Indian Card Clothing Company reported a sharp decline in FY 2025-26 net profit to Rs 4.20 crore, down from Rs 91.85 crore in the previous year, primarily due to the absence of prior-year asset sale gains. The company also announced the resignation of its CFO, Sanjeevkumar Karkamkar, and faces an audit observation regarding accounting software compliance. Despite these challenges, the firm is investing in its UK subsidiary, Garnett Wire, and has commissioned a new solar power plant to improve operational efficiency.
Indian Card Clothing FY26 Net Profit Falls to Rs 4.20 Crore
Standalone Net Profit: Rs 4.20 Crore (FY26) vs Rs 91.85 Crore (FY25)
Standalone Revenue: Rs 57.23 Crore (FY26) vs Rs 79.95 Crore (FY25)
Reader Takeaway: Absence of one-time asset sale gains hit bottom line; auditor flagged software compliance and audit trail gaps.
What just happened
Indian Card Clothing Company Ltd reported a significant decline in its standalone financial performance for FY 2025-26. Total income dropped to Rs 57.23 crore compared to Rs 79.95 crore in the previous fiscal year. Net profit after tax saw a major contraction, falling to Rs 4.20 crore from Rs 91.85 crore in FY 2024-25. The company did not declare any dividend for the fiscal year.
Why this matters
The steep drop in profitability reflects the lack of exceptional gains from asset monetization that boosted the previous year's figures. Furthermore, the company faces corporate governance scrutiny, as statutory auditors P.G. Bhagwat LLP reported that the accounting software used during the year lacked the mandatory audit trail (edit log) feature throughout the period. This raises concerns regarding the preservation of records and internal controls.
Management Changes
Mr. Sanjeevkumar Karkamkar, who served as both Executive Director and Chief Financial Officer, resigned from his positions effective September 1, 2026. This leadership change comes at a time when the company is managing significant operational and compliance hurdles.
Strategic Developments
Despite the financial cooling, the company is pursuing growth avenues. The Board has approved an additional investment of £250,000 into its UK-based subsidiary, Garnett Wire Ltd. Additionally, the company commissioned a 0.56 MW rooftop solar plant in Nalagarh, Himachal Pradesh, as part of its sustainability and cost-optimization initiatives. In July 2026, the company successfully monetized commercial property in Baner, Pune.
What to track next
Investors should closely monitor the ongoing NCLT proceedings in Mumbai, where the company is seeking to consolidate its equity share capital by increasing the nominal value of shares from Rs 10 to Rs 2,000. Additionally, the company's ability to address the audit trail non-compliance and maintain stable operational margins remains a key area of focus for shareholders.