Ambika Cotton Q1 results: Profit jumps 61% as revenue, margins improve

Ambika Cotton Q1 results: Profit jumps 61% as revenue, margins improve


Tamil Nadu-based speciality cotton yarn manufacturer Ambika Cotton posted a strong performance in the first quarter of FY27, with net profit rising 61.4% year-on-year to ₹26 crore, while revenue from operations grew 34.4% to ₹258 crore.

Its Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased 46.7% year-on-year to ₹39.5 crore, with the EBITDA margin improving to 15.3% from 14% a year earlier.

The company also proposed modernising its Unit IV plant with state-of-the-art machinery at an estimated cost of ₹135 crore. The investment will be funded through internal accruals and is expected to increase the unit’s spinning capacity from 43,000 spindles to 45,000 spindles, along with improvements in productivity and quality.

Ambika Cotton said shipments from Germany for certain equipment have been delayed in transit due to the West Asia crisis. According to the shipping line, the equipment is expected to arrive in the first week of September 2026.

Once the equipment is received, 6,480 spindles are expected to become operational, the company said.

Separately, the company’s board has re-appointed Vijayalakshmi Narendra as an independent woman director for a five-year term from August 12, 2026 to August 11, 2031. The re-appointment is subject to shareholder approval through a special resolution at the company’s ensuing Annual General Meeting.

In a separate exchange filing, the company said that the board has recommended the appointment of K. Murali Mohan as an independent director, subject to shareholder approval through a special resolution at the ensuing Annual General Meeting.Ambika Cotton Mills shares ended 3.93% higher at ₹1,897.70 on August 7 at NSE, ahead of the company’s earnings announcement.

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