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Ambika Cotton Mills Ltd: Stock Analysis & Fundamentals

Updated this week

Ambika Cotton Mills Ltd (Textiles - Spinning) — fundamental analysis, earnings data, and key metrics. PE: 10.7. ROE: 7.5%. This stock is not currently in the Nifty 500 momentum outperformers list.

What's Happening

💪Debt reduced 100% YoY — balance sheet strengthening

Earnings Acceleration Triggers

1. Domestic market expansion driving revenue growth
OngoingMEDIUM
2. Profitability resilience despite margin pressure
Current quarterMEDIUM
3. Nine-month performance showing recovery trajectory
Q4 FY26MEDIUM

Key Risks

1. Margin compression trend continuing
MEDIUM
2. Working capital deterioration
MEDIUM
3. Rising interest costs pressure
LOW

Key Numbers

Current Price
₹1,176
Dividend Yield
3.15%
Market Cap
673 Cr
Valuation
N/A

Why Are Ambika Cotton Mills Ltd's Earnings Accelerating?

Based on Q3 FY26 earnings • Updated Feb 22, 2026

Domestic market expansion driving revenue growth

Expected: OngoingMEDIUM confidence+₹174.17 Cr revenue

What: Double-digit revenue growth (11.5% YoY) showing strong domestic demand

Impact: +₹174.17 Cr revenue

“Sales was INR 1,741.7 million compared to INR 1,562.6 million a year ago”

Profitability resilience despite margin pressure

Expected: Current quarterMEDIUM confidence

What: PAT growth (6.2% YoY) achieved despite OPM compression

“Net income was INR 151.7 million compared to INR 142.8 million a year ago”

Nine-month performance showing recovery trajectory

Expected: Q4 FY26MEDIUM confidence

What: Slowing rate of PAT decline from H1 to 9M indicates potential inflection point

“Net income was INR 470.3 million compared to INR 498.8 million a year ago”

What Are the Key Risks for Ambika Cotton Mills Ltd?

Earnings deceleration risks from management commentary

Margin compression trend continuing

MEDIUM

Trigger: Continued input cost pressures

Impact: -240 bps margin impact

Management view: Not explicitly addressed in Q3 FY26 results

Monitor: OPM trend

Working capital deterioration

MEDIUM

Trigger: Further decline in operating profit to interest ratio

Management view: Not directly addressed in Q3 FY26 results

Monitor: Operating profit to interest ratio

Rising interest costs pressure

LOW

Trigger: Continued borrowing at higher rates

Management view: Not explicitly addressed in Q3 FY26 results

Monitor: Interest expense trend

What Is Ambika Cotton Mills Ltd's Management Saying?

Key quotes from recent conference calls

“Sales was INR 1,741.7 million compared to INR 1,562.6 million a year ago. Revenue was INR 1,770.7 million compared to INR 1,625.7 million a year ago. Net income was INR 151.7 million compared to INR 142.8 million a year ago. — Management”
“For the nine months, sales was INR 5,657.9 million compared to INR 5,657.6 million a year ago. Revenue was INR 5,754.4 million compared to INR 5,852.3 million a year ago. Net income was INR 470.3 million compared to INR 498.8 million a year ago. — Management”

What Is Ambika Cotton Mills Ltd's Management Guidance?

Forward-looking targets from management for next 2-4 quarters

Management Tone: CAUTIOUS

Key Milestones

• Q4 FY26 performance

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.

Other Top Textiles - Spinning Stocks Beating Nifty 500

Vardhman Textiles Ltd
Weak • 8w streak
+29.6%
Sangam (India) Ltd
Average • 7w streak
+5.6%
Nitin Spinners Ltd
Average • 6w streak
+24.8%
Pashupati Cotspin Ltd
Weak • 7w streak
+32.6%
Sportking India Ltd
Average
+39.0%
← Back to Textiles - SpinningDashboard

Frequently Asked Questions: Ambika Cotton Mills Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Ambika Cotton Mills Ltd's latest quarterly results?

Ambika Cotton Mills Ltd's latest quarterly results (Dec 2025) show

  • PAT Growth YoY: +7.1%
  • Revenue Growth YoY: +11.5%
  • Operating Margin: 14.0%

What is Ambika Cotton Mills Ltd's current PE ratio?

Ambika Cotton Mills Ltd's current PE ratio is 10.7x.

  • Current PE: 10.7x
  • Market Cap: 673 Cr
  • Dividend Yield: 3.15%

What is Ambika Cotton Mills Ltd's price-to-book ratio?

Ambika Cotton Mills Ltd's price-to-book ratio is 0.7x.

  • Price-to-Book (P/B): 0.7x
  • Book Value per Share: ₹1635
  • Current Price: ₹1176

Is Ambika Cotton Mills Ltd a fundamentally strong company?

Ambika Cotton Mills Ltd's fundamental strength based on key financial ratios

  • Return on Capital (ROCE): 11.0%

Is Ambika Cotton Mills Ltd debt free?

Ambika Cotton Mills Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹51 Cr

What is Ambika Cotton Mills Ltd's return on equity (ROE) and ROCE?

Ambika Cotton Mills Ltd's return ratios over recent years

  • FY2023: ROCE 21.0%
  • FY2024: ROCE 11.0%
  • FY2025: ROCE 11.0%

Is Ambika Cotton Mills Ltd's cash flow positive?

Ambika Cotton Mills Ltd's operating cash flow is positive (FY2025).

  • Cash from Operations (CFO): ₹129 Cr
  • Free Cash Flow (FCF): ₹106 Cr
  • CFO/PAT Ratio: 195% (strong cash conversion)

What is Ambika Cotton Mills Ltd's dividend yield?

Ambika Cotton Mills Ltd's current dividend yield is 3.15%.

  • Dividend Yield: 3.15%
  • Current Price: ₹1176

Who holds Ambika Cotton Mills Ltd shares — promoters, FII, DII?

Ambika Cotton Mills Ltd's shareholding pattern (Dec 2025)

  • Promoters: 50.4%
  • FII (Foreign): 0.4%
  • DII (Domestic): 1.6%
  • Public: 47.6%

Is promoter holding increasing or decreasing in Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd's promoter holding has remained stable recently.

  • Current Promoter Holding: 50.4% (Dec 2025)
  • Previous Quarter: 50.4% (Sep 2025)
  • Change: 0.00% (stable)

Is Ambika Cotton Mills Ltd a new momentum entry or an established outperformer?

Ambika Cotton Mills Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.

What are the growth catalysts for Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd has 3 key growth catalysts identified from recent earnings analysis

  • Domestic market expansion driving revenue growth
  • Profitability resilience despite margin pressure
  • Nine-month performance showing recovery trajectory

What are the key risks in Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd has 3 key risks worth monitoring

  • Margin compression trend continuing
  • Working capital deterioration
  • Rising interest costs pressure

What did Ambika Cotton Mills Ltd's management say in the latest earnings call?

In Q3 FY26, Ambika Cotton Mills Ltd's management highlighted

  • "Sales was INR 1,741.7 million compared to INR 1,562.6 million a year ago. Revenue was INR 1,770.7 million compared to INR 1,625.7 million a year ago. ..."
  • "For the nine months, sales was INR 5,657.9 million compared to INR 5,657.6 million a year ago. Revenue was INR 5,754.4 million compared to INR 5,852.3..."

What is Ambika Cotton Mills Ltd's management guidance for growth?

Ambika Cotton Mills Ltd's management has provided the following forward guidance for next 2-4 quarters

  • Management tone: cautious
  • Milestone: Q4 FY26 performance

Is Ambika Cotton Mills Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Ambika Cotton Mills Ltd may be worth studying

  • Cash flow is positive — CFO ₹129 Cr

What is the investment thesis for Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd investment thesis summary:

Research Signals (Bull Case)

  • Growth catalyst: Domestic market expansion driving revenue growth

Risk Factors (Bear Case)

  • Key risk: Margin compression trend continuing

What is the future outlook for Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd's forward outlook based on current data signals

  • Key Catalyst: Domestic market expansion driving revenue growth
  • Key Risk: Margin compression trend continuing

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.