AKG - AKG Exim

📊 NSE: AKG 🏢 Trading 📅 Last Updated: 12/13/2025 18:05

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 was INR 23.23 Cr, representing a 31.17% YoY decline from INR 33.75 Cr in Q2 FY25. Segment B (Trading) contributed 100% of revenue (INR 23.23 Cr) as Segment A (Manufacturing) was closed in December 2023. On a half-yearly basis, H1 FY26 revenue of INR 51.79 Cr fell 30.14% compared to INR 74.13 Cr in H1 FY25.

Geographic Revenue Split

The company operates in India and Singapore. International operations are conducted through its 100% foreign subsidiary, ASRI Trade Pte. Ltd., Singapore. While specific regional revenue percentages were not disclosed for Q2 FY26, the company reported inter-segment eliminations of INR 0.95 Cr, suggesting active cross-border trade between the Indian parent and Singapore subsidiary.

Profitability Margins

Net Profit Before Tax (PBT) margin for Q2 FY26 stood at 0.62% (INR 0.145 Cr), a slight improvement from 0.57% (INR 0.192 Cr) in Q2 FY25 despite the revenue drop. This margin stability is primarily due to a massive 92.6% reduction in finance costs. Basic EPS for Q2 FY26 was INR 0.04, down from INR 0.05 YoY.

EBITDA Margin

The Trading segment reported results (profit before tax and interest) of INR 0.367 Cr for Q2 FY26, yielding a segment margin of 1.58%. This is a decrease from the 1.48% margin reported in Q2 FY25, reflecting tighter spreads in the trading business.

Capital Expenditure

Not disclosed in available documents. As a trading-focused entity following the closure of manufacturing, the company has shifted away from heavy capital expenditure toward working capital management.

Credit Rating & Borrowing

The company significantly reduced its borrowing impact, with finance costs dropping from INR 0.298 Cr in Q2 FY25 to just INR 0.022 Cr in Q2 FY26, a 92.6% reduction. This suggests a shift toward a debt-free or low-leverage model.

⚙️ Operational Drivers

Raw Materials

Stock-in-trade (commodities/metals) represents the primary cost, accounting for 91.2% of total revenue (INR 21.20 Cr) in Q2 FY26.

Import Sources

Singapore (via ASRI Trade Pte. Ltd.) and India. The company utilizes its Singapore subsidiary as a hub for international procurement and export-import activities.

Capacity Expansion

Manufacturing capacity is 0 MTPA as operations were closed effective December 2023. The company is now a pure-play trading and import/export house.

Raw Material Costs

Purchases of stock-in-trade were INR 21.20 Cr in Q2 FY26, down 32.8% from INR 31.58 Cr in Q2 FY25, tracking the overall revenue decline.

Manufacturing Efficiency

Not applicable as manufacturing operations were closed in December 2023 to focus on the higher-turnover trading segment.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is executing a pivot to a pure-play trading and import/export model. Key strategies include leveraging its Singapore subsidiary (ASRI Trade Pte. Ltd.) for global market access, divesting non-core assets (sale of BKS Metalics Private Limited in Sept 2024), and drastically reducing finance costs (down 92.6%) to improve net margins.

Products & Services

Import, export, and domestic trading of commodities and metal products.

Brand Portfolio

AKG Global, AKG Exim.

Market Expansion

Expansion is focused on international trade routes through the Singapore subsidiary to capture global supply chain shifts.

Strategic Alliances

The company maintains a 100% owned subsidiary, ASRI Trade Pte. Ltd. in Singapore, and recently divested its stake in BKS Metalics Private Limited to a related party.

🌍 External Factors

Industry Trends

The industry is shifting toward consolidated trading hubs. AKG is positioning itself by maintaining a presence in Singapore while exiting low-margin manufacturing to focus on high-velocity trading.

Competitive Landscape

Operates in a fragmented market with competition from both large global trading houses and small-scale domestic importers.

Competitive Moat

The company's moat is based on its established international trading network and its Singapore-based subsidiary, which provides a competitive edge in sourcing and logistics over domestic-only players.

Macro Economic Sensitivity

High sensitivity to global trade policies and Indian demand-supply conditions. A slowdown in Indian industrial demand would directly reduce trading volumes.

Consumer Behavior

Demand is driven by industrial procurement cycles rather than individual consumer behavior.

Geopolitical Risks

Trade barriers and changes in international tax regimes in countries where the company conducts business could impact the viability of import/export routes.

⚖️ Regulatory & Governance

Industry Regulations

Subject to import/export regulations, customs duties, and Singapore's Accounting and Corporate Regulatory Authority (ACRA) standards.

Environmental Compliance

Minimal impact following the closure of manufacturing operations in December 2023.

Taxation Policy Impact

The company is subject to Indian corporate tax and Singaporean tax for its subsidiary. Effective tax rate for Q2 FY26 was approximately 34.6%.

Legal Contingencies

The company received an unmodified audit opinion for FY25, indicating no material legal or financial reporting defaults. No specific pending court case values were disclosed.