Stove Kraft has announced its expectations of generating significant revenue from exports to IKEA starting in FY27. The kitchen appliances manufacturer indicated that sales to the global furniture retailer will begin in the current quarter, marking the commencement of this new business partnership.

Export Growth Strategy

The company projects overall export growth for the year, with the success of this initiative dependent on tariff conditions remaining stable. This strategic move represents Stove Kraft's efforts to diversify its revenue streams and expand its international presence through collaboration with established global brands.

Business Partnership Details

The partnership with IKEA positions Stove Kraft to tap into the international market through one of the world's largest furniture and home accessories retailers. The company's focus on export growth aligns with its strategy to reduce dependence on domestic markets and explore new revenue opportunities.

Market Outlook

Stove Kraft's optimistic outlook for export growth hinges on maintaining current tariff structures. The company's ability to secure orders from a global brand like IKEA demonstrates its manufacturing capabilities and quality standards meeting international requirements.

This development marks a significant milestone for Stove Kraft as it ventures into supplying products to international retail chains, potentially opening doors for similar partnerships with other global brands in the future.

Stove Kraft Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing mixed performance with significant quarterly challenges offset by stable nine-month results and positive growth outlook. The company's board meeting was held on January 31, 2026, concluding at 2:40 PM.

Growth Strategy and Brand Performance

Despite quarterly challenges, Stove Kraft remains optimistic about its growth trajectory, anticipating double-digit growth in its domestic business operations. The company's flagship Pigeon brand is targeting over 9% year-to-date growth and management expressed confidence about achieving double-digit growth in the next 2-3 years.

The third quarter domestic revenue decline of 2.5% year-on-year was attributed to the lack of Diwali sales impact, highlighting the seasonal nature of the business and the importance of festival periods for revenue generation.

Quarterly Performance Analysis

The third quarter of FY26 presented considerable challenges for Stove Kraft, with key financial metrics showing substantial year-on-year declines across profitability and operational efficiency measures.

The company's EBITDA performance declined significantly to ₹318 million from ₹402 million in the previous year quarter, representing a 21% year-on-year decrease. The EBITDA margin compressed to 8.40% compared to 9.95% in Q3FY25, indicating pressure on operational profitability amid challenging market conditions.

Nine-Month Performance Stability

Despite quarterly challenges, the nine-month performance demonstrated resilience with relatively stable results compared to the previous year.

The nine-month revenue growth of 4.9% indicates underlying business strength, while the modest 3% decline in net profit suggests effective cost management despite challenging market conditions.

Financial Position and Operational Metrics

Stove Kraft maintained a stable financial foundation with paid-up equity share capital of ₹331.07 million as of December 31, 2025, compared to ₹330.52 million in the previous year. The company's reserves excluding revaluation reserves stood at ₹4,377.59 million as of March 31, 2025.

Regulatory and Compliance Updates

The company's trading window, which was closed from December 30, 2025, will reopen on February 3, 2026, following the announcement of quarterly results. The financial results were prepared in accordance with Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Price Waterhouse Chartered Accountants LLP conducted the limited review of the unaudited financial results, noting ongoing Income Tax Department assessment proceedings from search operations conducted in November 2023. The management assessed that these proceedings are not likely to have any material adverse impact on the company's financial results.