Cotton stock reports 7,070% growth in net profit; Declares 1:10 bonus issue

Synopsis: The result of a microcap company stated an 7070 percent growth in its quarterly profits, along with generating a revenue almost 4 times the total revenue made in the previous fiscal year.

A micro-cap company engaged in the manufacturing of cotton bales and yarn saw its stock surge by 5 percent after reporting a 41 percent QoQ revenue growth, along with its current fiscal year’s nine-month revenue rising by over 43 percent compared to 9M FY25.

With a market cap of Rs 399 Cr, Axita Cotton Ltd saw its stock hit an intraday high of Rs 11.72 which is 4.9 percent higher than the previous close of Rs 11.17. The company’s stock has given a 5 year compounded return of 61 percent while the 3 year number is at negative 25 percent.

The Q3FY26 Result

Axita Cotton Limited reported that during the December FY26 quarter, the company posted revenue from operations of Rs 89.3 Crore which is 40 percent QoQ growth but a 60 percent fall on YoY basis. The net profit after tax stood at Rs 2.5Cr, which is a 7070 percent QoQ growth and an improvement from loss of Rs 1.2 Cr in Q3FY25 .

For the nine-month period, revenue from operations stood at Rs 309Cr which is 40 percent lower than 9MFY25, while net profit after tax for the same period is at Rs 4.24Cr that is 3.9 times the total profits of FY25 

The Bonus Issue

Alongside the results, the Board recommended a bonus issue in the ratio of 1:10, meaning one bonus equity share of Re. 1 each for every ten existing equity shares of Re. 1 each held. The record date has been fixed as February 13, 2026, and the bonus shares will be issued by capitalising free reserves of Rs 28.02 crore available as of March 31, 2025. 

Post bonus, the paid-up equity share capital is expected to increase from 34.77 crore shares to about 38.25 crore shares, with the bonus shares likely to be credited on or before March 4, 2026.

Incorporated in 2013 and headquartered in Gujarat, Axita Cotton Ltd operates in the manufacturing, processing, trading, and finishing of cotton bales and cotton yarn, serving both domestic and export markets across the textile value chain.

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