Stove Kraft posts record Q1FY27 revenue of ₹4,805.83 mn, led by ICT surge
Stove Kraft Limited achieved record Q1FY27 results with revenue of ₹4,805.83 mn and PAT of ₹170.56 mn, driven by a 315.9% surge in induction cooktop sales and strong channel growth. Management guided for sustained margin expansion and export stability.
*this image is generated using AI for illustrative purposes only.
Stove Kraft Limited reported its highest-ever quarterly revenue in Q1FY27, reaching ₹4,805.83 million, a 41.3% year-on-year increase from ₹3,401.07 million in Q1FY26. The growth was primarily driven by a massive surge in induction cooktop (ICT) sales, which contributed 27% to total revenues, and robust expansion across general trade and retail channels. Net profit after tax (PAT) rose 63.5% to ₹170.56 million, while EBITDA stood at ₹537.51 million, reflecting strong operating leverage despite elevated raw material costs. This performance marks the company's strongest first-quarter result since inception, defying typical seasonal softness in the kitchen appliances industry. Management highlighted that this financial strength positions the company well for sustained profitable growth amidst global economic uncertainties.
The Board of Directors approved the unaudited financial results on August 03, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and approved by the Board. The Financial Statements have been prepared in accordance with Indian Accounting Standards (IndAS) prescribed by section 133 of the Companies Act 2013. Statutory Auditors Price Waterhouse Chartered Accountants LLP issued a limited review report. Pursuant to Regulation 30(6) of SEBI (LODR) Regulations, 2015, the audio recording of the earnings call held on August 04, 2026, has been made available for investor reference.
Financial Performance Highlights
Stove Kraft's operational efficiency improved significantly, with gross margins expanding year-on-year to 39.6%, up from 38.3% in Q1FY26. This expansion occurred despite ongoing supply chain challenges and higher input costs, underscoring effective pricing strategies and brand strength. Profit before tax expanded by 68.5% to ₹224.78 million from ₹133.43 million in the prior year period. Employee benefits rose to ₹55.9 crore and other expenses to ₹85.6 crore.
| Particulars | Q1FY27 (₹ Mn) | Q1FY26 (₹ Mn) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 4,805.83 | 3,401.07 | +41.3% |
| EBITDA | 537.51 | 356.21 | +50.9% |
| Profit Before Tax | 224.78 | 133.43 | +68.5% |
| Net Profit (PAT) | 170.56 | 104.33 | +63.5% |
| EPS Basic (₹) | 5.15 | 3.15 | +63.5% |
Segment and Channel Growth
The Induction Cooktop (ICT) segment emerged as the primary growth driver, recording exceptional value growth of 315.9% year-on-year and 100.3% quarter-on-quarter. This surge was supported by resilient demand and the company's "Gas to Grid" marketing initiative, which capitalized on LPG cylinder shortages and shifting consumer preferences toward electric cooking. Other categories showed mixed performance: cookers grew 41.3% and non-stick cookware 21.8%, while small appliances declined 2.2% and gas cooktops fell 6.9%.
Channel-wise, General Trade recorded a 56.2% YoY growth, crossing the 56% mark for the first time in three years. Modern Retail delivered 51.6% growth, and the company's own Retail outlets saw an outstanding 86.3% YoY increase. E-commerce revenue grew 38.5% to ₹152.7 crore, maintaining its share at approximately 31.8% of total revenue. The company expanded its physical footprint by adding 17 new stores in Q1, bringing the total to 346 outlets across 23 states.
Working Capital and Returns
A key analytical observation is the divergence between inventory buildup and receivable management. While net working capital days increased sequentially to 45 days from 23 days in Q4FY26, this was a strategic inventory build-up ahead of the festive season, particularly for long lead-time ICT products. Despite this increase, inventory days improved year-on-year to 45 days from 69 days in Q1FY26, extending a positive working capital trend observed over the last three years. Return on Capital Employed (ROCE) stood at 13.9% and Return on Equity (ROE) at 9.3%, both showing improvement during the quarter, indicating enhanced capital efficiency.
Corporate Governance and Regulatory Updates
The Board approved the reappointment of Anup Sanmukh Shah as an Independent Director for a second term of five years, effective November 02, 2026, and Neha Gandhi as Executive Director for a further five-year term starting September 30, 2026. The filing also disclosed ongoing income tax assessment proceedings following search operations in November 2023, with demand notices aggregating to ₹13.5 million pending appeal. Management believes these proceedings will not materially impact the company's financial position. Furthermore, the Board granted in-principle approval for incorporating a wholly-owned subsidiary in China to facilitate overseas direct investment.
What the Numbers Show
The earnings call transcript reveals that management expects gross margins to settle between 40% and 42% on an ongoing basis, aiming for a long-term PAT margin of 7% through financial leverage. Exports, currently contributing 15.3% of revenue, are projected to stabilize around 15% of total revenue over the next two years, with IKEA supplies commencing in Q2FY27. The company anticipates continued high growth in non-induction categories, targeting nearly 20% growth through premiumization and product innovation, reinforcing its strategy of diversified revenue streams beyond the ICT spike.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE00IN01015/cd777f4d-e40b-41ce-a05a-03a5ef6f8200.pdf
Historical Stock Returns for Stove Kraft
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.15% | +6.27% | +2.84% | +64.53% | +17.59% | -1.36% |
How will the strategic inventory buildup for the festive season impact Stove Kraft's working capital efficiency and cash flow in Q2FY27?
What specific operational challenges might arise from the newly approved wholly-owned subsidiary in China, and how will it influence the company's export strategy?
Can the 315.9% surge in induction cooktop sales be sustained in FY27, or is it likely to normalize as LPG supply constraints ease?
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