Company Overview
Axita Cotton Limited (BSE: 542285, NSE: AXITA) filed its 13th Annual Report for FY 2025-2026 pursuant to SEBI Listing Regulations. The document covers audited financial statements, corporate actions, governance updates, and notice of the 13th AGM.
Financial Performance Highlights
Revenue from Operations declined 43.25% to ₹370.40 crore (from ₹652.72 crore in FY25) due to challenging market conditions and a strategic shift to selective trading. However, Profit After Tax increased 74.31% to ₹1.90 crore (from ₹1.09 crore) driven by improved operational efficiency and margin expansion. EPS stood at ₹0.05 compared to ₹0.03 in previous year.
Exports grew significantly by 242% to ₹30.57 crore (8.29% of turnover vs 1% previously), diversifying into cotton bales (₹19.36 crore), groundnut oil (₹2.96 crore), and sesame seeds (₹8.25 crore). The company improved inventory turnover from 63 to 283 times and reduced trade receivables to ₹17.48 crore while increasing cash balances by 51% to ₹15.98 crore.
Corporate Actions & Capital Structure
The company executed a 1:10 bonus issue in February 2026, issuing 3,47,22,832 shares, increasing paid-up capital to ₹38.25 crore. The board recommended a final dividend of 5% (₹0.05 per share) subject to AGM approval.
ESOP scheme was adjusted to 99 lakh options post-bonus, with fresh grants of 2,14,930 options and allotment of 1,78,200 shares to employees at ₹1.82 per share.
Significant Financial Changes
The balance sheet shows substantial shift in lending activity with significant unsecured loans provided to an NBFC at 18-23% interest rates. Quoted equity investments increased from ₹389.71 lakh to ₹899.36 lakh, indicating increased investment activity. The company ceased to be subsidiary of KPR Sports and Media Private Limited after its divestment in June 2025.
Governance & Compliance
Statutory auditor P K N & Co resigned in August 2026 due to internal restructuring and was replaced by DTA & Associates, with board recommending their appointment for a 5-year term. The board composition includes executive directors Nitinbhai Patel (Chairman & MD), Kushal Patel (MD), and Nilesh Kothari (Executive Director), with three independent directors.
13th AGM is scheduled for September 30, 2026 via video conference to approve financial statements, dividend, director reappointments (including Vinod Rana for second term), and auditor appointments.
Operational & Strategic Outlook
Management highlighted volatile cotton prices and subdued international demand but maintained a positive medium-to-long-term outlook. The company adopted a selective trading approach prioritizing quality over volume, which contributed to improved profitability despite revenue decline.