Gujarat Cotex's revenue jumps 41%. A ₹80 lakh bad-debt hit cut its profit in half.
A new agricultural-trading business drove sales to ₹38.44 crore. A one-time write-off of ₹79.64 lakh in bad debts sank the bottom line.
What's new
- FY26 revenue rose 40.8% to ₹38.44 crore; agricultural trading now makes up about 40% of sales.
- Net profit fell 54% to ₹10.22 lakh, hit by a one-time bad-debt write-off of ₹79.64 lakh in Q4.
- The Q4 loss of ₹72.39 lakh erased the profit earned in the first three quarters.
Why this matters
Gujarat Cotex is growing fast by shifting into agricultural trading. But the asset-quality risk in that model just showed up. A single bad-debt charge was enough to turn a profitable year into a near-break-even one. For a company with ₹10 lakh in net profit, that margin of error is razor-thin.
What we're watching
- Whether the bad-debt write-off is a one-off or a pattern in the new trading business.
- If agricultural trading's 40% revenue share brings more volatile, lower-margin earnings.
- How the market prices a nano-cap with ₹38 cr in revenue but ₹10 lakh in profit.
The full read
Gujarat Cotex is scaling fast. Revenue rose 40.8% to ₹38.44 crore in FY26, with a new agricultural-trading business contributing ₹15.23 crore, or about 40% of the total. The top-line story is one of successful business diversification. The bottom-line story is a warning. A one-time write-off of ₹79.64 lakh in bad debts during Q4 caused a quarterly loss of ₹72.39 lakh, which was large enough to drag the full-year net profit down 54% to ₹10.22 lakh. For a company with a ₹68 crore market cap, the results show a stark mismatch between sales growth and profit resilience. The agricultural-trading pivot is working on the revenue side. The bad-debt charge shows it carries real risk.
Questions answered
- Why did Gujarat Cotex's profit fall despite 41% revenue growth?
- A one-time write-off of ₹79.64 lakh in irrecoverable bad debts during Q4 caused a quarterly loss of ₹72.39 lakh. This was large enough to drag the full-year net profit down to ₹10.22 lakh from ₹22.13 lakh a year earlier.
- How much does agricultural trading now contribute to the business?
- Agricultural trading contributed ₹15.23 crore to FY26 revenue, or nearly 40% of the ₹38.44 crore total. It was the primary driver of the 40.8% year-on-year revenue growth.
- What was the company's market capitalization at the time of the results?
- The company's market capitalization stood at ₹68 crore, making it a nano-cap. Its ₹10.22 lakh net profit on ₹38.44 crore in revenue points to extremely thin margins.
- How does the Q4 performance compare to the rest of the year?
- The first three quarters of FY26 were profitable enough to produce a full-year profit of ₹10.22 lakh. The Q4 loss of ₹72.39 lakh, caused by the bad-debt charge, effectively erased those earnings.