- Opening HookRemember when your mom said “Don’t play with fire”? Well, Stove Kraft’s business model is literally built on it — and it’s working. The company cooked up a double-digit growth recipe even as tariffs, aluminum, and GST rates tried to turn down the flame. From expanding stores faster than Swiggy adds outlets to striking IKEA-level export deals, this quarter’s story is more “MasterChef India” than “Kitchen Nightmares.” Stick around — because it gets spicier than a Diwali ladoo dipped in margin talk.
- At a Glance
- Revenue up 13.4% YoY:Consumers bought more pressure cookers than mutual funds — festive fever wins again.
- EBITDA up 15.8%:Margins finally found seasoning, no salt shortage here.
- PAT up 27.8%:Profits blew the whistle louder than a cooker on full steam.
- Gross Margin at 38.5%:CFO claims “cost-plus model,” not “costly mistakes.”
- ROCE at 15.5%:Slowly boiling toward 20%, but not yet served hot.
- Net Debt at ₹180cr:Management swears it’ll be debt-free in four quarters — assuming no surprise kitchen fires.
- Management’s Key Commentary
“We delivered a robust 13.4% growth driven by festive demand and leverage.”(Translation: India bought so many cookers, we ran out of shelves.)
“GST reduction from 12% to 5% on cookware is a structural positive.”(Read: Thank you, FM — we’ll take this as an early Diwali bonus.)
“We added 300 Pigeon exclusive outlets — now in 120 cities and 21 states.”(The only migration faster than pigeons — these stores.)
“IKEA partnership starts this year; meaningful revenue next year.”(Basically: we’ve entered Sweden’s kitchen, but they’ll pay later.)
“Exports grew 19% H1; tariffs dampened high growth potential.”(Translation: global trade wars are our unwanted sous-chefs.)
“Borrowing reduced significantly; cash flow ₹177 crore.”(When your CFO brags about cash, you know Diwali went well 😏)
“We aim for 500 stores by FY27 under a COFO model.”(Translation:
If the franchisees blink, we’ll cook the stores ourselves.)
- Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Growth | Comment |
|---|---|---|---|---|
| Revenue | ₹474.4 Cr | ₹418.3 Cr | +13.4% | Festival + GST buzz |
| Gross Profit | ₹182.8 Cr | ₹159.8 Cr | +14.4% | Margin magic |
| EBITDA | ₹56.8 Cr | ₹49 Cr | +15.8% | Operational leverage sizzling |
| PAT | ₹21.4 Cr | ₹16.7 Cr | +27.8% | Cooker whistle moment |
| EBITDA Margin | 12% | 11.7% | +25 bps | Steady simmer |
| ROCE | 15.5% | 13.2% | Improving | Cooking toward 20% target |
(Note: Aluminum cost pressure on low flame; GST relief on high heat.)
- Analyst Questions (Decoded)
- InCred:“When will IKEA orders ramp up?”Management:“Last quarter of FY26, meaningful next year.”(Translation: IKEA cooks slow — like dum biryani.)
- Green Edge:“Did GST disruption hit Q2 sales?”Answer:“₹15–20 Cr lost.”(So yes, the government took some revenue home too.)
- Tunga Investments:“Competition heating up — LG, Bergner, Tramontina?”Answer:“We’re the affordable king.”(Basically, everyone’s premium; Stove Kraft’s practical.)
- Dolat Capital:“South vs non-South split?”Answer:“40-60 now.”(Finally, growth migrated beyond dosa territory.)
- Guidance & OutlookManagement eyesFY26 gross margins near 39%,EBITDA up 1% YoY, andexports growing
