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Ambika Cotton Mills to Expand Capacity to 120,816 Spindles with ₹57 Cr Investment
Ambika Cotton Mills has successfully commissioned 6,048 spindles for specialty yarn and announced a further addition of 6,480 spindles by May 2026. This total expansion of 12,528 spindles will increase the company's total capacity to 120,816 spindles. The project includes solar capacity for captive consumption to manage energy costs. The total investment of ₹57.00 Crores will be funded entirely through internal accruals, reflecting a strong debt-free growth strategy.
Key Highlights
Commissioned 6,048 spindles for specialty yarn production at Dindigul, Tamil Nadu
Proposed addition of 6,480 spindles scheduled for commissioning in May 2026
Total spindle capacity to reach 120,816 units following the expansion
Estimated project cost of ₹57.00 Crores includes solar power for captive use
Funding to be met entirely through internal accruals, maintaining a healthy balance sheet
💼 Action for Investors
Investors should view this as a positive development as the company is expanding its high-margin specialty yarn capacity without taking on debt. Monitor the progress of the May 2026 commissioning for timely execution.
Ambika Cotton Q3 Net Profit Rises 6% YoY to ₹15.17 Cr; Announces ₹57 Cr Capacity Expansion
Ambika Cotton Mills reported a steady Q3 FY26 performance with a Net Profit of ₹15.17 Cr, marking a 6.2% increase from ₹14.28 Cr in the same quarter last year. Revenue from operations grew 11.5% YoY to ₹174.17 Cr, although it saw a sequential decline from ₹199.64 Cr in Q2. The company is aggressively expanding its manufacturing footprint, with a total of 12,528 new spindles being added at a cost of ₹57 Cr. Importantly, this expansion and associated solar power projects are being funded entirely through internal accruals, highlighting strong cash flow management.
Key Highlights
Net Profit for Q3 FY26 stood at ₹15.17 Cr, up from ₹14.28 Cr in Q3 FY25.
Revenue from operations increased to ₹174.17 Cr compared to ₹156.26 Cr in the year-ago period.
Announced a ₹57 Cr expansion plan to reach a total capacity of 120,816 spindles by May 2026.
Expansion is funded via internal accruals, avoiding additional debt burden.
Quarterly results were impacted by a foreign currency fluctuation loss of ₹4.14 Cr.
💼 Action for Investors
Investors should take note of the company's ability to fund significant capacity expansion through internal accruals while maintaining profitability. The stock remains a watch for long-term growth as the new spindle capacity comes online in mid-2026.