Karnika Industries Reports Q1 Results for FY2026, Details of Preferential Issue and Subsidiary Acquisition
Karnika Industries Limited has announced its Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026. The company's results reflect operations across both its core textile segment and its subsidiary, Kidcity Solutions Private Limited, which was acquired in October 2025.The management approved these financial results, along with a Limited Review Report by Independent Auditors.
Financial Performance Summary (Quarter ended June 30, 2026)
The Unaudited Standalone Financial Results for the quarter demonstrate specific revenue and profitability metrics. The company's operations are currently reported within a single segment: textile, which includes fabrics, ready-made garments, and accessories.Standalone Financial Results (In Lakhs):
| PARTICULARS | 30.06.2026 (Unaudited) | 31.03.2026 (Audited) | 30.06.2025 (Unaudited) | 31.03.2026 (Audited) |
|---|---|---|---|---|
| Revenue from Operations | 5977.78 | 6085.00 | 3328.59 | 22428.14 |
| Other Income | 162.49 | 714.63 | 92.19 | 868.12 |
| Total Income | 6140.27 | 6799.63 | 3420.78 | 23296.26 |
| Total Expenses | 5100.85 | 5679.08 | 3006.21 | 19637.11 |
| Profit before tax | 1039.42 | 1120.55 | 414.57 | 3659.15 |
| Profit for the period | 735.19 | 792.08 | 307.56 | 2667.73 |
| Total Comprehensive Income for the Period | 739.33 | 684.67 | 477.48 | 2474.13 |
| Earnings Per share (Basic) of Rs 10 each | 1.19 | 1.28 | 2.48 | 6.41 |
Consolidated Financial Results (In Lakhs):
The consolidated results, which include the subsidiary Kidcity Solutions Private Limited, show Total Income reaching 7548.47 in the quarter ended June 30, 2026.
| PARTICULARS | 30.06.2026 (Unaudited) | 31.03.2026 (Audited) | 31.03.2026 (Audited) |
|---|---|---|---|
| Revenue from Operations | 7377.20 | 7173.93 | 24847.90 |
| Other Income | 171.27 | 715.16 | 868.95 |
| Total Income | 7548.47 | 7889.09 | 25716.85 |
| Total Expenses | 6270.57 | 6576.75 | 21829.16 |
| Profit before tax | 1277.90 | 1312.34 | 3887.69 |
| Profit for the period | 913.75 | 931.71 | 2838.66 |
| Total Comprehensive Income for the Period | 917.89 | 824.31 | 2645.07 |
| Earnings Per share (Basic) of Rs 10 each | 1.45 | 1.45 | 6.72 |
Corporate Transactions and Fund Utilization
The company had previously approved a preferential issue of equity share warrants, which were allotted to investor groups. The utilization of proceeds from this issue has been certified by the Independent Auditor.According to the fund utilization certificate dated July 4, 2026, the total amount received through the Preferential Issue was 1199.98 Rs in Lakhs. Of this, an actual utilized amount of 1199.97 Rs in Lakhs has been recorded, leaving a balance of 0.01 Rs in Lakhs unutilised. The utilization certificate confirmed that there were no deviations or variations in the use of these proceeds.
Furthermore, Karnika Industries Limited acquired 75% equity interest in Kidcity Solutions Private Limited on October 4, 2025. Kidcity Solutions, which is primarily engaged in the retail of kids-wear, has been consolidated into the Group's financial statements since the acquisition date.
KARNIKA Stock Price Movement
Karnika Industries Limited shares tumbled on Friday, closing at ₹111.75 after shedding 2.99% or ₹3.45 from its previous close. The equity traded within a range that included a day low of ₹111 amid 41,000 shares being exchanged.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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