AB Cotspin India projects Rs 350 crore turnover in FY2025-26

Pivoting from a regional spinning specialist into a vertically integrated textile powerhouse, Punjab-based AB Cotspin India is projecting a turnover of Rs 350 crore with an EBITDA of Rs 40-45 crore for FY 2025-26.

The company is currently executing a board-approved Rs 1,500 crore expansion plan that includes adding approximately 200,000 spindles over the next three years. This capacity surge is designed to capitalize on the ‘Bangladesh +1’ strategy, as global apparel brands increasingly divert orders to Indian hubs like Ludhiana and Tirupur due to neighboring geopolitical shifts.

Market dynamics are shifting in the company's favor; India’s cotton yarn industry is forecast to grow 7–9 per cent in FY26, boosted by a rebound in exports to China and the US. AB Cotspin is positioning itself at the intersection of this demand by diversifying its revenue mix. While cotton yarn traditionally accounted for 75 per cent of earnings, the firm expects a 50:50 split between yarn and value-added knitted fabrics by 2027. Sustainability has become a core competitive edge with the company expanding its solar footprint to 2,800 KW and integrated Global Recycling Standard (GRS) certified processes, utilizing pre- and post-consumer waste to produce eco-friendly garments. This ‘Farm-to-Fabric’ philosophy allows AB Cotspin to secure premium contracts, evidenced by recent orders totaling over Rs 18 crore, as international buyers demand transparent, green supply chains in the face of tightening environmental regulations.

Established in 1997 as a ginning plant, AB Cotspin has evolved into a fully integrated manufacturer of combed and carded cotton yarn, knitted fabrics, and cotton-related by-products like oilcakes. The Jaitu-Punjab headquartered company serves major textile clusters in India (Ludhiana, Tirupur) and exports to price-sensitive yet quality-conscious markets like China, Vietnam, and Bangladesh.