Axita Cotton Limited is an India-based global organic textile company incorporated in 2013, operating in the cotton manufacturing and processing industry. The company is part of the Axita Group and serves as a manufacturer and exporter of cotton products. The company's operations are focused on manufacturing, trading, processing, and finishing of cotton bales, making it a significant player in India's textile sector.
Originally incorporated as "Axita Cotton Private Limited" at Ahmedabad on July 16, 2013, the company converted to a Public Limited Company and was renamed "Axita Cotton Limited" on October 15, 2018. The company's roots trace back to 2007 when the promoters Mr. Nitinbhai Govindbhai Patel and Mr. Amitkumar Govindbhai Patel started business under a Partnership Firm named Aditya Oil Industries for production and trading of Seed cotton (Kapas), Cotton Seed, Cotton Seed Oil, Cotton cake.
The company produces cotton bales and cotton seeds, mainly producing two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. Its other cotton bales include S-6, V-797, DCH-32 and J-34. The company has diversified its product range to include specialized cotton including BCI cotton, organic cotton, and Primark sustainable cotton.
Beyond manufacturing, the company is also engaged in the business of trading of Kapas, cotton bales and cotton seeds, and is also engaged in ginning and pressing of Kapa on job work basis. The company has earned registration under Textile Certification Global Organic Textile Standard (GOTS) Standard, highlighting its commitment to sustainable and organic cotton production.
The company's products are sold majorly in the state of Gujarat, Rajasthan, Maharashtra, and Madhya Pradesh. Internationally, it has a global presence in India, Bangladesh, Pakistan, Vietnam, China, Indonesia and Thailand. Under the leadership of promoter Mr. Kushal Nitinbhai Patel, the company started exporting its products through merchandise exporters in 2015, and from Financial year 2016-2017 onwards, commenced direct exports to Pakistan, Bangladesh and Vietnam.
The production facility of the company is situated at Kadi in Mahesana District of Gujarat state which is strategically located close to cotton growing areas of Maharashtra, Saurashtra and other regions of Gujarat.
As of July 2025, the market capitalization of Axita Cotton Limited stands at approximately ₹331 Crore. The company's financial performance has shown mixed results in recent periods.
FY25 Financial Performance:
- Net Profit: Declined 94.64% to Rs 1.09 crore in the year ended March 2025 as against Rs 20.34 crore during the previous year ended March 2024.
- Sales: Declined 40.80% to Rs 652.72 crore in the year ended March 2025 as against Rs 1102.58 crore during the previous year ended March 2024.
- Q4 FY25 Performance: Net loss of Rs 1.86 crore reported in Q4 FY25 as against net profit of Rs 4.95 crore during Q4 FY24, with sales declining 36.72% to Rs 139.86 crore.
Key Financial Ratios:
- Stock P/E: 551
- Book Value: ₹1.81
- ROCE: 2.33%
- ROE: 0.94%
- Dividend Yield: 1.37%
The promoter holding in the company stands at 41.9%. In the main management, Nitinbhai Govindbhai Patel serves as chairman and Shyamsunder Kiranbhai Panchal is the company secretary. The company has granted 1,72,000 Stock Options under the "Axita Cotton Employee Stock Options 2023" scheme.
Key Strengths:
- The company has reduced debt and is almost debt-free.
- Company has a good return on equity (ROE) track record with 3 Years ROE of 22.8%.
- Strong position in organic and sustainable cotton production.
- Global export presence across multiple countries.
Challenges:
- Company has a low interest coverage ratio.
- The company has delivered a poor sales growth of 6.15% over the past five years.
- Recent decline in financial performance with significant drop in revenues and profitability in FY25.
The peers of Axita Cotton Ltd include Grasim Industries Ltd, Trident Ltd, Welspun Living Ltd, Vardhman Textiles Ltd, Arvind Ltd, Alok Industries Ltd, and Garware Technical Fibres Ltd. Axita Cotton Ltd belongs to the Consumer Discretionary sector and Textiles sub-sector.
The company operates in India's competitive textile industry and has established itself as a specialized player in the organic cotton segment. Its strategic location in Gujarat, proximity to cotton-growing regions, and focus on sustainable cotton production provide competitive advantages in the market.
