margin improved to 18.13% from 9.51%
• Plans major ₹1500 crore capacity expansion & foray into real estate
🧠💡DeepDive
🔎 Financial Performance Highlights:
- Total Revenue: ₹117.49 crore in H1 FY26, down 24.06% from ₹154.71 crore in H1 FY25.
- EBITDA: Increased 44.77% to ₹21.30 crore; margin expanded by 862 basis points to 18.13%.
- Net Profit After Tax (PAT): Nearly doubled, up 97.37% to ₹7.82 crore.
- Net Profit Margin: Improved to 6.65% from 2.56% previously.
- Diluted EPS: Rose 23.53% to ₹3.57.
🏭 Operational and Strategic Initiatives:
- Installed an additional 14,592 spindles, total capacity now 50,832 spindles.
- Announced ₹1500 crore capacity expansion with approx. 2,00,000 new spindles for green textile manufacturing.
- Solar power capacity expanded from 2,500 KW to 3,131 KW to boost green energy use.
🏢 New Business Venture:
- Launched premium residential and commercial real estate project on approx. 3 acres in Ludhiana, Punjab.
- Land acquired at approx. ₹18 crore.
📈 Management Commentary:
- Targets ₹350 crore turnover and EBITDA of ₹40-45 crore for FY26.
- Highlights focus on operational efficiency, sustainability, and alignment with textile sector initiatives.
💡 Perception and Insights:
- Profit and margin growth despite lower revenue suggests better operational efficiency or premium product focus.
- Diversification into real estate may broaden revenue streams.
- Capacity expansion signals long-term growth confidence.
- Sustainability efforts correspond with global environmental trends.
