Karnika FY26 Revenue Rises 44% to INR248 Crores
Karnika Industries reported a robust financial performance for FY26, with revenue from operations increasing 44% year-on-year to INR248 crores and profit after tax rising 57% to INR28 crores. The company's EBITDA grew 43% to INR37 crores, maintaining a 15% margin. Strategic integration with Kidcity contributed INR24-25 crores in revenue, with management projecting significant growth from this segment in the coming years. The company aims to sustain a 30-35% CAGR and improve working capital efficiency.
*this image is generated using AI for illustrative purposes only.
Karnika Industries Limited has submitted the transcript of its earnings conference call held on May 18, 2026. The call discussed the audited financial results for the quarter and year ended March 31, 2026. The disclosure was made by Managing Director Niranjan Mundhra on May 21, 2026, pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance
FY26 was a defining year for the company, marked by strong growth and improving profitability. Revenue from operations for FY26 stood at INR248 crores compared to INR173 crores in FY25, reflecting a robust growth of 44% year-on-year. This growth was driven by healthy traction across categories, improving distribution reach, and continued momentum across institutional and retail channels.
Profit after tax grew 57% year-on-year to INR28 crores, with PAT margins improving to 11.4%. EBITDA for FY26 grew 43% year-on-year to INR37 crores while maintaining a healthy EBITDA margin of 15%. The company delivered a revenue CAGR of 39% and PAT CAGR of over 100% between FY21 and FY26.
| Metric | FY26 | FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | INR248 crores | INR173 crores | 44% |
| Profit After Tax | INR28 crores | - | 57% |
| EBITDA | INR37 crores | - | 43% |
| EBITDA Margin | 15% | - | - |
Operational Highlights
In Q4 FY26, revenue from operations stood at INR72 crores, registering a growth of 18.8% year-on-year, while profit after tax grew 48.6% to INR9 crores. PAT margins improved to 13% compared to 10.4% in Q4 FY25. A key strategic development during the year was the integration with Kidcity, which contributed approximately INR24 crores to INR25 crores in revenue for FY26.
The company serves customers across 28 states through a distribution ecosystem supported by over 150 distribution partners and 2,500 clients. Management projects a normalized PAT margin range of 11% to 13% going forward. The working capital cycle has improved from four and a half to five months to around four months, with plans to reduce it further by 100 days in the coming financial year.
Future Outlook
Looking ahead, the company projects around 3x revenue from Kidcity in the next financial year. For FY28 or FY29, revenue from Kidcity is targeted to reach INR200 crores to INR250 crores. Strategic priorities include expanding the omnichannel retail footprint, scaling kiosks and shop-in-shop counters, and deepening penetration across Tier 2 and Tier 3 markets. The company aims to maintain a CAGR of 30% to 35% over the next three to four years.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0MGA01012/5df005dba0b046b0.pdf
Historical Stock Returns for Karnika Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.85% | -0.30% | +4.15% | +12.38% | -79.81% | +61.02% |
How will Karnika Industries fund the aggressive 3x revenue scaling of Kidcity without significantly diluting margins or increasing debt levels?
What competitive risks could emerge in Tier 2 and Tier 3 markets as Karnika deepens penetration, and how might larger FMCG players respond to its expansion?
Can the company realistically reduce its working capital cycle by 100 days in a single financial year while simultaneously scaling distribution to new geographies?
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