AKI India has recommended material related party transactions with M/s. AKI UK Limited for shareholder approval at its upcoming annual general meeting. The company’s Board of Directors also approved the notice for the 32nd AGM.

The board meeting took place on September 1, 2026, at the company’s registered office in Kanpur Nagar, Uttar Pradesh. The session commenced at 5:00 pm and concluded at 6:00 pm.

Key Decisions

The board considered and approved the following items during the meeting:

• Recommendation of material related party transactions with AKI UK Limited, as previously approved by the Audit Committee.
• Approval of the Notice of Annual General Meeting, Director’s Report, and other related documents.
• Decision to hold the 32nd Annual General Meeting on September 23, 2026, at 2:30 pm via Video Conference or Other Audio-Visual Means.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mohammad Ajwad, Managing Director, signed the intimation.

AKI India Limited ( aki india ) reported a significant year-on-year improvement in its consolidated profitability for the first quarter of FY27, driven by robust revenue growth and higher contributions from associates. The Kanpur-based leather goods manufacturer posted a consolidated net profit of ₹51.07 lakh for the quarter ended June 30, 2026, compared to ₹23.04 lakh in the corresponding quarter of the previous year. This surge underscores the impact of its international operations and equity-accounted investments on the bottom line, even as standalone operations faced margin pressure.

The Board of Directors approved the unaudited standalone and consolidated financial results in a meeting held on August 11, 2026, at the company’s registered office in Kanpur. The results were reviewed by the audit committee and subsequently approved pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors R K Parmarthi & Co. Chartered Accountants conducted a limited review of the financial statements in accordance with Standard on Review Engagements (SRE) 2410.

Consolidated revenue from operations jumped 64.4% to ₹2,904.21 lakh from ₹1,766.34 lakh in Q1FY26. Total income rose to ₹3,084.34 lakh from ₹1,964.14 lakh, supported by other income of ₹180.13 lakh. However, total expenses increased to ₹3,005.25 lakh from ₹1,930.80 lakh, primarily due to higher cost of material consumed (₹1,131.75 lakh vs ₹2,315.16 lakh in prior year, though note the prior year figure was higher, indicating efficiency or mix change) and purchase of stock-in-trade. The profit before tax stood at ₹72.44 lakh, down slightly from ₹113.45 lakh in the preceding quarter but up significantly from ₹33.34 lakh in Q1FY26.

In contrast, standalone performance showed mixed signals. Standalone net sales declined 13.8% to ₹1,867.62 lakh from ₹2,167.62 lakh in the preceding quarter, but were up 64.4% YoY from ₹1,136.46 lakh. Standalone profit before tax fell to ₹23.30 lakh from ₹88.59 lakh in the previous quarter and was lower than ₹30.36 lakh in Q1FY26. An exceptional item of ₹6.65 lakh further reduced the profit. Consequently, standalone net profit dropped 28.6% YoY to ₹14.83 lakh from ₹20.77 lakh.

Key Financial Metrics

What the Numbers Show

The divergence between standalone and consolidated results highlights the growing importance of AKI India’s associated entities and subsidiaries. The share of profit from associates and joint ventures accounted for using the equity method contributed ₹45.39 lakh to the consolidated bottom line in Q1FY27, a substantial increase from ₹2.27 lakh in Q1FY26. This includes contributions from M/s AKI Castil Shoes LLP and M/s AKI UK Limited. While standalone operations generated modest profits with tight margins, the group’s overall profitability was significantly bolstered by these external investments, suggesting a strategic shift towards leveraging partnerships for growth.

The statutory auditors noted that the interim financial statements of M/s AKI UK Limited were reviewed by branch auditors, reflecting Group’s share of total assets of GBP 413,396.21 and revenue of GBP 256,868.67. Similarly, M/s AKI Castil Shoes LLP’s financials, though not reviewed by their auditors, were considered not material to the Group. The company operates in a single primary segment: Leather & Leather Goods, making segment-wise reporting under Ind AS 108 inapplicable.