1. At a Glance – Kitchen Ka Raja, Market Ka Mood Swinger
If South Indian kitchens had a LinkedIn profile, Butterfly would be endorsed by every aunty from Mylapore to Madurai. Butterfly Gandhimathi Appliances Ltd is a legacy kitchen appliance brand, majority-owned (~75%) by Crompton Greaves Consumer Electricals Ltd, which basically means “big daddy watching from the balcony.”
Market cap sits around ₹1,112 crore, CMP at ₹622, and the stock is down ~18% in 3 months and ~13% in 6 months—despite Q3 FY26 PAT jumping ~44% YoY/QoQ. Yes, welcome to Indian mid-caps, where good results are politely ignored.
Q3 FY26 numbers?
- Revenue: ₹245 crore
- EBITDA: ₹20 crore
- PAT: ₹10.8–11.9 crore (depending on rounding, both visible in filings)
- OPM: ~8%
- EPS (Q3): ₹6.02
Debt is a microscopic ₹11 crore, ROCE ~15%, ROE ~10%, P/E ~25x—cheaper than industry PE (~50x), yet still no party.
So the obvious question: Is Butterfly quietly fixing its kitchen… or just rearranging the spice rack? Let’s dive in.
2. Introduction – The Brand Your Mother Trusts, But Dal Street Doesn’t
Butterfly Gandhimathi Appliances was incorporated in 1986, back when mixer grinders were heavier than today’s SUVs and wet grinders were family heirlooms. Over nearly four decades, Butterfly built a strong South-India-centric brand, dominating LPG stoves, pressure cookers, mixer grinders, and wet grinders.
Then came the Crompton takeover era. With Crompton holding ~75% stake, Butterfly effectively became a subsidiary with strategic supervision, operational tightening, and—importantly—less tolerance for chaos.
But the market hasn’t been kind. Sales growth over the last 3 years is negative (~-3%), 5-year CAGR just ~5%, and stock returns over 3 years are -24%. Ouch.
Yet suddenly, Q3 FY26 shows profit revival, margins stabilising, and cash flows turning sensible. So what’s happening here?
Is this a slow-burn turnaround? Or just a seasonal Diwali pop?
Before we judge, let’s first answer the most
important question…
3. Business Model – WTF Do They Even Do?
Butterfly sells things that actually make money, not apps that promise “engagement.”
Core Segments
- Kitchen Appliances (~75% of FY25 revenue)
LPG stoves, mixer grinders, wet grinders, pressure cookers, chimneys, flasks. Basically, everything your kitchen counter is already tired of holding. - Other Domestic Electrical Appliances (~25%)
Fans, air coolers, irons, small home appliances—low glamour, high competition.
Geography
- Domestic: ~97%
- Exports: ~3% (don’t get too excited)
Butterfly is top-3 in mixers, cookers, and gas stoves in South India. Distribution strength is real:
- 29,000+ retailers
- 750 distributors
- Strong e-commerce presence (yes, even your mixer grinder is now on Blinkit).
Add to that an in-house R&D setup on a 25+ acre campus with integrated manufacturing. This isn’t a trading-only jugad; there is actual engineering going on.
But here’s the catch:
👉 It’s a volume business with thin margins, brutally competitive, and extremely sensitive to input costs and demand cycles.
So how are the numbers shaping up?
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Financial Comparison Table (₹ Crore)
| Metric | Latest Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 245 | 238 | 293 | ~2.7% | -16.4% |
| EBITDA | 20 | 17 | 28 | ~18% | -29% |
| PAT | ~11 | ~8 | 17 | ~44% | -35% |
| EPS (₹) | 6.02 | 4.65 | 9.51 | ~29% | -37% |
Yes, QoQ looks ugly. But that’s seasonality talking—Q2 had festive demand. The important signal is YoY recovery,
