Acknit Industries reported a net profit of ₹818.41 lakh for the financial year ended March 31, 2026, marking a 9% decline from the ₹899.51 lakh recorded in FY25. Total revenue remained largely unchanged at ₹24,076.43 lakh, compared to ₹24,084.81 lakh in the previous year, reflecting a marginal decrease of 0.03%.

The decline in profitability was primarily driven by a significant increase in finance costs, which rose to ₹389.17 lakh from ₹293.45 lakh in FY25. This surge in interest expenses offset the operational stability seen in gross profit, which stood at ₹1,798.13 lakh against ₹1,839.48 lakh in the prior year.

Segment Performance

The company operates across four distinct segments, with Hand Gloves and Garments contributing the majority of revenues.

While the core Hand Gloves segment saw a revenue contraction of 7.7%, the Garments segment delivered strong growth, with revenue increasing by 10.9% to ₹8,969.39 lakh. The "Others" segment, comprising non-conventional industrial safety gears, also expanded its revenue by 8.4% to ₹2,351.26 lakh and improved its surplus to ₹62.35 lakh from ₹17.59 lakh.

What the Numbers Show

A notable divergence exists between the company's operating efficiency and its bottom-line performance. While gross profit before depreciation and finance cost declined marginally by just 2.2%, net profit fell by 9%. This discrepancy highlights the outsized impact of financing costs on the final result. Finance costs now constitute approximately 32% of gross profit, up from roughly 16% in the previous year, indicating that debt servicing is becoming a more significant drag on shareholder returns.

Dividend and Capital Allocation

The Board of Directors has recommended a final dividend of ₹1.50 per equity share, representing a 15% payout on the face value of ₹10. This translates to a total appropriation of ₹45.60 lakh, subject to shareholder approval at the Annual General Meeting scheduled for September 16, 2026. The company also proposed transferring ₹500 lakh to the General Reserve.

Governance Updates

Acknit Industries will hold its 36th AGM via video conferencing. Key agenda items include the re-appointment of Whole-time Director Mr. Deo Kishan Saraf and the appointment of two new Non-Executive Independent Directors, Mr. Tushar Jhunjhunwala and Mr. Amitava Mazumder. Additionally, the company altered its Main Object Clause in December 2025 to facilitate diversification into new business areas.

Acknit Industries has appointed Tushar Jhunhunwala and Amitava Mazumder as Non-Executive Independent Directors effective July 14, 2026. The Board of Directors also approved the re-appointment of Shankar Lal Bajaj for a second term of five years starting September 25, 2026. These changes are subject to the approval of shareholders at the ensuing General Meeting.

The appointments follow recommendations by the Nomination and Remuneration Committee. The company confirmed that the directors are not debarred from holding the office of Director by virtue of any SEBI order or any other authority, in compliance with circular no. LIST/COMP/14/2018-19 issued by BSE Limited.

Director Profiles and Tenures

The new appointees bring significant experience in finance, logistics, and industrial operations. The table below details the tenure and background of the three directors.

Tushar Jhunhunwala holds a Bachelor of Science in Engineering (Industrial and Operations) from the University of Michigan – Ann Arbor, USA. Amitava Mazumder holds a Bachelor of Science degree. Shankar Lal Bajaj, an undergraduate, previously served with M/S Ganges Printing Co Ltd.

Shareholder Approval and Compliance

The appointments of Jhunhunwala and Mazumder are for five consecutive years, while Bajaj's re-appointment covers his second term following the expiration of his first term on September 24, 2026. None of the directors are related to any existing members of the Board. The company has filed the necessary disclosures with BSE Ltd and The Calcutta Stock Exchange Ltd under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.