AKI India Q4 FY26 Net Profit Jumps to ₹58.24 Lakhs; Internal Auditor Appointed

AKI India Limited reported a sharp improvement in profitability for Q4 FY26, with standalone net profit after tax rising to ₹58.24 lakhs from ₹12.44 lakhs in the corresponding quarter of the previous year. The Board of Directors, at its meeting held on May 15, 2026, approved the standalone and consolidated audited financial results for the quarter and year ended March 31, 2026, in accordance with Indian Accounting Standards (Ind AS). The statutory auditors, M/s. R K Parmarhi & Co., issued an unmodified opinion on the audited financial results. The company operates in a single primary segment — Leather & Leather Goods.

Standalone Financial Performance

On a standalone basis, total income from operations for Q4 FY26 stood at ₹2,281.37 lakhs, compared to ₹2,029.07 lakhs in Q4 FY25. Total expenses for the quarter were ₹2,192.78 lakhs, resulting in a profit before tax of ₹88.59 lakhs. For the full year FY26, standalone net profit after tax was ₹144.25 lakhs, against ₹163.37 lakhs in FY25. The following table summarises key standalone financial metrics:

Metric:	Q4 FY26	Q4 FY25	FY26	FY25
Net Sales/Income from Operations (₹ Lakhs):	2,167.62	1,704.60	6,471.49	6,865.83
Total Income from Operations (₹ Lakhs):	2,281.37	2,029.07	6,919.01	7,507.34
Total Expenses (₹ Lakhs):	2,192.78	1,903.34	6,704.46	7,245.08
Profit Before Tax (₹ Lakhs):	88.59	43.09	214.55	262.26
Net Profit After Tax (₹ Lakhs):	58.24	12.44	144.25	163.37
Basic EPS (₹):	0.06	0.01	0.14	0.18
Diluted EPS (₹):	0.06	0.01	0.14	0.18

The company's paid-up equity share capital increased to ₹2,064.12 lakhs as of March 31, 2026, from ₹1,770.64 lakhs in the previous year. Other equity stood at ₹6,562.86 lakhs. On the standalone balance sheet, total assets grew to ₹13,741.09 lakhs from ₹11,009.06 lakhs, driven by an increase in current assets to ₹10,192.41 lakhs. Total equity rose to ₹8,626.98 lakhs from ₹6,488.72 lakhs. The standalone cash flow statement showed a net decrease in cash and cash equivalents of ₹67.31 lakhs for FY26, with a closing balance of ₹168.99 lakhs against an opening balance of ₹236.30 lakhs.

Consolidated Financial Performance

At the consolidated level, which includes AKI India Limited, AKI UK Limited, and AKI Castil Shoes LLP, the company demonstrated stronger operational scale. Consolidated total income from operations for Q4 FY26 rose to ₹4,020.58 lakhs from ₹2,723.84 lakhs in Q4 FY25. Net profit after tax for the quarter improved to ₹76.45 lakhs from ₹13.36 lakhs in the prior-year quarter. The table below presents key consolidated financial highlights:

Metric:	Q4 FY26	Q4 FY25	FY26	FY25
Net Sales/Income from Operations (₹ Lakhs):	3,657.87	2,402.00	10,732.75	8,096.18
Total Income from Operations (₹ Lakhs):	4,020.58	2,723.84	11,831.02	8,748.57
Total Expenses (₹ Lakhs):	3,907.13	2,597.18	11,559.90	8,481.89
Profit Before Tax (₹ Lakhs):	113.45	44.02	271.12	266.68
Net Profit After Tax (₹ Lakhs):	76.45	13.36	193.44	167.78
Basic EPS (₹):	0.07	0.02	0.19	0.19
Diluted EPS (₹):	0.07	0.02	0.19	0.19

The consolidated balance sheet reflected total assets of ₹16,014.46 lakhs as of March 31, 2026, up from ₹11,436.63 lakhs in the previous year. Total equity on a consolidated basis stood at ₹10,032.07 lakhs. The consolidated cash flow statement recorded a net increase in cash and cash equivalents of ₹191.19 lakhs for FY26, with a closing balance of ₹469.31 lakhs against an opening balance of ₹278.12 lakhs.

Related Party Transactions

During the reporting period, AKI India disclosed related party transactions as part of its half-yearly filing. Key transactions included sales of goods or services to AKI UK Limited (wholly owned subsidiary) valued at ₹1,229.72 lakhs and to AKI Castil Shoes LLP (joint venture) valued at ₹1,179.53 lakhs. Remuneration paid to directors included ₹9.94 lakhs to Samina Asad Iraqi, ₹10.93 lakhs to Mohammad Ajwad, and ₹5.50 lakhs to Mohammad Asjad.

Internal Auditor Appointment

At the same Board meeting on May 15, 2026, the Board approved the appointment of M/s. Shaunak Mall and Associates as Internal Auditor for the financial year 2026-27. The firm, a Cost Management Accountant based in Kanpur, brings 15 years of experience in cost audit, internal audit, and management consultancy. The details of the appointment are summarised below:

Parameter:	Details
Firm Name:	M/s. Shaunak Mall and Associates
FRN:	004072
Designation:	Internal Auditor
Date of Appointment:	May 15, 2026
Tenure:	Financial Year 2026-27
Location:	Kanpur
Experience:	15 years in Cost Audit, Internal Audit & Management Consultancy

The company also confirmed that the audit report for the quarter and financial year ended March 31, 2026 carries an unmodified opinion, with no outstanding defaults on loans or debt securities reported.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.61%	+1.04%	-6.01%	-36.52%	-41.07%	-94.00%

AKI India Limited has announced significant changes to its board composition through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting held on April 8, 2026, at the company's registered office in Kanpur from 5:00 PM to 6:00 PM resulted in two new director appointments and three resignations.

New Director Appointments

The company has strengthened its independent director base with two strategic appointments effective April 8, 2026:

Director Details:	Ms. Hardika Ladha	Mr. Nandish Shaileshbhai Jani
DIN:	10942355	09565657
Position:	Additional Non-Executive and Independent Director	Additional Non-Executive and Independent Director
Qualification:	Associate Company Secretary of Institute of Company Secretary of India	Bachelor of Commerce from Aroma College of Commerce
Experience:	Corporate governance, legal compliance, secretarial functions	12 years in accounts and tax
Relationship:	Not related to any existing director	Not related to any existing director

Ms. Hardika Ladha brings expertise in corporate governance, legal compliance, and secretarial functions with a proven track record in managing incorporation processes, director appointments and resignations, and ensuring timely e-filing of statutory forms. Mr. Nandish Shaileshbhai Jani contributes over 12 years of experience in accounts and tax management.

Director Resignations

Three independent directors stepped down from their positions on April 8, 2026, citing personal reasons:

Resigned Directors:	DIN	Listed Entity Directorships
Mrs. Sarika Agrawal:	11443308	Nil
Mr. Abdul Rashid Khan:	11431050	Nil
Mr. Veqarul Amin:	00037469	Amin Tannery Limited, Super Tannery Limited

All three directors confirmed in their resignation letters that they have no material reasons for resignation beyond personal circumstances that prevent them from devoting adequate time to company affairs.

Board Committee Reconstitution

Following the board changes, AKI India has reconstituted its three key committees effective April 8, 2026:

Committee:	Chairperson	Members
Audit Committee:	Ms. Hardika Ladha	Mr. Nandish Shaileshbhai Jani, Mr. Mohammad Ajwad (Managing Director)
Nomination and Remuneration Committee:	Ms. Hardika Ladha	Mr. Nandish Shaileshbhai Jani, Mr. Mohammad Asjad (Non-Executive Director)
Stakeholder Relationship Committee:	Ms. Hardika Ladha	Mr. Nandish Shaileshbhai Jani, Mr. Mohammad Asjad (Non-Executive Director)

Regulatory Compliance

The company has fulfilled all disclosure requirements under SEBI regulations, communicating the board changes to both BSE Limited (Security Code: 542020) and National Stock Exchange Limited. The filing includes comprehensive details such as director profiles, resignation letters with detailed reasons, and complete committee restructuring information as mandated by SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023.

This governance restructuring positions AKI India with fresh independent oversight while maintaining regulatory compliance and board effectiveness under the leadership of Managing Director Mohammad Ajwad (DIN: 07902475).