Karnika Industries Reports Robust Profitability in Q2 & H1 FY26; Margins Expand Sharply

Mumbai (Maharashtra) [India], November 25: Karnika Industries Limited (NSE: KARNIKA), one of the leading manufacturers and traders of ready-made garments for children, announced its Unaudited Financial Results for the Quarter and Half Year ended September 30, 2025 (Q2 & H1 FY26), as approved by the Board of Directors.

Key Financial Highlights – H1 FY2025-26

Particulars H1 FY26 H1 FY25 % Chg YoY
Total Income (₹ Lakhs) 10,404.55 9,852.72 ↑ 5.60%
EBITDA (₹ Lakhs) 2,046.48 1,643.67 ↑ 24.51%
EBITDA Margin (%) 19.67% 16.68% ↑ 299 bps
Net Profit (₹ Lakhs) 1,246.44 1,034.63 ↑ 20.47%
Net Profit Margin (%) 11.98% 10.50% ↑ 148 bps

Key Financial Highlights – Q2 FY2025-26

Particulars Q2 FY26 Q2 FY25 % Chg YoY
Total Income (₹ Lakhs) 6,983.77 7,225.14 -3.34%
EBITDA (₹ Lakhs) 1,455.68 1,121.55 ↑ 29.79%
EBITDA Margin (%) 20.84% 15.52% ↑ 532 bps
Net Profit (₹ Lakhs) 938.88 725.82 ↑ 29.35%
Net Profit Margin (%) 13.44% 10.05% ↑ 340 bps

Management’s comment:

“This has been a steady and profitable quarter for the Company. Despite a marginal dip in topline, we improved our margins significantly, driven by better product mix, tighter cost controls, and rising share of higher-value children’s apparel. Our Q2 EBITDA grew nearly 30% YoY while Net Profit rose 29% YoY, reflecting strong operational efficiency.

FY26 continues to be a year of positive developments for us. We secured multiple sizable orders across India, expanded our presence in key children’s wear clusters, and strengthened engagement with our long-standing customer base that contributes over 90% of revenues. With increasing demand for quality kids garments and our asset-light, job-work-led manufacturing approach, we are well positioned for sustainable growth.

We remain focused on expanding production capabilities, deepening our design-driven offerings, and enhancing brand presence across domestic and export markets.”

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