StoveKraft Expands Employee Ownership Through Stock Option Plan

Stove Kraft Limited, a prominent kitchen appliances manufacturer, has taken a significant step in enhancing employee engagement and ownership. The company recently announced the allotment of equity shares under its Employee Stock Option Plan (ESOP), demonstrating its commitment to aligning employee interests with those of the organization.

ESOP Allotment Details

Stove Kraft's Nomination and Remuneration Committee has approved the allotment of equity shares to eligible employees under the StoveKraft Employee Stock Option Plan 2018. Here are the key details of the allotment:

Aspect	Details
Number of Shares Allotted	5,821
Face Value per Share	Rs. 10.00
Total Allotment Value	Rs. 58,210.00

Impact on Company's Capital Structure

The recent allotment has resulted in changes to Stove Kraft's capital structure:

Metric	Before Allotment	After Allotment
Paid-up Capital	Rs. 33,10,15,000.00	Rs. 33,10,73,210.00
Total Equity Shares	3,31,01,500	3,31,07,321

This allotment represents a marginal increase in the company's equity base, with the total number of shares rising by 5,821 units.

Implications of the ESOP Allotment

The implementation of the Employee Stock Option Plan serves multiple purposes for Stove Kraft:

Employee Retention: By offering equity ownership, the company aims to retain talented employees and foster a sense of belonging.
Performance Motivation: ESOPs can serve as a powerful tool to motivate employees, as the value of their shares is directly linked to the company's performance.
Alignment of Interests: This move helps align the interests of employees with those of shareholders, potentially leading to improved overall company performance.

While the current allotment represents a small fraction of the company's total equity, it signifies Stove Kraft's ongoing commitment to its employee incentive programs. As the company continues to grow, such initiatives may play a crucial role in attracting and retaining top talent in the competitive kitchen appliances industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.52%	-2.36%	-9.80%	+1.06%	-11.76%	+41.89%

Stove Kraft Limited, a leading kitchen appliances manufacturer, has reported a robust financial performance for the second quarter, with significant growth in revenue and profitability. The company also achieved a milestone in its retail expansion strategy.

Financial Highlights

Stove Kraft posted impressive financial results for Q2:

Metric	Q2 FY26	Q2 FY25	YoY Growth
Revenue	474.40	418.30	13.40%
Gross Profit	182.80	159.80	14.40%
Gross Margin	38.50%	38.17%	33 bps
EBITDA	56.80	49.00	15.80%
EBITDA Margin	12.00%	11.70%	30 bps
Profit After Tax	21.40	16.70	27.80%
PAT Margin	4.50%	4.00%	50 bps

The company's performance in the first half was equally strong:

Metric	H1 FY26	H1 FY25	YoY Growth
Revenue	814.50	732.80	11.20%
Gross Profit	313.10	279.90	11.90%
Gross Margin	38.40%	38.16%	24 bps
EBITDA	92.40	80.70	14.50%
EBITDA Margin	11.30%	11.00%	30 bps
Profit After Tax	31.80	24.90	27.60%

Retail Expansion and Milestone

Stove Kraft has reached a significant milestone in its retail strategy:

Achieved 300 standalone Pigeon exclusive outlets across 120 cities and 21 states
Added 16 new stores during Q2
Targeting expansion to 500 standalone stores by 2027

Channel Mix and Business Segments

The company's Q2 channel mix comprised:

Channel	Contribution
E-commerce	41.00%
General Trade	26.00%
Modern Trade	14.00%
OEM Exports	11.00%
Own Retail	6.00%
Corporate/Institutional Sales	3.00%

GST Impact and Future Outlook

Stove Kraft is set to benefit from the recent GST rate reduction:

GST rate reduced from 12% to 5% on approximately 35% of its business
Particularly beneficial for pressure cookers and cookware categories
Expected to enhance volume growth and improve demand across categories

Export Business and IKEA Partnership

The company's export business showed strong growth:

25% growth in Q2 and 19% growth in H1
IKEA partnership starting for ceramic cookware, replacing PTFE non-stick products
Exploring new product categories for exports, including outdoor cooking and cast iron cookware

Debt Reduction Plans

Stove Kraft aims to become debt-free within four quarters, leveraging accruals and improvements in working capital management.

Management Commentary

Rajendra Gandhi, Managing Director of Stove Kraft Limited, commented on the results: "We delivered a robust performance across categories, driven by improvement in consumer demand and pickup for ongoing festival season, as well as operating and financial leverage kicking in. The company posted a double-digit revenue growth of 13.4% year-on-year, with a stable gross margin of 38.5% and stronger EBITDA margin of 12%."

Gandhi also highlighted the company's retail expansion strategy and the positive impact of GST rationalization: "Our foray into direct retail through company-owned stores marked a significant step forward in our journey. The GST rate reduction presents a significant opportunity for us to enhance our volume growth, particularly in the pressure cooker and cookware categories."

Stove Kraft continues to focus on strengthening its brand presence, enhancing profitability, and expanding its product range to meet evolving consumer needs in the kitchen appliances market.