AKI India first-half profit rises 67% as sales grow 19%

AKI INDIA LIMITED, referred to below as AKI India, reported consolidated first-half profit of Rs 1.42 crore for the half year ended September 30, 2026, up 67% from Rs 84.88 lakh, as net sales rose 19% to Rs 53.93 crore. Total income increased to Rs 57.53 crore while total expenses reached Rs 55.73 crore.

How did AKI India perform in the first half?

AKI India reported consolidated profit for the period of Rs 1.42 crore for the half year ended September 30, 2026, compared with Rs 84.88 lakh in the corresponding half of 2025. Profit before tax increased to Rs 1.73 crore from Rs 1.14 crore. The statement also reported a Rs 77.80 lakh share of profit from associates and joint ventures, compared with Rs 17.80 lakh a year earlier.

AKI India’s net sales, described in the filing as net sales or income from operations, rose to Rs 53.93 crore from Rs 45.19 crore. Other income increased to Rs 3.60 crore from Rs 3.38 crore, taking total income from operations to Rs 57.53 crore from Rs 48.57 crore. Total expenses rose to Rs 55.73 crore from Rs 47.43 crore, while profit before exceptional items and tax increased to Rs 1.80 crore from Rs 1.14 crore.

The board approved the unaudited consolidated results on November 6, 2026, following review by its audit committee. AKI India prepared the results under Indian Accounting Standards, known as Ind AS, and identified leather and leather goods as its only primary segment. The statutory auditor conducted a limited review and issued an unmodified conclusion on the consolidated statement.

Which first-half costs changed for AKI India?

AKI India’s expense mix changed in the September 2026 half year, as materials consumed declined to Rs 23.52 crore from Rs 35.99 crore while purchases of stock-in-trade increased to Rs 16.10 crore from Rs 11.07 crore. The change in inventories of finished goods, work in progress and stock-in-trade was an expense of Rs 2.74 crore, compared with income of Rs 12.39 crore in the previous first half.

Employee benefits expense rose to Rs 3.18 crore from Rs 2.94 crore, and power and fuel expense increased to Rs 83.80 lakh from Rs 63.30 lakh. Other expenses reached Rs 7.40 crore from Rs 7.17 crore, while depreciation and amortisation rose to Rs 98.25 lakh from Rs 94.76 lakh. Finance cost declined to Rs 97.56 lakh from Rs 1.08 crore.

AKI India reported net exceptional items of Rs 6.62 lakh for the first half of 2026, while no exceptional item was shown in the corresponding 2025 half-year column. Current tax expense was Rs 31.17 lakh, compared with Rs 29.17 lakh. The increase in profit before tax of Rs 59.22 lakh exceeded the Rs 2 lakh rise in current tax expense during the comparison.

How did the September quarter compare with June and last year?

AKI India recorded consolidated profit for the period of Rs 91.03 lakh in the quarter ended September 30, 2026, compared with Rs 51.07 lakh in the preceding June 2026 quarter and Rs 61.84 lakh in the September 2025 quarter. Profit before tax was Rs 1.01 crore, compared with Rs 72.44 lakh in June and Rs 80.71 lakh a year earlier.

September-quarter net sales were Rs 24.89 crore, lower than Rs 29.04 crore in June 2026 and Rs 27.52 crore in the corresponding quarter of 2025. Total expenses declined to Rs 25.68 crore from Rs 30.05 crore in June and Rs 28.12 crore a year earlier. The September quarter included Rs 32.41 lakh as AKI India’s share of profit from associates and joint ventures, compared with Rs 45.39 lakh in June and Rs 15.53 lakh a year earlier.

Basic and diluted earnings per share were Rs 0.04 for the September 2026 quarter, compared with Rs 0.05 in the June quarter and Rs 0.06 in the September 2025 quarter. For the half year, basic and diluted earnings per share were Rs 0.07, versus Rs 0.08 in the prior-year half. The face value of each equity share remained Rs 2.

Why was AKI India’s operating cash flow negative?

AKI India reported net cash outflow from operating activities of Rs 3.33 crore in the half year ended September 30, 2026, despite profit before tax of Rs 1.73 crore. Operating profit before working-capital changes was Rs 2.72 crore. An inventory increase of Rs 5.77 crore, a Rs 1.96 crore decline in other current liabilities and a Rs 61.51 lakh fall in trade payables contributed to the operating cash outflow.

The operating cash outflow was lower than Rs 35.52 crore in the corresponding first half of 2025. In the earlier period, inventories absorbed Rs 17.22 crore and short-term advances absorbed Rs 17.37 crore. In the 2026 half year, short-term advances added Rs 56.90 lakh, trade receivables released Rs 73.70 lakh and other current assets released Rs 1.07 crore.

Investing activities used Rs 55.69 lakh, compared with an outflow of Rs 2.84 crore a year earlier. AKI India spent Rs 45.30 lakh on fixed assets and Rs 32.62 lakh on non-current assets, partly offset by Rs 23.13 lakh from work in progress of fixed assets. Financing activities generated Rs 4.22 crore, including a Rs 4.23 crore increase in long-term borrowings, leaving cash and cash equivalents at Rs 5.02 crore on September 30, 2026.

What changed in AKI India’s balance sheet?

AKI India’s total consolidated assets were Rs 163.45 crore at September 30, 2026, compared with Rs 160.14 crore at March 31, 2026. Inventories increased to Rs 57.15 crore from Rs 51.38 crore, matching the inventory increase shown in operating cash flow. Trade receivables declined to Rs 30.26 crore from Rs 31.00 crore, while cash and cash equivalents rose to Rs 5.02 crore from Rs 4.69 crore.

Total equity increased to Rs 102.05 crore from Rs 100.32 crore. Other equity rose to Rs 68.02 crore from Rs 66.29 crore, while equity share capital was unchanged at Rs 20.64 crore and non-controlling interest remained Rs 13.39 crore. Non-current borrowings increased to Rs 8.65 crore from Rs 4.43 crore during the six months.

Current liabilities declined to Rs 52.74 crore from Rs 55.40 crore. Current borrowings were Rs 17.01 crore against Rs 17.02 crore at March 31, while trade payables fell to Rs 24.25 crore from Rs 24.86 crore and other current liabilities declined to Rs 8.91 crore from Rs 10.86 crore. Property, plant and equipment decreased to Rs 13.06 crore from Rs 13.59 crore, while capital work-in-progress fell to Rs 9.30 crore from Rs 9.53 crore.

Conclusion

AKI India’s first-half figures show profit rising faster than sales, with consolidated profit increasing 67% to Rs 1.42 crore as net sales rose 19% to Rs 53.93 crore. The period also included higher purchases of stock-in-trade, a shift in inventory movement expense and a Rs 77.80 lakh share of profit from associates and joint ventures.

The next results will show whether the Rs 57.15 crore inventory balance, which was Rs 51.38 crore at March 31, moves lower or continues to absorb cash. AKI India also reported Rs 8.65 crore of non-current borrowings after a Rs 4.23 crore financing inflow from higher long-term borrowings during the half year.