AKI India half-year profit rises 67% to Rs 1.42 crore

AKI India Limited reported unaudited consolidated profit of Rs 1.42 crore for the half year ended September 30, 2026, up 67% from Rs 84.88 lakh a year earlier, while net sales rose 19% to Rs 53.93 crore. Profit before tax increased 52% to Rs 1.73 crore from Rs 1.14 crore.

How did AKI India perform in the first half?

AKI India increased consolidated net sales to Rs 53.93 crore in the half year ended September 30, 2026, from Rs 45.19 crore in the corresponding half year ended September 30, 2025. Total income from operations rose to Rs 57.53 crore from Rs 48.57 crore, including other income of Rs 3.60 crore compared with Rs 3.38 crore.

AKI India reported profit before tax of Rs 1.73 crore, compared with Rs 1.14 crore in the previous-year half. Tax expense was Rs 31.17 lakh, against Rs 29.17 lakh, leaving profit for the period at Rs 1.42 crore versus Rs 84.88 lakh. Profit before tax increased faster than net sales, rising 52% against the 19% sales growth.

The board approved the unaudited consolidated results on November 6, 2026. AKI India said it operates in one primary segment, Leather & Leather Goods, under Indian Accounting Standard 108. The consolidated results were subject to a limited review, which the auditor said is less extensive than an audit and does not result in an audit opinion.

Which costs changed in AKI India's half-year results?

AKI India's total expenses rose to Rs 55.73 crore in the half year ended September 30, 2026, from Rs 47.43 crore a year earlier. The increase was lower than the Rs 8.96 crore rise in total income, and profit before exceptional items and tax increased to Rs 1.80 crore from Rs 1.14 crore.

Raw-material consumption 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 inventory-change line was an expense of Rs 2.74 crore, compared with a credit of Rs 12.39 crore in the prior-year half, showing a marked change in the reported mix of materials, purchases and inventory movements.

Employee-benefit expense increased to Rs 3.18 crore from Rs 2.94 crore, while other expenses rose to Rs 7.40 crore from Rs 7.17 crore. Power and fuel expense was Rs 83.80 lakh compared with Rs 63.30 lakh, finance cost fell to Rs 97.56 lakh from Rs 1.08 crore, and depreciation and amortisation rose to Rs 98.25 lakh from Rs 94.76 lakh.

AKI India recorded an exceptional charge of Rs 6.62 lakh in the 2026 half year, while the corresponding 2025 half-year column showed no exceptional item. After that charge, profit before tax remained Rs 1.73 crore, compared with Rs 1.14 crore in the prior-year period.

What did AKI India report for the September quarter?

AKI India reported September-quarter net sales of Rs 24.89 crore, down from Rs 29.04 crore in the June 2026 quarter and Rs 27.52 crore in the September 2025 quarter. Total income was Rs 26.69 crore, compared with Rs 30.84 crore in the preceding quarter and Rs 28.93 crore a year earlier.

Profit before tax for the quarter ended September 30, 2026 was Rs 1.01 crore, compared with Rs 72.44 lakh in the June quarter and Rs 80.71 lakh in the September 2025 quarter. Profit for the period was Rs 91.03 lakh, against Rs 51.07 lakh in the preceding quarter and Rs 61.84 lakh a year earlier, despite lower sales in both comparisons.

The September-quarter expense lines included raw-material consumption of Rs 12.20 crore, stock-in-trade purchases of Rs 7.74 crore and other expenses of Rs 3.33 crore. Power and fuel cost was Rs 57.74 lakh, more than the Rs 26.06 lakh reported in June 2026, while finance cost was Rs 48.10 lakh versus Rs 49.46 lakh.

How much was AKI India's associate profit share?

AKI India reported a share of profit from associates and joint ventures of Rs 77.80 lakh for the half year ended September 30, 2026, compared with Rs 17.80 lakh in the corresponding 2025 period. The separately presented amount was therefore Rs 60 lakh higher year on year.

For the September 2026 quarter, the associate and joint-venture profit share was Rs 32.41 lakh, compared with Rs 45.39 lakh in the June 2026 quarter and Rs 15.53 lakh in the September 2025 quarter. The September-quarter figure was lower sequentially but more than double the prior-year quarterly amount.

The consolidated statement also showed minority interest of Rs 6.38 lakh for the six months, comprising Rs 2.62 lakh in the September quarter and Rs 3.76 lakh in the June quarter. AKI India reported profit for the half year of Rs 1.42 crore and presented the associate and joint-venture share on a separate line in the results statement.

What changed in AKI India's balance sheet and cash flow?

AKI India's consolidated total 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, while trade receivables declined to Rs 30.26 crore from Rs 31.00 crore and cash and cash equivalents rose to Rs 5.02 crore from Rs 4.69 crore.

Total equity was Rs 102.05 crore at September 30, compared with Rs 100.32 crore at March 31. Non-current borrowings rose to Rs 8.65 crore from Rs 4.43 crore, while current borrowings were broadly unchanged at Rs 17.01 crore from Rs 17.02 crore. Total current liabilities declined to Rs 52.74 crore from Rs 55.40 crore.

Net cash outflow from operating activities was Rs 3.33 crore for the six months ended September 30, 2026, compared with an outflow of Rs 35.52 crore a year earlier. The 2026 operating cash flow included a Rs 5.77 crore increase in inventories, against a Rs 17.22 crore increase in the earlier period, while net financing cash inflow was Rs 4.22 crore versus Rs 40.64 crore.

Conclusion

AKI India's half-year results show reported profit rising to Rs 1.42 crore as net sales reached Rs 53.93 crore and profit before tax increased to Rs 1.73 crore. The cost mix changed substantially, with lower raw-material consumption, higher stock-in-trade purchases and an inventory-change expense, while the separately disclosed associate and joint-venture profit share rose to Rs 77.80 lakh.

AKI India disclosed no financial target or next reporting date in the results announcement. The next results will show whether sales recover from the September-quarter level of Rs 24.89 crore, whether inventories move from Rs 57.15 crore, and whether operating cash flow improves from the Rs 3.33 crore half-year outflow.