AKI India Limited reported QQ4 2025 results with a notable top-line momentum and margin expansion driven by higher operating income, despite a substantial non-operating expense tail that compressed the bottom line. Revenue rose 19.4% year-over-year to INR 240.2 million and grew 6.3% quarter-over-quarter, reflecting durable demand for AKI’s leather goods portfolio and ongoing export activity. Operating income stood at INR 32.22 million, delivering an operating margin of roughly 13.41%, while EBITDA reached INR 23.52 million (margin ≈ 9.79%), underscoring improving operating leverage. However, net income was modest at INR 1.34 million with a net margin of ~0.56%, hampered by a sizable other income/expense impact of INR -27.82 million in the quarter. The balance sheet shows a solid asset base and a moderate liquidity stance (current ratio of 1.77) but a meaningful net debt position (approx. INR 214.3 million). The company carries a significant accumulated other comprehensive income balance (INR 474.3 million) that supports equity resilience, though valuation and cash-flow indicators warrant closer monitoring. The absence of a disclosed earnings call transcript constrains management-voice integration, so quantitative signals take center stage in this assessment.
Key Performance Indicators
Revenue
Increasing
240.20M
QoQ: 6.26% | YoY: 19.41%
Gross Profit
Increasing
39.14M
16.29% margin
QoQ: 0.10% | YoY: 90.60%
Operating Income
Increasing
32.22M
QoQ: 2 980.31% | YoY: 2 670.42%
Net Income
Decreasing
1.34M
QoQ: -81.42% | YoY: -76.62%
EPS
Decreasing
0.02
QoQ: -75.00% | YoY: -71.43%
Revenue Trend
Margin Analysis
Financial Highlights
Income statement highlights: Revenue INR 240.2m (+19.41% YoY; +6.26% QoQ). Gross profit INR 39.14m with a gross margin of 16.29%. Operating income INR 32.22m (operating margin 13.41%). EBITDA INR 23.52m (EBITDA margin 9.79%). Total other income/expenses net INR -27.82m, leading to income before tax INR 4.40m and net income INR 1.34m (net margin ~0.56%). Basic EPS INR 0.02; diluted INR 0.02. Weighted average shares outstanding: 66.8 million. Balance sheet: Total assets INR 1,143.66m; cash and cash equivalents INR 27.81m; total current assets INR 811.27m; total current liabilities INR 459.23m; total debt INR 242.14m (net debt INR 214.33m); total stockholders’ equity INR 651.37m with accumulated OCI of INR 474.31m. Liquidity ratios: current 1.77x; quick 1.10x; cash ratio 0.06x. Leverage: debt-to-capitalization 27.1%; debt-to-equity 37.2%; ROA 0.63%; ROE 1.10%. Efficiency: receivables turnover 0.78x; inventory turnover 0.61x; DSO ~115 days; CCC ~153.5 days. Valuation (as per ratiosInfo): P/E 25.34x; P/B 1.12x; P/S 3.22x; EV/EBITDA 47.88x.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
240.20M
19.41%
6.26%
Gross Profit
39.14M
90.60%
0.10%
Operating Income
32.22M
2 670.42%
2 980.31%
Net Income
1.34M
-76.62%
-81.42%
EPS
0.02
-71.43%
-75.00%
Key Financial Ratios
Gross Profit Margin
Weak
17.30%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
0.46%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
3.18%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.63%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.10%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.77
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.37
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
25.34x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Fair Value
1.12x
Price-to-book ratio reasonable for profitable companies
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