Earnings call transcript
STOVEKRAFT · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Stove Kraft Limited reported strong Q4 FY '26 results with revenue of INR414.5 crores, up 32.4% YoY, driven by surge in induction cooktops (89.4% value growth) and small appliances (97.7% volume growth). Full year FY '26 revenue stood at INR1,607.4 crores with 10.9% growth. Gross margins improved 164 bps to 38.7% for FY '26, while EBITDA margin reached 10.3%. Management guided for EBITDA margin protection above 11% and revenue growth upwards of 15% going forward. The company aims to scale induction cooktop capacity from 2 million to 4-5 million units. IKEA revenue recognition will commence this quarter with full capacity contribution of INR200-250 crores. Retail expansion continues with 329 stores currently and target of 500 stores by 2027. Working capital has improved significantly with management confident of maintaining below 30 days.
The strong quarterly performance driven by demand tailwinds in induction cooktops and small appliances, combined with IKEA ramp-up and export normalization, positions the company for accelerated growth. Management's confidence in protecting 11%+ EBITDA margins while targeting 15%+ revenue growth is positive for shareholders.