Stove Kraft Limited – Investor Presentation Summary

Key Operational Highlights

  • Achieved highest-ever quarterly revenue in Q1FY27 with 41.3% YoY and 15.9% QoQ growth
  • General Trade channel recorded 56.2% YoY growth, crossing 56% mark for first time in three years
  • Retail channel delivered outstanding 86.3% YoY growth
  • ICT segment delivered exceptional growth of 315.9% YoY and 100.3% QoQ
  • Net working capital increased to 45 days from 23 days in Q4FY26 due to strategic inventory build-up ahead of festive season
  • ROE improved to 9.3% and ROCE improved to 13.9% during the quarter

Key drivers of operational performance

Strong performance across all channels, particularly General Trade, Retail, and ICT segments, supported by resilient demand and market conditions. Strategic inventory build-up for festive season demand fulfillment.

Financial Highlights

Revenue: ₹480.6 Cr (Q1FY27) vs ₹340.1 Cr (Q1FY26) - 41.3% YoY growth

EBITDA: ₹53.8 Cr (Q1FY27) vs ₹35.6 Cr (Q1FY26) - 50.9% YoY growth

PAT: ₹17.1 Cr (Q1FY27) vs ₹10.4 Cr (Q1FY26) - 63.5% YoY growth

EPS: Not explicitly specified

Margins: Gross Profit Margin 39.6% (127 bps YoY expansion), EBITDA Margin 11.2% (vs 10.5% YoY)

YoY/QoQ comparison: Revenue growth 41.3% YoY, 15.9% QoQ; EBITDA growth 50.9% YoY, 36.2% QoQ; PAT growth 63.5% YoY, 181.9% QoQ

Drivers of financial performance: Higher revenue growth, gross margin expansion despite supply chain challenges and elevated raw material costs, strong operating and financial leverage

Comparison to market estimates: Not specified

Key Risks: Ongoing supply chain challenges, elevated raw material costs

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Regional Breakdown: Not specified

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly specified

Reserves: Other equity stood at ₹471.1 Cr as of 31-Mar-26

Current Assets/Liabilities: Current assets ₹540.1 Cr vs current liabilities ₹555.4 Cr as of 31-Mar-26

Working Capital/Leverage Metrics: Net working capital days increased to 45 from 23 in Q4FY26

Financial Health Insights: Improved capital efficiency with ROE at 9.3% and ROCE at 13.9%

Capex & Cash Flow Health

Capital Expenditure: Not specified for current quarter

Free Cash Flow: Not explicitly specified

Operating Cash Flow: Net cash from operating activities was ₹256.5 Cr in FY26

Net Debt Movement: Not specified

Investment Rationale: Strategic inventory build-up for festive season demand fulfillment, particularly for long lead-time ICT products

Strategic & R&D Initiatives

Investments in Innovation: Both manufacturing facilities have high level of backward integration; manufacturing process not dependent on third party suppliers and OEMs

Expected impact on growth: Not specified

Strategic Rationale: Focus on operational excellence and quality manufacturing

Industry Trends & Business Environment

Macro/Industry Trends: Resilient demand and market conditions that continue to be sustainable and materially better than pre-war levels for ICT segment

Impact on Company: Supported exceptional growth in ICT segment (315.9% YoY)

Management Commentary & Growth Outlook

Strategic Outlook: Company remains well positioned to sustain upward trajectory in ROE and ROCE going forward

FY Guidance: Not explicitly specified

Market Share Targets: Not specified

Risks and Opportunities: Not specifically highlighted beyond general safe harbor statement

Additional Information

Marketing Campaigns: Successful 'Ex Ko Karo Exchange' campaign for cookware exchange offers; 'Gas to Grid' initiative to educate consumers about benefits of electric cooking during LPG shortage

Manufacturing: State-of-the-art manufacturing facilities with high backward integration; manufacturing commenced in 2019 by franchisees

Management Team: Professional management team with Mr. Rajendra Gandhi as Managing Director and Mrs. Neha Gandhi as Executive Director, both with over 22 years of experience

Board Composition: Diverse board including independent directors with expertise in accounting, law, and consumer durables industry

Historical Financial Performance (Annual)

FY26 Revenue: ₹1,607.4 Cr

FY25 Revenue: ₹1,449.8 Cr

FY24 Revenue: ₹1,364.3 Cr

FY23 Revenue: ₹1,283.8 Cr

FY26 EBITDA: ₹166.1 Cr (10.3% margin)

FY25 EBITDA: ₹150.7 Cr (10.4% margin)

FY24 EBITDA: ₹118.8 Cr (8.7% margin)

FY23 EBITDA: ₹99.0 Cr (7.7% margin)

FY26 PAT: ₹42.0 Cr

FY25 PAT: ₹38.5 Cr