AKI India Limited reported a net profit of ₹144.25 lakh for the financial year ended March 31, 2026, a decrease from ₹163.37 lakh in the previous year. The company's total income from operations for the year stood at ₹6919.01 lakh, down from ₹7507.34 lakh in FY25. For the quarter ended March 31, 2026, the company recorded a net profit of ₹58.24 lakh on a total income of ₹2281.37 lakh. The resubmission of the audit report was undertaken to comply with exchange instructions regarding the prescribed format under SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023, with no change in the financial results already submitted.

The board of directors approved the financial results at its meeting held on May 15, 2026. The statutory auditors, R K Parmar & Co., conducted an audit of the financial results for the quarter and year ended March 31, 2026, and issued an unmodified opinion. The auditors confirmed that the results give a true and fair view of the net profit and other financial information for the period in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company's total expenses for FY26 amounted to ₹6704.46 lakh, compared to ₹7245.08 lakh in the previous year. Key expense components included the cost of material consumed at ₹4687.28 lakh and purchases of stock-in-trade at ₹1341.45 lakh. Finance costs for the year were ₹206.89 lakh, while depreciation and amortisation expenses stood at ₹178.25 lakh. The basic earnings per share (EPS) for FY26 was ₹0.14, down from ₹0.18 in the previous year.

Consolidated Results

On a consolidated basis, the company reported a net profit of ₹193.44 lakh for FY26, compared to ₹167.78 lakh in the previous year. Total income from operations for the group increased to ₹11831.02 lakh from ₹8748.57 lakh in FY25. The consolidated financial results include the figures of subsidiary AKI UK Limited and associate AKI Castil Shoes LLP. The auditors noted that the consolidated figures for the corresponding period have been approved by the holding company's board but have not been subjected to audit or review.

Balance Sheet and Cash Flows

As of March 31, 2026, the company's total assets stood at ₹13741.09 lakh, comprising non-current assets of ₹3548.68 lakh and current assets of ₹10192.41 lakh. Total equity and liabilities amounted to ₹13741.09 lakh, with total equity at ₹8626.98 lakh. The cash and cash equivalents balance decreased to ₹168.99 lakh from ₹236.30 lakh in the previous year. The net cash outflow from operating activities for the year was ₹2025.81 lakh, while financing activities resulted in a net cash inflow of ₹2281.20 lakh.

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:

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:

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:

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.