Stove Kraft Limited disclosed key sustainability metrics for FY26, highlighting a shift toward renewable energy and improved operational efficiency. The company reported that 33% of its total annual energy requirement of 3 crore units was sourced from renewables, comprising 70 lakh units from solar and 30 lakh units from wind power. This stands against a backdrop of rising grid electricity costs, with the company aiming to reach 65% renewable energy consumption by 2030.

Energy and Environmental Metrics

The company’s total energy consumption for FY26 stood at 1,29,993.95 GJ, an increase from 1,06,614.15 GJ in FY25. Scope 1 greenhouse gas emissions decreased significantly to 206.18 metric tonnes of CO2 equivalent, down from 295.5 metric tonnes in the previous year. However, Scope 2 emissions rose to 15,101.67 metric tonnes of CO2 equivalent, compared to 9,057.68 metric tonnes in FY25, reflecting increased reliance on purchased electricity despite the renewable mix.

Water management remains a critical focus, with the company withdrawing 57,436.67 kilolitres of groundwater. Stove Kraft implemented a Zero Liquid Discharge mechanism, recycling approximately 90% of water used within the facility through a 500 KL Sewage Treatment Plant (STP) and Effluent Treatment Plant (ETP). Total waste generated increased to 961.25 metric tonnes from 649.91 metric tonnes in FY25, driven largely by a rise in plastic waste to 610 metric tonnes.

Workforce and Social Impact

Stove Kraft reported a total workforce of 5,833 individuals, comprising 1,029 permanent employees and 4,804 workers. The company maintained a 3:1 female-to-male workforce ratio at its Harohalli manufacturing facility, exceeding industry averages for the manufacturing sector. Women constituted 10.01% of permanent employees and 55.33% of workers.

Employee turnover rates declined across categories. The turnover rate for permanent employees fell to 12% in FY26 from 23% in FY25. For permanent workers, the rate dropped to 13% from 49% in the prior year. The company spent 0.39% of total revenue on employee well-being measures, slightly lower than the 0.40% recorded in FY25.

Operational Efficiency

Quality control improvements were evident in the reduction of finished goods rejections, which fell from 1.73% in FY25 to 0.7% in FY26. This improvement aligns with the company’s adherence to global standards such as the IKEA IWAY Principles. The company also reported 786,997 customer complaints received during the year, with 12,211 pending resolution at year-end, compared to 712,994 complaints and 13,484 pending cases in FY25.

What the Numbers Show

The divergence between declining Scope 1 emissions and rising Scope 2 emissions indicates that while on-site operational efficiency has improved, the overall carbon footprint is increasingly tied to external electricity procurement. The simultaneous drop in employee turnover and finished goods rejection rates suggests that workforce stability initiatives are directly correlating with higher manufacturing quality standards.

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.