Karnika Industries Limited (KARNIKA)
Q2 FY27 results
Karnika Industries Limited reported Q2 FY27 results on 10 Oct 2026: revenue ₹106 Cr, and net profit ₹14.2 Cr; the operating margin was 18.8%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹106 | — | +44.0% |
| Operating profit | ₹20.0 | — | +56.9% |
| Net profit | ₹14.2 | — | +55.1% |
| EPS (₹) | 2.10 | — | +44.8% |
| Operating margin | 18.8% | — | — |
KARNIKA delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 76.92% of the KARNIKA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 77.87%. That is close to its usual level. Turnover was only ₹17 lakh, so a handful of trades can move this figure. Volume was 0.2 times its average, well below normal.
Delivery in the last 5 sessions: 69.2% · 65.7% · 80.3% · 64.8% · 76.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Karnika Industries published its Q2 and H1 FY27 earnings call transcript, highlighting strong operational performance. Q2 FY27 revenue rose 52.3% YoY to ₹106 crore, while PAT grew 51% YoY to ₹14 crore. For H1 FY27, revenue reached ₹180 crore (up 74.7% YoY) with PAT rising 88.3% YoY to ₹23 crore. Management announced eligibility for migration to the main board effective October 13, 2026, and guided for a 30% to 35% revenue and PBT CAGR through FY28.
- Q2 FY27 revenue from operations grew 52.3% YoY to INR 106 crores, with PAT up 51% YoY to INR 14 crores
- H1 FY27 revenue jumped 74.7% YoY to INR 180 crores, while PAT rose 88.3% YoY to approx INR 23 crores
- Company became eligible for migration to the main board effective October 13, 2026, subject to regulatory approvals
- Management guided towards a 30% to 35% CAGR in revenue and profit before tax through FY28 with 17% to 20% EBITDA margin
- Working capital cycle improved to 143 days in H1 FY27 from 178 days in FY26, with D/E at 0.6x
Karnika Industries informed the exchange that Ms. Muskan Bubna has resigned from the position of Company Secretary and Compliance Officer, effective from the close of business on October 14, 2026. The departure is attributed to pursuing external career opportunities for personal and professional growth. The Board took note of the resignation in a meeting held on October 14, 2026, from 6:30 PM to 7:00 PM. No replacement has been announced in this filing.
- Resignation of Ms. Muskan Bubna (ACS A71679) as Company Secretary & Compliance Officer
- Effective date of resignation is October 14, 2026, at close of business hours
- Board meeting commenced at 06:30 P.M. and concluded at 07:00 P.M. on October 14, 2026
Karnika Industries published its Q2 and H1 FY27 investor presentation highlighting record quarterly performance. For Q2 FY27, revenue reached ₹106 crore compared to ₹70 crore in Q2 FY26, with EBITDA reaching ₹20 crore (18.8% margin) and PAT rising to ₹14 crore (13.4% margin). For H1 FY27, revenue stood at ₹180 crore with PAT at ₹23 crore. The company maintains an asset-light model outsourcing 90% of partner network operations while expanding its omnichannel reach with 85+ shop-in-shops and plans for 55+ kiosks.
- Q2 FY27 revenue grew to ₹106 crore versus ₹70 crore in Q2 FY26
- Q2 FY27 PAT rose to ₹14 crore compared to ₹9 crore in Q2 FY26
- H1 FY27 revenue achieved was ₹180 crore with a PAT of ₹23 crore
- Net debt-to-equity improved to 0.6x as of H1 FY27 from 0.8x in FY26
- Retail network reached 85+ shop-in-shops (SIS) and 540+ distributors as of H1 FY27
Karnika Industries held a Board of Directors meeting on October 10, 2026, approving the unaudited standalone and consolidated financial results along with the Limited Review Report for the half year and quarter ended September 30, 2026. The filing serves as the formal outcome covering Regulation 33 compliance, though granular financial tables were not included in this text extract. Investors should note that the company generated Rs 219 Cr in TTM revenue and Rs 25 Cr in TTM PAT leading into this reporting period.
- Board meeting commenced at 19:00 PM and concluded at 20:30 PM on October 10, 2026
- Approved unaudited standalone and consolidated financial results for the period ended September 30, 2026
- Limited Review Report for the half year ended September 30, 2026, formally approved and taken on record
- Results approved in compliance with Regulation 33 of SEBI LODR Regulations, 2015
Karnika Industries Limited announced the voting results of its 4th Annual General Meeting held on September 30, 2026. All three ordinary resolutions, including the adoption of FY26 standalone and consolidated financial statements and the re-appointment of director Mrs. Kirti Mundhra, were passed. A total of 45,500,200 votes were polled, accounting for 73.39% of total outstanding shares, with 100% of votes cast in favor. The voting turnout strictly reflected the promoter group's 73.39% shareholding.
- All 3 ordinary resolutions approved at the 4th AGM held on September 30, 2026
- Total votes polled stood at 45,500,200, representing 73.39% of total outstanding shares
- 100% of votes polled were in favor of all resolutions, with zero votes against
- Meeting attended by 25 shareholders via video conferencing (8 promoter group, 17 public)
Karnika Industries Limited announced the resignation of Ms. Muskan Bubna from the role of Company Secretary, Compliance Officer, and Key Managerial Personnel (KMP). Her resignation was tendered on September 19, 2026, and will take effect from the close of business hours on October 14, 2026. The stated reason for her departure is personal growth and professional development opportunities outside the organisation. The resignation will be placed before the Board of Directors in the upcoming meeting for formal acceptance.
- Resignation letter submitted on September 19, 2026
- Effective cessation date is October 14, 2026, after close of business hours
- Ceases to be a Key Managerial Personnel (KMP) under Regulation 30(5) of SEBI LODR
- Resignation cited for personal growth and career opportunities outside the company
Karnika Industries Limited has scheduled an analyst and institutional investor interaction at the Arihant Bharat Connect Conference – Rising Stars 2026. The meeting will take place virtually on September 25, 2026, at 1:00 PM. The company clarified that discussions will rely solely on publicly available information and no unpublished price-sensitive information (UPSI) will be shared.
- Virtual meeting scheduled with analysts/institutional investors on September 25, 2026
- Scheduled time set for 1:00 PM
- Participation at the Arihant Bharat Connect Conference – Rising Stars 2026
- Company confirmed no unpublished price sensitive information (UPSI) will be discussed
Karnika Industries Limited has issued a corrigendum withdrawing Resolutions 4 through 8 from its upcoming 4th Annual General Meeting scheduled for September 30, 2026. The withdrawn resolutions sought approval to hike borrowing limits up to Rs 500 Crores (under Section 180(1)(c)), allow loans/investments up to Rs 500 Crores (under Section 186), grant loans/guarantees under Section 185, and alter the Memorandum of Association's Main Object Clauses. The Board cited a 'change in strategic requirements' for the withdrawal, leaving only standard operational resolutions (Nos. 1-3) on the ballot. For context, the planned Rs 500 Crore limit was over 5x the company's current net worth of Rs 95 Cr and nearly 4x its TTM revenue of Rs 132 Cr.
- Withdrew Resolution 4 regarding borrowing limit increase under Section 180(1)(c) up to Rs. 500 Crores
- Withdrew Resolution 6 regarding loans and investments under Section 186 up to Rs. 500 Crores
- Withdrew Resolutions 5, 7, and 8 concerning asset charges, Section 185 loan guarantees, and MOA Main Object alterations
- AGM remains scheduled for September 30, 2026, with only Resolutions 1-3 active for voting
Karnika Industries' Board has decided to withdraw key special resolutions previously proposed for its 4th AGM scheduled for September 30, 2026. The withdrawn resolutions include hiking borrowing limits under Section 180(1)(c) up to Rs 500 crore and expanding loan/investment limits under Section 186 up to Rs 500 crore. In addition, proposed resolutions on asset pledging, loans to specified persons under Section 185, and altering the Memorandum of Association's Main Object Clauses were dropped due to changing strategic requirements.
- Board decided to withdraw special resolutions for raising borrowing limits under Section 180(1)(c) up to Rs 500 Crores
- Withdrew special resolution under Section 186 for loans and investments up to Rs 500 Crores
- Cancelled proposed alterations to the Main Object Clauses of the Memorandum of Association
- 4th Annual General Meeting to proceed on September 30, 2026 with remaining agenda items
Karnika Industries' Board approved seeking shareholder approval at its September 30, 2026 AGM to expand borrowing powers under Section 180(1)(c) up to Rs 500 crore, compared to its current net worth of Rs 95 crore. The company also approved limits up to Rs 500 crore each for investments/loans (Section 186) and loans/guarantees to specified persons (Section 185). Additionally, the Board proposed altering the Memorandum of Association (MOA) to diversify into construction, manpower, interior fittings, vehicle leasing, AI/data analytics, and hospitality.
- Proposed increase in borrowing power up to Rs 500 Crores under Section 180(1)(c), subject to shareholder approval
- Approval sought for making loans and investments up to Rs 500 Crores under Section 186
- Approval sought to provide loans, guarantees, or security up to Rs 500 Crores under Section 185
- AGM scheduled for September 30th, 2026 via Video Conferencing
- MOA Main Objects Clause alteration proposed to enter six new unrelated sectors including Construction, AI, and Hospitality
Karnika Industries Limited has dispatched the Notice and Annual Report for its 4th Annual General Meeting scheduled for September 30, 2026, via video conferencing. In the Annual Report overview, the company reported consolidated revenue of ₹24,847.90 Lakhs for FY 2025–26. The cut-off date for e-voting entitlement is September 19, 2026, with remote e-voting open from September 26 to September 29, 2026. As of March 31, 2026, the company operates across 7 manufacturing units with an employee count of 185.
- AGM scheduled for September 30, 2026 at 01:00 PM IST via Video Conferencing
- Consolidated revenue reported at ₹24,847.90 Lakhs for FY 2025-26
- Cut-off date for e-voting eligibility set for September 19, 2026
- Remote e-voting runs from September 26, 2026 (9:00 AM) to September 29, 2026 (5:00 PM)
- Company reported a payroll of 185 employees as of March 31, 2026
The Board of Karnika Industries has approved raising the company's borrowing limit under Section 180(1)(c) to ₹500 crore, subject to shareholder approval at the AGM on September 30, 2026. This compares to its current net worth of ₹95 crore and existing debt of ₹70 crore. Additionally, limits for loans, investments (Section 186), and guarantees (Section 185) were also proposed to increase up to ₹500 crore each. The Board has also approved an alteration to the Main Object Clauses of the Memorandum of Association.
- Board approved raising borrowing power under Section 180(1)(c) up to ₹500 Crores
- Proposed inter-corporate loans and investments limit under Section 186 up to ₹500 Crores
- Section 185 loan/guarantee limit proposed up to ₹500 Crores
- Annual General Meeting scheduled for September 30, 2026 at 1:00 PM via VC/OAVM
- Approved alteration to Main Object Clauses of Memorandum of Association
Karnika Industries has subscribed to a 26% equity stake in newly incorporated RDB Elementa Sports Academy Private Limited for a total cash consideration of ₹5,20,000 (52,000 shares at ₹10 face value). The target company was incorporated on August 12, 2026, and operates in the sports, recreational, fitness, and entertainment segment. This is classified as a related-party transaction conducted on an arm's length basis. Given Karnika's TTM revenue of ₹132.16 Cr and market cap of ₹751 Cr, the investment size is financially immaterial (<0.01% of revenue).
- Subscribed to 26% equity stake in RDB Elementa Sports Academy Private Limited
- Total cash consideration is ₹5,20,000 (52,000 shares of ₹10 each)
- Target entity was newly incorporated on August 12, 2026
- Identified as a related-party transaction done on an arm's length basis
Karnika Industries has announced its entry into the real estate sector by acquiring a 40% equity stake in Elementa Lifespaces Private Limited for Rs 2 crore. The target entity is a brand-new startup, incorporated on July 24, 2026, just two days before this announcement. The transaction is a related party transaction, though the company states it is conducted at arm's length. This investment represents approximately 2.1% of Karnika's current net worth of Rs 95 crore.
- Acquisition of 20,00,000 equity shares representing a 40% stake in Elementa Lifespaces.
- Total cash consideration of Rs 2,00,00,000 (Rs 2 Cr).
- Target entity was incorporated on July 24, 2026, indicating a fresh venture.
- Transaction involves related party interests, though executed on an arm's length basis.
- Investment value is approximately 1.5% of the company's TTM revenue of Rs 132 Cr.
Financial Performance
Revenue Growth by Segment
Total income for H1 FY26 reached INR 10,404.55 lakhs, representing a 5.6% YoY growth. The company is transitioning into a combined entity with Kidcity, projecting total revenue to grow from INR 24,500 lakhs in FY26 to INR 42,500 lakhs by FY28, driven by the scaling of the retail D2C segment.
Geographic Revenue Split
The company maintains a Pan-India presence with its largest stock and highest popularity concentrated in North India, specifically in Uttar Pradesh, Delhi, Rajasthan, and Punjab.
Profitability Margins
Net Profit Margin for FY24-25 was 10.45%, up from 7.94% in FY23-24 (a 31.61% improvement). For H1 FY26, Net Profit Margin further expanded to 11.98%, an increase of 148 basis points YoY, attributed to operational efficiencies and better margin control.
EBITDA Margin
EBITDA margin for H1 FY26 stood at 19.67%, reflecting a significant expansion of 299 basis points YoY. EBITDA grew 24.5% YoY to INR 2,046.48 lakhs, demonstrating strong operational discipline.
Capital Expenditure
Not explicitly disclosed in INR Cr, but the company is making strategic investments in technology, 'new-age development studios,' and upgraded production facilities in Howrah and Manesar to maintain high production volumes.
Credit Rating & Borrowing
The Debt-Equity ratio improved to 0.85 in FY24-25 from 0.98 in FY23-24, a reduction of 13.60%, indicating a strengthening balance sheet and reduced financial leverage.
Operational Drivers
Raw Materials
Specific raw materials like fabric and yarn are implied but not explicitly named with percentage of total cost; however, raw material price fluctuations are identified as a key risk factor managed through prudent working capital strategies.
Capacity Expansion
Operates modern facilities in Howrah (West Bengal) and Manesar (Haryana). The company utilizes an asset-light, job-work-led manufacturing approach to scale production capabilities without heavy fixed-asset investment.
Raw Material Costs
Not disclosed as a specific % of revenue, but the company manages costs through stringent credit policies and prudent working capital management to mitigate price volatility.
Manufacturing Efficiency
Efficiency is driven by auto-layering, high-end cutting, digital printing, and ERP systems. Operational effectiveness has increased from 7-8% historically to approximately 14% currently, with a target of 20-25% by FY28.
Strategic Growth
Expected Growth Rate
31.70%
Growth Strategy
Growth will be achieved through the acquisition of Kidcity, which adds a high-growth retail D2C engine. The strategy involves vertical integration (manufacturing depth + brand momentum), expanding into exports and corporate supplies, and leveraging a data-driven approach for design to ensure high inventory turnover.
Products & Services
Ready-made garments for babies, boys, and girls, including tops, dresses, denim wear, leggings, skirts, ponchos, infant wear, sleepwear, winter wear, and loungewear.
Brand Portfolio
Karnika (Main), Karnika Cool, Karnika Ring, Karnika Key, Karnika Care, and Kidcity.
New Products/Services
Expansion into a unified kids' wear ecosystem covering retail, D2C, exports, and corporate supplies. Kidcity is projected to grow revenue from INR 3,000 lakhs in FY26 to INR 12,000 lakhs by FY28.
Market Expansion
Expanding brand presence across domestic and export markets, with a strategic focus on deepening penetration in North India.
Market Share & Ranking
Not disclosed as a specific %, but the company aims to become India's largest kids' wear ecosystem.
Strategic Alliances
Acquisition and alignment with Kidcity to create a unified group with expanded revenue visibility, better margin control, and stronger vertical integration.
External Factors
Industry Trends
The industry is seeing increasing demand for quality kids' garments and a shift toward organized retail. Karnika is positioning itself as a vertically integrated player to capture this growth, targeting a 20-25% margin by FY28.
Competitive Landscape
Characterized by moderate competition from both organized and unorganized players in the kids' wear market.
Competitive Moat
Durable advantages include a 90% repeat customer rate, an asset-light manufacturing model that reduces fixed costs, and the integration of Kidcity's brand momentum with Karnika's manufacturing depth, creating high switching costs for retailers.
Macro Economic Sensitivity
Sensitive to global economic growth (3.3% in FY24-25) and domestic consumer spending trends in the kids' wear segment.
Consumer Behavior
Shift toward colourful, comfortable, and trendy kidswear; increasing trust in branded apparel over unorganized options.
Geopolitical Risks
Ongoing geopolitical conflicts and supply chain realignments are noted as factors shaping the turbulent global environment.
Regulatory & Governance
Industry Regulations
Adherence to labor laws and environmental regulations is critical for operational continuity in the garment manufacturing sector. EXCLUDES SEBI matters.
Environmental Compliance
ISO 14001:2015 certified; environmental compliance is embedded in operational processes to mitigate regulatory and reputational risks.
Taxation Policy Impact
Financial statements are prepared in compliance with Indian GAAP and Section 133 of the Companies Act, 2013.
Risk Analysis
Key Uncertainties
Raw material price volatility and labor availability are primary risks that could impact production costs and delivery timelines.
Geographic Concentration Risk
High concentration in North India (UP, Delhi, Rajasthan, Punjab), making the company sensitive to regional economic shifts in those states.
Third Party Dependencies
Relies on a job-work-based manufacturing model, creating dependency on external production partners for maintaining quality and timelines.
Technology Obsolescence Risk
Mitigated by ongoing investments in CAD design, digital printing, and ERP systems to maintain a competitive edge in fashion trends.
Credit & Counterparty Risk
Maintains stringent credit policies to manage credit exposure, particularly with its long-standing customer base that contributes 90% of revenue.
