Stock Report

Ambika Cotton Mills Announces ₹185 Crore Capacity Expansion and Unit IV Modernization Funded via Internal Accruals

Posted On : 2026-07-24 15:13:19( TIMEZONE : IST )

Leading premium yarn manufacturer Ambika Cotton Mills Limited (NSE: AMBIKCO | BSE: 531978 | CIN: L17115TZ1988PLC002269) has submitted a general business update detailing its ongoing spindle expansion and a major modernization plan for Unit IV totaling ₹185 crore.

The company confirmed that all expansion and modernization initiatives are being funded entirely through internal accruals, requiring no debt financing.

Strategic Capacity Expansion & Modernization Highlights

Recent Spindle Expansion Operationalized: An addition of 6,048 spindles has already commenced commercial operations.

Ongoing Expansion Near Completion: An additional 6,480 spindles are currently nearing completion.

Investment & Funding for Spindle Expansion: The total cost of ₹50 crore for these two spindle additions was fully met out of internal accruals.

Proposed Unit IV Modernization: Ambika Cotton Mills plans to modernize the existing 43,000 spindles of Unit IV, upgrading them to 45,000 spindles equipped with state-of-the-art machinery.

Estimated Outlay & Funding for Modernization: The estimated cost of ₹135 crore for Unit IV will also be funded completely via internal accruals.

Project Timeline: Modernization work for Unit IV is scheduled to commence in November 2026 and is expected to be completed by March 2027.

The management highlighted that these capital expenditure initiatives are designed to strengthen the company's production base, drive higher operational productivity, and further enhance yarn quality standards.

Shares of Ambika Cotton Mills Limited was last trading in BSE at Rs. 1701.95 as compared to the previous close of Rs. 1714.80. The total number of shares traded during the day was 1106 in over 163 trades.

The stock hit an intraday high of Rs. 1747.95 and intraday low of 1688.00. The net turnover during the day was Rs. 1895471.00.