: This study is aimed at economic analysis of production of BT cotton in Adilabad district of Telangana state with specific objectives of determining the production trend and estimating the cost of production and farm profitability of Bt cotton in the study area. A total of six villages in the three sampled blocks viz., Koutala, Dahegoan, Bejjure mandals (Blocks) were selected randomly for the study. Altogether, 100 Bt cotton farmers which were classified in to small, medium and large farmers, in these 57, 25 and 18 respondents were sampled, respectively. Compound growth rate, cost concepts and farm profitability measures was used to analyze the primary data. The study reveals that the growth rates in area, production and productivity is positive (7.20 %, 11.30 % and 3.80%), respectively. The sample average for total cost of cultivation was Rs.52921.32/ha in Bt cotton in different size of farms group. Per hectare gross returns and net profit was Rs.86562/ha and Rs.33640/ ha, respectively. Output-input ratio was 1.92.The study indicated that, Bt cotton production is highly profitable in both study areas of India and Nigeria.The major constrains in the cultivation of cotton were poor quality of seed, labour scarcity, higher cost of fertilizer and pesticides and rainfall deficiency.