AKI India Ltd. (AKI) AI Stock Analysis

AKI India Ltd.

(NSE:AKI)

Select Model

Rating:51Neutral

Price Target:INR 6.00▲(16.73% Upside)

Action:reiterated

Date:10/23/26

The score is primarily constrained by weak cash-flow conversion (negative operating cash flow and free cash flow in FY2024–FY2026) and deteriorating operating profitability despite strong revenue growth. A strengthened balance sheet (much lower leverage) and generally neutral technical signals provide some support, but the relatively high P/E with no dividend yield tempers the overall attractiveness.

Positive Factors

Strong Revenue GrowthThe sharp FY2026 revenue increase indicates that AKI expanded its sales base materially and achieved stronger top-line scale. If the company can retain customers and convert growth into healthier margins, this broader revenue platform could support improved operating leverage over the next several quarters.

Negative Factors

Negative Cash GenerationPersistent negative operating and free cash flow means current growth is not translating into internally generated funding. This can constrain reinvestment, increase reliance on financing, and weaken resilience if cash needs remain elevated, making cash conversion a central issue for durable financial quality.

AKI India Ltd. (AKI) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 527.38M
Dividend Yield: ―
Average Volume (3M): 54.95K
Price to Earnings (P/E): 26.9
Beta (1Y): 0.84
Revenue Growth: 52.48%
EPS Growth: 190.83%
Country: India
Employees: 40
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

AKI India Ltd. Business Overview & Revenue Model

Company Description

AKI India Limited, founded in 1994 and headquartered in Kanpur, India, is a manufacturer and seller of a broad range of leather and associated products. The company's operations are structured across distinct segments: Tannery, Footwear, Equestrian,...

AKI India Ltd. Financial Statement Overview

Summary

Strong FY2026 revenue growth (+114% YoY) and a much healthier leverage position (debt-to-equity ~0.21x) are meaningful positives. However, operating performance deteriorated (gross margin down to ~8% and EBIT/EBITDA negative) and cash generation is a major weakness with negative operating cash flow and consistently negative free cash flow in FY2024–FY2026.

Income Statement

52Neutral

Balance Sheet

66Positive

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.07B	1.07B	809.62M	709.13M	702.62M	609.39M
Gross Profit	86.66M	86.66M	143.31M	137.95M	138.46M	94.63M
EBITDA	40.38M	-41.30M	63.69M	53.88M	54.80M	53.65M
Net Income	32.20M	24.07M	16.78M	13.67M	11.55M	16.46M
Balance Sheet
Total Assets	1.60B	1.60B	1.14B	1.04B	647.02M	604.88M
Cash, Cash Equivalents and Short-Term Investments	46.93M	46.93M	27.81M	18.13M	14.73M	12.70M
Total Debt	214.49M	214.49M	242.14M	218.39M	295.06M	294.37M
Total Liabilities	598.24M	598.24M	492.29M	443.97M	482.66M	464.26M
Stockholders Equity	1.00B	1.00B	651.37M	597.14M	149.88M	140.62M
Cash Flow
Free Cash Flow	-209.95M	-209.95M	-51.52M	-225.81M	15.18M	-2.86M
Operating Cash Flow	-159.07M	-159.07M	-26.71M	-176.24M	37.95M	7.62M
Investing Cash Flow	-48.87M	-48.87M	-15.13M	-176.89M	-24.87M	-9.94M
Financing Cash Flow	227.06M	227.06M	51.52M	356.53M	-10.99M	3.43M

AKI India Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price5.14

Price Trends

50DMA5.76Negative

100DMA5.17Negative

200DMA5.25Negative

Market Momentum

MACD-0.19Positive

RSI33.07Neutral

STOCH12.25Positive

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 5.14 is below the 20-day moving average (MA) of 5.82, below the 50-day MA of 5.76, and below the 200-day MA of 5.25, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 33.07 is Neutral, neither overbought nor oversold. The STOCH value of 12.25 is Positive, 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AKI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BATAINDIA	60Neutral	INR 80.79B	55.26	―	5.41%	1.91%	-29.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:AKI	51Neutral	INR 530.48M	26.89	―	―	52.48%	190.83%
IN:MIRZAINT	47Neutral	INR 3.60B	-15.97	―	―	-11.43%	-264.80%
IN:RELAXO	45Neutral	INR 67.91B	36.53	―	1.29%	2.11%	5.98%
IN:LIBERTSHOE	42Neutral	INR 3.21B	37.10	―	―	6.46%	-30.10%
IN:KHADIM	38Underperform	INR 2.27B	81.92	―	―	-31.56%	-47.39%

* General Sector Average

Performance Comparison

IN:AKI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AKI	AKI India Ltd.	5.14	-2.92	-36.23%
IN:BATAINDIA	Bata India Ltd	628.55	-393.95	-38.53%
IN:KHADIM	Khadim India Limited	123.40	-129.05	-51.12%
IN:LIBERTSHOE	Liberty Shoes Limited	188.20	-129.40	-40.74%
IN:MIRZAINT	Mirza International Limited	26.05	-11.12	-29.92%
IN:RELAXO	Relaxo Footwears Limited	272.80	-156.91	-36.51%

AKI India Ltd. Corporate Events

AKI India Sets Book Closure Dates Ahead of 32nd AGM

Sep 2, 2026

AKI India Ltd. has announced the closure of its Register of Members and Share Transfer Books from 16 September 2026 to 23 September 2026, in line with SEBI listing regulations. The move is tied to preparations for the company’s 32nd Annual Gene...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 23, 2026

AKI India Ltd. AI Stock Analysis