Axita Cotton FY26 profit ₹1.9 cr, 5% dividend proposal

Results announced for FY ended March 31, 2026

Axita Cotton Limited has announced its audited standalone financial results for the fiscal year ended March 31, 2026. The company reported a net profit of ₹1.90 crore on revenue of ₹370.40 crore for the full year. The board approved the audited results on April 20, 2026. Alongside the results, the board recommended a final dividend of 5 percent, or ₹0.05 per equity share. The dividend will be paid only after shareholder approval at the upcoming Annual General Meeting (AGM). The update matters because it combines a profitable full year with a sharp quarterly loss at the end of the year.

Full-year profit contrasts with Q4 FY26 loss

The headline FY26 profit came despite a weak fourth quarter. In Q4 FY26, the company posted a net loss of ₹2.34 crore on revenue of ₹61.03 crore, according to the disclosure. This contrast highlights how quarterly volatility can materially change the narrative even when the annual number stays positive. The Q4 loss also stands out because the company’s quarterly profit trajectory had shown improvement earlier in the year, based on the published quarterly and nine-month updates. Investors will likely focus on what drove the Q4 reversal when the company elaborates through filings and AGM communications. Axita Cotton’s filings position these numbers as standalone performance.

Dividend recommendation: 5% or ₹0.05 per share

Axita Cotton’s board has recommended a final dividend of 5 percent, which the company stated as ₹0.05 per share. This recommendation is subject to shareholder approval at the AGM. Separately, the provided data also notes that the “current year dividend” is shown as ₹0 with a dividend yield of 0 percent, which can reflect that the dividend has been recommended but not yet approved or paid. For investors, the key next step is the AGM vote, since a recommendation does not become a payable corporate action until shareholders approve it. The company has a recorded dividend track record in recent years, which provides context for the current recommendation.

How recent quarters looked in the published table

The quarterly table shared in the article provides a view of operating and bottom-line movement across multiple reported periods (figures in ₹ crore). Net sales and profitability vary meaningfully across the periods shown, with operating profit turning positive in some quarters and negative in others. The data also lists other income, interest, depreciation, and exceptional items, allowing readers to see how non-operating line items and costs can influence profit before tax and profit after tax.

Q3 FY26: turnaround in profit even as revenue fell

For Q3 FY26, the company reported a profitability turnaround despite a sharp revenue decline year-on-year. Revenue from operations for Q3 FY26 was ₹89.3985 crore, compared with ₹228.0380 crore in Q3 FY25, a decline of 60.80 percent. Net profit for Q3 FY26 was ₹2.5958 crore versus a loss of ₹1.2204 crore in Q3 FY25, described as a turnaround. Basic EPS for Q3 FY26 was ₹0.07 compared with ₹-0.03 in Q3 FY25. Total income for Q3 FY26 was ₹89.6347 crore against ₹229.0255 crore in Q3 FY25, down 60.90 percent. These numbers were part of the unaudited standalone results approved by the board on January 5, 2026 and published on January 7, 2026.

Nine-month FY26 performance: profit up, revenue down

For the nine-month period ended December 31, 2025, the company reported net profit of ₹4.2437 crore, up from ₹2.9504 crore in the corresponding period of FY25, a growth of 43.80 percent. At the same time, revenue from operations for the nine-month period declined to ₹309.3660 crore from ₹512.8560 crore, down 39.70 percent. Basic EPS for the nine-month period was ₹0.12 versus ₹0.08, an increase of 50 percent. This combination of lower revenue and higher profit is important for interpreting FY26, because it suggests margins and cost structure had improved for much of the year before the Q4 loss.

FY25 context from the annual report numbers

The included annual report extract for FY2024-2025 states standalone revenue from operations of ₹652.7158 crore, compared with ₹1,102.5832 crore in the previous year. It also reports EBITDA of ₹2.8763 crore for FY2024-2025 versus ₹29.3607 crore in the previous year. Profit after tax in that table is ₹1.0934 crore for FY2024-2025 compared with ₹20.3356 crore for the prior year shown in the table. The longer history table also lists net profit at ₹20.34 crore for March 2024 and ₹1.09 crore for March 2025, highlighting how sharply profitability moved year to year. This background helps explain why markets may react strongly to quarterly swings.

Business profile and operational focus

The article describes Axita Cotton as a Gujarat-based manufacturer and exporter of cotton bales and yarn. It also notes the company’s focus on organic and BCI cotton, with an emphasis on sustainability through eco-friendly practices and renewable energy. This positioning is relevant because cotton procurement, export demand, and working-capital cycles can affect reported quarterly performance. The text also notes that in Q4 FY25 the company reported “zero revenue and profit,” indicating operational stagnation in that period. For FY26 Q1, the company reported revenue of ₹159.28 crore and net profit of ₹1.33 crore, with revenue increasing year-on-year but net profit declining.

Corporate actions and board meeting timeline

The dividend history section states Axita Cotton has declared three dividends since September 19, 2022: ₹0.50 per share (final, ex-date September 19, 2022), ₹0.10 per share (interim, ex-date November 17, 2023), and ₹0.10 per share (final, ex-date August 28, 2024). The text also mentions a 1:3 bonus issue recommendation in November 2023 and notes the last bonus declared was on August 9, 2024. A capital table in the article shows paid-up share capital of ₹34.77 crore before the bonus and ₹38.25 crore after, with equity shares increasing from 34,77,72,501 to 38,25,49,751 while face value remained ₹1.00. It also lists board meeting dates including January 5, 2026 for quarterly results, bonus issue and others, and additional quarterly result meetings on November 14, 2025, August 11, 2025, May 26, 2025, and February 10, 2025.

Market view markers cited in the article

The article cites MarketsMojo assigning a ‘Hold’ rating to the stock as of April 13, 2026. It also notes that MarketsMojo had issued a ‘Strong Sell’ rating in late 2024 due to a sharp decline in performance, and flags concerns around high valuation. Separately, it cites A R Ramachandran, a part-time SEBI-registered research analyst at Tips2trades, who said the stock shows bearish sentiment with resistance at ₹10.84 on daily charts. The same note adds that a daily close below support of ₹9.70 could lead to a target of ₹8.20 in the near term. These are cited as third-party views and technical levels, not company guidance.

What investors are likely to track next

The immediate event on the calendar is shareholder approval of the proposed 5 percent final dividend at the AGM. Investors will also look for any additional explanation of the Q4 FY26 loss that followed a profitable nine-month period and a profitable full year overall. Given the company’s recent pattern of revenue decline alongside profit improvement in earlier FY26 updates, attention will likely stay on operating efficiency, cost control, and the sustainability of margins. The article also provides an operating margin figure of 0.211209840484941 percent for the current financial year, which signals thin operating profitability in percentage terms. For shareholders, the AGM outcome and subsequent corporate action timelines will be the key confirmable next steps.

Key snapshot from the FY26 announcement

Conclusion

Axita Cotton closed FY26 with a net profit of ₹1.90 crore on revenue of ₹370.40 crore, while Q4 FY26 recorded a loss of ₹2.34 crore. The board’s proposed final dividend of 5 percent adds a near-term decision point for shareholders at the AGM. Recent disclosures also show a profit turnaround in Q3 FY26 and higher nine-month profit despite lower revenue, underscoring how quickly performance has shifted across periods. The next confirmed milestone is shareholder voting on the dividend recommendation, after which any payout process would follow the approved timeline.