Image Source: abcotspin
Textile manufacturer A B Cotspin India Ltd (NSE: ABCOTS), with over 25 years of experience, has announced a significant order worth approximately ₹18 crore for supplying 712 metric tonnes of cotton yarn, to be executed within the next two months. This milestone order underscores the company’s growing leadership in producing high-quality cotton yarn, knitted fabrics, and eco-friendly textile products. Simultaneously, A B Cotspin is set to migrate from the NSE Emerge platform to the mainboard of both NSE and BSE, effective September 24, 2025, marking a crucial step in its growth trajectory.
Key Developments Strengthening A B Cotspin’s Outlook
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The ₹18 crore cotton yarn order is a testament to A B Cotspin’s robust market demand and operational capabilities, reinforcing its position as a trusted supplier in India’s textile sector.
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The company projects a turnover of ₹350-400 crore and an EBITDA range of ₹40-45 crore for the fiscal year 2025-26, showcasing confidence in its business expansion.
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Migration to the mainboard of NSE and BSE increases visibility and accessibility to a broader investor base, reflecting A B Cotspin’s maturing corporate stature.
Favorable Market and Policy Environment
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The Indian government has temporarily suspended the 11% import duty on cotton until September 30, 2025, aiding textile mills and exporters to manage rising input costs amid challenging global tariffs.
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Chief Economic Adviser V. Anantha Nageswaran indicated a possible reduction in the US reciprocal tariff on Indian goods from 25% potentially down to 10-15%, with a hoped-for resolution of the tariff dispute within 8-10 weeks, promising relief for exporters.
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The recently signed 2025 Free Trade Agreement (FTA) between India and the UK eliminates tariffs ranging from 8-12% on Indian textile and apparel exports, enabling significant price competitiveness against exporters from countries like China, Vietnam, and Bangladesh.
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Key textile export hubs such as Tirupur, Surat, and Ludhiana are anticipated to benefit from up to 40% growth over the next three years due to enhanced market access under the FTA.
Implications for the Textile Sector and A B Cotspin
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The import duty exemption on cotton supports input cost stability, vital for maintaining India's textile export competitiveness, especially amid increased US tariffs imposed on Indian goods.
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With tariff concessions from the UK FTA and prospective easing of US tariffs, Indian textile exporters like A B Cotspin are positioned to strengthen their global market share.
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The festival season demand and strategic order wins like the current ₹18 crore yarn supply order underline the company’s healthy order book and sustained operational momentum.
A B Cotspin’s journey from its NSE Emerge listing in January 2022 to the mainboard migration reflects its continuous growth and commitment to expanding its market footprint. With strong backing from favorable trade policies and a substantial order pipeline, the company aims to scale new heights in FY 2025-26, capitalizing on evolving global textile market dynamics.
Source: PTI News, NSE India Press Release Devdiscourse, Indian Textile Magazine
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