Annual reportSep 2026
Sep 2026 · Shareholders meeting 8 Sep - AGM scheduled for 30 September 2026; annual report 2025-26 and e-voting details shared.
Source: Nse
Karnika Industries Ltd. (KARNIKA)
SME CapConsumer stocks · SME cap · NSE
Karnika Industries is an integrated kidswear platform with over 15 years of legacy in manufacturing, brands, and distribution. It operates an asset-light model with 4 manufacturing facilities in Howrah, PAN-India distribution across 28 states, and an omnichannel presence. The company focuses on scalable operations and diversified growth in the fast-growing Indian kidswear market.
Data qualityFresh enough for analysisQuote updated 21 Oct, 12:16 pm ISTDetails
Quote21 Oct, 12:16 pm IST
Base fundamentals18 Oct 2026 · screener
Latest result05 Jul, 01:43 am IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags24 Apr 2026
Coverage12/14 · 86%
Valuation2026-07-20 · Rf 6.8% · Consumer P/E 22.2 (n=441)
Technical timing lens
Trend score and candlestick chart
55NeutralSMA20 +7.1% / mo · MACD + · sector -4.3pp vs Nifty 500 (3M)
Stock trend: 70
Sector RS: 33
Sector 3M: -10.2% vs Nifty 500 -6.0%
Consumer FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
KARNIKAD candles · FIT view-8.6%TODAY · PROVISIONALLatest price ₹126.50 on 2026-10-21
Today's candle is provisional from the latest intraday quote; completed-candle scans remain unchanged.
Bar
-1.9%
RSI
52
MACD hist
0.35
52W pos
41%
2026-10-21O ₹129.00H ₹129.00L ₹126.30C ₹126.50Vol 4,000 shIntraday candle
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
KARNIKANifty Consumer DurablesNifty 500
- KARNIKA
- +15.3%
- Nifty 500
- -5.6%
- Nifty Consumer Durables
- -9.7%
- Vs Nifty 500
- +20.8 pp
Chart stats
19 Oct 2026- From 52W high
- -28.5%
- 52W range position
- 45%
- ATR (14)
- 4.1%
- Volume vs 20D
- 0.48x
- Avg traded value
- ₹0.8 Cr
- 20D price channel
- ₹115.2 - ₹138
₹186
₹90.3 - ₹186
₹5.4
Latest completed session
20-session average
35.9% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is mixed.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · UNDERVALUED60
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Pending data—
Revenue NDF · PAT NDF YoY
Technical
Neutral55
Price trend and sector-relative-strength timing.
Valuation
Legacy model+37.2%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence66
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Pending dataYoY comparison unavailable - result verdict pending data
Filed 30 Jun 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹73.8 Cr | NDF | +2.8% |
| EBITDA | ₹12.7 Cr | NDF | +65.4% |
| Operating margin | 17.2% | NDF | +652 bps |
| PAT | ₹9.1 Cr | NDF | -1.9% |
| PAT margin | 12.4% | NDF | -60 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 22.20
- P/B
- 6.35
- EV/EBITDA
- 17.58
- Market Cap
- 830.00Cr
Profitability
- ROE
- 28.40%
- ROCE
- —
- ROA
- 13.64%
- Dividend Y
- 0.08%
Growth (CAGR)
- Revenue 5Y
- 31.05%
- EPS 5Y
- 39.29%
- Revenue 3Y
- 62.10%
- EPS 3Y
- 98.23%
Balance Sheet
- Debt/Equity
- 0.64
- Interest Coverage
- 8.50×
- Altman Z
- 5.44
- Book Value
- 21.10
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- 16.00 Cr
- EPS TTM
- 6.05
Shareholding
- Promoter Hold
- 73.39%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 48%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 248
Net Profit
₹ CrLatest: 28.0
Return on Equity
%Latest: 28.6
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 52. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~6.8% over last month) — short-term momentum positive.
- RSI(14) at 52 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 30% off 52W high · 40% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & peers
U-Score 60 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 60 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Financial Turnaround
Fundamental score breakdown
U band · UNDERVALUEDValuation7/30
Growth25/25
Quality13/20
Balance Sheet9/15
Cash Flow1/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
60
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
60/100 · legacy band UNDERVALUED
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 37.2%.
- Growth contributes 25/25 to the score.
Main drags
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Valuation is weaker at 7/30; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Sector valuation model
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
22.2
PB
6.3
EV/EBITDA
17.6
ROE
28.4%
ROCE
—
FCF Yield
—
Debt/Equity
0.6
MoS
+37.2%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE.
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
60
Previous: 60
Legacy U-Score band
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+37.2%
Previous: +34.0%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
27
27
27
27
27
27
27
27
60
60
60
60
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹53.59
-136.0% MoS
Growth-justified P/E
33.3
Growth-justified Value
₹201.46
+37.2% MoS
PEG
0.35
Comparable companies
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
SWARAJ
SME
Swaraj Suiting Ltd.
Textiles
match 92
65
15.9
21.7%
+60%
UNDERVALUED
SHREEKARNI
SME
Shree Karni Fabcom Ltd.
Textiles
match 87
51
18.2
14.3%
+40%
FAIR VALUE
RSWM
Small
RSWM Limited
Textiles
match 86
59
13.3
3.8%
+56%
FAIR VALUE
SARLAPOLY
Small
Sarla Performance Fibers Limited
Textiles
match 86
47
9.6
14.4%
-514%
FAIR VALUE
NRVANDANA
SME
N R Vandana Tex Industries Ltd.
Textiles
match 85
51
16.0
26.1%
+57%
FAIR VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-08-19T07:21:53.776Z
Management commentary snapshot
Karnika Industries reported exceptional Q1 FY27 performance with revenue up 121.6% YoY, EBITDA up 154.9% YoY, and PAT up 197.1% YoY, driven by strong demand, operating leverage, and disciplined execution. Margins expanded significantly.
Karnika's Q1 FY27 results demonstrate strong execution and capitalize on the growing organized kidswear market. The asset-light model and omnichannel strategy appear to be driving significant top-line growth and margin expansion. The acquisition of Kidcity further strengthens its integrated platform and consumer reach, positioning it for continued profitable growth.
Current business mix
Revenue by Product Category (Q1 FY27)
Latest issuer-disclosed distribution across 4 reported categories.
Boys’ Wear37.0%
Girls’ Wear32.0%
Infant21.0%
Fabric9.0%
Growth engines
Integrated Kidswear Platform
PositiveBuilding India's largest integrated kidswear platform at scale, with end-to-end control from sourcing to consumer shelf, enabling better quality and faster response.
Omnichannel Presence
PositiveConnecting every parent everywhere through extensive distributor networks, marketplace partnerships, institutional B2B, D2C channels, kiosks (55+), and shop-in-shop.
Fast-Growing Kidswear Market
PositiveWell positioned in India's fast-growing kidswear market, driven by rising disposable income, e-commerce growth, sustainability preference, and smaller families.
Kidcity Acquisition
PositiveAcquired a 75% controlling stake in Kidcity, a fast-growing D2C and omni-channel kidswear brand, expanding consumer reach and diversifying revenue streams.
Capacity and execution
Capacity Utilization
PositiveAchieved 90%+ capacity utilization level for all plants, supporting growth without heavy manufacturing investments due to an asset-light model.
Asset-Light Model
PositivePartner network for 90% operations, with in-house core value addition, enhances scalability and reduces fixed costs, enabling growth without additional capex on plant.
Tailwinds
Rising Disposable Income
PositiveIncrease in urban and semi-urban families' spending power drives demand for kidswear.
E-commerce & D2C Growth
PositiveOnline channels and D2C brands are making branded kidswear more accessible.
Tier II/III Expansion
PositiveHuge demand from aspiring consumers outside metros presents significant growth opportunities.
Formalization of Unorganised Sector
PositiveQuality players like Karnika can capture market share from local suppliers as the market formalizes.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
YoY comparison is crucial for a consumer business like kidswear due to potential seasonality. QoQ comparison is also relevant to assess sequential momentum and the impact of recent strategic initiatives and operating leverage.
Sector KPIs management disclosed
Revenue Growth
PositiveRevenue from Operations grew 121.6% YoY to INR 74 Cr in Q1 FY27.
Gross Margins
Under StressGross Margins were 33.6% in FY26, reflecting product mix transition and input cost normalization post peak FY22 levels (50.4% in FY22).
EBITDA Margins
PositiveEBITDA Margins expanded by 225 bps YoY to 17.2% in Q1 FY27, and by 652 bps QoQ from 10.7% in Q4 FY26.
Distribution Expansion
PositivePan-India distribution network covers 28 states with 150+ distribution partners. Omnichannel presence includes D2C, marketplaces, institutional B2B, kiosks (55+), and shop-in-shop.
Management forward view
Strong Start to FY27
PositiveFY27 has commenced on a strong note, driven by the strength of our integrated business model, expanding distribution network, and growing acceptance of our branded kidswear portfolio.
Focus Areas
NeutralFocus remains on strengthening brand equity, expanding market reach, enhancing operational efficiencies, and delivering sustainable profitable growth.
Long-term Opportunity
PositiveIndia's branded kidswear market continues to offer significant long-term opportunities as the shift toward organized players accelerates.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth | 121.6% YoY (Q1 FY27) | Sustained high double-digit revenue growth, indicating continued market penetration and brand acceptance. |
| EBITDA Margins | 17.2% (Q1 FY27) | Further margin expansion, demonstrating operating leverage and efficient cost management as volumes grow. |
| Net Debt-to-Equity | 0.8x (FY26) | Maintenance of low leverage, ensuring financial flexibility for future growth initiatives. |
| Capacity Utilization | 90%+ (FY26) | Continued high utilization levels, validating the asset-light model's efficiency and scalability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
66Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 52nd percentile within Consumer. Main check: cash conversion is weak at 43/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
4 docs text-extracted · 2 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
49th percentile
overall median 67 · Consumer: 52nd pctile, median 66 · SME: 60th pctile, median 64
Evidence depth
Financial-only
4 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
43
weak · profit to cash conversion
Balance sheet
81
strong · leverage and solvency
Discipline
68
acceptable · capital discipline
Results
55
watch · quarterly consistency
Trust positives
- ▸Promoter holding is 73.4%.
- ▸Promoter pledge is zero.
Trust risks
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Karnika Industries Ltd.
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationJul 2026
Jul 2026 · PPT
Source: Nse
Concall transcriptMay 2026
May 2026 · Transcript
Source: Nse
Investor presentationMay 2026
May 2026 · Investor Presentation 18 May 2026 - Investor presentation for Q4 and FY26 audited financial results uploaded on May 18, 2026.
Source: Nse
Annual report
Annual Report 2026
Source: Nse
Concall transcriptNov 2025
Nov 2025 · Transcript
Source: Nse
Annual report
Annual Report 2025
Source: Nse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.