Axita Cotton LimitedQ2 FY27 Results & Financial Update
Axita Cotton Limited: Q2 FY27 standalone results and company financials – revenue ₹67.76 Cr, PAT ₹5.53 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Axita Cotton Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Axita Cotton Limited reported standalone revenue from operations of INR 67.76 crore for the quarter ended September 30, 2026, marking a 16.27% sequential expansion compared to INR 58.28 crore in Q1 FY27.
Total income for Q2 FY27 reached INR 68.47 crore, up from INR 61.99 crore in the preceding quarter, supported by higher operational turnover.
Profit after tax (PAT) rose sharply to INR 5.53 crore from INR 3.59 crore in the previous quarter, delivering a sequential profit growth of 53.94% and expanding the net profit margin to 8.16% from 6.16%.
Profit before tax (PBT) advanced to INR 7.21 crore compared to INR 4.74 crore in Q1 FY27, reflecting stronger operating margins and disciplined expense management.
Basic and diluted earnings per share (EPS) for the standalone entity increased to INR 0.14 for the quarter, compared to INR 0.09 in the June 2026 quarter.
Tax expenses for the quarter stood at INR 1.68 crore, including current tax of INR 2.02 crore offset by a deferred tax credit of INR 0.34 crore.
01 · Business model
What does Axita Cotton do?
Axita Cotton Limited operates in the textile sector, focusing on the processing and export of cotton lint and cottonseed, alongside related trading activities.
Headquartered in Gujarat, India, the company leverages regional agricultural strengths to source raw cotton and serves domestic and international buyers.
Its primary revenue engine is the purchase and sale of stock-in-trade and manufactured cotton goods, supported by investment income and lending operations.
02 · Historical context
What shaped the business before this quarter
Previously, at the 13th Annual General Meeting held on September 29, 2026, shareholders approved a final dividend of INR 0.05 per equity share for the financial year ended March 31, 2026.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹67.76 Cr | ₹58.28 Cr |
| Total income | ₹68.47 Cr | ₹61.97 Cr |
| Profit before tax | ₹7.21 Cr | ₹4.74 Cr |
| Profit after tax | ₹5.53 Cr | ₹3.59 Cr |
| EPS | ₹0.14 | ₹0.09 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 8.2% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 10.6% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹0.71 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue from operations grew sequentially to INR 67.76 crore in Q2 FY27 from INR 58.28 crore in Q1 FY27, driven by higher execution in trade and processing lines.
Other income moderated to INR 0.71 crore in Q2 FY27 from INR 3.69 crore in Q1 FY27, which had benefited from larger fair-value investment gains.
What drove margins
Purchase of stock-in-trade stood at INR 58.03 crore during the quarter, moving in line with expanded revenue scale compared to INR 53.51 crore in Q1 FY27.
Finance costs declined significantly to INR 0.22 crore in Q2 FY27 from INR 0.51 crore in Q1 FY27, while depreciation and amortization remained steady at INR 0.16 crore.
PAT margin improved by approximately 200 basis points sequentially to 8.16% in Q2 FY27, aided by lower relative financing overheads and effective tax structuring.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The company maintains a single reportable business segment in its standalone financial statements under Ind AS 108, representing cotton and textile operations.
06 · Reported developments
What changed operationally
Standalone PAT expanded by 53.94% quarter-on-quarter to INR 5.53 crore alongside a 16.27% increase in operating revenue.
07 · Items worth noticing
The line items that can distort a quick read
The filing reports provisions of INR 2.50 crore for the current quarter under standalone results.
08 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
For the half year ended September 30, 2026, net cash generated from operating activities reached INR 15.71 crore, marking a turnaround from cash used in the corresponding period of the previous year.
Cash and cash equivalents stood at INR 27.94 crore as of September 30, 2026, up from INR 15.98 crore at the end of March 2026.
Capital allocation & funding
Current borrowings stood at INR 85.13 crore as of September 30, 2026, decreasing from INR 171.36 crore as of March 31, 2026.
09 · Beyond the numbers
What changed beyond the numbers
Reported update
Dividend Payment
The final dividend of INR 0.05 per equity share for FY26, approved at the AGM on September 29, 2026, was deposited into a separate bank account and disbursed to shareholders following the quarter end.
10 · Previous-quarter changes
What changed since the previous quarter
Revenue advanced from INR 58.28 crore in Q1 FY27 to INR 67.76 crore in Q2 FY27, reversing previous quarter compression.
11 · Key Q&A
The quarter, answered directly
What does Axita Cotton do?
Axita Cotton Limited operates in the textile sector, focusing on the processing and export of cotton lint and cottonseed, alongside related trading activities.
What is the clearest takeaway from Q2 FY27?
Axita Cotton Limited reported standalone revenue from operations of INR 67.76 crore for the quarter ended September 30, 2026, marking a 16.27% sequential expansion compared to INR 58.28 crore in Q1 FY27.
What drove revenue or demand?
Revenue from operations grew sequentially to INR 67.76 crore in Q2 FY27 from INR 58.28 crore in Q1 FY27, driven by higher execution in trade and processing lines.
What mattered most for margins or profitability?
Purchase of stock-in-trade stood at INR 58.03 crore during the quarter, moving in line with expanded revenue scale compared to INR 53.51 crore in Q1 FY27.
What changed operationally beyond the headline numbers?
The final dividend of INR 0.05 per equity share for FY26, approved at the AGM on September 29, 2026, was deposited into a separate bank account and disbursed to shareholders following the quarter end.
What should the next disclosure help confirm?
Track future movements in short-term borrowings and trade receivables following the reduction observed in the first half of FY27.
12 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
13 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Working Capital and Borrowings: Track future movements in short-term borrowings and trade receivables following the reduction observed in the first half of FY27.
- 02
Operational Margins: Monitor whether the PAT margin expansion achieved in Q2 FY27 is sustained across subsequent quarters.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.