AKI India Limited (AKI.NS) Q2 2025 Earnings Report

AKI India Limited reported QQ2 2025 revenue of INR 135.6 million, marking a year‑over‑year decline of 20.8% and a quarterly decline of 34.7%. The gross profit stood at INR 25.4 million, yielding a gross margin of 18.7%. While EBITDA reached INR 13.8 million, the company posted an operating loss of INR 8.06 million, underscoring continued operational leverage challenges in a highly cyclical leather and textiles environment. The net income for the quarter was INR 3.91 million, delivering a 57.3% year‑over‑year uplift but a sequential decrease of 9.97% from the prior quarter. The discrepancy between EBITDA and net income is largely driven by a sizable other income line of INR 13.53 million which offset the operating shortfall, followed by interest expense of INR 3.996 million and taxes of INR 1.56 million.

From a balance sheet perspective, AKI maintains a substantial asset base with total assets of INR 1.15 billion and total stockholders’ equity of INR 642.9 million. Cash and cash equivalents plus short‑term investments total INR 24.33 million, while total debt stands at INR 216.49 million (net debt INR 193.26 million). The company’s liquidity metrics show a current ratio of 1.515x and a quick ratio of 0.819x, signaling moderate near‑term coverage but a working capital‑rich balance sheet given an inventory balance of INR 318.8 million and payables in the low to mid‑hundreds of millions. In the absence of a management‑provided explicit QQ2 2025 forward guidance, investors should monitor: (i) the trajectory of revenue and gross margin in a volatile leather goods export market, (ii) working capital management and the sustainability of the non‑operating income component, and (iii) debt reduction or refinancing opportunities to strengthen balance sheet resilience.