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Karnika Industries Q2 FY27 results: net profit ₹14.18 crore
Karnika Industries Limited reported consolidated revenue of ₹106.20 crore in Q2 FY27, up 44.0% from ₹73.77 crore in Q1 FY27. Net profit rose to ₹14.18 crore from ₹9.14 crore, while EBITDA margin improved to 18.8% from 17.2%, and basic EPS was ₹2.10 against ₹1.45.
Key points
- Consolidated Q2 FY27 revenue was ₹106.20 crore, up 44.0% from ₹73.77 crore in Q1 FY27.
- EBITDA rose to ₹19.96 crore from ₹12.71 crore, with margin at 18.8% against 17.2%.
- Net profit was ₹14.18 crore, up from ₹9.14 crore, and basic EPS was ₹2.10 against ₹1.45.
- Total assets rose to ₹286.24 crore from ₹214.94 crore, while borrowings increased to ₹83.53 crore from ₹75.53 crore.
- On the reaction day, the stock rose 11.3% from its pre-results close of ₹122.05.
How did Karnika Industries perform in Q2 FY27?
Consolidated revenue for Q2 FY27 was ₹106.20 crore, against ₹73.77 crore in Q1 FY27, a rise of 44.0%. Other income was ₹1.10 crore and total expenses were ₹87.92 crore. EBITDA rose to ₹19.96 crore from ₹12.71 crore, and the EBITDA margin improved to 18.8% from 17.2%, a gain of 1.6 percentage points.
Profit before tax was ₹19.38 crore, up from ₹12.78 crore in Q1 FY27, and tax was ₹5.05 crore against ₹3.64 crore. Net profit rose to ₹14.18 crore from ₹9.14 crore, while profit attributable to owners was ₹13 crore against ₹8.99 crore. Basic EPS was ₹2.10 against ₹1.45, and there was no exceptional item.
On a standalone basis, revenue was ₹81.83 crore and profit after tax was ₹10.82 crore, against ₹9.39 crore in the year-ago period. On the consolidated basis, revenue has risen in each of the last four quarters, from ₹73.69 crore in Q3 FY26 to ₹71.74 crore in Q4 FY26, ₹73.77 crore in Q1 FY27 and ₹106.20 crore in Q2 FY27. The company also reported revenue of ₹179.97 crore and total income of ₹182.78 crore for H1 FY27, with profit before tax of ₹32.16 crore and net profit of ₹23.32 crore.
| ₹ crore | Q2 FY27 | Q1 FY27 | QoQ |
|---|---|---|---|
| Revenue from operations | 106.20 | 73.77 | +44.0% |
| Other income | 1.10 | 1.71 | −35.7% |
| Total expenses | 87.92 | 62.71 | +40.2% |
| EBITDA | 19.96 | 12.71 | +57.0% |
| EBITDA margin | 18.8% | 17.2% | +1.6 pp |
| Profit before tax | 19.38 | 12.78 | +51.6% |
| Tax | 5.05 | 3.64 | +38.7% |
| Net profit | 14.18 | 9.14 | +55.1% |
| EPS (₹) | 2.10 | 1.45 | +44.8% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
Total assets stood at ₹286.24 crore as of 30 September 2026, against ₹214.94 crore as of 31 March 2026. Total equity rose to ₹133.55 crore from ₹98.02 crore, and borrowings increased to ₹83.53 crore from ₹75.53 crore. Cash was ₹0.36 crore compared with ₹0.29 crore. Inventories were ₹62.03 crore against ₹58.03 crore, trade receivables ₹145.32 crore against ₹87.68 crore, and trade payables ₹54.22 crore against ₹33.88 crore.
For H1 FY27, operating cash flow was negative ₹4.41 crore, investing cash flow was negative ₹12.65 crore and financing cash flow was positive ₹17.13 crore. The company reported no capital expenditure for the period. Management said on the earnings call that working capital days improved to 143 days in H1 FY27 from 178 days in FY26, and the debt-to-equity ratio stood at 0.6x.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 286.24 | 214.94 |
| Total equity | 133.55 | 98.02 |
| Borrowings | 83.53 | 75.53 |
| Cash and equivalents | 0.36 | 0.29 |
| Inventories | 62.03 | 58.03 |
| Trade receivables | 145.32 | 87.68 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 |
|---|---|
| Cash from operations | −4.41 |
| Cash from investing | −12.65 |
| Cash from financing | 17.13 |
| Capital expenditure | 0 |
Source: Company's results filing (XBRL).
What did Karnika Industries' management say?
Managing Director Niranjan Mundhra said the company was eligible for migration to the main board effective 13 October 2026, subject to completion of applicable regulatory and procedural requirements. He said Q2 FY27 marked the highest-ever quarterly revenue, EBITDA and PAT, while H1 FY27 recorded the highest-ever half-year revenue, EBITDA and PAT.
CFO Krishan Karnani said the Q2 FY27 EBITDA margin moderated to 18.8% from 20.7%, primarily due to higher yarn prices, dyeing-related chemical costs and processing charges. Management identified the working capital cycle as the biggest challenge in the garment trade, noted that Kidcity's working capital intensity shifts from receivables to higher inventory, and said airport rental costs run 4–6x those of malls, with airport kiosks targeted at break-even for visibility only.
How did Karnika Industries shares react?
The filing was released after market on 10 October 2026. From the price when the filing appeared, the stock rose 4.0% after five minutes, 4.7% after 15 minutes and 3.9% after 30 minutes. On the reaction day, it closed 11.3% above its pre-results close of ₹122.05, at a base price of ₹127.00.
| After the filing | Stock |
|---|---|
| 5 minutes | +4.0% |
| 15 minutes | +4.7% |
| 30 minutes | +3.9% |
| Reaction day | +11.3% |
| Next day | +8.2% |
| 5 days | +9.0% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
Quick answers
What was Karnika Industries' revenue in Q2 FY27?
Revenue from operations was ₹106.20 crore (consolidated).
Did Karnika Industries make a profit in Q2 FY27?
Yes. Net profit was ₹14.18 crore.
What was Karnika Industries' EPS in Q2 FY27?
Basic earnings per share were ₹2.10.
How did Karnika Industries shares react to the Q2 FY27 results?
On the reaction day the stock moved +11.3% from the previous close.
When did Karnika Industries announce its Q2 FY27 results?
On 10 October 2026, in a filing to the NSE.
Sources
- Outcome of Board Meeting (NSE, 10 October 2026) · PDF
- The earnings call (16 October 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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