AKI India Ltd. (AKI) AI Stock Analysis

• Market Cap: ₹531.51M
• Dividend Yield: N/A
• Average Volume (3M): 16.37K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.91
• Revenue Growth: 24.53%
• EPS Growth: 3.90%
• Country: IN
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Manufacturing - Textiles
• EPS (TTM): 0.24
• Shares Outstanding: 103,205,956
• 10 Day Avg. Volume: 7,750
• 30 Day Avg. Volume: 16,372
• PEG Ratio: 2.34
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -14.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹5.00 ▼(-21.51% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily held back by weak technicals (price below all key moving averages with negative MACD), while financial performance is mixed—revenue and operating margins are improving but leverage and negative free cash flow add meaningful risk. Valuation is reasonable with a mid-range P/E, but no dividend data is available to add support.

Positive Factors

Revenue Growth

Sustained ~23% revenue growth signals durable demand and expanding market traction for core textile products. Over 2-6 months this supports scale benefits, stronger negotiating position with suppliers and customers, and gives management runway to invest in capacity or product improvements without relying solely on external funding.

Improving Operational Margins

Rising EBIT/EBITDA margins combined with stable gross margins indicate improving operational efficiency and cost control. This structural improvement enhances earnings resilience, increases retained earnings for reinvestment, and reduces sensitivity to revenue fluctuations over medium term.

Capital Structure Strength (Equity Ratio / ROE)

A healthy equity ratio and improving ROE provide a durable buffer against shocks and demonstrate effective use of shareholders' capital. This stronger capitalization supports access to financing on better terms and underpins long-term strategic initiatives without immediate dilution.

Negative Factors

High Leverage

Elevated debt-to-equity raises structural financial risk: higher interest obligations, reduced covenant headroom, and greater refinancing sensitivity. Over the medium term this can constrain strategic flexibility, amplify earnings volatility during downturns, and increase default risk if cash generation weakens.

Negative Free Cash Flow

Persistent negative free cash flow means operating profits are not converting to cash, forcing reliance on external financing or asset sales. Structurally this limits capacity to self-fund capex, repay debt, or build reserves, increasing vulnerability to interest rate moves and credit market tightening over months ahead.

Modest Net Profit Margin

Low net margins despite revenue growth imply limited earnings retention and weaker ability to absorb cost inflation. Structurally, modest profitability reduces cash available for deleveraging and investment, making the business more sensitive to raw material and labor cost shocks over the medium term.

AKI India Ltd. Business Overview & Revenue Model

Company Description

AKI India Limited manufactures and sells leather and leather goods in India. The company operates through Tannery, Footwear, Equestrian, Leather, and Chemical segments. It offers leather upholstery, leather wallets and bags, and leather belts and footwear; countryside boots, boat shoes, riding shoes, and casual and formal shoes; saddlery products, such as bridles, halters, chaps, boots horse rugs, harness sets, etc.; and leather accessories and chemicals. The company also exports its products to the United Arab Emirates, the United Kingdom, rest of Europe, South Africa, India, and Australia. AKI India Limited was incorporated in 1994 and is based in Kanpur, India.

How the Company Makes Money

AKI India Ltd. generates revenue through various channels, primarily by selling its manufactured products, which include electronic components and engineering solutions. The company also earns income from software development and technology services, catering to businesses looking for customized IT solutions. Key revenue streams include direct sales to consumers and businesses, contracts with government agencies, and partnerships with other firms for joint ventures and collaborative projects. Additionally, AKI benefits from recurring revenue through maintenance and support services for its technology solutions, enhancing its overall financial stability.

AKI India Ltd. Financial Statement Overview

Summary

Mixed fundamentals: consistent revenue growth and improving EBIT/EBITDA margins support earnings quality, but high leverage (elevated debt-to-equity) and negative free cash flow/weak cash conversion materially increase risk.

Income Statement

AKI India Ltd. has shown consistent revenue growth, with a noticeable increase in Total Revenue from 2024 to 2025, which suggests positive sales momentum. The Gross Profit Margin has been stable, indicating efficient cost management. However, the Net Profit Margin remains modest, reflecting relatively high operational costs. The EBIT and EBITDA margins are improving, signaling better operational efficiency and earnings stability over recent years.

Balance Sheet

The company's balance sheet indicates a healthy Equity Ratio, suggesting good capital structure and financial stability. However, the Debt-to-Equity Ratio is high, which could imply potential risk if leverage is not managed carefully. Return on Equity has shown positive trends, highlighting effective use of equity capital to generate profits.

Cash Flow

AKI India Ltd. faces challenges with negative Free Cash Flow, indicating potential issues in generating cash from operations. The Operating Cash Flow to Net Income Ratio suggests operating activities are not effectively translating into cash flows. Despite these challenges, the company has maintained a strategic approach to financing activities, ensuring liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	501.30M	809.62M	709.13M	702.62M	609.39M	448.52M
Gross Profit	89.09M	143.31M	137.95M	138.46M	94.63M	75.24M
EBITDA	38.25M	63.69M	53.88M	54.80M	53.65M	53.01M
Net Income	14.93M	16.78M	13.67M	11.55M	16.46M	8.92M
Balance Sheet
Total Assets	1.54B	1.14B	1.04B	647.02M	604.88M	568.72M
Cash, Cash Equivalents and Short-Term Investments	50.67M	27.81M	18.13M	14.73M	12.70M	11.60M
Total Debt	259.89M	242.14M	218.39M	295.06M	294.37M	278.71M
Total Liabilities	540.26M	492.29M	443.97M	482.66M	464.26M	440.41M
Stockholders Equity	998.58M	651.37M	597.14M	149.88M	140.62M	128.31M
Cash Flow
Free Cash Flow	-25.76M	-51.52M	-225.81M	15.18M	-2.86M	-67.57M
Operating Cash Flow	-13.35M	-26.71M	-176.24M	37.95M	7.62M	-49.19M
Investing Cash Flow	-7.57M	-15.13M	-176.89M	-24.87M	-9.94M	-16.76M
Financing Cash Flow	25.76M	51.52M	356.53M	-10.99M	3.43M	64.94M

AKI India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AKI, the sentiment is Negative. The current price of 6.37 is above the 20-day moving average (MA) of 5.96, above the 50-day MA of 6.25, and below the 200-day MA of 8.40, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 31.83 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AKI.

AKI India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GBGLOBAL	60 Neutral	₹32.48M	-258,504.57	―	―	-10.56%	-48.44%
AKI	58 Neutral	₹531.51M	30.57	―	―	24.53%	3.90%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RADIOCITY	49 Neutral	₹2.04B	15.77	―	―	-12.75%	-809.36%
MTEDUCARE	41 Neutral	₹104.73M	-1.48	―	―	-3.63%	24.10%