StoveKraft Reports 13.4% Revenue Growth in Q2, Expands to 300 Exclusive Stores

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.27%	-2.61%	-10.03%	+0.81%	-11.99%	+41.53%

Stove Kraft Limited , a prominent player in the Indian kitchen appliances market, has unveiled ambitious growth plans while also facing a leadership transition. The company has set its sights on significant retail expansion and margin improvements, even as it navigates changes in its top management.

Expansion and Financial Targets

Stove Kraft has announced a series of strategic objectives aimed at boosting its market presence and financial performance:

Target	Details
Retail Expansion	500 stores by 2027
Revenue Target from Retail	INR 300.00 crores
EBITDA Margin Improvement	1% increase over the previous year
Gross Margin Goal (H2 FY26)	Around 39%
Near-term Gross Margin Aspiration	40%

The company expects its revenue for the second half of FY26 to be close to the first half levels, with a potential variation of INR 25.00-30.00 crores.

Leadership Change

In a separate development, Stove Kraft has announced a significant change in its leadership team:

Position	Name	Change	Effective Date
Chief Revenue Officer	Mr. Rohit Mago	Resignation	November 5, 2025

Mr. Mago has tendered his resignation citing personal reasons and will be relieved from his duties at the close of business hours on November 5, 2025. This change in the senior management comes at a crucial time as the company pursues its growth strategy.

Market Implications

The combination of expansion plans and a key leadership change presents both opportunities and challenges for Stove Kraft. The company's focus on improving margins and expanding its retail footprint suggests a push for growth. However, the departure of the Chief Revenue Officer could potentially impact the execution of these plans in the short term.

Investors and market watchers may keep a close eye on how Stove Kraft manages this transition and whether it affects the company's ability to meet its stated financial and operational targets. The success of the retail expansion strategy and the company's ability to improve margins as projected will be critical factors in determining Stove Kraft's performance in the coming years.

As the Indian kitchen appliances market continues to evolve, Stove Kraft's strategic moves and ability to navigate leadership changes may play a crucial role in shaping its position in the competitive landscape.