A field experiment was conducted during kharif, 2013 to evaluate the nutrient requirement of Bt cotton vis-a-vis fertilizer practices in vogue in Adilabad district of Telangana state. At different growth stages, except control, all other treatments recorded higher number of moopodial and sympodial branches than 100% RDF. Incremental doses of fertilizers increased number of bolls plant-1 but very high doses practiced by farmers did not help in increasing boll number. Increasing fertilizers doses from 100% RDF to 150% RDF resulted in increasing kapas yield but it was on par with yield attained in 100% RDF+ @ 30 kg ha-1 and soil test based recommendations. Economic analysis indicated that application of very high doses of fertilizers did not help in getting higher net returns or higher benefit cost ratio. Maximum net returns and B: C ratio were obtained with 100% RDF + S @ 30 kg ha-1 followed by soil test based recommendations. Soil physico-chemical properties and status of available N,K ,S and micronutrients did not vary significantly with various fertilizer treatments. Phosphorus availability was significantly high in farmer's practice over all other treatments. The total aerobic microbial population was suppressed by the use of excess fertilizers and population was high in lower fertilizer doses like 100 RDF. Other microbial properties like population of Psuedomonas, Azotobacter and MBC did not differ significantly. It is rational to follow soil test based fertilizer application or to adopt the present recommendation of 150:60:60 kg NPK ha-1 along with 30 kg sulphur for profitable cultivation of Bt cotton in Adilabad district of Telangana State.