Acknit Industries announced the demise of Independent Director Shankar Lal Bajaj, who passed away on August 21, 2026. The company confirmed his cessation from the board effective the same date.

The firm received formal intimation regarding the event only on August 26, 2026. Consequently, it made this disclosure immediately upon receipt of the information. The delay in reporting was solely due to the company's lack of awareness until that date.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Acknit Industries assured that necessary measures will be taken to ensure timely compliance with applicable disclosure requirements going forward.

Board Response

The Board of Directors and management placed on record their deep condolences for the loss. They acknowledged Mr. Bajaj's valuable contribution and guidance during his tenure as an Independent Director. The company stated that the resultant vacancy will be filled within the stipulated time as permissible under the law.

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.