AKI - AKI India

📊 NSE: AKI 🏢 Leather / Leather Products 📅 Last Updated: 12/13/2025 18:06

💰 Financial Performance

Revenue Growth by Segment

The Leather & Leather Goods segment accounts for 100% of revenue. Revenue grew from INR 21.49 Cr in Sep-19 to INR 60.94 Cr in FY22, representing a 183.5% increase over that period.

Geographic Revenue Split

Primary revenue is generated in India, with international contributions from the UK subsidiary, AKI UK Limited, which reported revenue of GBP 291,493.66 for H1 FY26.

Profitability Margins

Gross and operating margins remained stable during the period. Net profit improved despite inflationary pressures and currency fluctuations, supported by pricing strategies and volume growth.

Capital Expenditure

Not disclosed in available documents; however, the company saw an increase in capital of INR 13.39 Cr in H1 FY26.

Credit Rating & Borrowing

The company holds a credit rating of 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. Long-term borrowings increased by INR 4.51 Cr (450.91 Lakhs) in H1 FY26, a 30.3% increase compared to the INR 3.46 Cr increase in the previous period.

⚙️ Operational Drivers

Raw Materials

Hides and skins (processed into finished leather and upholstery) are the primary raw materials.

Raw Material Costs

Input costs rose due to higher raw material expenses; however, efficient procurement and operational controls helped manage the overall impact on margins.

Logistics & Distribution

Rising logistics expenses are noted as a significant factor impacting the cost structure and distribution efficiency.

📈 Strategic Growth

Growth Strategy

The company aims to achieve growth by expanding into international markets through AKI UK Limited, focusing on footwear and equestrian products, and leveraging e-commerce and direct-to-consumer (D2C) channels.

Products & Services

Finished leather, upholstery, leather footwear, horse bridles, browbands, crown pieces, pony articles, and saddle girths.

Brand Portfolio

AKI India, AKI UK, AKI Castil.

New Products/Services

Expansion in footwear and international markets is expected to be a key revenue driver; specific contribution percentages are not disclosed.

Market Expansion

Targeting international markets via the UK subsidiary and expanding digital footprints through e-commerce channels.

Strategic Alliances

Joint Venture with AKI Castil Shoes LLP.

🌍 External Factors

Industry Trends

The leather industry is evolving through strategic collaborations, design innovation, and a shift toward e-commerce; AKI is positioning itself through international expansion and D2C channels.

Competitive Landscape

The company competes on parameters such as quality, design innovation, pricing, and delivery capabilities in the leather goods sector.

Competitive Moat

AKI's moat is built on its 40-year operational history (established 1983) and specialization in niche equestrian products, which require specific craftsmanship and design innovation.

Macro Economic Sensitivity

The business is sensitive to inflation (raw material and labor) and currency fluctuations, particularly the GBP/INR exchange rate.

Consumer Behavior

There is an increasing consumer preference for e-commerce and direct-to-consumer purchasing channels.

⚖️ Regulatory & Governance

Industry Regulations

The company operates in compliance with Ind AS and SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015; leather processing is subject to environmental and pollution norms.