Stove Kraft Q3 FY26: Revenue Declines 6.4% to ₹378.4 Cr, PAT at ₹4.1 Cr
Stove Kraft reported Q3 FY26 revenue of ₹378.4 Cr, down 6.4% YoY, with PAT at ₹4.1 Cr. Gross margins improved to 39.4% despite a 1.7% dip in gross profit. Nine-month revenue grew 4.9% to ₹1,192.9 Cr. Domestic business remains strong, contributing 96% of Q3 revenue, while exports faced headwinds.
The revenue decline and profit drop are significant, but the improvement in gross margins and the strong domestic business performance provide some resilience. The outlook for export normalization and debt reduction offers a neutral to positive medium-term outlook.
The company reported a decline in revenue and profit after tax for the quarter, primarily due to lower export sales, indicating a negative short-term financial performance.
Stove Kraft Limited reported a consolidated revenue of ₹378.4 crore for the third quarter of FY26, a decrease of 6.4% compared to ₹404.1 crore in the same quarter last year. This decline was primarily attributed to lower export sales.
Gross profit for the quarter stood at ₹149.2 crore, down 1.7% year-on-year. However, gross margins improved by 188 basis points to 39.4% from 37.6% in Q3 FY25, reflecting the company's business model resilience. EBITDA for the quarter was ₹35.3 crore, a 12.9% decrease from ₹40.5 crore in the prior year period. Profit After Tax (PAT) for Q3 FY26 was ₹4.1 crore, a significant drop from ₹12.1 crore in Q3 FY25, with PAT margin at 1.1%.
The company incurred a one-time expense of ₹4.65 crore during the quarter, comprising ₹1.24 crore for additional provision for gratuity and leave encashment, ₹1.9 crore due to forex loss, and ₹1.51 crore for ECL provision.
For the nine months of FY26, consolidated revenue grew by 4.9% year-on-year to ₹1,192.9 crore from ₹1,136.8 crore in the corresponding period last year. Gross profit for the nine months increased by 7.1% to ₹462.4 crore, with gross margins improving to 38.8%. EBITDA for the nine months rose by 5.4% to ₹127.7 crore. PAT for the nine months stood at ₹35.9 crore, a slight decrease from ₹37.1 crore in the previous year, impacted by the one-time extraordinary expense.
Domestic business contributed 96% to the company's revenue in Q3 FY26. The company saw robust volume growth of approximately 38% in small appliances and 9% in the pressure cooker category. The retail network expanded to 313 outlets across 21 states and 138 cities.
Export sales faced headwinds, contributing only 3.5% to total revenue in Q3 FY26, compared to the usual 12%. The IKEA business is expected to commence at the end of the current quarter with meaningful revenue contribution expected next year.
Looking ahead, the company expects EBITDA margins to improve by at least 1% year-on-year, with a target to reach 41-42% in the next three years. The company also aims to be cash-debt free by the end of the fiscal year.
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