Stove Kraft Q1 Results: Net Profit Rises 63% YoY, EBITDA Jumps to ₹525M
Stove Kraft reported strong Q1FY27 results with net profit rising 63% YoY to ₹171 million and EBITDA jumping to ₹525 million from ₹370 million, as EBITDA margin improved to 10.92% from 10.80%. Revenue from operations grew 41% to ₹4.8 billion, while profit before tax expanded 68.5% to ₹224.78 million, reflecting improved operational leverage. The Board also approved director reappointments and in-principle approval for a wholly-owned subsidiary in China.
*this image is generated using AI for illustrative purposes only.
Stove Kraft Limited reported a robust start to FY27, with net profit surging 63% year-on-year to ₹171 million for the quarter ended June 30, 2026. Revenue from operations rose 41% to ₹4.8 billion from ₹3.4 billion in the corresponding period of FY26. The company's earnings per share (EPS) also climbed to ₹5.15, up from ₹3.15 in Q1FY26.
The Board of Directors, meeting on August 03, 2026, approved the unaudited financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subsequently approved by the Board. Statutory Auditors Price Waterhouse Chartered Accountants LLP issued a limited review report, stating that nothing came to their attention to suggest the statement was materially misstated.
Financial Performance Highlights
Stove Kraft's operational performance strengthened considerably, with EBITDA rising to ₹525 million from ₹370 million in the year-ago period, while EBITDA margin expanded to 10.92% from 10.80% year-on-year. Total income reached ₹4,801.52 million, compared to ₹3,421.82 million in Q1FY26. While revenue grew significantly, total expenses increased to ₹4,576.74 million from ₹3,288.39 million, primarily due to higher cost of materials consumed and other expenses. Despite the rise in costs, profit before tax expanded to ₹224.78 million from ₹133.43 million.
| Particulars: | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations: | ₹4,805.83 Mn | ₹3,401.07 Mn | +41.3% |
| Total Income: | ₹4,801.52 Mn | ₹3,421.82 Mn | +40.3% |
| Total Expenses: | ₹4,576.74 Mn | ₹3,288.39 Mn | +39.2% |
| EBITDA: | ₹525 Mn | ₹370 Mn | +41.9% |
| EBITDA Margin: | 10.92% | 10.80% | +12 bps |
| Profit Before Tax: | ₹224.78 Mn | ₹133.43 Mn | +68.5% |
| Net Profit: | ₹171 Mn | ₹104 Mn | +63.5% |
| EPS (Basic): | ₹5.15 | ₹3.15 | +63.5% |
What the Numbers Show
A key observation is the divergence between revenue growth and expense management. While revenue grew by 41%, total expenses grew at a slightly lower rate of 39.2%, allowing profit before tax to expand by 68.5%. This operational leverage indicates improved efficiency in scaling operations. Finance costs remained relatively stable at ₹75.97 million, suggesting that debt levels have not spiked despite the growth trajectory. The company operates in a single segment—Kitchen and Home Appliances—and continues to manage its trade receivables through non-recourse factoring arrangements, derecognizing ₹238.20 million in receivables during the quarter.
Corporate Governance Updates
In addition to financial results, the Board approved the reappointment of two key directors, subject to shareholder approval at the ensuing Annual General Meeting:
- Anup Sanmukh Shah: Reappointed as an Independent Director for a second term of five years, effective from November 02, 2026, to November 01, 2031. Shah brings over 39 years of legal experience, particularly in real estate law.
- Neha Gandhi: Reappointed as Executive Director for a further term of five years, effective from September 30, 2026. Gandhi, a promoter and daughter of Managing Director Rajendra Gandhi, oversees People, Process, and Technology functions.
Regulatory Disclosures
The filing disclosed ongoing income tax assessment proceedings following search operations conducted in November 2023. The company has received demand notices aggregating to INR 13.50 million for various assessment years. Appeals for AY 2022-23 and AY 2023-24 are pending with the Commissioner of Income Tax Appeals. Management believes these proceedings will not have a material adverse impact on the company's financial position. Additionally, the Board granted in-principle approval for incorporating a wholly-owned subsidiary in China to facilitate overseas direct investment.
Historical Stock Returns for Stove Kraft
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.06% | -2.43% | -2.70% | +58.01% | +26.99% | -4.15% |
How will the newly approved wholly-owned subsidiary in China impact Stove Kraft's supply chain costs and export competitiveness in the long term?
Given the 39.2% rise in total expenses, what specific strategies is management implementing to ensure EBITDA margins expand further beyond the current 10.92%?
What are the potential financial implications if the pending income tax appeals from the 2023 search operations result in adverse rulings?
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