STOVEKRAFT Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹378.4 Cr
verification pending
Revenue YoY
-6.4%
reported change
EBITDA
₹35.3 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Stove Kraft reported a challenging Q3 FY26 with consolidated revenue of ₹378.4 crore (down 6.4% YoY), hit primarily by a 66% decline in export sales to ₹14 crore from ₹41 crore. EBITDA fell 12.9% to ₹35.3 crore while PAT dropped sharply to ₹4.1 crore from ₹12.1 crore, impacted by ₹4.65 crore in one-time charges (₹1.9 crore forex loss, ₹1.51 crore ECL provision, ₹1.24 crore gratuity adjustment). Positively, gross margins expanded 188 basis points to 39.4%—the highest ever—driven by favorable mix and backward integration. Domestic business remained relatively resilient with 10.3% YoY growth in 9M. Small appliance volumes surged 38% while Pigeon brand recorded 9.3% YTD growth. The company added 17 stores (313 total) toward its 500-store target by 2027. IKEA production commencement has been delayed to Q4 (March) with meaningful FY27 revenue contribution. Management targets 1% annual margin improvement and expects to be near cash debt-free by fiscal year-end from current ₹80 crore net debt. Key risks include unresolved US tariff uncertainty affecting new export category development and commodity price volatility that may require further price passes to consumers.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets at least 1% year-on-year improvement in gross, EBITDA, and PAT margins. Company aims to reach 41-42% gross margins over the next 3 years from current ~39%.
- Working capital debt reduced to ₹80 crore from ₹160 crore. Management is confident of bringing cash debt closer to zero by March 2026 (fiscal year-end).
- IKEA production to commence by end of Q4 (March 2026) after test protocol delays. First meaningful revenue contribution expected from FY27.
- Despite Q3 weakness (Diwali timing effect), management maintains expectation of double-digit domestic growth for full year, likely above 9% baseline.
Risks flagged
- Export sales crashed to ₹14 crore in Q3 from ₹41 crore YoY due to tariff uncertainty, inventory pile-up from Q1 ceramic line transition, and pause on new product category development with US customers. New export business (IKEA and new product categories) remains uncertain pending tariff stabilization.
- Management acknowledged volatile commodity markets (copper, aluminum rising) and indicated price increases will need to be passed to consumers from Q4 onward to protect margins. While hedged for current quarter, there is a lag effect in cost pass-through.
- Management candidly admitted mixer grinder is a 'clutter category' and 'margin drainer' where they are far from top-3 competitors. This ₹100+ crore category contributes lower profitability than other segments, potentially dragging overall margins.
- Management disclosed they completely exited the co-branded oil company channel (previously 60-70% of cooktop business) and are rebuilding through other channels. While margins improved, this strategic decision has created a revenue gap that hasn't been fully recaptured.
Key quotes
- Gross margins for the current quarter stood at 39.4% as compared to 37.6%, improving by 188 basis points, reflecting the strength and resilience of the company's business model.
- We would improve our margins by at least 1% year on year. I don't see us slipping from that. There's a constant endeavor to correct our margins.
- The export environment remains challenging. Our existing categories continue to grow, but the new business is yet to start. We are also working on some other countries, but the existing business with our US customers continues; the new development of new product categories with our American customers are on pause.
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