Karnika Industries Limited has reported its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The board of directors approved the financial statements during a meeting held on May 16, 2026. The company reported a robust financial performance for the fiscal year with notable growth in both revenue and profitability.

Standalone Financial Performance

For the financial year ended March 31, 2026, the company reported a net profit of ₹2667.73 lakh, a 48% increase compared to ₹1803.05 lakh in the previous year. Revenue from operations rose to ₹22428.14 lakh from ₹17254.83 lakh in the prior year, marking a significant expansion in top-line growth. Total income for the year stood at ₹23296.26 lakh.

For the quarter ended March 31, 2026, the net profit was ₹792.08 lakh, while revenue from operations was ₹6085.00 lakh. The earnings per share (EPS) for the year was reported at ₹6.41, down from ₹14.54 in the previous year, primarily due to the increase in equity share capital following the IPO.

Consolidated Results

On a consolidated basis, which includes the financials of subsidiary Kidcity Solutions Private Limited acquired in October 2025, the net profit for the year stood at ₹2838.66 lakh. Revenue from operations for the group was ₹24847.90 lakh. The profit attributable to the equity holders of the parent for the year was ₹2795.93 lakh.

The consolidated results reflect the contribution of the subsidiary, which was acquired on October 4, 2025, and has been consolidated using the full consolidation method from the date of acquisition. The group operates in a single business segment, textiles.

Key Financial Metrics

The following table summarizes the key standalone financial figures for the year ended March 31, 2026:

Corporate Governance and Other Updates

The board also approved the re-appointment of Ajay Mundhra & Associates, Chartered Accountants, as the Internal Auditor of the company for the financial year 2026-27. The company confirmed that it has fully utilized its IPO proceeds during the financial year 2023-24 and submitted the relevant utilization certificate to the exchange on June 5, 2025.

Additionally, the trading window for dealing in the company's securities will remain closed for designated persons and their immediate relatives until 48 hours after the announcement of the financial results. The company stated that there were no investor complaints received during the year under review.

Karnika Industries Limited successfully conducted its Extraordinary General Meeting (EGM) on Monday, May 11, 2026, through Video Conferencing (VC) and Other Audio-Visual Means (OAVM). The meeting, which commenced at 1:25 P.M. (IST) and concluded at 1:52 P.M. (IST), was attended by 18 members. The proceedings were overseen by CS Poonam Binani as the Scrutinizer. All proposed special resolutions were passed with the requisite majority, primarily through remote e-voting.

EGM Proceedings and Resolutions Passed

The Managing Director apprised members about the proposal for raising funds through the issuance of Convertible Warrants on a preferential basis. The EGM notice dated April 16, 2026, along with three corrigenda, were taken as read. The following resolutions were passed as Special Resolutions:

Voting Results Summary

The Scrutinizer's report confirmed that the resolutions were passed with 100% of the valid votes cast in favour. Remote e-voting was conducted via NSDL from May 6, 2026, to May 10, 2026. The detailed voting outcomes for the special business are as follows:

Preferential Issue Details

The Board of Directors approved the issuance of up to 39,66,860 Convertible Warrants on a preferential basis at an issue price of ₹121 per warrant. The issue price includes a premium of ₹111 per warrant and aggregates to ₹47,99,90,060. The proceeds, amounting to approximately ₹40 crore, are earmarked for working capital requirements, while the remainder will be utilized for general corporate purposes.

Shareholding Pattern Impact

The preferential issue is proposed to be allotted to 14 allottees, including promoters and one non-promoter. Upon full conversion, the promoters' shareholding will increase from 73.39% to 74.74%, ensuring they remain in control of the Company. The EGM notice and proceedings have been uploaded to the Company's website and the National Stock Exchange of India Limited.