Stove Kraft Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Stove Kraft Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Stove Kraft reported consolidated Q1 FY27 revenue of Rs 480.6 crore, up 41.3% year-on-year, driven by broad-based growth across product categories including a 315.9% jump in Induction Cooktops. EBITDA grew 50.9% to Rs 53.8 crore with margins expanding to 11.2%, while PAT rose 63.5% to Rs 17.1 crore. Management attributed the performance to distribution expansion, premiumization, general trade recovery, and operating and financial leverage, while noting elevated other expenses from job work outsourcing, marketing spend, and franchise commissions.
Numbers mentioned
Revenue: INR480.6 crores (Q1 FY27)
p. 5
“The consolidated revenue stood at INR480.6 crores for the quarter versus INR340.1 crores in the previous quarter last year.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
Revenue growth: 41.3% (Q1 FY27 vs Q1 FY26)
p. 5
“Hence, we are just seeing a growth of 41.3% year-on-year basis.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
Gross profit: INR190.4 crores (Q1 FY27)
p. 5
“Gross profit for the quarter stood at INR190.4 crores versus INR130.4 crores in Q1 FY26, a growth of 46% year-on-year.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
Gross margin expansion: 127 basis points (Q1 FY27 vs Q1 FY26)
p. 5
“Also, gross margins expanded by 127 basis points year-on-year, reflecting the strength of our brand portfolio, pricing discipline, and operational excellence.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
EBITDA: INR53.8 crores (Q1 FY27)
p. 5
“EBITDA stood at INR53.8 crores in Q1 FY27 compared to INR35.6 crores in Q1 FY26, registering a robust 50.9% year-on-year.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
EBITDA margin: 11.2% (Q1 FY27)
p. 5
“Consequently, EBITDA margins improved to 11.2% from 10.5% in the corresponding period last year, expanding by 71 basis points, supported by operating leverage, a favorable product mix, and disciplined cost management.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
PAT: INR17.1 crores (Q1 FY27)
p. 6
“PAT for Q1 FY27 stood at INR17.1 crores versus INR10.4 crores in Q1 FY26.”
Rajendra Gandhi, page 6 of the filed PDF · View the filing
PAT margin: 3.5% (Q1 FY27)
p. 6
“The PAT margins for the current quarter stood at 3.5%.”
Rajendra Gandhi, page 6 of the filed PDF · View the filing
ROCE: 13.9% (Q1 FY27)
p. 6
“ROCE improved to 13.9% from 12.6%, while ROE increased to 9.3% from 8.3% in the corresponding period last year.”
Rajendra Gandhi, page 6 of the filed PDF · View the filing
Net working capital days: 45 days (Q1 FY27)
p. 6
“From a working capital perspective, the net working capital increased to 45 days in Q1 FY27, which is much better than Q1 FY26 and FY25, but is higher than quarter 4 of FY26.”
Rajendra Gandhi, page 6 of the filed PDF · View the filing
Induction Cooktop revenue growth: 315.9% (Q1 FY27 vs Q1 FY26)
p. 4
“The Induction Cooktop category delivered exceptional growth of 315.9% year-on-year, driven by strong underlying demand trends and our ability to effectively capitalize on the market opportunity following geopolitical disruptions.”
Rajendra Gandhi, page 4 of the filed PDF · View the filing
Induction Cooktop share of revenue: 27% (Q1 FY27)
p. 4
“ICT contributed 27% of our total revenues during the quarter, reaffirming it as a key growth engine for the business, reflecting our manufacturing capability with great agility to meet demands.”
Rajendra Gandhi, page 4 of the filed PDF · View the filing
Pressure Cooker segment growth: 41.3% (Q1 FY27 vs Q1 FY26)
p. 4
“The Pressure Cooker segment grew by 41.3% year-on-year and contributed, to our overall revenues.”
Rajendra Gandhi, page 4 of the filed PDF · View the filing
Non-stick cooker growth: 21.8% (Q1 FY27 vs Q1 FY26)
p. 4
“Our non-stick cooker recorded robust growth of 21.8% year-on-year, accounting for 21% of our revenues during the quarter.”
Rajendra Gandhi, page 4 of the filed PDF · View the filing
General trade growth: 56.2% (Q1 FY27 vs Q1 FY26)
p. 5
“General trade was a key highlight, registering an impressive 56.2% year-on-year growth, the strongest growth witnessed in the last three years, signaling a meaningful recovery and improving channel productivity.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
Retail channel growth: 86.3% (Q1 FY27 vs Q1 FY26)
p. 5
“Notably, our retail channel delivered an outstanding 86.3% year-on-year growth and 88.5% for three-year period, supported by network expansion and increased consumer engagement.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
New franchise stores added: 17 (Q1 FY27)
p. 5
“Further, we added 17 new stores under franchise model during the quarter, reinforcing our retail expansion strategy and advancing our long-term objective of establishing 500 standalone Pigeon exclusive outlets by the year end 2027.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
Franchise-operated retail sales mix: 55%-56% (Q1 FY27)
p. 11
“Franchise-operated sales mix moved up from 43% last year same quarter to 55%, 56% this year in Q1.”
Subhadeep Pal, page 11 of the filed PDF · View the filing
Finance cost: INR7 crores (YTD FY27)
p. 12
“So on a YTD basis, we are at INR7 crores finance cost.”
Subhadeep Pal, page 12 of the filed PDF · View the filing
South market revenue contribution: around 50%
p. 19
“Is upwards of around 50, around 50%.”
Rajendra Gandhi, page 19 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
500 standalone Pigeon exclusive outlets — 500 stores · by year end 2027
stated firmly by Rajendra Gandhi
p. 5
“Further, we added 17 new stores under franchise model during the quarter, reinforcing our retail expansion strategy and advancing our long-term objective of establishing 500 standalone Pigeon exclusive outlets by the year end 2027.”
Rajendra Gandhi, page 5 of the filed PDF · View the filing
Export contribution to revenue — 15% · current and next year
stated as an aspiration by Rajendra Gandhi
p. 8
“As the company grows, we believe even in spite of the growth overall as a company, our export contribution in the next two years, that is the current and the next year, should get to 15%.”
Rajendra Gandhi, page 8 of the filed PDF · View the filing
Gross margin — at least 1% improvement year-on-year · FY27
stated as an aspiration by Rajendra Gandhi
p. 7
“We hope that on a year-on-year basis, there is some headroom, and we will be able to improve at least 1% on gross margin year-on-year.”
Rajendra Gandhi, page 7 of the filed PDF · View the filing
Q2 FY27 revenue growth — Q2 FY27
stated as an aspiration by Rajendra Gandhi
p. 8
“Historically, the Q2 is the strongest and we will continue to be there.”
Rajendra Gandhi, page 8 of the filed PDF · View the filing
Triply circle production — commercial production of triply circles · by end of this calendar year or before December
stated conditionally by Rajendra Gandhi
p. 10
“We believe by the end of this calendar year or before December, we'll be able to produce commercially the circles that are, I mean, triply circles that are required for manufacturing the pressure cookers and cookware.”
Rajendra Gandhi, page 10 of the filed PDF · View the filing
Gross margin range — between 40% and 42% · next two-three years
stated as an aspiration by Rajendra Gandhi
p. 12
“We are confident of increasing our gross margin at least a percentage year-on-year. Ideally, we would want to get, of course, we want to be above 40%, and we, I think the gross margin should settle between 40% and 42% on an ongoing basis.”
Rajendra Gandhi, page 12 of the filed PDF · View the filing
PAT margin — 7% to 8% · two-three years
stated as an aspiration by Rajendra Gandhi
p. 12
“Definitely there will be financial leverage now that you will play out, and with that I think we are able to get, the trajectory will be towards that 7%.”
Rajendra Gandhi, page 12 of the filed PDF · View the filing
EBITDA margin — 14-15% · next two to three years
stated as an aspiration by Rajendra Gandhi
p. 13
“We believe that we'll be able to grow at least a percentage even on the margin side year-on-year, which will ultimately in the range, in the next two to three years, we should be in the range of 14-15%.”
Rajendra Gandhi, page 13 of the filed PDF · View the filing
Retail store sales per store — stabilize at 5 lakhs per store per month
stated as an aspiration by Rajendra Gandhi
p. 17
“For us, anything beyond the 2.5 lakhs per store is profitable. We are currently trending at about 4.3 lakhs, and ultimately our target is to at least stabilize at 5 lakhs per store per month.”
Rajendra Gandhi, page 17 of the filed PDF · View the filing
Induction Cooktop contribution to revenue — at least 20% and a little above · over the year
stated conditionally by Rajendra Gandhi
p. 17
“We are confident of this, contribution from Induction Cooktop to be in the range of, at least 20% and a little above that as we progress over the year.”
Rajendra Gandhi, page 17 of the filed PDF · View the filing
Overall company growth rate — 15% to 20%
stated as an aspiration by Rajendra Gandhi
p. 17
“And it is not too surprising for us to grow at 15% plus, in the range of 15% to 20%.”
Rajendra Gandhi, page 17 of the filed PDF · View the filing
IKEA business scale — 5%-6% of business
stated as an aspiration by Rajendra Gandhi
p. 18
“But our business is diversified into so many channels and so many products, and with a huge innovation pipeline, of course this will also contribute, at the best, even at a large scale, meaning the full-blown IKEA business, it may be 5%-6% of our business.”
Rajendra Gandhi, page 18 of the filed PDF · View the filing
Induction Cooktop annualized growth — 2x of last year · annualized
stated as an aspiration by Rajendra Gandhi
p. 13
“On an annualized basis, we still believe that we will be a 2x of last year.”
Rajendra Gandhi, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said Q2 and Q3 festivals are well spread this year and manufacturing capacity has stabilized, giving confidence in strong performance.
Answered by Rajendra Gandhi
Asked by Manoj Gori: How should growth be viewed for Q2-Q3 given LPG crisis-driven demand versus structural tailwinds?
p. 7
“We are very confident of a strong performance vis-a-vis the last year.”
Rajendra Gandhi, page 7 of the filed PDF · View the filing
Management said input cost pressure continues but has been addressed through price increases, and expects further margin improvement.
Answered by Rajendra Gandhi
Asked by Manoj Gori: Will margin improvement seen this quarter be sustainable across FY27?
p. 7
“We hope that on a year-on-year basis, there is some headroom, and we will be able to improve at least 1% on gross margin year-on-year.”
Rajendra Gandhi, page 7 of the filed PDF · View the filing
Management expects export contribution to reach around 15% of revenue as the company grows.
Answered by Rajendra Gandhi
Asked by Vinod Krishna: What is the outlook for export and IKEA revenue contribution over the next two-three years?
p. 8
“Absolute number will be difficult, but I am telling you, as a percentage of the revenue, it is definitely in the range of 15%, would be, in the positive range of 15%.”
Rajendra Gandhi, page 8 of the filed PDF · View the filing
CFO explained the increase came from job work charges, marketing spend, higher franchise commissions, and advanced CSR spend.
Answered by Subhadeep Pal
Asked by Anand Mundra: Why did other expenses rise significantly in Q1?
p. 11
“So as you can broadly see, the increase has happened in four clear buckets.”
Subhadeep Pal, page 11 of the filed PDF · View the filing
CFO broke down finance cost into fund-based facilities, ROU leases and asset lease, noting fund-based costs improved while asset lease from last year added cost.
Answered by Subhadeep Pal
Asked by Anand Mundra: Why is finance cost elevated despite low debt?
p. 12
“So while on a fund-based working capital cost we have done better, the additional of INR2 crores is happening because of the asset lease that came in last year Q3.”
Subhadeep Pal, page 12 of the filed PDF · View the filing
Management said growth is a combination of product mix, value and volume, with EBITDA margin targeted at 14-15% in two to three years.
Answered by Rajendra Gandhi
Asked by Nikhat Koor: How much of the 41% revenue growth is volume versus value, and is 14% EBITDA margin achievable in three years?
p. 13
“On the EBITDA margins, yes, that is where the endeavor is. We believe that we'll be able to grow at least a percentage even on the margin side year-on-year, which will ultimately in the range, in the next two to three years, we should be in the range of 14-15%.”
Rajendra Gandhi, page 13 of the filed PDF · View the filing
Management attributed it to price correction alongside an aspiration to increase margin, under a cost-plus pricing model.
Answered by Rajendra Gandhi
Asked by Resham Mehta: What explains the quarter-on-quarter gross margin expansion of 100 bps?
p. 15
“That again, when we address the price correction, we are also address the increased aspiration of our gross margin.”
Rajendra Gandhi, page 15 of the filed PDF · View the filing
Management said demand remains in excess of pre-war levels and expects contribution to stay around 20% or slightly higher for the year.
Answered by Rajendra Gandhi
Asked by Rohan Advant: What was the Induction Cooktop monthly run rate and current normalization level versus pre-war levels?
p. 17
“There is a good traction. There is a demand. It is in excess of, pre-war levels.”
Rajendra Gandhi, page 17 of the filed PDF · View the filing
Management said IKEA is exciting but represents only a modest share of overall business given the diversified growth pipeline.
Answered by Rajendra Gandhi
Asked by Anand Mundra: Can IKEA revenue growth offset slower domestic induction demand next year?
p. 18
“But our business is diversified into so many channels and so many products, and with a huge innovation pipeline, of course this will also contribute, at the best, even at a large scale, meaning the full-blown IKEA business, it may be 5%-6% of our business.”
Rajendra Gandhi, page 18 of the filed PDF · View the filing
Risks flagged
Global economic uncertainty, geopolitical tensions, supply chain disruptions, commodity price volatility and currency fluctuations
p. 3
“This performance was delivered against the backdrop of global economic uncertainty, geopolitical tensions, supply chain disruptions, commodity price volatility, and currency fluctuations.”
Rajendra Gandhi, page 3 of the filed PDF · View the filing
Supply-side capacity constraints on small appliances due to reallocation to Induction Cooktop production
p. 4
“the small appliances category was affected by deficiency on the supply side as this was, the lines and other resources that were allocated to the small appliances were utilized together to the surge in sudden demand for Induction Cooktop, which now has stabilized with all the additional requirements for Induction Cooktops in place.”
Rajendra Gandhi, page 4 of the filed PDF · View the filing
Ongoing input cost pressure requiring price pass-through
p. 12
“So actually, being a brand company, but still we are driven by cost-plus model. Any price increase in the input cost, we pass it on. Definitely there are some challenges in the input cost further to the Q1.”
Rajendra Gandhi, page 12 of the filed PDF · View the filing
Elevated job work and outsourced manufacturing costs due to capacity strain from demand surge
p. 11
“To do this, we outsourced manufacturing of some key products on job work basis in the first quarter, and as a result, the job work charges as a percentage to sales grew by 1.2%.”
Subhadeep Pal, page 11 of the filed PDF · View the filing
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