Stove Kraft Limited reported robust financial performance for the fiscal year ended March 31, 2026, highlighting disciplined execution and significant balance sheet strengthening. Revenue from operations grew 10.9% year-on-year to ₹1,607.4 crore, supported by a wider category mix and multiple routes to market. Profit after tax (PAT) increased by 9.1% to ₹42.0 crore, reflecting improved operational efficiency and margin expansion.

The most notable development was the substantial improvement in liquidity and debt reduction. Net debt declined sharply from ₹176.8 crore in the previous year to just ₹27.1 crore, a reduction of over 84%. This deleveraging was facilitated by enhanced internal cash generation and disciplined working capital management.

Financial Performance

Gross profit grew faster than revenue at 12.7%, leading to an expansion in gross margin by 60 basis points to 38.7%. This margin improvement was attributed to manufacturing integration and an evolving product mix that favored higher-value categories. EBITDA stood at ₹166.1 crore, representing a 10.3% growth over the prior year.

Cash Flow and Working Capital

Cash flow from operations more than doubled to approximately ₹258 crore from ₹130 crore in the previous year. This surge in cash generation was underpinned by a dramatic tightening of the working capital cycle, which reduced from 64 days to just 23 days. Lower inventory and receivable days, combined with higher payable days, released significant capital for the business.

Return on capital employed (ROCE) improved to 11.2% from 9.6% in the prior year, signaling better utilization of deployed capital as the company moves into a phase of higher capacity utilization with lower incremental capex requirements.

Operational Highlights

The company expanded its exclusive retail footprint to 329 stores across 22 states and 151 cities, adding 67 new outlets during the year. Own retail contributed 7.5% of total revenue. Induction cooktops delivered strong value growth of 23.9% and volume growth of 11.7%, indicating growing consumer adoption of electric cooking solutions.

Strategic initiatives included a partnership with IKEA, for which the company invested ₹58 crore in dedicated tooling and infrastructure. Production and revenue recognition from this partnership are expected to commence progressively in FY27. The company also entered the HoReCa segment with the launch of heavy-duty infrared cooktops.

What the Numbers Show

A key analytical observation is the divergence between top-line growth and bottom-line leverage. While revenue grew at a healthy double-digit pace, the company prioritized balance sheet repair over aggressive expansion. The near-doubling of operating cash flows relative to PAT suggests that earnings quality has improved significantly, with profits being converted efficiently into cash rather than getting trapped in working capital. This shift provides Stove Kraft with greater financial flexibility to fund future growth internally.

Stove Kraft has scheduled its 27th Annual General Meeting (AGM) for Friday, September 11, 2026, at 11:00 am via video conference. The record date for determining shareholders eligible to attend the meeting and receive the proposed dividend is fixed for Friday, September 4, 2026.

Financial Highlights and Dividend

The Board of Directors has recommended a final dividend of ₹3.50 per equity share of face value ₹10 each (representing 35%) for the financial year ended March 31, 2026. If declared at the AGM, the dividend will be paid within 30 days of the meeting date.

For FY26, the company reported revenue from operations of ₹16,074.24 million, an increase from ₹14,498.17 million in FY25. Net profit rose to ₹419.91 million in FY26, compared to ₹385.05 million in the previous year. Profit before tax stood at ₹509.83 million, up from ₹487.88 million in FY25.

Board Appointments and Reappointments

The AGM will consider several key personnel changes:

• Mrs. Neha Gandhi: Reappointment as Executive Director for five years, effective September 30, 2026. Her proposed annual remuneration includes a basic salary of ₹40,04,000, house rent allowance of ₹22,17,600, conveyance allowance of ₹12,40,812, and variable pay of ₹15,40,000.
• Mr. Anup Sanmukh Shah: Reappointment as Non-Executive Independent Director for a second term of five years, from November 2, 2026, to November 1, 2031.
• Mr. Chandru Kalro: Appointment as Non-Executive Non-Independent Director and approval for professional fees. Mr. Kalro, former Managing Director of TTK Prestige, will receive a retainer fee of ₹2 crore per annum plus milestone-linked incentives tied to revenue and EBITDA targets for FY29 and FY31.

Other Resolutions

Shareholders will also vote on the following matters:

• ESOP Expansion: Modification of the Stove Kraft Employee Stock Option Plan 2018 to increase the total quantum of options from 813,000 to 1,025,000 stock options.
• Auditors: Reappointment of Price Waterhouse Chartered Accountants LLP as Statutory Auditors for a second term of five years, covering FY27 to FY31.
• Cost Auditors: Ratification of remuneration for M/s. G S & Associates as Cost Auditors for FY27, amounting to ₹1,25,000 plus applicable taxes.

E-Voting Details

Remote e-voting will be available from September 8, 2026, at 9:00 am to September 10, 2026, at 5:00 pm, through KFin Technologies Limited. Shareholders holding shares as on the cut-off date of September 4, 2026, are eligible to cast their votes electronically.