NSE Symbol

STOVEKRAFT

Performance Highlights

Revenue Performance:

  • Consolidated revenue stood at ₹480.6 crores for Q1 FY27 versus ₹340.1 crores in Q1 FY26
  • Year-on-year growth of 41.3%
  • Strongest ever first quarter performance since company inception

Profitability Metrics:

  • Gross profit: ₹190.4 crores (Q1 FY27) vs ₹130.4 crores (Q1 FY26), growth of 46% YoY
  • Gross margins expanded by 127 basis points year-on-year
  • EBITDA: ₹53.8 crores (Q1 FY27) vs ₹35.6 crores (Q1 FY26), growth of 50.9% YoY
  • EBITDA margins improved to 11.2% from 10.5% (71 bps expansion)
  • PAT: ₹17.1 crores (Q1 FY27) vs ₹10.4 crores (Q1 FY26), growth of 63.5% YoY
  • PAT margins: 3.5% for current quarter

Return Metrics:

  • ROCE improved to 13.9% from 12.6% in corresponding period last year
  • ROE increased to 9.3% from 8.3% in corresponding period last year

Product Category Performance

Induction Cooktops:

  • Exceptional growth of 315.9% year-on-year
  • Contributed 27% of total revenues during the quarter
  • Demand remains substantially above pre-war levels indicating structural shift

Pressure Cookers:

  • Growth of 41.3% year-on-year
  • Contributed significantly to overall revenues (exact percentage not specified)

Non-stick Cookware:

  • Robust growth of 21.8% year-on-year
  • Accounted for 21% of revenues during the quarter

Small Appliances & Gas Cooktops:

  • Witnessed temporary moderation due to supply side deficiencies
  • Resources were reallocated to meet surge in Induction Cooktop demand
  • Still represent 27.5% of revenue mix

Channel-wise Performance

Channel Contribution:

  • E-commerce: 31.8% of total revenues (largest channel)
  • General Trade: 28.6% of total revenues
  • Exports: 15.3% of total revenues
  • Modern Retail: 13% of total revenues
  • Overall Retail: 8.7% of total revenues

Channel Growth:

  • General Trade: 56.2% year-on-year growth (strongest in last three years)
  • Retail Channel: 86.3% year-on-year growth
  • Three-year retail growth: 88.5%

Retail Expansion:

  • Added 17 new stores under franchise model during the quarter
  • Long-term objective: 500 standalone Pigeon exclusive outlets by year end 2027

Operational Metrics

Working Capital:

  • Net working capital increased to 45 days in Q1 FY27
  • Higher than Q4 FY26 but better than Q1 FY26 and FY25
  • Strategic inventory buildup to ensure product availability for festive season

Other Expenses Analysis:

  • Other expenses increased due to four main factors:

1. Job work charges increased by 1.2% of sales due to outsourced manufacturing

2. Marketing and business promotion expense grew by additional 1.2%

3. Higher commission payout (1% of sales) due to shift to franchise-operated stores (55-56% vs 43% last year)

4. Advanced CSR spending of ₹94 lakhs (3% of PBT)

  • Total other expenses landed at 18% of sales

Finance Cost:

  • YTD finance cost: ₹7 crores
  • Comprises three components: working capital facilities, ROU leases, and asset leases
  • Reduced from 2.1% to 1.6% of sales year-on-year
  • Savings of ₹2 crores on fund-based limits offset by asset lease costs

Strategic Initiatives

Premiumization Strategy:

  • Emerging as key growth theme with consumer shift toward higher value products
  • Focus on differentiated products and technology-led kitchen solutions
  • Improving product mix and realizations

Manufacturing Capabilities:

  • Strong backward integration with capabilities in metalworking, coating, and electronics
  • Chinese JV for domestic buying and export advantages
  • Triply manufacturing facility expected to be operational by December 2026
  • Additional capacities being added for pressure cookers and small appliances

Export Strategy:

  • Export contribution target: 15% of revenue in next two years (up from 12% last year)
  • IKEA supplies started in Q2 FY27 (global markets)
  • Existing relationships with Walmart (US) and UK retailer

Management Guidance

Growth Outlook:

  • Confident of strong performance in Q2 and Q3 (festive seasons)
  • Expecting 15%+ consistent growth across categories
  • Non-induction growth target: nearly 20%
  • Induction Cooktop contribution expected to stabilize around 20%+ for full year

Margin Guidance:

  • Target gross margin improvement of at least 1% year-on-year
  • Gross margin target range: 40-42%
  • PAT margin target: 7-8% in 2-3 years
  • EBITDA margin target: 14-15% in 2-3 years

Channel Targets:

  • Average sales per store target: ₹5 lakhs per month (currently at ₹4.3 lakhs)
  • Profitability threshold: ₹2.5 lakhs per store

Geographic Performance

Regional Contribution:

  • South: ~50% contribution (strongest region)
  • West: Second strongest region
  • North and East: Growing faster from smaller base
  • General trade growth higher in non-South regions

Innovation Pipeline

Product Development:

  • Strong pipeline across all three categories (small appliances, cooktops, cookware)
  • Revamped chimney range with BLDC motors
  • Rice cooker and OTG business showing high traction
  • Mixer-grinder range expansion planned
  • Triply cookware segment not yet fully harnessed

Risk Factors Mentioned

External Challenges:

  • Global economic uncertainty
  • Geopolitical tensions
  • Supply chain disruptions
  • Commodity price volatility
  • Currency fluctuations