Gujarat Cotex's revenue grew 41%. A ₹79.64 lakh write-off did the profit in.
Annual sales surged to ₹38.44 crore on a push into agricultural trading. But the bottom line shrank to ₹10.22 lakh after a final-quarter bad-debt hit.
— 1 earlier story on Gujarat Cotex Ltd. →What's new
- Gujarat Cotex's annual revenue grew 40.8% to ₹38.44 crore, with agricultural trading contributing ₹15.23 crore.
- Annual net profit fell from ₹22.13 lakh to ₹10.22 lakh.
- A Q4 loss of ₹72.39 lakh was triggered by the bad-debt write-off.
Why this matters
The topline story is real: agricultural trading now makes up nearly 40% of turnover. But the write-off reveals a classic small-cap risk. A single bad quarter can erase a full year's profit when margins are this thin.
What we're watching
- Whether the agricultural trading segment's growth is sustainable.
- Asset quality in coming quarters after the large write-off.
- Management's plan to address irrecoverable dues.
The full read
Gujarat Cotex grew its top line by 40.8% to ₹38.44 crore in FY26. Its agricultural trading push now makes up nearly 40% of sales. The strategic shift is working. The profit story is the opposite. A ₹79.64 lakh write-off for bad debts in Q4 turned the quarter into a ₹72.39 lakh loss and dragged the full-year net profit down to just ₹10.22 lakh, from ₹22.13 lakh a year ago. The write-off alone was nearly eight times the final profit. For a nano-cap with a ₹68 crore market value, that kind of earnings volatility is the cost of doing business on thin margins with lumpy receivables. Revenue growth is real. So is the risk that one bad quarter can erase it.
Questions answered
- How did Gujarat Cotex achieve 40.8% revenue growth?
- The growth was driven by diversification into agricultural trading. That segment contributed ₹15.23 crore, or nearly 40% of the ₹38.44 crore total turnover for FY26.
- Why did profit fall even as revenue surged?
- A one-time write-off of ₹79.64 lakh for irrecoverable bad debts in the fourth quarter caused a ₹72.39 lakh quarterly loss. This single item was larger than the company's entire annual net profit of ₹10.22 lakh.
- What does the write-off indicate about the business?
- It highlights operational risks in the company's receivables. For a nano-cap with a market cap of ₹68 crore, such a write-off directly impacts the thin profit margin, showing vulnerability to non-recoverable dues.
- Is the agricultural trading segment sustainable?
- The filing does not state whether the segment's contribution is recurring. The ₹15.23 crore from agricultural trading drove the year's growth, but its consistency is the open question.
Gujarat Cotex Ltd.
Latest quarter · Mar 2026
Strength & growth
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All notes on GUJCOTEX →- 29 May 2026 · 7:48 PM IST Gujarat Cotex's revenue grew 41%. A ₹79.64 lakh write-off did the profit in.
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