Karnika Industries Ltd(KARNIKA)

NSE: KARNIKA

₹ 129.8-0.99%refreshed 26 Oct, 01:31 pm ISTMarket cap: ₹ 805 crUpdated: 24 Oct 2026

About

Karnika Industries makes kidswear under the KARNIKA brand, with more than 500 distinct product designs made at its facilities in Howrah, West Bengal. It also runs a unit that makes jeans for adults. Reported revenue for FY26 was Rs 248.48 Cr. The company sells mainly to more than 2,500 retailers and commission agents, and through its acquisition of Kidcity it now also sells directly to consumers.^[1][2]

Business mix

Of H1 FY27 consolidated revenue of about INR180 crores, INR140 crores came from Karnika and INR40 crores from Kidcity.^[3]
Own brand made up 98% of sales in H1 FY27. The company has started white labelling for large corporates, some of which also bought KARNIKA-branded goods in the puja season.^[3]
Acquired a 75% controlling stake in Kidcity Solutions Private Limited, giving it entry into direct-to-consumer and shop-in-shop retail. Kidcity was consolidated in FY26.^[4]

Products and brands

More than 500 distinct kidswear product designs in FY26 across eleven-plus garment categories, including shorts, joggers, capris, tees, rompers, sleep suits, pyjamas, winter wear and infant garments.^[1]
Sub-brands under KARNIKA as of FY26: KARNIKA Care, Cool, Cube, Life, Key and Club.^[1]
Also runs a unit making adult jeans and has entered the fabric segment (FY26 annual report).^[1]
Kidcity, its D2C and omnichannel kidswear brand, sells at price points of ₹199 - ₹499 (Q1 FY27).^[4]

Operations and capacity

Produced more than 45 lakh garments in FY26 at its facilities in Howrah. It had 185 employees as of March 31, 2026.^[1]
The FY25 annual report listed manufacturing facilities in Howrah, West Bengal and Manesar, Haryana.^[5]
All four plants ran above 90% capacity utilisation in Q1 FY27, up from 80%-85% in Q2 FY26. Over 90% of operations are outsourced.^[4]
Fixed asset turnover was 39x in FY26, compared with 28x in FY23.^[4]
Production starts only after demand is confirmed. Yarn (cotton, polyester and viscose blends) is bought directly to match client specifications (FY26).^[1]

Key operating numbers

Gross margin was 35% in H1 FY27. It was 33.6% in FY26, compared with 44.6% in FY25 and 51.2% in FY22.^[3][6]
Working capital days were 143 in H1 FY27, down from 178 in FY26.^[3]
Inventory returns are under 1%, according to the Q2 FY27 call.^[3]
Store-level gross margin at Kidcity was 28-32% in FY26. Payback is 8-9 months for a kiosk and 15-18 months for an exclusive brand outlet (EBO).^[6]

Customers and distribution

More than 2,500 clients (retailers and commission agents) in FY26. Over 90% of revenue came from clients who had stayed three years or more.^[1]
Distribution covered 28 states with 500+ partners in H1 FY27.^[3]
Kidcity had 85+ shop-in-shop counters in H1 FY27 and 1 EBO in Q2 FY27. Its aggregation sales through Hopscotch and Styli are picking up.^[3]
Shop-in-shop partners as of Q1 FY27 included Pothy's, Spencer's and Chennai Silks.^[4]
Kidcity launched kidcity.shop on November 1, 2025 and sells on Amazon, Flipkart, Ajio, Myntra and Hopscotch.^[7]

Exports

Exports were under 1% of sales in H1 FY27. Its export markets are the Middle East and Southeast Asia.^[3][4]
As of Q4 FY26, US orders were on hold. The company is redirecting institutional sales toward Zara, H&M and DMart.^[6]

Expansion plans

Plans about 50-55 'Brands of Brand' kiosks/EBOs at airports and high streets over FY27-28. These will sell licensed-character products and accessories at MRP 799-1,499.^[3]
Talks were under way in Q2 FY27 with GMR for Delhi Airport, as well as with Kolkata and Lucknow airports.^[3]
Targets about 1,000 SIS counters and 300-400 EBO/kiosk outlets by FY29-30. Kidcity's SIS network is expanding into Central India (MP).^[3]
An omnichannel exchange tech platform is expected to close by Feb-Mar 2027.^[3]
Plans to acquire commercial property in West Bengal for an integrated in-house manufacturing setup (Q4 FY26 call).^[6]
Management said in Q2 FY27 that debt will be held at its current level and that an equity or preferential raise is possible to fund expansion.^[3]

Recent developments

Eligible for migration from NSE Emerge to the NSE main board effective 13 October 2026, subject to regulatory and procedural requirements.^[3][1]
Muskan Bubna stepped down as Company Secretary & Compliance Officer at the close of business on October 14, 2026, and ceased to be Key Managerial Personnel.^[8][9]
Q2 FY27 revenue from operations grew 52.3% YoY to INR106 crores.^[3]

Market Cap

₹805 Cr

High / Low

₹179 / 90

Stock P/E

20.2

Price / Book

5.8

Book Value

₹16

EPS

₹4.5

No. of Shares

6.2 Cr

ROCE

25.5%

ROE

29.0%

OPM

17.2%

Debt / Equity

0.78

Sales

₹248 Cr

Net Profit

₹28 Cr

Promoter holding

73.4%

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