New Delhi, May 5 -- New Delhi: India's cotton yarn industry is poised for a stronger performance this fiscal, with revenue expected to grow by 7-9%, a notable rise from the modest 2-4% growth seen in FY25.

The recovery is expected to be volume-led, supported by a moderate rise in yarn prices, improving export demand-particularly from China-and stable cotton availability in the domestic market.

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According to Crisil Ratings, the sector's operating margins, which had bounced back last fiscal, are likely to improve further by 50-100 basis points in FY26. This is driven by steady cotton yarn spreads and improved availability of cotton, backed by signif...